Top Indian Stocks Under 100 Rs: Investment Opportunities

Top 5 Stocks Under 100 Rs

1. Suzlon Energy Ltd.
2. IDBI Bank Ltd.
3. NHPC Ltd.
4. NBCC (India) Ltd.
5. Morepen Laboratories Ltd.

Stocks under 100 Rs: A Detailed Analysis

Investing in companies from the under 100 Rs share list gives both new and seasoned investors the potential to earn high returns. However, not all low-priced stocks may have good fundamentals, which is crucial for long-term wealth creation.  

As an investor, you must carefully analyse multiple factors ranging from market capitalisation and financial performance to growth drivers to identify the best stocks under 100 Rs for the long term. Here is a table featuring the top 10 stocks under 100 Rs, including some key fundamental information regarding each of these companies.

• Suzlon Energy Ltd.

Based out of Pune, Suzlon Energy Ltd. is a leading renewable energy solutions provider specialising in wind energy generation. The company’s strategic focus on sustainable energy aligns with India’s green energy initiatives, making it one of the best shares to buy under 100 Rupees. 

As far as fundamentals are concerned, Suzlon’s return on equity (ROE) of 26.47% and return on capital employed (ROCE) of 23.42% underscore its efficient capital utilisation for generating revenue. The company has achieved a robust 1-year return of 56.63% as of November 27, 2024, outperforming many other entities in the 50 to 100 Rs share price list.  

• IDBI Bank Ltd.

Based out of Mumbai, IDBI Bank Ltd. is one of the many players in India’s public banking sector.  The company provides both personal and corporate banking services with a focus on MSMEs and the agricultural sector. With a market capitalisation of Rs. 88,277 crore as of November 27, 2024, IDBI Bank Ltd. is one of the top 10 stocks under 100 Rs. 

The bank’s price-to-book ratio of 1.89 indicates that it is undervalued relative to peers in the 50 to 100 Rs share price list, making it an attractive option for value investors. A healthy net worth of Rs. 43,139 crore as of March 31, 2024 and an impressive ROE of 14.19%, make IDBI Bank Ltd. a good long-term investment option. 

• NHPC Ltd.

Based in Faridabad, NHPC Ltd. is India’s premier hydropower company and plays a crucial role in the country’s fast-growing renewable energy sector. The company has a total installed capacity of 7232.9 MW, with as many as 15 more projects underway, making it one of the best stocks under 100 Rs for the long term. 

In terms of fundamentals, the company’s 1-year return of 51.72% as of November 27, 2024, and attractive dividend yields highlight its reliability. NHPC’s high net worth of Rs. 38702.44 crores as of March 31, 2024, and its recent upgrade to the Navratna status by the government of India underscore its bright future as a major player in the power generation and distribution market.    

• NBCC (India) Ltd.

Based in New Delhi and operating under the control of the Ministry of Housing & Urban Affairs,
NBCC (India) Ltd. is one of the best shares to buy under 100 rupees. The company operates in the real estate and construction sector and is well-renowned for both residential and commercial projects. 

With a 1-year return of 123.38% as of November 27, 2024, NBCC (India) Ltd. ranks high in the 50 to 100 rs share price list. The company’s return on capital employed (ROCE) of 37.07% is impressive and indicates a high level of efficiency. Given the thriving demand for infrastructure and housing, NBCC offers a strong investment case among stocks under 100 Rs. 

• Morepen Laboratories Ltd.

One of the top 10 pharma shares below 100 rupees, Morepen Laboratories Ltd. is based out of New Delhi. With four manufacturing facilities, the company produces more than 800 active pharmaceutical ingredients (APIs) and branded drug formulations. Another reason why Morepen Laboratories deserves its place among the top 10 pharma shares below 100 rupees is its highly impressive 1-year return of 74.41% as of November 27, 2024.  

The company’s robust fundamentals, including an ROE of 12.08%, ROCE of 16.82%, and a PB ratio of 3.82, indicate a financially stable entity. As India’s pharmaceutical exports grow, Morepen Laboratories Ltd. is well-positioned as one of the best stocks under 100 rs for the long term.

How to Pick the Best Stock Under Rs 100? 

If you are looking for the best shares to buy under 100 rupees, you need a systematic approach to identify quality companies. Here is a quick guide that outlines key factors to consider before investing in lower-priced stocks. 

• Fundamental Analysis 

When looking for stocks under 100 Rs, start by analysing the fundamentals. Consistent revenue growth, healthy cash flows, low debt levels, and strong working capital management are all crucial factors that indicate a business's sustainability and growth potential. 

Furthermore, remember to look into the financial ratios before investing in the best shares to buy under 100 rupees. These include price-to-earnings (P/E), debt-to-equity, and profit margins. Compare these financial metrics with industry averages over three to five years to identify potentially undervalued investment opportunities.

• Industry Dynamics

While exploring companies from the 50 to 100 Rs share price list, prioritise entities from industries with favourable tailwinds and trends. Stocks from industries showing steady growth and lower competition often make for good long-term investments. 

• Risk Assessment 

As an investor, you must understand that lower-priced shares usually carry higher risks. Therefore, when selecting the best stocks under 100 Rs for the long term, you must thoroughly analyse the various risks involved. Some key risk factors you must look into include the robustness of the business model and its ability to withstand economic downturns, promoter pledging, related party transactions, and liquidity.

• Management Quality

When screening companies from the 100 Rs share list, remember to evaluate the management team's track record, corporate governance standards, and capital allocation decisions. Furthermore, look into the management’s experience, vision for growth, and ability to navigate industry challenges while maintaining shareholder interests.

What are the Benefits of Investing in Stocks Under 100 Rs?

Stocks under 100 Rs can open up interesting investment opportunities, especially for new investors or those looking to diversify their portfolio with smaller investments. Let us look at some major advantages of investing in such stocks.

• Lower Capital Requirements

One of the major advantages of investing in the top 10 stocks under 100 Rs is that you can start with a smaller capital outlay. This can be highly advantageous for new investors and those with limited funds.

• Better Diversification 

As an investor, you can include more stocks in your portfolio by opting for companies from the under 100 Rs share list. This broader diversification helps manage risk better, as you are not overly dependent on the performance of a few expensive stocks.

• Growth Potential 

Many companies from the 50 to 100 Rs share price list are emerging businesses with significant growth potential. Although they carry higher risks, these companies often have more room for expansion and can deliver substantial returns if they execute their business plans successfully.

• Better Trading Volumes 

Some stocks under 100 Rs experience higher trading volumes, which makes entering and exiting positions a lot easier. This liquidity advantage is particularly beneficial if you are focused on intraday or short-term trading.

What are the Risks of Investing in Stocks under Rs 100?

Although companies from the 100 Rs share list may seem attractive, they often come with significant risks. As an investor, you need to understand them thoroughly before investing. Here is a detailed look at the potential drawbacks and challenges you might face when investing in these stocks.

• Higher Volatility Risk

When trading stocks under 100 Rs, you will typically encounter greater price volatility. These stocks can swing dramatically in short periods. Such high levels of volatility could lead to substantial losses if you do not time your trades carefully. 

• Market Manipulation Risk

Some of the companies in the under 100 Rs share list are vulnerable to price manipulation. This is especially true for stocks with smaller trading volumes and lower institutional involvement. Certain large players may influence prices through pump-and-dump schemes and trap retail investors.

• Financial Issues

Few entities in the 50 to 100 Rs share price list may have certain glaring financial issues that range from weak balance sheets and high debt to inconsistent earnings and poor cash flow management. Investing in these companies increases your risk significantly and is best avoided. 

• Limited Information Flow

One of the major risks of investing in stocks under 100 Rs is the challenge of getting reliable information. These companies typically have less analyst coverage and media attention, making it harder to access quality research and timely updates about company developments.

How to Identify Promising Stocks Priced Between 50 and 100 Rs?

Finding high-quality companies from the 50 to 100 Rs share price list requires careful analysis and a systematic approach. Let us look at a few tips that can help you identify potentially rewarding investments.

• Fundamental Strength

As with any long-term investment, analysing the fundamental strength is key to identifying the best shares to buy under 100 rupees. Focus on companies showing consistent revenue growth and profit margins over the past three to five years. Also, consider investing in entities with low debt levels, strong cash flows, and healthy return ratios. Robust fundamental indicators often separate promising companies from ones with financial issues.

• Market Position

While reviewing the best stocks under 100 Rs for the long term, thoroughly examine each company's competitive advantages and market share. Look for companies with strong brand presence, established distribution networks, or technological advantages that give them an edge over their peers.

• Growth Drivers

When assessing entities from the 50 to 100 Rs share price list, direct your focus towards companies positioned to benefit from emerging trends or industry tailwinds. Consider investing in companies with clear growth strategies, expanding market opportunities, and the operational capability to capitalise on these opportunities.

• Technical Analysis

If you prefer trading in companies featured in the list of the best stocks under 100 rs for intraday today, technical analysis can help you unearth promising opportunities. Price trends, trading volumes, candlestick patterns, and delivery percentages are some of the few technical aspects that you must closely examine to identify profitable trades. 

What are Some Effective Investment Strategies for Stocks Under 100 Rs?

When investing in the top 10 stocks under 100 Rs, you must adopt a well-planned strategy to maximise returns and minimise risks. Here is a detailed look at a few approaches you can consider. 

• Value Investing

If you are planning to invest in the best stocks under 100 Rs for the long term, adopting a value investing approach is one of the ideal ways to maximise wealth creation. This unique approach involves taking up long positions in fundamentally strong companies trading below their intrinsic value. Companies with strong balance sheets, consistent dividend history, and stable business models that are temporarily out of market favour are good contenders for the value investing approach.

• Growth Investing

Alternatively, if you are an investor who prefers strong capital appreciation, adopting a growth investing approach could be an effective way to maximise wealth creation. While researching the best shares to buy under 100 rupees, identify and invest in companies with strong growth potential. Businesses investing in research and development, expanding market presence, or entering new high-potential markets could grow at a faster rate than the average, making them ideal options for this approach.

• Systematic Investment 

When building a portfolio of stocks under 100 Rs, consider using a systematic investment approach. It involves making small, regular investments for a sustained period instead of investing large amounts of capital at once. Systematic investment strategies help you lower your purchase price in the long run through rupee cost averaging.

• Sector Rotation

While investing in the top 10 stocks under 100 Rs, you could implement a sector rotation strategy. It involves monitoring the performance cycles of different sectors and investing in industries that are going through favourable times. Sector rotation strategies are designed to help you leverage the changing market cycles to generate wealth. 

Invest in Affordable Stocks With Samco Securities

With Samco Securities, you can easily find the right stocks under 100 Rs that align with your financial objectives. Our comprehensive platform not only lets you explore a wide range of affordable stocks but also gives you access to research and advanced trading tools. 

Whether you are interested in value investing or growth investing, Samco's platform offers everything you need to make informed investment decisions. Begin your wealth creation journey today by investing in the best stocks under 100 Rs for the long term.