If you’re a beginner interested in investing, you may have heard the term “stocks under 100” but aren’t quite sure what it means. Simply put, best stocks under 100 refers to stocks that are priced below ₹100 per share. People often consider these stocks more accessible for beginner investors who may not have a large amount of capital to invest.
Portfolio investing in the best shares under 100 can be a great way to start building your portfolio. It allows you to invest in multiple companies across different sectors, which can help diversify your portfolio and potentially reduce risk. Additionally, some companies that offer stocks under Rs 100 may be smaller or less well-known, and investing in them can give you exposure to companies that may have significant growth potential.
So whether you’re a beginner investor or simply interested in learning more about the best stocks under 100, this blog is for you. Let’s begin.
What Do Stocks Under 100 Mean?
Publicly traded companies price their shares below Rs 100 per share, which are known as stocks under 100. Retail investors who may not have large sums of capital to invest consider these stocks to be affordable. Many investors search for the best stocks to buy today under 100 Rs as they seek to build a diversified portfolio while managing their risk.
Best stocks under Rs 100 may be particularly attractive to new investors who are just starting in the stock market.
List of 5 Best Under 100 Stocks
We have drawn upon a list of the 5 best stocks under 100 Rs for the long term based on two popular parameters – Share Price and Market Cap.
|Company Name||Sub-Sector||Market Cap (in Cr)||Share Price|
|Indian Oil Corporation Ltd||Oil & Gas - Refining & Marketing||₹1,28,150.24||₹89.1|
|Zomato Ltd||Online Services||₹84,079.03||₹97.6|
|Punjab National Bank||Public Banks||₹69,864.89||₹63|
|Samvardhana Motherson International Ltd||Auto Parts||₹65,155.29||₹95.8|
|Indian Railway Finance Corp Ltd||Specialized Finance||₹65,081.16||₹50.2|
Note: The data is from 30th August, 2023. However, for real-time updates on stock prices and market trends, visit the smallcase stocks collection today!
Top 100 Stocks Companies: Overview
Let’s have a look at some of the companies.
Indian Oil Corporation Ltd
It is a public sector oil and gas company founded in 1964. IOCL refines, markets, and transports petroleum products in India The company’s product portfolio includes petrol, diesel, LPG, aviation fuel, lubricants, and other petrochemicals. IOCL is the largest commercial enterprise in India.
- Low Risk: Stock is 1.70x as volatile as Nifty
- Largecap: With a market cap of ₹1,28,150 cr, the stock is ranked 46
Zomato is an online food ordering and delivery platform founded in 2008 that operates in several countries including India, UAE, and Australia. The food tech company’s platform allows users to search for and order food from local restaurants, as well as providing reviews, ratings, and other information.
- High Risk: Stock is 4.13x as volatile as Nifty
- Largecap: With a market cap of ₹84,079 cr, the stock is ranked 71
Punjab National Bank
Punjab National Bank (PNB), one of India’s oldest and largest public sector banks, plays a significant role in the country’s banking landscape. With a wide network and diverse financial services, PNB serves as a vital avenue for individuals and businesses, contributing to India’s economic growth.
- High Risk: Stock is 3.38x as volatile as Nifty
- Largecap: With a market cap of ₹69,864 cr, the stock is ranked 89
How to Invest in Stocks Under Rs 100?
Investing in stocks under Rs 100 offers various avenues for individuals looking to build their portfolios. One common method is to directly purchase these stocks through brokerage accounts. Alternatively, exchange-traded funds (ETFs) and mutual funds provide diversified exposure to such stocks. Additionally, participating in dividend reinvestment plans (DRIPs). Each of these avenues presents opportunities for investors to engage with affordable stocks while diversifying risk.
However, if you’re confused about which stocks to pick, you can explore smallcases:
- smallcases are readymade portfolio of stocks/ETFs, that are based on a theme idea or strategy.
- They’re created and managed by SEBI-registered experts,
- smallcase.com offers over 200+ stock portfolios, created by 180+ managers.
- Some of the popular smallcases among new investors are as follows:
Disclosures for aforementioned smallcases
Types of Stocks Below 100
Several types of stocks under Rs 100 can categorize based on their characteristics and investment potential. Here are some common types of stocks under 100:
- Blue-Chip Stocks: These are stocks of well-established companies with a track record of stable earnings and a long history of dividend payments. Many consider Blue-chip stocks to be reliable investments, often with lower volatility and less risk than other types of stocks. However, they may also have lower growth potential compared to other types of stocks.
- Growth Stocks: Growth stocks may not currently be profitable but have the potential to generate substantial profits in the future. Companies in high-growth industries such as technology, healthcare, and e-commerce often associate these stocks. Growth stocks below 100 can be attractive to investors who are willing to take on higher risk for the potential of higher returns.
- Dividend-Paying Stocks: These are stocks of companies that pay regular dividends to their shareholders. Dividend-paying stocks can provide a steady stream of income to investors and may be less volatile than other types of stocks. Companies in more mature industries such as utilities, consumer goods, and healthcare often associate these stocks with a value under 100.
- Penny Stocks: Small companies or startups often associate these stocks that trade below Rs 100 per share. Penny stocks can be highly speculative and carry significant risk, as they may be more susceptible to price fluctuations and volatility. However, penny shares under 100 can also offer high growth potential if the company performs well.
Benefits of Investing in Shares Under 100
For investing in the best stocks under 100 in, you must read the following benefits it can offer to you.
- Lower Initial Investment requirement: Shares under 100 offer an opportunity for investors to enter the stock market with a smaller initial investment. This can be especially beneficial for new investors who may not have large sums of capital to invest.
- Opportunity for Higher Returns: Perceiving best stocks under 100 as riskier due to their smaller market capitalization may happen, but they can also offer higher potential returns. This is because smaller companies often have more room for growth and can experience rapid stock price appreciation if their business strategy is successful.
- Diversification Potential: Investing in a range of shares under 100 can provide diversification benefits to investors, as these stocks may belong to different sectors and industries. Diversification can help investors manage risk by spreading their investments across different stocks and asset classes.
Risks of Investing in the Best Stocks Under 100
Investing in stocks under 100 can offer attractive opportunities for investors looking to enter the stock market. Investing in stocks under 100 carries some risks, and here are some of them.
- Liquidity Issues: Stocks under 100 may have lower trading volumes and be less liquid than higher-priced stocks. This means that investors may have difficulty selling their shares if they need to cash out quickly.
- Scams and Fraudulent Activity: Some companies may engage in fraudulent activity to artificially inflate their stock price. This can result in investors losing their entire investment if the fraud is uncovered.
Tips for Investing in Stocks Under 100
Investing in stocks under 100 can offer attractive opportunities for retail investors in India, but it is important to approach these investments with caution and a long-term mindset. Here are some tips to consider when investing in stocks under 100:
- Research and Due Diligence: Conduct thorough research and analysis before investing in any stock, regardless of its price. Look for companies with solid fundamentals, strong management teams, and a competitive advantage in their industry. Analyze financial metrics like earnings per share, price-to-earnings ratios, and dividend yields to assess a company’s value and potential for growth
- Diversification and Risk Management: Diversify your portfolio by investing in a mix of stocks across different industries and sectors. This can help mitigate risk and protect against market volatility. Additionally, consider setting stop-loss orders to limit potential losses in case a stock’s price drops significantly.
- Sticking to a Long-Term Investment Strategy: View investing in stocks under 100 as a long-term strategy and avoid making impulsive decisions based on daily market movements. Don’t get caught up in short-term market fluctuations. Stick to your investment plan and continue to monitor and adjust your portfolio as needed over time.
- Consider Professional Advice: If you are new to investing, consider seeking advice from a professional financial advisor or a trustable portfolio investing platform like smallcase. We can help you develop an investment plan that aligns with your financial goals and risk tolerance.
Tools and Resources for Investing in Shares Under 100
If you’re looking for tools and resources to invest in stocks below 100, here are some options:
- Online Brokerages: Many online brokerages offer commission-free trading on stocks and exchange-traded funds (ETFs), making it easier and more affordable to invest in stocks under Rs 100.
- Stock Screeners: Stock screeners can help you narrow down your search for stocks under Rs 100 based on various criteria, such as market capitalization, price-to-earnings ratio, and dividend yield.
- Financial News Sources: Keeping up with the latest financial news and trends can help you make informed investment decisions.
To Wrap It Up…
In conclusion, investing in the best stocks below 100 can be a great way for you to gain exposure with limited funds. Therefore, investing in shares under Rs 100 can be a great way to get started in the stock market or diversify your portfolio without breaking the bank. While considering their price as “cheap,” these stocks can still present substantial growth potential and profitability.
However, as with any investment, it’s important to do your research, assess your risk tolerance, and develop a long-term strategy to maximize your returns. By keeping these factors in mind, investing in stocks under 100 can be a smart and rewarding choice for both novice and experienced investors alike.
Here are the best stocks under 100 rs for long term to invest in – Indian Oil Corporation Ltd, Zomato Ltd and Punjab National Bank. However, it’s important to do your own research or consult a financial advisor before investing.
Here are the steps involved to invest in stocks under rs 100:
1. Open a Demat and trading account with a stockbroker.
2. Deposit funds into your trading account.
3. Research the best stocks under 100 in India.
4. Place a buy order for the shares you want to buy.
5. Monitor your investment and sell the shares when you are ready to exit.
The Indian stock market has been on a bullish trend in recent years, and shares under 100 have been some of the best performers.
Investors who are looking to invest small amounts of money and are willing to take on high risk can invest in shares under 100 Rs in India.
Yes, stocks below 100 can be profitable for investors. The stock’s price alone doesn’t determine profitability; factors like company fundamentals, growth potential, and market trends matter more.
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