Best Stocks Under Rs. 100 in India (2024)

Last Updated on May 17, 2024 by Anjali Chourasiya

Based on a High Net Profit Margin

Note: The information is dated 30th April 2024. We have listed the top shares below Rs. 100 based a high net profit margin using the following parameters:

• Stock Universe – Nifty 500
• Close price under Rs. 100
• Net profit margin – sorted from high to low
• 5-yr average net profit margin – High

Net profit margin means the profit/net income of a company measured as a percentage of its revenue. It shows whether a company is generating enough profit. The ratio also indicates whether the company’s operating and overhead costs are in check.

For instance, a company’s revenue may be increasing, but if the operating costs are rising at a faster rate, the net profit margin will reduce. Therefore, an increasing trend in the net profit margin indicates that the company enjoys good financial health overall. This parameter is suitable to identify best stocks under Rs. 100 for the long term.

🚀 Pro Tip: Use Tickertape’s Portfolio Analysis to assess your investment portfolio’s diversification and performance.

Invest in the Best Stocks Selected by SEBI-Registered Analysts

Did you know that you can invest in readymade electric vehicle stock portfolios managed by SEBI-registered experts?

But, before that, let’s look at what smallcase is.

What is a smallcase?

smallcases are modern investment products that help investors build low-cost, long-term & diversified portfolios with ease. A smallcase is a basket or portfolio of stocks/ETFs representing an idea – an objective, theme, or strategy. They are created and managed by SEBI-registered experts.

Among 500+ smallcases, here’s the top smallcases you can check out:

Mi INDIA Top 10 smallcase by Weekend Investing

Equity & Gold smallcase by Windmill Capital

Disclosure for Mi INDIA Top 10

Disclosure for Equity & Gold

Note: The smallcases are mentioned only for educational purposes and are not meant to be recommendatory. Investors must conduct their own research and consult a financial expert before making any investment decisions.

Based on the Dividend Yield

Note: The information is dated 30th April 2024. We have listed the top NSE stocks under Rs. 100 based on the dividend yield using the following parameters:

• Stock Universe – Nifty 500
• Close price under Rs. 100
• Dividend yield – sorted from high to low
• Dividend per share

A dividend is a portion of the profits that a company pays its shareholders. It indicates that the company is profitable and enjoys good financial health. The dividend yield indicates the percentage of the company’s share price that it pays as dividends.

However, offering a dividend is entirely at the company’s discretion. It may decide not to pay dividends and instead plough the profit back into the business or keep it as a reserve for the future. Therefore, a company that doesn’t declare dividends is not necessarily a bad investment. Tracking the company’s dividend indicators for the past several years reveals insightful information.

Based on Earnings Per Share (EPS)

Note: The information is dated 30th April 2024. We have listed 5 best shares below Rs. 100 based on Earnings Per Share using the following parameters:

• Stock Universe – Nifty 500
• Close price under Rs. 100
• Earnings per share – sorted from high to low

Earnings per share (EPS) is an indicator of a company’s profitability. EPS indicates how much a company earns for each of its shares. Hence, the higher the EPS, the more profitable a company is considered to be.

Based on Volume

Note: The information is dated 30th April 2024. We have listed the best 5 stocks under Rs. 100 based on the following parameters:

• Stock Universe: Nifty 500
• Close price under Rs. 100
• 1-month average volume – sorted from high to low
• 1-week change in volume

Volume means the number of shares transacted over a certain period of time. High volumes indicate investors’ interest in buying or selling stock and vice-versa. If a stock with a high trading volume is gaining, investors are buying more of it. In contrast, if the price is falling, more investors are selling it. To conclude, these stocks under Rs. 100 with high volume offers an insight into which stocks are heavily traded on NSE.

Based on Return on Equity (ROE)

Note: The information is dated 30th April 2024. We have listed the top 5 stocks under Rs. 100 based on the following parameters:

• Stock Universe: Nifty 500
• Close price under Rs. 100
• ROE – sorted from high to low
• 5-yr average ROE – set from 0 to high

Return on Equity indicates how much profit a company is earning in comparison to the shareholders’ equity. It indicates how efficiently a company can convert its equity financing into profits. The best shares under Rs. 100 will have the higher ROE as higher the ROE, the better it is.

Based on Return on Capital Employed (ROCE)

Note: The information is dated 30th January 2024. We have listed the best 5 stocks under Rs. 100 based on the following parameters:

• Stock Universe: Nifty 500
• Close price under Rs. 100
• ROCE – sorted from high to low

Return On Capital Employed is an indicator of a company’s efficiency. It measures the profit generated by a company after taking into consideration the capital used to achieve it.

Types of Stocks to Invest Under Rs. 100

Various stocks under Rs. 100 can be classified based on their characteristics and potential for investment. Here are some common types:

• Blue-Chip Stocks: These belong to well-established companies with a history of stable earnings and consistent dividend payments. Blue-chip stocks are often seen as reliable investments with lower volatility and reduced risk.
• Growth Stocks: These stocks have the potential for significant profits in the future, particularly in high-growth industries like IT, healthcare, and e-commerce. Investors interested in higher returns and willing to accept greater risk may find growth stocks under Rs. 100 attractive.
• Dividend-Paying Stocks: These stocks come from companies that regularly pay dividends to shareholders. They can provide a steady income stream and may be less volatile. Stocks under Rs. 100 from more mature industries like utilities, consumer goods, and healthcare are often associated with dividend payments.
• Penny Stocks: These are shares of small companies or startups that trade below Rs. 100 per share. While penny stocks can be speculative and carry substantial risk due to price fluctuations, they also present high growth potential if the company performs well.

Benefits of Investing in Best Shares Under Rs. 100

There’s an upside to investing in the best stocks under Rs. 100, such as:

• Lower Initial Investment: These stocks allow investors to enter the market with a smaller initial investment. This is particularly helpful for new investors with limited capital.
• Opportunity for Higher Returns: While some may see these stocks as risky due to their smaller market capitalisation, they also present the potential for higher returns. Smaller companies often have more room for growth, and successful business strategies can lead to rapid stock price appreciation.
• Diversification Potential: Investing in a variety of stocks under Rs. 100 provides diversification benefits. These stocks may belong to different sectors and industries, helping investors manage risk by spreading their investments across various stocks and asset classes.

Risks of Investing in Stocks Under Rs. 100

While the allure of finding the next multibagger among stocks under Rs. 100 can be tempting; investors must be mindful of the risks associated with these low-priced shares. Here are some key considerations when exploring the best stocks to buy today in India for the long term under Rs. 100:

Volatility and liquidity concerns: Stocks priced below Rs. 100 are often more susceptible to significant price fluctuations and lower trading volumes, making them vulnerable to market volatility. This can lead to wider bid-ask spreads and difficulty in entering or exiting positions, especially during times of market turbulence.

Lack of transparency and disclosure: Smaller companies with stock prices under Rs. 100 may have less stringent disclosure requirements and lower levels of transparency compared to their larger, blue-chip counterparts. This can make it challenging for investors to access reliable financial information and assess the true value of these companies.

Higher risk of fraud and manipulation: The lower regulatory oversight and weaker corporate governance structures associated with some stocks under Rs. 100 can increase the risk of fraudulent activities, stock price manipulation, and other unethical practices that can erode investor wealth.

Dependence on promoters and management: Many companies with stocks priced below Rs. 100 are heavily dependent on the vision, expertise, and decision-making of their promoters and management teams. Any changes or instability in the leadership can significantly impact the stock’s performance.

Limited research coverage: Stocks under Rs. 100 often receive less attention from research analysts and institutional investors, leading to a lack of comprehensive research and information available to individual investors. This can make it challenging to make informed investment decisions.

Potential for delisting or bankruptcy: Smaller companies with stocks under Rs. 100 face a higher risk of delisting from stock exchanges or even going bankrupt, especially during economic downturns or periods of industry-specific challenges. 

To mitigate these risks, investors should conduct thorough research, diversify their portfolios, and consider seeking professional guidance before investing in stocks priced under Rs. 100.

How to Invest in the Best Stocks Under Rs. 100?

Investing in stocks priced under Rs. 100 can offer opportunities for growth and value, but it requires a strategic approach to navigate the unique dynamics of these lower-priced shares. Here are key steps to guide your investment journey in the best stocks to buy today in India for the long term under Rs. 100:

Thorough Research and Due Diligence: Before investing in stocks under Rs. 100, conduct thorough research on the companies, their financial performance, growth prospects, and industry trends. Analyse key metrics such as revenue growth, profitability, debt levels, and management quality to assess the fundamental strength of these companies.

Focus on Fundamentals: Look for fundamentally strong stocks under Rs. 100 that have solid business models, sustainable competitive advantages, and robust financials. Pay attention to factors like earnings growth potential, dividend payouts, and market positioning to identify quality stocks with long-term growth potential.

Diversification for Risk Management: Diversify your portfolio across a mix of stocks under Rs. 100 to spread risk and capture opportunities in different sectors. By diversifying, you can balance the potential returns and risks associated with individual companies, reducing the impact of volatility on your overall portfolio.

Long-Term Investment Horizon: Investing in stocks under Rs. 100 requires a long-term perspective to ride out market fluctuations and benefit from the growth potential of these companies. Focus on the intrinsic value and growth prospects of the stocks, rather than short-term price movements, to maximize returns over time.

Utilise Investment Tools and Resources: Tickertape Stock Screener offers specialised pre-built screens that can be invaluable for investors looking for the best stocks under Rs. 100. These screens are designed to help users identify affordable stocks with the potential for growth, filtering them by various financial and performance metrics tailored to this specific price range. Whether you’re a novice investor or seeking to diversify your portfolio on a budget, start leveraging Tickertape’s pre-built screens to discover top-performing stocks under Rs. 100 today!

Risk Management Strategies: Implement risk management strategies such as setting stop-loss orders, monitoring market trends, and staying informed about company developments to protect your investments and optimise returns. Stay vigilant about regulatory changes, economic conditions, and industry trends that may impact stocks under Rs. 100.

By conducting thorough research, focusing on fundamentals, diversifying your portfolio, maintaining a long-term perspective, utilising investment tools, and implementing risk management strategies, you can invest strategically in stocks under Rs. 100. Stay informed, stay disciplined, and stay focused on your investment goals to build a resilient and profitable portfolio of lower-priced stocks in the dynamic Indian market.

Conclusion

Evaluating stocks based on a single parameter in isolation can be misleading. A stock can have a high ROE but also a high debt and a decreasing net profit margin. Using multiple parameters and financial ratios to evaluate a stock gives you a holistic picture of the feasibility of investing in the stock. To help you with this, Tickertape’s Stock Screener has 200+ filters to discover stocks based on parameters that matter to you. To evaluate an individual company, use the respective Tickertape’s Stock Page and get access to a treasure of insights into it.

Frequently Asked Questions

Can I buy shares of Rs. 100?

Yes. There is no restriction on that front. The only thing to keep in mind is that the stock should be fundamentally strong. Use Tickertape’s Stock Pages to analyse a stock based on a wealth of information ranging from the company details, financial ratios, and stock forecast to financials, corporate actions, and more.

Which share to buy under Rs. 200?

You can use Tickertape Stock Screener to discover stocks to buy under Rs. 200. Be sure to apply relevant filters. Once you get the list, evaluate each company using Tickertape Stock Pages to make an informed buying decision. 

Which share is best under Rs. 150?

It depends on the company’s fundamentals. Use Tickertape Stock Screener and Stock Pages to discover and evaluate stocks under Rs. 150. In addition, you can also use the Stock Deals feature to gauge the big investors’ outlook on a particular stock.

How do you identify fundamentally strong stocks under Rs. 100?

To identify fundamentally strong stocks under Rs. 100, focus on key financial metrics such as the debt-to-equity ratio, return on equity, profit margins, and year-over-year revenue growth. Stocks that perform well against these parameters and are priced below Rs. 100 might not only be undervalued but may also be poised for potential growth, making them attractive for long-term investment.

Are there benefits to investing in stocks under Rs. 100?

Investing in stocks under Rs. 100 offers the benefit of buying more shares with a smaller amount of capital, which can be particularly appealing to retail investors with limited funds. Additionally, if these stocks are fundamentally strong, they provide an opportunity for significant returns as the company grows.

What risks should you consider when investing in stocks priced under Rs. 100?

While stocks under Rs. 100 can offer substantial upside potential, they often come with higher volatility and risk. Such stocks can be more susceptible to market fluctuations and liquidity issues. Investors should be wary of low-priced stocks that may appear as bargains but lack solid fundamentals, as these can be risky investments.

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Anjali Chourasiya

I am a finance enthusiast who loves exploring the world of money through my lens. I’ve been dedicated to building systems that work and curating content that helps people learn.

As an insatiable reader and learner, I’ve spent the last two years exploring the world of finance. With my creative mind and curious spirit, I love making complex finance topics easy and fun for everyone to understand. Join me on my journey as we navigate the world of finance together!

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