Best Dividend Stocks Under Rs 100: With the economy being what it is today, the value of currencies isn’t the same as it used to be. This makes getting your money’s worth for any purchase or investment, that much more difficult. Fortunately, we have come up with something creative for the dividend investor in you.
Dividend stocks are assets that satisfy investors by regularly rewarding them with dividends. But not every valuable asset needs to be expensive or break the bank, especially not if you’re an investor. To make it interesting, we put together a list of the best dividend stocks under Rs 100.
Best Dividend Stocks Under Rs 100
Herein this article on Best Dividend Stocks Under Rs 100, we shall take a look at the top five companies from various industries andl earn more about their business and financials. Lets get started.
Best Dividend Stocks Under Rs 100 #1 – SAIL
Steel Authority Of India (SAIL) is one of the largest steel makers in India, under the Government Of India. The Maharatna company has 5 integrated steel plants and 3 special steel plants and 1 subsidiary. The company has a pan-India presence for its steel production in India.
Financials Of SAIL:
|CMP||₹ 84.0||Market Cap (Cr.)||₹ 35,241|
|EPS||₹ 5.27||Stock P/E||17.5|
|ROCE||5.95 %||ROE||3.64 %|
|Face Value||₹ 10.0||Book Value||₹ 133|
|Promoter Holding||65.0 %||Price to Book Value||0.65|
|D/E Ratio||0.56||Dividend Yield||10.4 %|
|Net Profit Margin||1.90 %||Operating Profit Margin||7.70 %|
SAIL generates a substantial amount of income for the Government Of India. It earned ₹1,04,448 crores in FY 23 and ₹1,03,477 crores in the previous fiscal year (FY 22). Profits for 2023 were ₹2,177 crores and FY22 saw the company earn ₹12,243 crores in net profits.
The company’s net profits have fallen significantly year on year, despite strong sales from the company. That hasn’t changed the fact that SAIL has a very good dividend yield of 10.4 percent, making it the 2nd best mid-cap dividend stock in India.
The stock P/E of SAIL at 17.5 is slightly higher than that of its industry (13.4), showing that the stock price is trading at a price higher than its industry. The return ratios of SAIL are quite low, at 3.64 (ROE) and 5.95 percent (ROCE).
SAIL has an acceptable D/E ratio of 0.56, well within the ideal range of 0-1. The Government Of India, the main promoter of SAIL, owns 65 percent of SAIL, down from 75 percent in December 2020. In the past 5 years, SAIL has given a positive but low return of 15.9 percent.
Best Dividend Stocks Under Rs 100 #2 – Indian Oil Corporation
Indian Oil Corporation is a Government Of India enterprise that is involved in the refining, transportation, and marketing of oil and fuel products. The company is one of the largest oil refining companies in India. Besides refining, they also market and distribute their oil products through over 58,000 customer touch-points and 34000 fuel stations in India.
Financials Of IOCL
|CMP||₹ 91.9||Market Cap (Cr.)||₹ 1,30,028|
|EPS||₹ 6.93||Stock P/E||13|
|ROCE||8.15 %||ROE||7.17 %|
|Face Value||₹ 10.0||Book Value||₹ 99.2|
|Promoter Holding||51.5 %||Price to Book Value||0.9|
|D/E Ratio||1.07||Dividend Yield||9.24 %|
|Net Profit Margin||1.39 %||Operating Profit Margin||3.65 %|
IOCL is a large-cap oil refining company, with a market capitalization of ₹1,30,028. The company has one of the highest revenues of any listed company in India. FY 23 saw IOCL earn eye-watering ₹8,41,756 crores, a massive jump from FY22’s ₹5,89,336 crores in revenues.
However, operating profit margins fell to half of the previous year, which hit the net profits of the company as well. As a result, FY 23’s net profits were ₹11,704 crores vs FY 22’s ₹25,727 crores.
IOCL has a high dividend yield of 9.2 percent, putting it at the number 2 spot on our list of best dividend stocks under Rs 100. Return ratios of IOCL seem low, with ROE at just 7.17 percent and ROCE at 8.15 percent.
The company has a slightly higher D/E ratio of 1.07, and its annual statement shows the company is paying high-interest payments. P/E of IOCL (13) is on par with its industry(13.6), with a marginal difference. The government Of India owns 51.5 percent of IOCL, with the rest held by FIIs, DIIs, and the public. IOCL has given a negative return of (-21.3) percent in the past 5 years.
Best Dividend Stocks Under Rs 100 #3 – PTC India
PTC India is a power trading company established in 1999 by the Government of India. The company provides power trading, renewable energy, and advisory services. The company was created by the government to attract private investment in the Indian power sector and encourage trade of power with neighboring countries.
Financials Of PTC India
|CMP||₹ 114.35||Market Cap (Cr.)||₹ 3,162.26|
|EPS||₹ 15.0||Stock P/E||6.59|
|ROCE||9.82 %||ROE||9.15 %|
|Face Value||₹ 10.0||Book Value||₹ 170|
|Promoter Holding||16.2 %||Price to Book Value||0.59|
|D/E Ratio||1.3||Dividend Yield||7.84 %|
|Net Profit Margin||3.18 %||Operating Profit Margin||8.45 %|
PTC India is a small-cap stock, with a market cap of ₹3,162.26 crores. In FY 23, the company earned ₹15,971 crores in FY 23 and a net profit of ₹507 crores. Sales and net profits have fallen over the years, with a sales growth rate of just 4.5 percent in the last 5 years.
The company is still profitable despite having a snail’s pace in terms of sales and profit growth. The company has a positively high dividend yield of 7.8 percent.
The return ratios of the company are below double digits at 9.1 percent for ROE and 9.8 percent for ROCE. PTC India has a higher-than-usual D/E ratio of 1.3.
The stock P/E is much lower than its industry P/E at 6.62, whereas its industry P/E is quite high at 38.7. Promoter holding of the company is 16.2 percent, with no stake sale or purchase in recent years. PTC India has given a positive return of just 18.9 percent in the past 5 years.
Best Dividend Stocks Under Rs 100 #4 – Nalco
Nalco, short for National Aluminium Company, is a government of India Navratna company based in Bhubaneswar, Odisha. The company manufactures low-cost aluminum, alumina and bauxite.
Financials Of Nalco
|CMP||₹ 84.9||Market Cap (Cr.)||₹ 15,591|
|EPS||₹ 8.41||Stock P/E||10.1|
|ROCE||15.2 %||ROE||12.0 %|
|Face Value||₹ 5.00||Book Value||₹ 72.1|
|Promoter Holding||51.3 %||Price to Book Value||1.18|
|D/E Ratio||0.01||Dividend Yield||7.72 %|
|Net Profit Margin||10.8 %||Operating Profit Margin||17.2 %|
Nalco earned ₹14,255 crores in the financial year ending 2023, an operating profit of ₹2,338 crores and a net profit of ₹1,435 crores. An increase in expenses for business operations has reduced the company’s operating and net profits, as the previous year’s sales (₹14,181 crores) were quite similar, but the company earned a higher profit of ₹2,952 crores.
Nalco has one of the highest dividend yields among dividend stocks under Rs 100, at 7.79 percent.
Nalco is a debt-free company, and a major part of its expenses are its operational activities. It has average return ratios of 12 percent (ROE) and 15.2 percent (ROCE). The P/E ratio of the stock is 10.6, vs an industry P/E of 24.6.
The Government Of India owns a 51.2 percent stake in Nalco, making them the majority shareholder of Nalco. The stock has given a positive and underwhelming return of 19.2 percent in the past 5 years.
Best Dividend Stocks Under Rs 100 #5 – CESC
The Calcutta Energy Supply Corporation is a power distribution and transmission company, under the RP-Sanjiv Goenka group. The company distributes power in Kolkata, Howrah, and other regions in West Bengal, Rajasthan, Maharashtra, and Noida.
Financials Of CESC
|CMP||₹ 72||Market Cap (Cr.)||₹ 9,538.8|
|EPS||₹ 10.1||Stock P/E||6.8|
|ROCE||11.3 %||ROE||12.6 %|
|Face Value||₹ 1.00||Book Value||₹ 82.3|
|Promoter Holding||52.1 %||Price to Book Value||0.84|
|Industry P/E||24.7||Dividend Yield||6.53 %|
|Net Profit Margin||9.81 %||Operating Profit Margin||15.1 %|
CESC earned ₹14,246 crores in the financial year of 2023, with a net profit of ₹1,397 crores. The company’s sales have grown from the previous year (₹12,544 crores) but net profits have more or less remained the same. CESC has a high dividend yield of 6.53 percent, placing it in the 5th position on our list.
The P/E of CESC is 6.8, which is significantly lower than its industry P/E of 24.7, showing that the stock is severely underpriced when compared to its industry. Promoter holding of CESC is high at 52.1 percent, up from 49.9 percent in June 2021. In the past 5 years, CESC has shed (-32.7) percent in share price.
List of Best Dividend Stocks Under Rs 100
Dividend stocks are preferred by investors who want the extra reward of owning shares and receiving additional income from time to time. It also mitigates the risk of share price volatility that every company experiences in the market. Here is a list of the best dividend stocks under ₹100:
|Company||Market Cap||Current Price||Dividend Yield|
|Shree Digvijay Cement||1,247.91||85.3||4.77|
Dividend stocks are appealing to investors especially if they cost under Rs 100. But the share price shouldn’t be the only cause for investing in a company. Remember that dividends from a company are only as good as the profits of the company. That’s all for this article. Happy investing.
Written By – Karan N
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