Best Dividend Stocks Under Rs 1000: Dividends have often been associated with only those companies that are established, consistent, and often of the large-cap category.
In this article, we’re going to explore dividend stocks using a different filter – The Best Dividend stocks under Rs 1000.
Picking stocks under this price point allows us to explore the best dividend options from different sectors and sizes within their industry.
Here are the best dividend stocks under Rs 1000, ranging from different classes of market capitalizations and sectors across the Indian stock market. Keep reading to find out!
Best Dividend Stocks Under Rs 1000 #1 – UTI Asset Management Company
UTI Asset Management Company Ltd. (UTI AMC) is an Indian asset management company engaged in the business of raising funds for and rendering investment management services to schemes of UTI Mutual Fund.
The company has been in operation since 2003 and provides various services including equity funds, debt funds, liquid funds & overnight funds, hybrid funds, Exchange-traded funds, and solution-based funds.
It is also involved in other businesses like alternate investment funds, offshore business, the National Pension Scheme (NPS), and Portfolio Management Services (PMS)
Financials Of UTI AMC:
|CMP||₹ 817||Market Cap (Cr.)||₹ 10,348|
|EPS||₹ 33.4||Stock P/E||24.6|
|Face Value||₹ 10||Book Value||₹ 264|
|Promoter Holding||0%||Price to Book Value||3.14|
|D/E Ratio||0||Dividend Yield||2.66%|
|Net Profit Margin||38.9 %||Operating Profit Margin||54.2 %|
UTI AMC is a small-cap company with a market capitalization of ₹10,425 crores. In FY 23, the company earned ₹1,092 crores in revenues and a net profit of ₹424 crores.
The company has fluctuated operating profit margins of 49-54% in the past 5 years. But the company has only been able to grow its sales at a CAGR of 1% over the last five years. The company has a healthy dividend yield of 2.66%.
Return ratios are in an average range, with ROE at 13% and ROCE at 17.3% respectively. The company is also debt free, which makes its D/E ratio value equal to 0.
The stock of UTI AMC is trading at a P/E of 24.6, whereas its industry is at 33.3. There have been no promoter holdings in the company over the past few years. UTI AMC has yielded a positive return of 63.15% in the past 5 years.
Best Dividend Stocks Under Rs 1000 #2 – Great Eastern Shipping Company
Great Eastern Shipping Company Limited (GE Shipping) is the largest private-sector shipping company in India. The company transports crude oil, petroleum products, dry bulk commodities, and gas.
It also offers offshore oilfield services, with its primary activity being the ownership and/or operation of offshore supply vessels and mobile offshore drilling rigs.
Financials Of Great Eastern Shipping:
|CMP||₹ 775||Market Cap (Cr.)||₹ 10,910 Cr.|
|EPS||₹ 180||Stock P/E||4.25|
|ROCE||20.9 %||ROE||26.8 %|
|Face Value||₹ 10.0||Book Value||₹ 720|
|Promoter Holding||30.1 %||Price to Book Value||1.06|
|D/E Ratio||0.36||Dividend Yield||3.76 %|
|Net Profit Margin||43.2 %||Operating Profit Margin||55.0 %|
Great Eastern Shipping Company is a small-cap stock, with a market capitalization of ₹ 10,945 Cr. The company earned its highest-ever revenues of ₹5,690 crores in FY23 and an all-time high net profit of ₹2,575 crores. It has a positive and healthy dividend yield of 3.76%.
The return ratios of the company are moderately high, with ROE at 20.9% and ROCE at 26.8%. The company has low debt, with a D/E ratio of just 0.36. The stock is currently trading at a P/E of 4.45, whereas its industry P/E is much higher at 8.82, indicating that the stock is underpriced.
Promoter holding of the company is slightly low at 30.1%, and it has slightly over the years from 29.49% in September 2020. The company has given a positive performance of 156.60% in the past 5 years.
Best Dividend Stocks Under Rs 1000 #3 – Novartis India
Novartis India Limited is a subsidiary of Novartis AG, a leading global medicines company. The company has a diverse portfolio of both innovative and established medicines, which address various therapeutic needs, including eye care, cardiovascular, immunology, metabolic, oncology, neuroscience, respiratory, and organ transplant.
Financials Of Novartis India
|CMP||₹ 787||Market Cap (Cr.)||₹ 1,931|
|EPS||₹ 41.9||Stock P/E||19.3|
|ROCE||15.1 %||ROE||13.7 %|
|Face Value||₹ 5||Book Value||₹ 314|
|Promoter Holding||70.7 %||Price to Book Value||2.49|
|D/E Ratio||0.03||Dividend Yield||1.25 %|
|Net Profit Margin||26.6 %||Operating Profit Margin||17.2 %|
Novartis India reported net earnings of ₹379 crores in FY23 and a net profit of ₹103 crores. The sales growth of the company has been weak, meaning the company’s earnings have declined over the past 5 years. The company has a dividend yield of 1.25%.
Novartis India is almost debt free with a very low D/E ratio of 0.03. The stock P/E of 19.3 shows that it is trading at a level below that of its industry P/E of 39.9. Promoter holding is at 70.7%, which has remained consistent for quite some time. Novartis India has given a slightly positive return of 23.82% in the past 5 years.
Best Dividend Stocks Under Rs 1000 #4 – Tata Chemicals
Part of the Tata Group, Tata Chemicals is a listed speciality and basic chemistry company, producing over 4,138 KT of soda ash and 236 KT of sodium bicarbonate capacities.
The company makes alkali products that are used further ahead in the industrial supply chain for detergents, pharmaceuticals, and glass.
Financials Of Tata Chemicals
|CMP||₹ 988||Market Cap (Cr.)||₹ 24,755|
|EPS||₹ 90.9||Stock P/E||10.6|
|ROCE||12.3 %||ROE||12.3 %|
|Face Value||₹ 10.0||Book Value||₹ 774|
|Promoter Holding||38.0 %||Price to Book Value||1.25|
|D/E Ratio||0.32||Dividend Yield||1.77 %|
|Net Profit Margin||14.6 %||Operating Profit Margin||22.8 %|
Tata Chemicals is a midcap chemical company under the Tata Conglomerate. The company saw its best fiscal in recent years, earning ₹16,789 crores in revenues and ₹2,434 crores in net profits in FY 2023.
The sales growth of the company is positive, and so is the net profit growth. Tata Chemicals has a positive and healthy dividend yield of 1.77%.
The return ratios of the company are average, with ROE and ROCE both at 12.3%. It has a low D/E ratio of 0.32, well within the acceptable range. The Stock P/E of the company is quite low at just 10.7, whereas its industry P/E is 26.2.
Promoters of Tata Chemicals, Tata Sons, and Tata Investment Corporation, hold a 37.9 percent stake in the company. Tata Chemicals is one of the best-performing companies on our list, giving a 199% return in 5 years, almost doubling investors’ wealth.
Best Dividend Stocks Under Rs 1000 #5 – DCM Shriram
DCM Shriram is a listed chemical company, providing agricultural products such as urea, sugar, and hybrid seeds to the agri-rural industry, and chemicals such as chlorine, caustic soda, PVC resins, and other compounds for various industrial applications.
Financials Of DCM Shriram
|CMP||₹ 914||Market Cap (Cr.)||₹ 14,103|
|EPS||₹ 58.4||Stock P/E||14.6|
|ROCE||19.6 %||ROE||15.6 %|
|Face Value||₹ 2.00||Book Value||₹ 397|
|Promoter Holding||66.5 %||Price to Book Value||2.12|
|D/E Ratio||0.28||Dividend Yield||1.55 %|
|Net Profit Margin||7.54 %||Operating Profit Margin||13.3 %|
DCM Shriram is a small-cap company, with a market capitalization of ₹13,286 crores. The company reported a revenue of ₹12,080 crores in FY 23, with a net profit of ₹911 crores. The company’s revenues have grown moderately over the last 5 years. It has a good dividend yield of 1.55%
The return ratios of the company are above average, with ROE at 15.6% and ROCE at 19.6%. The company has a low and manageable debt-to-equity ratio of 0.28.
The P/E of the company is on par with its industry, indicating that the stock is trading at fair levels with its industry. Promoters of DCM Shriram own a steady and consistent 66.5% stake in the company.
DCM Shriram has given a positive and overwhelming 220% return in the past 5 years.
List of Top Dividend Stocks Under Rs 1000
|Company||Market Cap (in Cr)||Current Price||Dividend Yield (%)|
|UTI Asset Management Company||₹ 10,400||₹ 819||4.9|
|Great Eastern Shipping Company||₹ 10,945||₹ 776||3.76|
|Novartis India Ltd||₹ 1,930.94||₹ 785.8||1.25|
|Tata Chemicals||₹ 25,152||₹ 990.25||1.77|
|Ksolves India||₹ 1,314.12||₹ 1,099||1.8|
|DCM Shriram||₹ 14,103||₹ 910||1.55|
|Sonata Software||₹ 14,691||₹ 1,044.75||1.6|
|Anand Rathi Wealth||₹ 3575.0||₹ 1,060.25||1.4|
In this article, we got to look at some of the best dividend stocks under Rs 1000, while going through key financial metrics such as sales, net profit, and return ratios.
The primary filter, in this case, was the current price and dividend yield, and the resulting stocks took us through various industries and different-sized companies.
Written by Karan N
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