Investing in the stock market is the first objective in every person’s investment list. Where the returns on investment are rewarding, the risks involved in stock investment are significantly high as well. This can pose a threat to investors wanting small investments. Hence, enter our guide listing thebest stocks under ₹50.
Read on to learn more about the best stocks to buy under ₹50 and the things to consider when making an investment decision.
The Top 10 Stocks Under ₹50
1. YES Bank
YES BANK Limited is an Indian commercial bank that serves retail, corporate, and micro, small, and medium-sized company (MSME) clients with an extensive array of products, technology-driven digital offerings and services.
With a market capitalization of ₹70,804 crores, YES Bank’s rising net cash flow falls in the favor of its investors.
The bank’s annual revenue growth of 22.87% overshadowed its performance of 11.85% over the past three years.
The returns of the past year have seen a significant growth of 42.59%.
2. Suzlon Energy Ltd
Suzlon Energy Ltd is a major player in wind energy and a pioneer in the Indian renewable energy industry. It lays emphasis on sustainable energy solutions in light of the global shift towards renewable energy sources.
Suzlon Energy Limited has a market capitalization of ₹57,373 crores and achieved returns of 411.52% in a year.
The company spent 7.05% of its operational revenues on interest charges and 10.2% on staff costs in the fiscal year ending March 31, 2023.
The FII position in the company has also climbed from 17.83% in the December 2023 quarter to 19.57% by the end of March 2024.
3. Trident Ltd
Trident holds a distinct position in the market thanks to its varied operations in yarn, paper, and textiles. It is a reliable investment option due to its wide range of products and market presence.
The stock returned 128.91% over three years, while the Nifty Midcap 100 returned 106.15%. The company has a market capitalization of ₹19,645 crores.
The company spent 1.26% of its operational revenues on interest charges and 10.27% on staff costs in the fiscal year ending March 31, 2023.
The company invested Rs 1165.34 crore, representing a 239.44% year-on-year growth.
4. Reliance Power Ltd
Reliance Power Limited is India’s largest private energy generation firm. Its primary business is power generation, having an operating portfolio of 5945 megawatts of UMPPs. With 44 subsidiaries as of March 2019, the company has had significant success in initiating projects relating to coal, gas, hydro, wind, and solar electricity.
The stock returned 276.47% vs S&P BSE Power and Nifty Midcap 100, which returned 177.9% and 106.15%, respectively, over three years.
With a market capitalization of ₹10,364 crores, the company spent 33.5% of its operational revenues on interest charges and 2.37% on labor costs in the fiscal year ending March 31, 2023.
5. South Indian Bank Ltd
The South Indian Bank was established in 1929 and offers a range of banking services, including retail and corporate banking, as well as para-banking options such as internet, mobile, merchant, debit card, and foreign exchange.
Foreign Institutions’ holdings climbed from 14.68% to 15.17% in the March 2024 quarter and the market capitalization of the bank increased to ₹7,272.61 crores.
South Indian Bank Ltd. reported a YoY rise in advances of 11.83%, exceeding its 5-year CAGR of 3.91% and beating the top five banks with higher market capitalizations.
The stock returned 153.18% compared to the Nifty Bank, which returned 48.77% over three years.
6. RattanIndia Power Ltd
RattanIndia Power Ltd works in the power generating, transmission, and distribution sectors. Its main products are solar, wind, and hydroelectric power plants. This best stock to buy under ₹50 also offers power trading options.
Despite not earning a profit in the last twelve months, RattanIndia Power’s income has increased by 20% each year over the last five years.
The company has a market capitalization of ₹6,444 crore and shares have risen by 280.95% in the past year.
The company spent 77.72% of its operational revenues on interest charges and 1.73% on labor costs in the fiscal year ending March 31, 2023.
7. TV18 Broadcast Ltd
TV18 Broadcast, a well-known name in the media and entertainment industries, has a wide reach in both news and entertainment categories. Its diversified media footprint presents a unique investment opportunity.
The company’s yearly sales growth of 60.76% outpaced its three-year CAGR of 28.32%.
The company spent 2.08% of its operational revenues on interest charges and 12.21% on staff costs in the fiscal year ending March 31, 2024.
The company invested ₹5138.46 crore, representing a 624.49% year-on-year rise.
8. Century Extrusions Ltd
Century Extrusions Ltd, founded in 1988, manufactures aluminum extruded products, power transmission and distribution lines. Have a look at the following findings of this stock under ₹50:
The company spent 2.4% of its operational revenues on interest charges and 4.24% on staff costs in the fiscal year ending March 31, 2023.
The company has a market capitalization of ₹155.44 crore and shares have risen by 81.82% in the past year.
The net cash flow has increased substantially and landed on ₹7.79 crores in FY23.
9. Infibeam Avenues Ltd
Infibeam Avenues Limited, a leading Indian fintech company, offers digital payment tools and business software to a wide range of industries, including businesses and government agencies.
The company spent less than 1% of its operational revenues on interest charges and 5.49% on labor costs in the fiscal year ending March 31, 2023.
The company invested ₹88.48 crore, representing a 60.93% year-on-year growth.
The stock has returned 0.15% in the previous month, with a one-year return of 126.57%.
10. Intellivate Capital Ventures Ltd
Next on our list of best stocks under ₹50 is Intellivate Capital Ventures Limited. It offers advice, consulting, investing, and share trading services. Have a look at the following findings:
The stock returned 4312.44% over three years, compared to the Nifty Smallcap 100, which returned 86.81%.
The debt-to-equity ratio stands at 0.14 which means the company is almost debt-free.
Note: This blog is only for informational purposes; we are not SEBI registered, and we are not promoting any company or pushing you to buy stocks of a specific company; please do your research before purchasing the stocks.
Factors to Consider Before Investing
Investing in equities, regardless of price, involves critical thought and analysis. Before investing in stocks under ₹50, consider the following factors:
Low-priced stocks sometimes have modest market capitalizations, making them more volatile and riskier. Consider the company’s market capitalization in comparison to its peers and the broader market.
Consider the company’s dividend policy and yield. Dividend-paying companies can add income and stability to your portfolio.
Evaluate the risks of investing in the company, including business, financial, regulatory, and macroeconomic risks.
When buying stocks, take your financial objectives and investment horizon into account. Establish if you are making long-term or short-term investments, then modify your plan accordingly.
Using fundamental analysis and indicators like price-to-book (P/B) and price-to-earnings (P/E) ratios, determine if the company is reasonably valued, overvalued, or undervalued.
