Many believe investing in the stock market requires a considerable monetary investment. Well, that’s not true. You don’t need to spend much money when starting your journey in the stock market. You can start investing with some stocks under Rs 100.
Investing in stocks involves selecting stocks that will increase in value in the future to generate substantial returns. Stocks can sometimes trade below their intrinsic market value for various reasons, including pricing errors, company or industry news, or a general lack of investor confidence. These stocks come from companies with solid fundamentals and a long track record.
In this blog, you will find a list of the best stocks under Rs 100 ranked by fundamental analysis and used by big investors. We have selected a list of stocks with share prices below Rs 100 with excellent growth potential shortly.
The Benefits of Investing in Undervalued Stocks
Some benefits of investing in undervalued stocks are mentioned below.
- Undervalued stocks will eventually reach their intrinsic value, resulting in guaranteed returns.
- It allows investors to buy good stocks at a lower price. Undervalued stocks are stocks of well-established companies.
- Sometimes these stocks are small companies on their way to growth, making them versatile.
- These stocks are low-risk, and undervaluation is often cyclical. They will automatically reach their intrinsic price.
Factors to consider before investing in stocks under Rs 100
Some key factors to consider when investing in stocks under Rs 100 are:-
Discover Value Investing
You don’t need a lot of money to be a value investor. You have heard that. Your current financial situation is essential if you have a long-term view of the stock market and a history of patience. Patience is a critical factor in the returns you get from value investing.
Advantages of Compounding
If you don’t already know, value investing will make you realize the vast benefits that compounding can bring.
The interest and dividends you earn from value stocks will be reinvested if you invest in stocks under Rs 100; your profit margin will increase significantly if you do this.
The advantage is that you won’t need extra effort as your profits can support them financially. The most significant benefit of compounding is its ability to patiently turn even the smallest amount into a lump sum. Keep your investment intact by retaining value stock returns.
Low-risk investment strategy
Because value investing is neither volatile nor short-term, it has been identified as the least risky investment strategy in the stock market.
Buying stocks under Rs 100 is a prime example of the buy-and-hold principle of value investing, which investors and shareholders often praise because it keeps them from getting overwhelmed by volatility.
Instead, they can use it to generate long-term capital by buying and holding the best stocks under Rs 100.
Top Listed Stocks Under Rs 100
Here is a brief overview of the stocks that can be bought under Rs 100-
1) Steel Authority of India (SAIL)
SAIL, or Steel Authority of India, is one of the largest state-owned steel manufacturing companies. SAIL is an Indian government-owned company in the public sector.
It ranks as the 24th largest steel producer in the world. It consists of SAIL Security Organization, Management Training Institute (MTI), Iron and Steel Research and Development Center (RDCIS) and Center for Engineering and Technology (CET) (SSO).
2) Indian Oil Corporation Ltd
Another Maharatna company on this list, Indian Oil Corporation Ltd. (IOCL), is a state-owned oil and gas company whose interests span the entire hydrocarbon value chain.
Its business scope includes oil refining, pipeline marketing and transportation, crude oil and gas exploration and production, petrochemicals, gas marketing, alternative energy sources, and the globalization of operations.
NCC Company Limited is a small capital construction company developing industrial and commercial buildings, roads, water supply and environmental projects, mining, metro projects, power transmission lines, etc.
NCC is based in Hyderabad, Telangana and is one of the picks of late investor Rakesh Jhunjhunwala. According to recent filings, he holds a 12.6% stake in the construction company.
Established in 1997, Himachal Futuristic Communications Ltd. (HFCL) manufactures telecommunications equipment, fibre optic cables and smart electrical systems.
It has carried out various greenfield projects, including CDMA/GSM network, satellite communication, mobile web and more than 100,000 km of cable network.
Headquartered in New Delhi, India, GAIL Ltd. (formerly the Gas Regulatory Authority of India) is a public natural gas exploration and production company responsible for the processing and distributing of natural gas in India.
GAIL is actively expanding its presence in the renewable energy sector. The company currently has an installed capacity of 130.26 MW of alternative energy. Management has set aside Rs. 6,000 cores to invest in renewable energy over the next three years.
You only need to invest a little money if you are a beginner investor. Smaller sums can also be used to invest in stocks.
Be sure to invest wisely while remaining patient. We sincerely hope you find this blog informative and helpful. Know that it is crucial to research before making any investment decisions, regardless of the items on this list.