A common misconception persists that venturing into the stock market necessitates a substantial financial commitment. Contrary to popular belief, one does not need to make a significant monetary outlay when embarking on their stock market journey.
Investing in stocks primarily involves the selection of shares with the potential to appreciate in value over time, yielding substantial returns. Occasionally, stocks may trade below their intrinsic value on the market, influenced by factors such as pricing errors, company or industry-related news, or a lack of investor confidence. These stocks often belong to businesses with robust fundamentals and a proven track record of success.
In this blog, we present a curated list of top-quality stocks priced under Rs 100, categorized based on fundamental analysis and favored by seasoned investors. These stocks, priced below Rs. 100, exhibit promising growth potential in the foreseeable future.
Top Stocks Under Rs 100 in India for 2024 By Saurabh Chandrakar
Listed below are stocks that can be acquired for less than Rs 100:
| S.No. | Company Name |
|---|---|
| 1. | Steel Authority of India (SAIL) |
| 2. | Indian Oil Corporation |
| 3. | HFCL |
| 4. | Indian Railway Finance Corp |
| 5. | IIFL Securities |
Considerations Before Investing in Stocks Priced Under Rs 100
Before venturing into stocks priced under 100 rupees, several essential factors warrant consideration:
Exploring Value Investing: Value investing doesn’t demand substantial financial resources. Surprisingly, your current financial status matters less when adopting a long-term outlook on stock market investment and demonstrating patience. Patience plays a pivotal role in determining your gains from value investing. One of the remarkable facets of value investing is its economic viability, even for individuals facing financial challenges.
The key lies in investing in the best stocks under 100 rupees and patiently awaiting their potential growth over an extended period. By doing so, you can disregard short-term market fluctuations and concentrate solely on long-term, substantial returns.
Advantages of Compounding: Value investment introduces you to the immense benefits of compounding. Returns and dividends generated from value stocks are reinvested when investing in 100 Rs. stocks over an extended duration. This can dramatically amplify your profit margin.
The beauty of this approach lies in the fact that you need not exert additional effort; your returns from value stocks can support themselves financially. Compounding’s most significant advantage is its ability to gradually grow even the smallest sum into a substantial amount. Preserve your investment by retaining the returns generated from value stocks.
Low-Risk Investment Strategy: Value investing is recognized as one of the least risky investment strategies in the stock market due to its non-volatile and long-term nature.
Investing in stocks priced below 100 rupees embodies the buy-and-hold principles of value investing, lauded by investors and shareholders alike. These principles shield investors from being overwhelmed by daily market fluctuations, allowing them to create long-term capital through the purchase and retention of the best stocks available for less than 100 Rs. Value investments bolster an investor’s portfolio through their low volatility. Moreover, they represent a less risky, effective, and steady approach that prevents impulsive decisions, ill-timed actions, and hasty investments.
An Overview By Saurabh Chandrakar for the Top-Listed Stocks to Buy Under Rs 100
Here is a brief overview of the stocks available for acquisition under 100 rupees:
Steel Authority of India (SAIL): SAIL, the Steel Authority of India, ranks among the largest government-owned steel-producing companies. A public sector enterprise under the Government of India, SAIL is the 24th-largest steel producer globally. It is headquartered in Ranchi, India, and boasts subsidiaries and joint ventures worldwide. SAIL manufactures and markets a diverse range of iron and steel products, including sheets, coils, electrical steel, structural steel, and stainless steel.
Indian Oil Corporation: Indian Oil Corporation Limited is a prominent oil marketing company listed on the BSE and NSE. It has consistently ranked among the top entities in the Fortune India 500 and Fortune Global 500 lists. The company operates across various divisions, including exploration, production, refining, pipeline transportation, and the marketing of natural gas and petroleum products.
HFCL (Himachal Futuristic Communications Limited): Established in 1987, HFCL, or Himachal Futuristic Communications Limited, is a telecom company based in India. HFCL operates across various segments, including manufacturing, R&D, and turnkey solutions. As a global technology market leader, HFCL plays a crucial role in connecting billions of people, objects, and systems. It focuses on creating, integrating, and delivering next-generation technology products and solutions.
Indian Railway Finance Corp: Indian Railway Finance Corporation Ltd. (IRFC) serves as the financing division of India’s Ministry of Railways. Its primary function is to raise funds from financial markets to finance the acquisition or creation of assets, which are then leased to the Indian Railways. IRFC sources funds through short-term loans, institutional financing, taxable bonds, and borrowing from other entities. These funds are employed to support the railway’s plan outlay and investments in locomotives, coaches, and wagons.
IIFL Securities: IIFL Securities Limited offers capital market services in India’s primary and secondary markets. The company operates in various domains, including facilities and ancillary, insurance broking, and capital market activity. Its services encompass investment banking, retail broking, commodities trading, financial planning, depository participant services, mutual funds, bonds, portfolio management, alternate investment funds, and retirement and estate planning.
In Conclusion
Prudent investment decisions necessitate the meticulous evaluation of multiple factors. Regardless of the amount you intend to invest, be it 100 rupees or 50,000 rupees, thorough research is essential. Examine a stock’s historical performance, revenue, returns, fundamentals, and financial ratios before reaching an investment decision. Remember that investing in stocks, irrespective of their price, should always be approached with caution.
Lastly, while the stocks highlighted here exhibit strong performance across diverse industries, this list is by no means exhaustive. There are numerous other stocks worthy of consideration for your investment portfolio. Your investment strategy should align with your financial objectives and risk tolerance.