Best Stocks Under 100 in India 2024

The term "stocks under 100" refers to stocks priced below ₹100 per share, making them accessible for beginners with limited capital. Investing in these stocks can help diversify your portfolio and reduce risk. It allows you to invest in multiple companies across different sectors, potentially reducing risk. Some smaller or less well-known companies offering stocks under Rs. 100 may also offer exposure to companies with significant growth potential. 

Below are the best stocks under 100 that will help beginners in investing at minimal funds.
 

List of Best Stocks Under Rs 100 in India

Here are the best stocks below 100 in India:

Disclaimer - The above information is accurate as of 21st June 2024. However, it's necessary to conduct prior research before making any investment in these stocks.

Best Stocks Watch Under ₹100 Based on Net Profit Margin 

Here are the best stocks watch under ₹100 Based on net profit margin:

Disclaimer: The above information is accurate as of 21st June 2024. However, thorough research should be conducted before making any investment in these stocks.
 

Overview of Stocks Under 100 Rupees

Here is a detailed view of stocks under 100 rupees:

NHPC LTD 

 NHPC Limited or National Hydroelectric Power Corporation, is a public-sector hydropower company established in 1975. The company is also involved in project management, construction contracts, consultancy assignment services and trading of power. 

• The company has shown a strong interest coverage ratio of 13.4. 
• Over the last 5 years, it has maintained an effective average operating margin of 48..79%.
• The stock price CAGR for the past 3 years stands at 56%.

IDFC First Bank LTD 

IDFC First Bank Limited provides banking services. On December 18, 2018, it became operational from the merger of Erstwhile IDFC Bank and Erstwhile Capital First. For the last three years, the company has consistently kept a NIM of 5.28%. The CASA of the company stands at 49.77% of total deposits. 

• The company has generated strong profit growth of  85% over the last three years.
• In the last three years, the company’s sales have grown 24%. 
• The company has a good capital adequacy ratio of 16.73%.

Suzlon Energy Ltd

Suzlon Energy Limited was established in 1995 and manufactures wind turbine generators and associated parts. 

• Over the last three years, the firm has achieved an average of 38.56% profit growth. 
• The revenue growth of the company is also good at 112.16% for the past 3 years. 
• The debts have also decreased by 1,929.23 Cr. 

Bank of Maharashtra

Established in 1935, the Bank of Maharashtra is a financial organisation with a market capitalization of Rs 38,381.05 crore. For the year ending March 31, 2023, the Bank of Maharashtra's principal product and revenue segments are Interest & Discount on Advances & Bills, Income From Investment, Interest on Reserve Bank of India, and Other Interbank Fund Balances.

• The company has delivered good profit growth of 19.7% CAGR over the last 5 years
• There is 20% growth in the company’s profits.
• The stock has offered 28% return on equity in the last one year.

Equitas Small Finance Bank Ltd

Established in 2016 as a microfinance lender, Equitas Small Finance Bank (formerly Equitas Microfinance Ltd) is a small finance bank. It is a subsidiary of Equitas Holdings Ltd, headquartered in Chennai. 

• Last year the bank had a strong return on equity of 15%.
• The company has delivered good profit growth of 21% CAGR over the last 5 years
• The company’s stock price CAGR for the last 3 years is 21%.

Trident Ltd 

Established in 1990, Trident Limited produces, distributes, and shops in Terry Towels & Bed Sheets, Paper & Chemicals, and Yarn. The bank had a strong return on assets (ROA) of 1.56% for the past three years. The firm has generated an acceptable profit rise of 33.03%.

• The company has been maintaining a healthy dividend payout of 38.7%
• The Stock Price CAGR over the last 3 years stands at 32%.
• The company's return on capital employed (ROCE) is 10.5 %.

Motherson Sumi Wiring India Ltd 

Motherson Sumi Wiring India Limited produces and distributes wire harnesses, wires, and components to automobile original equipment manufacturers. The business was established in Mumbai, India on July 2, 2020. 

• The company's interest coverage ratio of 24.46 is good. 
• With a cash conversion cycle of 54 days, the firm operates efficiently.
• The company has been maintaining a healthy dividend payout of 59.9%.
   

How to Identify the Stocks Under 100 Rupees?

Identifying shares under Rs 100 using financial ratios and market indicators:

• Stock Price: Look for energy stocks under 100 with a current market price below 100 Rs.
• Earnings Per Share (EPS): Evaluate the company's EPS, a higher EPS indicates more earnings per outstanding share.
• Price-to-Earnings (P/E) Ratio: This ratio compares the stock price with earnings; a lower P/E ratio may suggest that it is undervalued.
• Dividend Per Share (DPS): Look for the best share under 100 that pays dividends.
• Net Profit Margin: Evaluate the ratio of net profit to revenue; a higher margin indicates efficient cost management and profit generation.
• Debt-to-Equity Ratio: Lower ratios suggest lower debt relative to equity and less risk.
• Current Ratio: Above 1 indicates more assets than liabilities, a positive sign of liquidity and financial health.
   

How to Invest in Stocks Under 100 Rupees?

Purchasing stocks under Rs 100 provides various options for expanding their investment portfolios. Mutual and exchange-traded funds (ETFs) offer diversified exposure to these equities as an alternative. Furthermore, taking part in DRIPs, or dividend reinvestment programs, can diversify risk and allow investors to participate in the top long-term Indian companies under 100 rupees through each of these channels.
 

Considerations for Investing in Stocks Under 100 Rs

There are a few important things to consider while investing in companies that are less than 100 rupees. One of the most notable features of value investing is the low initial investment required. Yes, your financial status matters, but not in the way you may imagine. Your long-term perspective and a lot of patience are required. Value investing is based on patience, which even individuals who have trouble managing their finances can practise.

Finding the best stocks for less than Rs. 100 is crucial, as it requires patience to see your investments grow over time. The following are some important points to keep in mind:

1. Risk Tolerance: Before purchasing stocks priced under 100 Rupees, ascertain your level of risk tolerance. Compared to higher-priced equities, lower-priced stocks may be more risky and volatile.
2. Financial Health: Before investing, evaluate the company's financial standing. Examine important financial indicators, including cash flow, debt levels, profitability, and revenue growth. Ensure that the company's business strategy is sustainable and its balance sheet is sound.
3. Growth Potential: Examine the firm's and industry's prospects for expansion. Consider factors such as market trends, the competitive landscape, and the company's ability to capitalise on growth opportunities. Look for companies with excellent expansion prospects but a lower stock price.
4. Industry Outlook: Examine the business's sector and industry. Consider the industry's growth potential and long-term outlook. Invest in industries with bright futures and room to develop.
    

Benefits of Buying Stocks Under Rs 100

For several possible reasons, investors frequently think about purchasing stocks for less than 100 rupees. 

Affordability:

All individuals can purchase these company stocks; it is not necessary to be financially well-off to become a value investor. Your past academic performance and financial situation are irrelevant; what matters is you have a long-term outlook on the stock market and a track record of patience.

Possibility of price gain:

Lower-priced companies can offer more potential for price gain than higher-priced companies. Investors should also make sure that the equities they are purchasing are from financially stable firms and future leaders. This guarantees that the investor will be able to make money by holding them for an extended period and not losing them in the next few years.

Lowest Risk Investment:

Due to its lack of instability and short-term nature, value investing has been identified as the least dangerous stock market investment technique. Buying stocks for less than 100 rupees demonstrates the buy-and-hold principles of value investing, which are highly praised by investors and shareholders who wish to avoid being taken over by the daily changes in the market.
 

Conclusion 
Buying stocks for less than ₹100 might be a smart investment. These companies may present growth prospects when combined with a long-term outlook, diversification, risk awareness, and careful research. In the ever-changing stock market, keep yourself updated and modify your action plan as necessary. Get more insights by opening a Demat account on an online trading app in India. 

Disclaimer - The stocks mentioned above are based on current market trends and may fluctuate in value. Before investing in any of these stocks, it is important to conduct thorough research or consult with a financial analyst. Investors are advised to exercise caution and diligence when making investment choices.