In the stock market 1000s of shares are listed. But we can’t study or invest in all of them. And also when we want to start investing then we don’t have that much money to invest in companies whose prices are very high. So looking at that problem we have brought the 3 best stocks which are fundamentally very strong and also available under ₹100.
The stocks which we will share are not all time best, but yes these stocks have potential. These stocks have already proved themselves with their performance and even if you will study their financials and charts then you will find something attractive in these stocks. So, we shared these stocks to have a futuristic view.
1. IDFC First Bank :-
The business of the bank is divided into various segments: Treasury, Corporate / Wholesale Banking, Retail Banking Business and Other Banking Businesses. These segments have been identified and reported taking into account, the target customer segment, the nature of products, internal business reporting system, transfer pricing policy approved by Asset Liability Committee (ALCO).
- Price : ₹91
- Market Cap : 60,000 Crore
- ROE : 10%
- P/E : 21
- Sales Growth : 33%
- Income Growth : 1575%
This is the first stock under ₹100 which should be in our focus. It is a banking stock. As per Market Capitalization this stock has a good size. Even if you will check its sales growth then in the last 9 years it has never shown any de-growth. The consistency it has shown in its sales is very attractive. Yes the bank has shown some Ups and Downs in its Net Income, but recently the company has shown good growth in its income.
The Net NPA (Non Performing Assets) decreasing is a good positive for the company. As per valuation also the bank is not overvalued even after it has almost doubled from its low in April. Recently the bank has signed title sponsorship with BCCI for Indian matches with 4.10 Crore per match. So, looking at recent growth and past history it can be one of the best stocks under ₹100.
2. IRFC :-
The company is the dedicated market borrowing arm of the Indian Railways. Its primary business is financing the acquisition of rolling stock assets, which includes both powered and unpowered vehicles, leasing of railway infrastructure assets and national projects of the Government of India (collectively, Project Assets) and lending to other entities under the Ministry of Railways, Government of India (MoR). The MoR is responsible for the procurement of Rolling Stock Assets and for the improvement, expansion and maintenance of Project Assets.
- Price : ₹50
- Market Cap : 64,000 Crore
- ROE : 14%
- P/E : 10
- Sales Growth : 18%
- Income Growth : 4%
The next stock that is on our radar under ₹100 is IRFC (Indian Railway Financial Corporation). It is a PSU stock and maximum holding is held by the government. This is a railway sector stock. The consistency of this stock is incredible. In the last 12 years it has never shown any dip in its Sales and Net Income. The way it has grown in the past is only one of the big reasons to invest in this company. Also this stock has performed well and almost doubled this year from the low.
The market size of the company is also very good which means risk is less as compared to small cap companies. After a big rally still the P/E ratio of the company is only 10. The big positive for the company is that it is debt free. Also its Current Assets are more than its Current Liabilities which means that the company will not have any liquidity issues in the short term. The pre-Tax margin of the company is 27 which is very high and attractive. This is the other best stock we have found.
3. Salasar Techno Engineering :-
The company is a provider of customised steel fabrication and infrastructure solutions in India for Telecommunication Towers, Transmission Towers & Substation Structures and Solar Module Mounting Structures. It provides 360 degree solutions by carrying out engineering, designing, fabrication, galvanization and deployment. The company’s products include Telecommunication Towers, Power Transmission Line Towers, Smart Lighting Poles, Monopoles, Guard Rails, Substation Structures, Solar Module Mounting Structures and Customized Galvanized & Non-galvanized steel structures.
- Price : ₹55
- Market Cap : 1,750 Crore
- ROE : 10%
- P/E : 39
- Sales Growth : 40%
- Income Growth : 28%
This is a Micro Cap company with huge growth in its financials. Except 2020 (the Covid year) the company regularly posted good growth in its sales and Net Income. Due to the small market size it has more space to grow more in future. The company has provided Return on Equity of 10% which is ok but as per size of the company it is still less. The important and positive thing for the company is that it is almost debt free. The Debt to Equity ratio of the company is just 0.10. ROCE (Return on Capital Employed) of the company is very attractive with 19%.
If we compare with the peers then valuation of the company is still fair or we can say lower than peers. The Promoters of the company hold a 63% stake in the company which means that they have confidence in their company. The current ratio of the company is also above 1 which means the company will not have liquidity issues in the short term. But one thing you should keep in mind before trading in this stock is that it might have some liquidity issue. So, sometimes you can see issues in buying and selling. But if you will be able to manage that then it might be a good option.
Conclusion :
So, when we talk about the best stocks in the stock market then there are a number of companies available which are growing in an attractive minor. But sometimes price might be the issue due to which small investors are not able to invest. So, these stocks are shared under ₹100 so that a small investor can also invest. If the names shared above it doesn’t mean you invest blindly in these stocks. These are just for reference to save your time. Study thoroughly and then only take the decision.
These Prices of the stocks are as on August 2023
Learn More :
Thank you for reading Buffett Money’s guide on the 3 Best Stocks under ₹100. To keep learning and developing your knowledge of financial analysis, we highly recommend the additional resources below:
- 5 Best Stocks for August
- Penny Stock
- High Growth Stocks
- Dividend Yield Stocks
- False Breakout Stocks
- Fundamentally strong stocks
- AI impact on Algo Trading
- Averaging Down Strategy
- Moving Average Strategy
- Methods of Stock Market Prediction
- Patience is a virtue
Thank You
Happy Investing
