Numerous individuals hold the belief that entering the realm of stock market investment necessitates a substantial financial outlay. However, this notion is unfounded. When embarking on your journey in the stock market, there’s no requirement for a significant initial monetary commitment.
Engaging in stock investment entails the careful selection of stocks projected to appreciate in value over time, yielding substantial returns. Occasionally, stocks are traded below their intrinsic market worth due to diverse factors such as errors in pricing, company or industry-related news, or a general lack of investor confidence. These particular stocks originate from enterprises with robust foundational strengths and a history of achievements.
Within this blog post, you will discover an inventory of premier stocks priced under Rs 100. These selections are organized according to fundamental analysis criteria and are favored by prominent investors. We’ve curated a collection of stocks with share prices below Rs. 100, showcasing promising growth potential in the immediate future.
Factors considered for the selected Stocks to Buy Under Rs 100
Considering the significant position held by the Stocks to buy Under Rs 100 in India, it’s imperative to consider specific factors when contemplating potential investment options.
We have curated the following list of Stocks to buy Under Rs 100 in India based on the following factors:
1. Market Cap
We have chosen only those Stocks to buy Under Rs 100 whose market cap is greater than 3000 Crore INR.
2. Price to Earning Ratio
Typically, a stock’s price-to-earnings ratio tends to decrease as its performance improves.
3. Sales
We have selected the following Stocks to buy Under Rs 100 with an Average Sales Growth (3 years) of more than 10%.
4.Profit
The following list consists of Stocks to buy Under Rs 100 whose Average Profit growth (3 years) > 10%.
Top Stocks to buy Under Rs 100 to buy in India
Brightcom Group Ltd
Established in the year 2010, Brightcom Group Ltd, formerly recognized as Lycos Internet Ltd, is dedicated to furnishing digital marketing solutions to businesses, agencies, and online publishers across the globe. This accomplished company operates through a network of subsidiaries, showcasing a diverse portfolio of products including Onetag, Coreg, Volomp, Pangea, Brightcom, Proxytool, B-Local, and COMPASS.
Comprising three distinct divisions, Brightcom Group Ltd’s services encompass an extensive range of offerings. Their Services Division covers an array of vital aspects such as Video Advertising, Display Ads Marketing, Performance-based Marketing, Search Marketing, Email Marketing, Lead Generation, Affiliate Marketing, Social Marketing, Mobile Marketing, Niche Campaigns, Digital Traffic Management, and Ad Serving. In addition, their Software Services cater to crafting bespoke technology platforms to effectively address clients’ specific requirements in the digital media landscape. Furthermore, their Future Technologies Division concentrates on pioneering products like LIFE, and advancements in artificial intelligence, machine learning, and Digital Out of Home (DOOH) advertising, positioning them as a leader in innovation and cutting-edge solutions.
- Market Cap – ₹ 4,994 Cr.
- Current Price – ₹ 24.8
- High / Low – ₹ 49.0 / 9.27
- Stock P/E – 3.64
- ROE – 22.3 %
The company maintains a virtually debt-free status and its stock is currently trading at a valuation of 0.71 times its book value. With promising prospects for the upcoming quarter, the company is anticipated to perform well. Impressively, it has demonstrated a robust profit growth of 27.5% CAGR over the past five years. However, it’s worth noting that the promoter holding is relatively low, standing at 18.4%.
Indian Oil Corporation Ltd
Indian Oil Corporation Ltd, classified as a Maharatna Company and overseen by the Government of India, boasts an extensive range of business pursuits spanning the entire hydrocarbon value chain. This encompasses activities such as Refining, Pipeline transportation, marketing of Petroleum products, and engagement in R&D, Exploration & production, as well as the marketing of natural gas and petrochemicals. The company has firmly established its dominance in the Indian Oil refining and petroleum marketing sector, positioning itself as a prominent leader in the industry.
Distinguished as the largest refining entity in India, Indian Oil Corporation operates a network of 11 refineries situated throughout the country, collectively possessing an aggregate capacity of 80.60 MMTPA. Notably, this capacity accounts for a substantial 32% of India’s total refining capacity. Noteworthy subsidiaries include Chennai Petroleum Corporation Ltd, which possesses two refineries in Chennai and in which the corporation holds a 52% stake. Remarkably, as of June 30, 2022, the company commands an impressive market share of over 32% within the domestic refining sector. While the utilization rate witnessed a decline to 90% in FY21 from a previous 100%, it rebounded to 97% in FY22, demonstrating the company’s resilience and adaptability in a dynamic market landscape.
- Market Cap – ₹ 1,32,034 Cr.
- Current Price – ₹ 93.5
- High / Low – ₹ 101 / 65.2
- Stock P/E – 5.37
- ROE – 7.17 %
The current trading valuation of the stock at approximately 0.94 times its book value suggests a potential undervaluation, potentially offering an opportunity for investors to acquire shares at a price that might not fully reflect the company’s intrinsic worth. Alongside this, the company’s consistent track record of maintaining a dividend payout ratio of 46.4% underscores its strong commitment to shareholders, signifying stable financial health and a willingness to share profits through regular dividends, factors that can be indicative of a well-established and managed company.
Union Bank of India
Union Bank of India is actively involved in a diverse range of banking services including Government Business, Merchant Banking, Agency Business Insurance, Mutual Funds, and Wealth Management. Currently, the bank boasts an extensive network comprising 8,580 branches and 10,835 ATMs spread across India. This network has seen a remarkable expansion, nearly doubling from the earlier 4,281 branches and 6,895 ATMs, primarily attributed to the merger with Andhra Bank and Corporation Bank. Notably, this merger has significantly augmented the bank’s customer base, with a substantial 15+ crore customers now under its umbrella.
The bank has exposure across a spectrum of industries, with Infrastructure advances constituting 16% of its total domestic advances. Following closely are NBFCs and HFCs at 11%, while Basic metals, food processing, textiles, construction, and all engineering collectively account for 42.5% of the bank’s total domestic advances. This strategic diversification of exposure underscores the bank’s approach towards managing its portfolio across various sectors, potentially minimizing risks associated with industry-specific fluctuations.
- Market Cap – ₹ 62,470 Cr.
- Current Price – ₹ 91.4
- High / Low – ₹ 96.4 / 38.8
- Stock P/E – 6.12
- ROE – 11.4 %
The current stock valuation stands at approximately 0.79 times its book value, while also offering an appealing dividend yield of 3.28%. Impressively, the company has showcased strong profit growth, achieving a 29.5% CAGR over the past five years. However, there are certain drawbacks to consider: the company’s interest coverage ratio is low, indicating potential challenges in meeting interest obligations; its return on equity over the last three years remains modest at 8.66%; and the presence of substantial contingent liabilities amounting to Rs. 6,51,666 Cr. raises concerns. Additionally, there is a possibility of interest cost being capitalized, which could impact the company’s financial reporting. It’s also noteworthy that the earnings encompass an other income of Rs. 17,176 Cr., underscoring the complexity of the company’s financial picture.
CESC Ltd
Established in 1978, CESC Ltd is a prominent player in the electricity sector, engaged in both power generation and distribution. It stands as a flagship company under the RP-Sanjiv Goenka Group. Notably, CESC holds the distinction of being India’s pioneer fully integrated electrical utility company to involve private sector participation in the complete spectrum of power activities, encompassing generation, transmission, and distribution. Its operational reach extends across key areas including Kolkata, Hooghly, Howrah, North and South 24 Parganas in West Bengal, collectively serving around 3.4 million consumers across domestic, industrial, and commercial segments.
Beyond its primary operations, CESC has also diversified its influence by venturing into independent power generation projects and distribution initiatives across different regions of the country.It’s worth highlighting that in the fiscal year 2022, a significant change occurred within CESC’s corporate landscape. Surya Vidyut Limited, a subsidiary of CESC Ltd, ceased to retain its subsidiary status due to the strategic sale of SVL’s shares to Torrent Power Limited. This transaction was executed in accordance with a Share Purchase Agreement, reflecting the evolving nature of CESC’s business portfolio and its commitment to adapt to changing market dynamics.
- Market Cap – ₹ 10,379 Cr.
- Current Price – ₹ 78.3
- High / Low – ₹ 86.6 / 62.1
- Stock P/E – 7.39
- ROE – 12.2 %
At present, the stock is valued at approximately 0.95 times its book value, and it offers an attractive dividend yield of 5.75%. Impressively, the company has consistently upheld a robust dividend payout ratio of 44.6%, indicating a steady commitment to providing returns to shareholders. However, there are certain drawbacks to consider: the company has exhibited subpar sales growth, registering only 6.75% over the past five years. Furthermore, its return on equity over the last three years stands at a modest 13.1%. It’s also notable that the earnings encompass an additional income of Rs. 1,717 Cr., underscoring the complexity of the company’s earnings composition.
Ujjivan Small Finance Bank Ltd
Ujjivan Small Finance Bank Limited operates as a dedicated bank in India, with a strong focus on the mass market, aiming to serve segments that have traditionally been underserved or entirely unserved by the financial sector. The bank is deeply committed to fostering financial inclusion throughout the country. Commencing its journey as Ujjivan Financial Services Limited in 2005, it was established as a Non-Banking Financial Company with a mission to extend financial services to the “economically active poor,” who had been historically underserved by conventional financial institutions.
The bank’s operations are structured across distinct segments: Retail Banking, which encompasses the majority at 88%, involving lending, deposits, and the corresponding earnings and expenses of retail customers; the Treasury Segment, constituting around 10%, predominantly deals with net interest earnings from investments, money market activities, and investment-related gains or losses; and Wholesale Banking, making up about 2%, involves interest income from loans extended to corporate entities and financial institutions. Presently, the bank has established a network of 575 branches and 517 ATMs across 25 states and 271 districts, serving an impressive customer base of around 7.7 million as of March 2023. Demonstrating its growth trajectory, the bank witnessed a substantial 42% year-on-year rise in total disbursements during FY23, amounting to a notable 20,000 crores.
- Market Cap – ₹ 9,736 Cr.
- Current Price – ₹ 49.8
- High / Low – ₹ 52.2 / 19.4
- Stock P/E – 7.97
- ROE – 31.4 %
There is optimistic anticipation surrounding the company’s upcoming quarter, underpinned by its commendable historical performance. Notably, the company has achieved an impressive 176% CAGR in profit growth over the past five years, reflecting consistent excellence. Over the span of the last decade, the company’s median sales growth has held strong at 24.8%. However, amidst these strengths, certain concerns arise: the company presents a low interest coverage ratio, suggesting potential challenges in meeting interest payments, and its return on equity over the last three years stands at a modest 7.17%, indicating room for enhancing the efficiency of utilizing shareholders’ investments for generating returns.
Indian Railway Finance Corporation Ltd
Established in 1986, Indian Railway Finance Corporation functions by procuring funds from financial markets to facilitate the acquisition or generation of assets, which are subsequently leased to the Indian Railways through finance lease arrangements. As a pivotal entity, it serves as a financial arm of the Indian Railways, effectively mobilizing funds from both domestic and international Capital Markets. The corporation is accorded the status of a Mini Ratna I and Schedule A Public Sector Enterprise, operating under the administrative purview of the Ministry of Railways, Government of India. Notably, it holds registrations as both a Systemically Important Non-Deposit taking NBFC and an Infrastructure Finance Company.
The array of services provided by IRFC includes financing the procurement of rolling stock assets, engaging in the leasing of railway infrastructure assets, and extending lending facilities to other entities under the Ministry of Railways. The corporation’s multifaceted role underscores its integral contribution to facilitating the growth and financial vitality of the Indian Railways and its broader ecosystem.
- Market Cap – ₹ 63,905 Cr.
- Current Price – ₹ 48.9
- High / Low – ₹ 52.0 / 20.6
- Stock P/E – 10.2
- ROE – 14.7 %
The company has achieved commendable profit growth, recording a 25.3% CAGR over the past five years, highlighting its consistent positive performance. Additionally, the company has upheld a robust dividend payout ratio of 30.7%, showcasing its commitment to providing returns to its shareholders. However, there are several concerns to consider: the company demonstrates a low interest coverage ratio, indicating potential difficulties in fulfilling its interest payment obligations; the tax rate appears to be on the lower side, possibly raising questions about its sustainability; and there is a possibility that the company is capitalizing interest costs, which could impact its financial reporting transparency.
IRB InvIT Fund
IRB InvIT Fund emerges as a trust, established by its Sponsor & Project Manager, functioning as a significant private highway infrastructure developer within India. The primary objective of this trust is to acquire, manage, and maintain a portfolio of toll road concessions. Presently, the trust oversees the operations of 7 operational road assets, collectively valued at approximately Rs. 7250 Cr., spread across diverse states including Maharashtra, Gujarat, Rajasthan, Karnataka, Tamil Nadu, and Punjab. The assets within the InvIT Portfolio have an average life span of around 16 years. The Investment Manager for this trust is IRB Infrastructure Pvt Ltd, an entity boasting 18 years of experience in road BOT project operations, along with expertise in toll plaza development, operations, and maintenance.
Moving into the realm of Investment Trusts (InvITs), this category pertains specifically to the infrastructure domain. It functions as a collective investment vehicle, pooling resources from long-term investors to acquire infrastructure assets from developers that generate steady income. The broader entity, IRB Infrastructure Developers Limited, is a publicly listed infrastructure development company. The company is actively engaged in the development of numerous infrastructure projects, utilizing the Public-Private Partnership model, particularly in the toll road sector. With an extensive portfolio comprising 23 projects, including 7 projects under the Operations & Maintenance Contract for IRB InvIT, the aggregate stretch spans 12,975 lane kilometers. This also encompasses a notable 20% stake in the esteemed Golden Quadrilateral project.
- Market Cap – ₹ 4,054 Cr.
- Current Price – ₹ 69.8
- High / Low – ₹ 73.0 / 54.1
- Stock P/E – 11.3
- ROE – 8.78 %
The stock’s current valuation stands at approximately 1.01 times its book value. However, it’s important to acknowledge certain drawbacks: the company has displayed subpar sales growth, registering only 7.76% over the past five years. Furthermore, the promoter holding is relatively low at 18.5%. The tax rate also appears to be on the lower end, potentially warranting scrutiny. Additionally, the company’s return on equity over the last three years remains modest at 6.49%, underscoring potential challenges in generating substantial returns from shareholders’ investments.
Electrosteel Castings Ltd
Electrosteel Castings is actively involved in the manufacturing of various products, including Ductile Iron (DI) Pipes, Ductile Iron Fittings (DIF), Cast Iron (CI) Pipes, and Pig Iron supply. The company’s scope encompasses Ductile Iron Pipes, Ductile Iron Fittings, and Cast Iron Pipes. Within its revenue distribution for FY22, D.I. Spun Pipes contribute 71%, Ferro Products account for 6%, D.I. Fittings constitute 5%, C.I. Spun Pipes represent 2%, and Others contribute 16%. In terms of geographical distribution during the same period, the company’s operations saw 73% of revenue generated from within India, while 27% originated from outside India.
With regard to its manufacturing capabilities, the company operates from five distinct facilities, distributed across West Bengal, Tamil Nadu, and Andhra Pradesh. Additionally, the company has extended its operations into the realm of power generation. Notably, Electrosteel Castings established a new 5 MW Turbo generator at its Haldia Works, leveraging the potential of steam generation from waste gases emitted by its Coke Oven Plant. This initiative yielded promising results, with the new power plant generating around 20 million units in FY22, showcasing an increase from approximately 18 million units in the previous fiscal year.
- Market Cap – ₹ 3,499 Cr.
- Current Price – ₹ 58.8
- High / Low – ₹ 63.5 / 31.4
- Stock P/E – 11.8
- ROE – 7.44 %
The current stock valuation stands at approximately 0.80 times its book value. Impressively, the company has achieved a notable profit growth of 20.5% CAGR over the past five years. Furthermore, the company’s management of debtor days has shown improvement, reducing from 66.3 to 53.0 days. However, certain drawbacks should be taken into consideration: the company presents a low return on equity of 6.62% over the last three years, signifying potential challenges in generating substantial returns from shareholders’ investments. Additionally, there has been a decrease in promoter holding over the last three years, reflecting a decline of -8.33%.
National Aluminium Company Ltd
Established in 1981, National Aluminium Company Limited (NALCO) is engaged in the manufacturing and distribution of Alumina and Aluminium. The company holds the prestigious status of being a Navaratna Central Public Sector Enterprise (CPSE) under the Ministry of Mines. Notably, it stands as one of India’s largest integrated Bauxite-Alumina-Aluminium-Power Complex, spanning the complete value chain from bauxite mining and alumina refining to aluminium smelting, power generation, and downstream product offerings. In its product portfolio, NALCO covers a diverse range, including Calcined Alumina, Alumina Hydrate, Specialty Hydrates, Standard Ingots, Sow Ingots, T-Ingots, Wire Rods, Billets, and Flat Rolled Products such as Coils, Sheets, and Chequered Sheets. Additionally, the company is a significant player in the electricity sector.
The company’s operational infrastructure includes a robust 68.25 lakh TPA Bauxite Mine, a 22.75 lakh TPA (normative capacity) Alumina Refinery situated in Damanjodi within the Koraput district of Odisha, along with a 4.60 lakh TPA Aluminium Smelter and a 1200MW Captive Power Plant located in Angul, Odisha. Furthermore, NALCO operates four wind power plants, collectively boasting a capacity of 198 MW, and it has an additional 25 MW wind power plant in the pipeline, highlighting its commitment to sustainable energy initiatives.
- Market Cap – ₹ 17,319 Cr.
- Current Price – ₹ 94.3
- High / Low – ₹ 97.6 / 67.0
- Stock P/E – 13.2
- ROE – 12.0 %
The company stands out with its nearly debt-free position, reflecting prudent financial management and reduced financial risk, bolstering investor confidence. Furthermore, the company’s consistent commitment to maintaining a healthy dividend payout ratio of 39.9% highlights its strong financial performance and dedication to providing shareholders with sustained returns, underscoring its robust financial health and shareholder-friendly approach.
Equitas Small Finance Bank Ltd
Equitas Small Finance Bank Ltd initially operated as a wholly-owned subsidiary of Equitas Holding Ltd before obtaining a small bank license. Its journey began in 2007 within the microfinance sector and expanded into vehicle and housing finance in 2011, further diversifying into SME and LAP in 2013. A significant milestone was the merger with Equitas Microfinance Ltd and Equitas Housing Finance Ltd, leading to the establishment of a bank. Following the acquisition of a license in September 2016, the company commenced operations as Equitas Small Finance Bank.
The bank’s noteworthy aspects encompass its extensive geographical presence across 17 states and UTs, with 861 banking outlets and 330 ATMs, serving a substantial clientele of over 40 lakhs. The bank’s diversified loan book consists of six distinct categories. Small Business Loans, encompassing housing and agricultural loans, constitute 43% of total advances (Dec 20), showing growth from 34% (Mar 18). Vehicle Finance stands at 25% of total advances (Dec 20), down from 29% (Mar 18), while Microfinance contributes 20% (Dec 20), reduced from 27% (Mar 18). Micro & Small Enterprise Finance represents 6% of total advances (Dec 20), an increase from 5% (Mar 18), and Corporate Loans make up 5% (Dec 20), up from 2.5% (Mar 18). Additionally, the bank offers other categories such as loans against gold, overdrafts, and unsecured business loans, accounting for 1% of total advances (Dec 20), down from 2% (Mar 18).
- Market Cap – ₹ 9,745 Cr.
- Current Price – ₹ 87.3
- High / Low – ₹ 101 / 42.8
- Stock P/E – 14.6
- ROE – 12.2 %
The company has demonstrated impressive profit growth, achieving a remarkable 78.3% CAGR over the past five years. However, certain drawbacks should be noted: the company presents a low interest coverage ratio, suggesting potential challenges in meeting interest payment obligations; its return on equity over the last three years remains modest at 10.7%, indicating room for improvement in generating substantial returns from shareholders’ investments. Additionally, it’s notable that the earnings encompass other income of Rs. 708 Cr., which adds complexity to the company’s overall financial picture.
Also read:
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List of Top Stocks to buy Under Rs 100 to buy in India
|
Rank |
Brand Name |
Market Cap (in INR rupees) |
Price to Earning Ratio |
|
1 |
Brightcom Group Ltd |
₹ 4,994 Cr. |
3.64 |
|
2 |
Indian Oil Corporation Ltd |
₹ 1,32,034 Cr. |
5.37 |
|
3 |
Union Bank of India |
₹ 62,470 Cr. |
6.12 |
|
4 |
CESC Ltd |
₹ 10,379 Cr. |
7.39 |
|
5 |
Ujjivan Small Finance Bank Ltd |
₹ 9,736 Cr. |
7.97 |
|
6 |
Indian Railway Finance Corporation Ltd |
₹ 63,905 Cr. |
10.2 |
|
7 |
IRB InvIT Fund |
₹ 4,054 Cr. |
11.3 |
|
8 |
Electrosteel Castings Ltd |
₹ 3,499 Cr. |
11.8 |
|
9 |
National Aluminium Company Ltd |
₹ 17,319 Cr. |
13.2 |
|
10 |
Equitas Small Finance Bank Ltd |
₹ 9,745 Cr. |
14.6 |
Conclusion
As a novice investor, it’s essential to recognise that significant initial capital isn’t a prerequisite for entering the investment arena. Even with smaller amounts of money, you can actively engage in stock investments and gradually build your portfolio over time.
It’s crucial to emphasize the significance of prudent decision-making and exercising patience throughout your investment journey. Striking a balance between making informed choices and allowing time for your investments to grow can lead to favorable outcomes.
We genuinely trust that this blog serves as a valuable source of information and guidance for you. However, it’s of utmost importance to stress the necessity of conducting thorough research before committing to any investment decisions, regardless of the insights provided in this compilation.
Wishing you a fruitful and satisfying investment experience!
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