Last Updated on Apr 25, 2022 by Aradhana Gotur

Stock markets have the potential to cater to every investor type. An investor who cannot invest in the notoriously expensive blue-chip stocks can always look out for stocks that have a reasonable price range, and that can also provide excellent returns. Few stocks, mainly in the smallcap range, fulfill both of these criteria. However, volatility and risk are considerably higher with these stocks. 

If you are on the lookout for buying stocks, preferably under Rs 100, below is a detailed list of the top shares to buy below Rs 100.

So, let’s dive right into it!

List of top stocks to buy under Rs 100

Note: Data discussed is as of 10 March 2022.

1. Zomato Ltd

Zomato listed itself on Dalal Street after much fanfare over its IPO. Founded by Deepinder Goyal and Pankaj Chaddah in 2008, the Gurgaon headquartered food chain offers restaurant aggregation and food delivery services. It serves as a restaurant aggregator, providing information about menus, locations, and other details.

The company has remained in the eye of the storm with its mega-merger deals and overvaluation. The food giant recently signed a deal with Blinkit, and also very recently announced a 10 min food delivery solution, shaking the entire industry.

Despite all, Zomato, as of 10 March 2022, sits on a market cap of ~Rs 61,000 cr., and is believed to become the food industry bellwether soon.

2. Bank of Baroda Ltd

Founded by Sayajirao Gaekwad -III, Bank of Baroda is a 114-yr-old bank headquartered in Vadodara, Gujrat. Established in 1908, the Bank of Baroda is the 4th largest nationalized bank in India with a clientele of 132 mn. customers and a business worth ~$218 bn. 

As of 10 March 2022, the bank sits on a market cap of ~Rs 51,000 cr., with a closing price recorded at Rs 98.85. Bank of Baroda has a global presence of over 100 overseas offices and is one of India’s leading banks.

3. IDBI Bank Ltd

The Life Insurance Corporation of India owns IDBI Bank – a public sector bank founded In 1964. Mumbai is where the company’s headquarters are located. The bank had a market cap of Rs 46,126 cr. on 10 March 2022, as it closed at Rs 42.9. 

The whispers are strong that the bank is on the strategic disinvestment agenda of the government for 2022.

4. Steel Authority of India Ltd

Incorporated in 1973 with an authorised capital of Rs 2,000 cr., Steel Authority of India Limited (SAIL), is a government-owned steel producer. Mr Soma Mandal is the CEO of SAIL, which is currently headquartered in Delhi, employing more than 61,000 people. 

The Ministry of Steel, Government of India, is the parent body of SAIL. On 10 March 2022, the market capitalization of this company stood at Rs 39,694 cr., with a closing price of Rs 96.1 

5. Punjab National Bank

Punjab National Bank (PNB) is a state-owned bank in India. Headquartered in Delhi, the bank comes under the remit of the Ministry of Finance. Mr Atul Kumar Goel is the current CEO of PNB, which was founded by Mr Dyal Singh Majithia. The bank currently employs around 70,000 people. 

With a closing price of Rs 35.6 as of 10 March 2022, PNB has a market cap of Rs 39,199 cr. 

The bank has been dealing with its fair share of controversies, with the latest being of IL & FS Tamil Nadu Power reporting a fraud borrowing totalling Rs 2,060.14 cr.

6. Indian Overseas Bank

Shri. M.Ct.M. Chidambaram Chettiar, a pioneer in many fields, founded the Indian Overseas Bank (IOB) on 10 February 1937. The bank now has operations in four countries: Singapore, Hong Kong, Thailand, and Sri Lanka. The bank’s parent organization is the Indian government’s Ministry of Finance. As of 10 March 2022, the bank had a market cap of Rs 33,835 cr. with a closing price of Rs 17.9.

7. Yes Bank

The controversial Yes Bank was founded in 2004 by Rana Kapoor and Ashok Kapur. RBI took control of the bank on 5 March 2020 to prevent it from collapsing due to an overwhelming volume of bad loans. The RBI now owns 30% of the shares of Yes Bank. As of 10 March 2022, the bank had a market cap of Rs 31,945 cr., and trading around Rs 10 – Rs 12. 

8. Vodafone Idea Ltd

Vodafone Idea Limited or Vi is an Indian telecommunications company headquartered in Mumbai and Gandhinagar. The government owns 35.8% of the company after Vi converted interest on a deferred spectrum and AGR (adjusted gross revenues) into equity just this January. The company market cap stood at Rs 29,597 cr. with a closing price of Rs 10.3 as of 10 March 2022.

9. NHPC Ltd

NHPC Limited, India’s leading hydropower firm and a Government of India ‘Mini Ratna’ Category-I Enterprise, was founded in 1975 and comes under the remit of the Ministry of Power. Shri Abhay Kumar Singh is the Chairman and Managing Director of the company. The corporation currently has a market cap of Rs 28,979 cr. with a closing price of Rs 28.85 as of 10 March 2022.

10. Indian Railway Finance Corp Ltd

Indian Railway Finance Corp (IRFC) is a Miniratna/Schedule ‘A’ public sector company. It is under the ownership of the Ministry of Railways, India. Headquartered in Delhi, the company sits on a market cap of Rs 28,293 cr. as of 10 March 2022, the closing price of ~Rs 21.

Factors to consider before buying stocks below Rs 100

Risk and return are the primary factors you need to consider before investing in such stocks. These stocks are generally volatile and suffer heavily during market turndowns. You need to also keep in mind your investment horizon when investing in stocks below Rs 100. 

The sector you choose to invest in is also of equal importance. Investing in sunrise sector stocks can prove to be beneficial in the long run. Lastly, do remember that stock investing attracts taxes – with LTCG at 10% (above Rs 1 lakh) and STCG at 15%. 

Lastly, it is vital to understand that stocks do not operate individually. A lot of national and international factors affect the prices of a stock. And for small-cap and mid-cap stocks, the fluctuation and volatility are much higher than compared to blue-chip stocks. For instance, a sector may be turbulent due to geopolitical tensions. Nevertheless, it need not mean that the sector is not a good investment space. Therefore, as an investor, it becomes crucial for you to analyse every factor in great depth to avoid losses and spot opportunities. 

Conclusion

Investing in the right stock at the right time can turn your fortunes. Picking up stocks that are not too expensive but show the potential to grow can benefit your portfolio immensely in the long run. However, do keep in mind that the rapid expansion of these companies brings along great risk and volatility.

Before investing, do not forget to visit Tickertape‘s Stock Pages, loaded with key metrics that you need to analyse stocks before investing. Tickertape, with its smooth and seamless interface, presents you with a plethora of tools, options, and filters, enhancing your investment journey.

Ayushi Mishra

2 Comments

  1. I am very jubilant to observe this. This is the form of manual that requires to get hold of and now not the desultory wrong records that is on the opportunity blogs. Appreciate your sharing this first-class posting.

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