Investing in the stock market is one of the best ways to grow wealth over time. However, many people believe that investing requires a large amount of money. That’s not entirely true. There are plenty of stocks under ₹100 that provide an opportunity for small investors to enter the stock market without needing a huge capital. These stocks, often called penny stocks or small-cap stocks, can deliver high returns if chosen wisely.
In this guide, we will explore everything about stocks under ₹100, including their benefits, risks, and a list of the best stocks to buy under 100. Whether you are a beginner or an experienced investor, this article will help you understand how to make informed investment decisions.
Understanding Stocks Under ₹100
Stocks under 100 are shares of companies that are traded on the stock market at prices below ₹100 per share. These stocks often belong to smaller companies or those in the early stages of growth. They can be appealing due to their affordability and the potential for significant returns. However, they may also exhibit higher volatility and come with increased risk compared to higher-priced, more established stocks.
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Advantages of Investing in Stocks Under ₹100
Investing in stocks under ₹100 offers several advantages, especially for small investors. Here are some reasons why people prefer these stocks:
1. Low Investment Requirement
Unlike large-cap stocks that can be expensive, best stocks under ₹100 allow investors to buy shares at an affordable price. This makes them a great option for beginners who want to start investing without risking too much money.
2. High Growth Potential
Many stocks under 100 rs belong to emerging industries such as renewable energy, technology, and finance. These sectors have the potential for rapid growth, which can lead to significant returns for investors.
3. Diversification
Since these stocks are inexpensive, investors can buy multiple stocks from different industries. This helps in spreading the risk and reducing potential losses.
4. Compounding Benefits
Holding these stocks for a long time allows investors to benefit from the power of compounding. As the company grows, so does the stock price, leading to higher returns.
5. Access to Growing Companies
Many best stocks under 100 rs for long-term investment belong to companies that are expanding their market share. Investing in them early can result in substantial gains over time.
Risks of Investing in Stocks Under ₹100
While these stocks have attractive benefits, they also come with risks. Here are some potential downsides:
1. High Volatility
The price of these stocks can fluctuate significantly in a short period. This can lead to high profits, but also high losses.
2. Low Liquidity
Some stocks under ₹100 have fewer buyers and sellers, which can make it difficult to exit a position when needed.
3. Financial Instability
Many small-cap companies may not have strong financials. Some may struggle with debt, declining revenue, or poor management.
4. Speculative Nature
These stocks are often driven by market sentiment rather than fundamental value. This means prices can rise and fall based on rumors or speculation.
5. Lack of Information
Unlike large companies, small-cap stocks may not have enough financial data available for investors to analyze properly.
Best Stocks Under ₹100 in India
When considering investments in stocks under 100, it’s crucial to conduct thorough research and analysis. Below is a list of some notable stocks priced under ₹100 as of March 13, 2025:
- Sector: Banking
- Current Price: ₹86.44
- Market Capitalization: ₹1,01,218 crore
- Overview: PNB is one of India’s largest public sector banks, offering a wide range of banking and financial services.
- Sector: Power
- Current Price: ₹97.09
- Market Capitalization: ₹80,606 crore
- Overview: A subsidiary of NTPC Ltd, focusing on renewable energy projects across India.
- Sector: Banking
- Current Price: ₹42.31
- Market Capitalization: ₹80,600 crore
- Overview: A public sector bank offering various banking services, with a strong presence in southern India.
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4. GMR Airports Infrastructure Ltd
- Sector: Transport Infrastructure
- Current Price: ₹73.33
- Market Capitalization: ₹78,305 crore
- Overview: Engages in the development and operation of airports in India and abroad.
- Sector: Banking
- Current Price: ₹72.68
- Market Capitalization: ₹78,181 crore
- Overview: Provides a wide range of banking products and services, with a focus on retail banking.
Best Stocks Under 100 Rs for Long Term Investment
For investors seeking long-term growth, it’s essential to identify companies with strong fundamentals and growth potential. Here are some of the best stocks to buy under 100 rs for long term investment:
1. NMDC Ltd
- Sector: Mining
- Current Price: ₹64.24
- Market Capitalization: ₹56,479 crore
- Overview: India’s largest iron ore producer, with a consistent track record of profitability and dividend payments.
2. Yes Bank Ltd
- Sector: Banking
- Current Price: ₹16.30
- Market Capitalization: ₹51,100 crore
- Overview: A private sector bank undergoing restructuring, with potential for recovery and growth.
3. SJVN Ltd
- Sector: Power
- Current Price: ₹95.60
- Market Capitalization: ₹37,000 crore
- Overview: Engaged in hydro and renewable energy production, with consistent earnings and government backing.
4. Trident Ltd
- Sector: Textiles
- Current Price: ₹31.61
- Market Capitalization: ₹16,000 crore
- Overview: A leading manufacturer of textiles and paper, known for export-driven revenue and stable growth.
- Sector: Renewable Energy
- Current Price: ₹52.77
- Market Capitalization: ₹72,020 crore
- Overview: A leading renewable energy solutions provider specializing in wind energy. Suzlon has shown strong growth, with a 5-year CAGR of 87.95%, making it an attractive option in the green energy sector.
How to Select the Best Stocks Under ₹100?
Before investing in stocks under ₹100, it is crucial to evaluate several factors:
- Financial Health: Look at the company’s revenue growth, profitability, and debt levels. A company with strong financials is more likely to perform well in the long run.
- Industry Trends: Understand the sector in which the company operates. Sectors like renewable energy, banking, and infrastructure often have strong growth potential.
- Market Position: A company with a strong industry presence and competitive advantage is more likely to sustain its growth.
- Liquidity: Make sure the stock has sufficient trading volume to allow easy buying and selling.
- Management Quality: Companies with experienced leadership tend to make better business decisions, leading to long-term stability.
High Dividend Yield Stocks Under ₹100
For investors looking for stable returns, dividend-paying stocks can be a great option. Below are some of the best stocks under ₹100 with good dividend yields:
| Stock Name | Current Price (₹) | Dividend Yield (%) |
|---|---|---|
| NMDC Ltd | 64.24 | 3.78% |
| Canara Bank Ltd | 92.84 | 3.47% |
| NHPC Ltd | 78.91 | 2.41% |
| SJVN Ltd | 95.60 | 1.88% |
| Punjab National Bank | 99.05 | 1.45% |
These companies have a history of rewarding their investors through consistent dividend payments.
Why Invest in Stocks Under ₹100?
Investing in stocks under ₹100 provides several advantages:
- Affordable Entry: You can start investing with a small budget.
- Diversification: You can buy multiple stocks from different industries at a low cost.
- High Growth Potential: Some of these stocks may experience significant price appreciation in the long term.
- Opportunities in Emerging Sectors: Many new-age industries, such as renewable energy and digital banking, have promising stocks in this price range.
However, investors must conduct thorough research and avoid speculative stocks with weak fundamentals.
Common Mistakes to Avoid When Investing in Stocks Under ₹100
- Ignoring Fundamentals: Some investors buy low-priced stocks without checking the company’s financial health, which can lead to losses.
- Investing Without Research: Just because a stock is cheap does not mean it is a good investment. Always research the company’s business model and financials.
- Overlooking Liquidity: Some low-priced stocks may have low trading volumes, making it difficult to sell them when needed.
- Not Diversifying: Putting all your money into a single stock increases risk. Diversifying across multiple sectors can reduce losses.
- Chasing Quick Profits: Many investors expect quick gains from penny stocks, but long-term investments based on strong fundamentals are usually more rewarding.
Conclusion
Investing in stocks under ₹100 can be an excellent way to enter the stock market with a limited budget. These stocks offer opportunities for both short-term gains and long-term wealth creation. However, due diligence is essential before making investment decisions.
For expert guidance and stock recommendations, you can consult SMC Global Securities, a trusted financial services provider. They offer in-depth market analysis, stock research, and portfolio management services to help investors make informed choices.
Frequently Asked Questions – FAQs
1. Are stocks under ₹100 safe to invest in?
Not all stocks under ₹100 are safe. Some may be undervalued with strong growth potential, while others may be struggling businesses. Researching financials and industry trends is crucial before investing.
2. Can I get high returns from stocks under ₹100?
Yes, but returns depend on the company’s performance and market conditions. Some low-priced stocks have delivered multibagger returns, but they also carry higher risk.
Also read: Top 10 Multibagger Penny Stocks for 2025
3. Should I invest in stocks under ₹100 for long-term or short-term?
It depends on your investment goals. Some stocks under ₹100 are good for short-term gains due to volatility, while others have strong fundamentals suitable for long-term growth.
4. How do I know if a stock under ₹100 is good for investment?
Check the company’s revenue growth, profitability, debt levels, and market position. Stocks with strong fundamentals and growing industries are better investments.
5. Which sectors have the best stocks under ₹100?
Banking, renewable energy, infrastructure, and finance sectors often have strong stocks under ₹100. These industries have high growth potential and government backing in many cases.
Author: All Content is verified by SMC Global Securities.
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