Stocks Under Rs. 100

• Stocks under Rs. 100 mostly belong to small and micro-cap companies.
• Stocks under Rs. 100 tend to be more volatile, with larger price swings and increased sensitivity to market news and events.
• Some low-priced stocks can offer high returns in the long term if they have a higher growth potential and good fundamentals.

Investing in stocks is one of the most crucial factors in an effective financial plan, as stocks provide one of the highest possible returns to investors. Most high-return portfolios allocate a majority of the capital to stocks as they come with the highest return potential. However, when it comes to buying stocks, the share price is a vital factor as it directly affects the number of shares you can buy based on a specific amount. Some investors look towards buying stocks that are priced lower than Rs. 100. A low share price can allow them to buy more shares and receive high returns when the share price increases.

This blog will help you identify the best stocks under Rs. 100 and let you understand why you should invest in stocks under Rs. 100.

Low-value stocks have a low share price when compared to other listed stocks on stock exchanges. Generally, shares with a share price lower than Rs. 100 are called low-value stocks. Low-value stocks make up a crucial part of ‘value investing,’ where investors identify stocks that are currently priced below Rs. 100 but have the potential to increase in price in the future. Stocks under Rs. 100 that have a high growth potential are also known as value stocks, as they can increase in value in the coming time. Value investors identify the best stocks under Rs. 100 after extensive research and wait for the prices to go up to make profits.

Here are some characteristics of low-value stocks:

• Low-value stocks often belong to companies with smaller market capitalisations, ranging from small-cap to micro-cap.
• These stocks tend to be more volatile than other types of stocks as they see high demand from investors.
• Some low-value stocks are from companies in the early stages of growth, which might present value investing opportunities for you if the company has future growth potential.
• Most low-value stocks have low share prices, generally below Rs. 100.

Here are the reasons to invest in stocks under Rs. 100:

• Affordability: Stocks under Rs. 100 are generally more affordable, allowing investors with limited capital to buy more shares and diversify their portfolios. Best stocks under Rs. 100 can be ideal for new investors with limited capital, as they can mitigate their losses if their investments turn negative. Since the shares are low-priced, you can have a higher number of shares.
• Potential for higher returns: A majority of stocks under Rs. 100 are of companies in their initial growth stage. If a company has a stock priced below 100 but experiences significant growth or improvement in its fundamentals, the stock price can increase substantially, offering potentially high returns to investors.
• Ideal market entry: Best shares under Rs. 100 can provide an ideal entry point to new and value investors. After extensive analysis, you can identify stocks below Rs. 100 with high growth potential and invest when the price is low to make good profits over time.
• Diversification: One of the most important reasons to invest in stocks under Rs. 100 is because of their diversification potential. Best stocks under Rs. 100 can become an ideal part of a diversified portfolio as they can increase the overall returns based on a certain level of risk.
• Undervalued stocks: If a company’s fundamentals are strong but the stock price is low due to temporary issues or market overreaction, it could represent an undervalued investment opportunity. You can identify such stocks below Rs. 100 and invest to make good profits when the shares reach their true market value.
• Company turnaround: Sometimes, a company with a stock below Rs. 100 is in the process of a turnaround, where it employs new skilled executives or merges with another company for a better business approach. You can identify such stocks and invest in them, as they generally increase in price due to the positive news and new business approach.

The best shares under Rs. 100 are generally from companies with a low market valuation but high growth potential. A company with a high growth potential is likely to have increased revenues and profits in the coming years, attracting investors and driving the share price higher. For example, even if a company has made Rs. 4 crore profit but was Rs. 2 crore last year, it has effectively doubled its profit in just one year. This is a sign that the company is performing well and may offer good returns as the share price might increase based on the increased profits.

This is one of the main reasons that value investors invest in the best stocks under Rs. 100 after analysing them extensively to determine if they have a high growth potential. However, stocks under Rs. 100 generally see higher volatility based on a high trading volume, making it vital that you invest after extensive research and after figuring out your risk tolerance. It is always wise to create a diversified portfolio that can help you manage the risk associated with investing in stocks under Rs. 100.

Low-value stocks have a low market capitalisation and are priced under Rs. 100. Value investors favour such stocks because they can provide hefty returns in the long term based on their growth potential. You can also identify stocks that are priced below Rs. 100 and analyse them based on their technical and fundamental factors and invest if they show growth potential. However, ensure that the investments are as per your risk tolerance and are diversified to mitigate losses.