So, you’re thinking about diving into the stock market but hesitant to invest a lot of money initially? Great news! There are stocks under Rs 100 that are too good to ignore. Take, for example, Indian Bank. With a market price hovering around Rs 80 to Rs 90, this public sector bank has exhibited strong financials despite the volatile market conditions. Notably, Indian Bank posted a net profit of nearly Rs 1,790 crore for Q1 FY23, an impressive 41% YoY growth. That’s solid performance for a stock priced under Rs 100.
What about Rail Vikas Nigam Limited (RVNL)? At a trading rate often latching onto Rs 30 to Rs 35, RVNL makes for an attractive bet. Specializing in the construction and development of railway infrastructure, this company stands as a government-designated ‘Navratna.’ In the fiscal year 2022, RVNL bagged contracts worth Rs 38,000 crore, solidifying its stronghold in the industry. Yep, you read that right, Rs 38,000 crore! With such a low entry price, the potential returns can be tantalizing.
And who can forget a company like Punjab National Bank (PNB)? Currently priced between Rs 30 to Rs 40 per share, PNB focuses strongly on reducing its non-performing assets (NPAs) which has moved down to 12.88% as of June 2023 from 14.11% earlier. PNB’s sheer market size and the recent move to clean up its books offer a compelling investment proposition.
Right, let’s shift gears and talk about an underdog like UCO Bank. Trading typically within the Rs 15 to Rs 20 range, UCO Bank has shown a fair rebound in recent quarters. For Q2 FY23, the net profit surged to Rs 124 crore compared to Rs 88 crore in the previous quarter. Impressive returns for a stock trading at such a low price, don’t you think? It’s almost like finding hidden treasure in a yard sale.
Let’s discuss the pharmaceuticals sector for a moment. Take, for instance, Glenmark Pharmaceuticals. Trading around Rs 90 to Rs 95, Glenmark has proven its mettle. In the last fiscal year, it reported a 15% increase in net sales, touching Rs 31,200 crore. With numerous FDA-approved products and a robust R&D pipeline, Glenmark provides a steady growth trajectory.
Another exciting prospect lies in Tata Teleservices (Maharashtra) Limited, generally circulating in the Rs 90 to Rs 95 range. After restructuring its operations and workforce, this Tata Group company focuses on providing connectivity and communication solutions for businesses. Their Enterprise Network Solutions have seen a surge in demand, resulting in a consolidated revenue of Rs 210 crore for Q4 FY22. One can only expect growth as digital transformation accelerates.
Can’t ignore South Indian Bank, can we? This stock typically trades between Rs 10 to Rs 12, making it an affordable option with significant upside potential. In the recent quarter ending June 2023, South Indian Bank reported a leap to Rs 82 crore in net profit, up from Rs 65 crore in the preceding quarter. With efforts to shed bad loans, the bank’s fiscal health seems to be improving steadily.
What about automotive stocks? Look at Ashok Leyland, often trading around Rs 80 to Rs 90. India’s second-largest commercial vehicle manufacturer reported a 51% YoY increase in revenue for FY23, signaling healthy recovery post-pandemic. The company delivered a net profit of Rs 1,200 crore, backed by increased demand for commercial vehicles. This makes Ashok Leyland an interesting pick for a newbie investor.
Voltas also deserves mention. While known for its consumer products, Voltas has strong financials and trades just around Rs 90 per share. What stands out is its project division specializing in providing unified solutions for HVAC and MEP verticals. The company reported around Rs 720 crore as its consolidated profit for FY23.
Even in the competitive telecom space, MTNL might be worth a second look. Priced typically under Rs 10, this stock might seem like a long shot, but hold your horses. MTNL reported a modest revenue increase to Rs 475 crore in the last quarter from Rs 456 crore. Though laden with government debt, strategic collaborations or further government subsidies can offer multiple growth avenues.
Don’t forget some companies in the steel sector like Jindal Stainless, which usually trades around Rs 95 to Rs 99. With the demand for stainless steel rising globally, Jindal Stainless reported a YoY revenue growth of 31%, reaching Rs 33,550 crore for FY23. Investing in this stock might give you exposure to a dynamically growing sector at minimal costs.
So, the next time someone says good stocks aren’t affordable, point them towards these value-laden options. This comprehensive list offers something for everyone, from established banks and infrastructure behemoths to up-and-coming sectors like pharmaceuticals and telecom. Don’t forget to Stocks Under Rs 100 for a quick glance at your options any day.