Best Stocks Under ₹100 in India 2024

Last Updated on Sep 6, 2024 by Anjali Chourasiya

Looking to dip your toes into the stock market without breaking the bank? You’re in luck! There are plenty of affordable opportunities with stocks priced under Rs. 100 that you might want to consider. These stocks, often referred to as penny stocks, can sometimes fly under the radar, but they may offer you the potential for significant returns over time. Whether you’re interested in the best penny stocks to buy today, fundamentally strong stocks under Rs. 100, or multibagger stocks below Rs. 100 for the long term, the market has options that might suit your investment goals. In this article, let’s look at the best stocks to buy under 100 based on various fundamental factors, along with features, types, benefits, risks, how to identify, how to invest in the shares under Rs. 100, and more.

Based on a High Net Profit Margin

Note: The information is dated 27th August 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 27th August 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 27th August 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 27th August 2024. We have listed the best stocks to buy 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 27th August 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
• Return on Equity: 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 27th August 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.

What are Stocks Under 100?

Stocks under 100 generally refer to shares that are priced below Rs. 100 on the stock market. These are often considered penny stocks due to their lower price point, and they may belong to smaller or emerging companies. While stocks under 100 can offer opportunities for substantial returns, they also tend to carry higher risks due to their volatility and limited market liquidity. Investors may look at these stocks for potential growth, especially if they are fundamentally strong or operate in promising sectors.

Features of Stocks Under Rs. 100

• Low Entry Point: These stocks are affordable, allowing you to start investing with minimal capital.
• High Growth Potential: Stocks under Rs. 100 can provide significant returns, particularly in emerging sectors with strong growth prospects.
• Volatility and Risk: These stocks tend to be more volatile and come with higher risk due to their lower market capitalisation and limited liquidity.
• Diverse Opportunities: You can find stocks under Rs. 100 across various sectors, such as government stocks and penny stocks, offering multiple investment options.
• Quick Gains: Some of these stocks may experience rapid price changes, creating opportunities for short-term profits.
• Long-Term Value: Certain stocks under Rs. 100 could provide solid growth potential if held for the long term, especially those with strong fundamentals.

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.

Why Invest in Stocks Under Rs 100?

Investing in stocks under Rs. 100 may provide several potential benefits for investors. These stocks, often referred to as penny stocks, can be attractive because they offer a lower entry point, allowing you to start investing without a large capital commitment. They might also present significant growth opportunities, especially if the companies are in high-growth sectors or have the potential to become multibagger stocks over time.

Additionally, stocks under Rs. 100 may help diversify your portfolio by spreading investments across various industries and market segments. For investors with a higher risk tolerance, these stocks could offer the chance to capture high returns if the companies perform well or experience a turnaround. However, it is essential to conduct thorough research and carefully evaluate the fundamentals before investing, as these stocks can be volatile and carry higher risks.

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 Identify the Best Stocks Under Rs. 100?

Investing in stocks priced under Rs. 100 may offer growth opportunities, but it requires a strategic approach to navigate the unique dynamics of these shares. Here are some steps that could guide your investment journey in finding the best stocks to buy today in India for the long term under Rs. 100:

1. Thorough Research and Due Diligence
   Before investing, you may want to conduct thorough research on the companies, assessing their financial performance, growth prospects, and industry trends. Analysing key metrics like revenue growth, profitability, debt levels, and management quality can help you evaluate the fundamental strength of these stocks.
2. Focus on Fundamentals
   It might be beneficial to look for fundamentally strong stocks under Rs. 100 with solid business models, competitive advantages, and robust financials. Paying attention to factors such as earnings growth, dividend payouts, and market positioning could help identify stocks with long-term growth potential.
3. Diversification for Risk Management
   Diversifying your portfolio across various stocks under Rs. 100 may help spread risk and capture growth opportunities in different sectors. This approach could balance the potential returns and risks, reducing the impact of volatility on your overall portfolio.
4. Long-Term Investment Horizon
   A long-term perspective may be necessary when investing in stocks under Rs. 100 to navigate market fluctuations and realize their growth potential. Focusing on the intrinsic value of the stocks rather than short-term price movements might help maximize returns over time.
5. Utilise Investment Tools and Resources
   Investment tools like Tickertape Stock Screener offer pre-built screens that might be useful for identifying affordable stocks with growth potential. These tools can filter stocks based on financial and performance metrics tailored to this price range, helping you make informed decisions.
6. Implement Risk Management Strategies
   Using risk management strategies like setting stop-loss orders, monitoring market trends, and staying informed about company developments could protect your investments. Being vigilant about regulatory changes, economic conditions, and industry trends may also be crucial when investing in stocks under Rs. 100.

By conducting research, focusing on fundamentals, diversifying, maintaining a long-term perspective, leveraging tools, and implementing risk management, you could strategically invest in stocks under Rs. 100. Staying informed and disciplined may help you build a resilient portfolio in the dynamic Indian market.

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

Step 1: Launch ‘Tickertape Stock Screener’

Step 2: Set the ‘Close Price’ to below 100.

Now, you will have all the stocks that are below Rs. 100 in front of you. To enhance your list of best stocks under Rs. 100, you can add from over 200 filters available and/or create a custom filter. This will help you sort the list as per your preference. When you have decided the stock you are interested in, you can simply invest in it within Tickertape. Connect your broker account today and enjoy easy investing! Connect now!

Who Can Invest in the Best Shares Under Rs. 100?

1. New Investors: If you’re new to investing, shares under Rs. 100 may offer an affordable way to enter the market and build your portfolio gradually.
2. Risk-Tolerant Investors: If you’re comfortable with risk, you might explore multibagger penny stocks for 2024 or other high-growth stocks under Rs. 100 that have the potential for significant returns.
3. Value Investors: Those looking for undervalued stocks may find opportunities in fundamentally strong stocks under 100 Rs, which could include stable government stocks or emerging multibagger stocks.
4. Long-Term Investors: If you have a long-term outlook, focusing on best stocks to buy today for the long term under Rs. 100 could yield steady growth as the companies expand over time.
5. Diversifiers: If you’re looking to spread risk, a mix of high-return stocks under Rs. 100 can help balance your portfolio while capturing growth across different sectors.

Factors to Consider When Investing in the Top Penny Stocks

When investing in penny stocks to buy, you might want to consider several important factors to make informed decisions.

1. Financial Strength
   You may want to look for fundamentally strong penny stocks with solid balance sheets, low debt levels, and consistent revenue growth. This may help you identify stocks with the potential to become multibagger stocks below 100 Rs.
2. Industry Potential
   It could be beneficial to focus on penny stocks in sectors with strong growth potential, such as technology or renewable energy. The best penny stocks in India within these growing industries might have a higher chance of success.
3. Market Trends
   Staying informed about market trends and economic conditions could help. Identifying top 100 penny stocks that align with these trends may guide you toward stocks with better prospects.
4. Management Quality
   You might want to assess the quality of the company’s leadership and management team. Companies with experienced and transparent management may have a better chance to grow, especially when it comes to top penny stocks that require strategic guidance.
5. Long-Term Growth Potential
   It may also be useful to look for stocks with long-term growth drivers, such as innovation or market expansion, which might make them the best penny stocks to buy today for potential future returns.

By considering these factors, you could find the best opportunities among penny stocks and develop a more robust investment strategy.

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 About Stocks Under Rs. 100

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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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