Best Stocks Under Rs. 100 in India (2024) (2024)

Last Updated on Jan 30, 2024 by Harsh*t Singh

Looking for low-price shares in India, say – best stocks under Rs. 100? In this article, we have drawn up several lists of the best stocks under Rs. 100 based on various parameters such as debt, net profit margin, dividend, EPS, volume, return on equity and return on capital employed. So, let’s dive right into it!

Based on low debt

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

• Stock universe: Nifty 500
• Close price under Rs. 100
• Total debt – set to low

Debt is the money a company borrows from outside parties to fund its business. As with any loan, debt also comes with a cost – interest. Therefore, companies with low debt have lower interest payouts. This increases profit and gives access to more funds for growth/expansion. Although debt is not entirely bad, the lower, the better.

Note that zero debt doesn’t mean that the company has no liabilities at all. Debt and liabilities are distinct. Debt is a subset of liabilities. While debt is what the company owes to third parties, liabilities include accrued wages, accounts payable, income tax, and others. Since ‘credit’ is a way of doing business, a company can rarely be liability-free. Therefore, zero debt becomes a good point for evaluating a business.

Based on a high net profit margin

Note: The information is dated 30th January 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 long term.

Based on the Dividend Yield

Note: The information is dated 30th January 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 January 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 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
• 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 January 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.

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