Best Stocks Below Rs 100 in India (2022): Benefits of investing in them

best stocks under 100 rs

Best Stocks Under Rs 100: Reasons to Invest

There are lots of quality shares you can buy under Rs. 100 from the stock market and these shares have the potential to grow tremendously over time. If you can strategically invest in these quality shares for a longer period of time then you will be able to gain lofty returns against your investment. Investing in lesser-priced quality shares for a long period of time is known as value investing.  

The British-born American professor and investor, Benjamin Graham is considered the pioneer of value investing. By following his investment philosophy and methodology his wunderkind student Warren Buffet became the world’s richest investor. In this particular investment strategy, the investor carefully chooses specific low-priced quality company stocks that have exceptionally good future growth potential. 

As a value investor, you cannot choose just any undervalued stocks under 100 available on the stock exchange out of the blue. In order to choose quality stocks first, you need to go through a particular process known as fundamental analysis. 

According to the father of value investing, Benjamin Graham, any investment that has been made without any prior evaluation and research about the company is purely speculative. Thus, in order to receive guaranteed results, you need to invest after you have properly researched the company and its fundamentals.

Table of contents

  • Why invest in the best stocks under Rs. 100?
  • What are the benefits of buying stocks under Rs. 100?
  • List of undervalued stocks under Rs. 100
  • How to invest in mutual funds for beginners in India?
  • Key takeaways from this article
  • Key takeaways from the article

What are the benefits of buying stocks under Rs. 100? 

Everyone can buy the undervalued company stocks 

For becoming a value investor, you do not need to be financially affluent. Yes, you heard this right. Neither your current financial condition nor your educational qualifications matter, only if you have a farsighted vision of the stock market and demonstrated patience. In fact, patience is the biggest determiner of how much you will prosper by value investing. 
One of the most remarkable things about value investing is that it is economically feasible even for those struggling with finance management. The trick is investing in the best stocks under 100 Rs and waiting for them to become fruitful over a considerable period of time, the strategy is solely based on long-term big returns despite short-term fluctuations in the stock market.

Reap the benefits of compounding

If you didn’t know, you can reap huge advantages through compounding, and value investment will teach you so. If you invest in 100 Rs stocks over a sustained period of time, you are actually reinvesting the returns and dividends that you had generated through value stocks. In this way, you will see your profit margin surge tremendously. 

The upside is that you won’t even have to give any extra effort because your profits will have the capacity of generating income on their own. The biggest benefit of compounding is that it can turn even the tiniest amount of money into a lump sum with dedicated patience. Therefore, hold on to your investment by keeping returns generated by value stocks.

A least risky investment strategy in place

Value investment has been recorded as the least risky investment strategy in the stock market because of the fact that it is not at all volatile or short-term. Investors and shareholders often praise the buy and hold basics of value investing as demonstrated by buying stocks under 100 Rs because that way, they do not get muzzled up in the daily market fluctuations. 

Rather, by buying and holding the best stocks under 100 Rs, they can build long-term capital out of it. Due to their low volatility, value investment results in adding to the investor portfolio. Also, it proves as a less risky, efficient, less volatile strategy that keeps the investors away from hurried decisions, untimely mistakes, and impulsive investments.

Maximize your stock market profits

Strategic value investing is considered the most tried, tested, and proven method of maximizing stock market profits. An investor can choose certain stocks in the markets that are available under Rs 100 or those stocks that are significantly lesser than their original value. 

Additionally, investors must also check the stocks are coming from prospective leaders and companies that are financially robust. This ensures that in the coming years, the investor will be able to generate revenues by holding them for long and without losing the funds.

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List of undervalued stocks under Rs. 100

Find out the best multibagger stocks below 100 Rs. for long term investment from the table below:

NameMarket Cap (Cr.)P/E Ratio5Y CAGR (%)Close Price (Rs.)
Rattanindia Enterprises LtdRs. 5,812.4410.4961.7342.60
Brightcom Group LtdRs. 6,935.377.6054.6633.10
Alok Industries LtdRs. 9,955.43-47.7249.6320.25
Trident LtdRs. 18,642.7222.3637.4038.00
HFCL LtdRs. 7,743.0024.8836.0156.55
Shree Renuka Sugars LtdRs. 10,269.96-72.8530.6547.40
Rail Vikas Nigam LtdRs. 6,296.765.3722.3630.45
Fertilisers And Chemicals Travancore Ltd.Rs. 6,244.2418.0219.0598.40
Hindustan Copper LtdRs. 8,243.8822.056.8587.25
Jindal Stainless LtdRs. 5,191.902.797.1099.90

(Price date as of June 27, 2022)

Disclaimer: The securities quoted are exemplary and not recommendatory. Past performance is not indicative of future returns

Key takeaways from the article

  • It is not always necessary to buy high-quality stocks that are available for exceptional market price. You can also invest in the multibagger stocks that are available under Rs. 100. 
  • Buying undervalued stocks can be beneficial because the returns you will gain are more than that of any large-cap or mid-cap company.
  • Anyone can invest in below 100 Rs. shares in NSE 2022 because the stock prices are very much feasible.
  • You can extensively enjoy the benefits of compounding after you have invested in undervalued stocks if you keep on reinvesting your returns and dividends.
  • You can invest in undervalued stocks through an online third-party website such as 5paisa to make your investment process entirely effortless. 

Important things to remember:

1. Do Not Blindly Follow Hot Tips

No matter how credible the source is, never follow a stock marketing tip blindly without conducting thorough research personally. Always select the stocks after doing proper research and analysis on the performance as well as the companies. While some tips can work out to give you huge benefits, the wrong ones can push you down under the risk pretty quickly. 

2. Eliminate Loser Stocks from Portfolio 

There is absolutely no guarantee that a stock will rise after a great fall. Know that it is extremely important to be practical about what is possible and what's impossible in the stock market. So, upon realizing that a stock is performing poorly in your portfolio, accept your mistake and sell it immediately to prevent further losses. 

3. Don't Exceed Your Investment Budget Abruptly 

While it's true that long-term investments are way better than other forms of investment, you shouldn't exceed your investment budget in a haste. Instead, decide on a fixed amount and invest it across various good stocks. Rather than investing in only one stock, divide your budget evenly across multiple good-performing stocks and shares. 

Disclaimer: The securities quoted are exemplary and not recommendatory. Past performance is not indicative of future returns

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