Best Dividend Stocks Under Rs 200: Investor has any one of the motives while investing in an asset, it is either capital appreciation or a way of earning a passive income from the asset you have invested in.
Those who look for a passive source of income can invest in stocks can that pay dividends. While there are numerous dividend-paying stocks available, this article focuses specifically on the best dividend stocks under Rs 200.
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Best Dividend Stocks Under Rs 200
Let us take a look at the top dividend stocks under Rs 200 and learn about business along with financial position:
Best Dividend Stocks Under Rs 200 #1 – NMDC ltd
Incorporated in 1958, NDMC is the largest producer of iron ore in India and is a Navratna Public Sector Enterprise under the Ministry of Steel.
The company produces over 35 MTPA of iron ore from its major iron-producing units in Karnataka and Chhattisgarh and aims to increase its iron ore production capacity to 100 MT by FY30.
It also operates India’s only mechanised diamond mine in Panna, Madhya Pradesh and is planning on setting up a 3 MT integrated steel plant at Nagarnar, Chhattisgarh.
Financial of NMDC Ltd
| CMP | ₹ 107 | Market Cap (Cr.) | ₹ 31,299 |
| EPS | 19.1 | Stock P/E | 6.73 |
| RoCE | 21.1 % | RoE | 16.3 % |
| Promoter Holding | 60.8 % | Book Value | ₹ 77.2 |
| Debt to Equity | 0.02 | Dividend Yield | 13.9 % |
| Net Profit Margin | 26.6 % | Operating Profit Margin | 34.3 % |
| Industry PE | 8.93 | Face Value | ₹ 1 |
This is a Mid-cap stock with a market capitalization of ₹ 31,299 Cr. The company financials show that the company reported a revenue of Rs.17,667 Crores and a net profit of Rs.5,603 Crores which is comparatively less than what they earned in the previous financial year.
The return ratios of the company stand at RoCE of 21.1% and RoE of 16.3% which suggests that the company is effectively utilizing its resources. The stake held by the promoters as per the Q4FY23 quarters stands at 60.8 %.
The company also has a low debt-to-equity ratio of 0.02 which makes this company even more attractive.
Coming to dividends paid by the company, it has a dividend yield of 13.7% which is the highest among the stocks between the price range of Rs 100-200. In the last five years, the company has maintained a dividend payout ratio between 35-46%.
Best Dividend Stocks Under Rs 200 #2 – ONGC Ltd
Established in 1956 by the government, ONGC is the largest Natural Oil and Gas Company in India. It is one of the most profitable PSUs contributing to 71% of Indian domestic production.
The products of this company are used by downstream companies like IOC, HPCL, BPCL, and MRPL to produce petroleum products like Petrol, Diesel, Kerosene, Cooking Gas LPG and Naphtha.
This is a well-established company whose market capitalization stands at Rs. 1,99,901 Cr making it the largest company on the list.
Financial of ONGC Ltd
| CMP | ₹ 159 | Market Cap (Cr.) | ₹ 1,99,901 |
| EPS | ₹ 28.2 | Stock P/E | 5.09 |
| RoCE | 14.7 % | RoE | 14.3 % |
| Promoter Holding | 58.9 % | Book Value | ₹ 223 |
| Debt to Equity | 0.51 | Dividend Yield | 6.74 % |
| Net Profit Margin | 5.65 % | Operating Profit Margin | 11.0 % |
| Industry PE | 11.5 | Face Value | ₹ 5 |
If we take a glance at the financials of the company, we can see that the company reported a total revenue of Rs. 684,829 Crores and a net profit of Rs. 32,778 Crores for FY23. The company’s 5-year CAGR sales and profit growth rate stood at 16% and 12% respectively.
The RoCE and RoE of the company stand at 14.7% and 14.3% respectively which indicates that the assets of the company aren’t utilized to their full potential. The company has a debt-to-equity ratio of 0.51 which means that the company is majorly using its own funds to run its business.
The stake held by the promoters as per Q4FY23 quarters is 58.9%. The company has a good dividend yield of 6.74%.
Best Dividend Stocks Under Rs 200 #3 – Castrol India
Castrol India Ltd is engaged in the business of manufacturing a wide range of automotive and industrial lubricants. The company is the market leader in the automotive lubricant industry.
The company`s product range includes the following passenger car engine oils, premium two-stroke and four-stroke oils and multigrade diesel engine oil.
With a market capitalization of Rs. 11,301 Crores, the company comes under the category of small-cap stocks
Financial of Castrol India Ltd
| CMP | ₹ 114 | Market Cap (Cr.) | ₹ 11,301 |
| EPS | ₹ 7.98 | Stock P/E | 14.3 |
| RoCE | 60.8 % | RoE | 45.9 % |
| Promoter Holding | 51.0 % | Book Value | ₹ 19.1 |
| Debt to Equity | 0.03 | Dividend Yield | 5.69 % |
| Net Profit Margin | 17.0 % | Operating Profit Margin | 22.5 % |
| Industry PE | 25.1 | Face Value | ₹ 5 |
The company follows the calendar year to report its results, given the fact that it is a British company. For FY22, the company reported a revenue of Rs. 4,774 Crores and a net profit of Rs. 815 Crores.
For the first quarter of FY23, the company reported a revenue and a net profit of Rs.1,294 Crores and Rs. 202 Crores respectively.
The has utilized its resources very efficiently bringing its RoCE and RoE to 60.8% and 45.9% respectively, which are the highest on the list.
The company has very little debt which brings its debt-to-equity ratio to 0.03. The promoter’s stake has remained unchanged over the last few quarters and it stands at 51%.
The dividend yield of the company shares stands at 5.75%. The majority of the profits that are earned by this company are paid out in the form of dividends to its shareholders
Best Dividend Stocks Under Rs 200 #4 – Gujarat Pipavav Port Ltd
Gujarat Pipavav Port Ltd is engaged in the business of port handling and marine services for container cargo, bulk cargo, and LPG cargo. Furthermore, the company runs a CFS and also generates revenue from land-related and infrastructure activities.
With a market capitalization of Rs. 5,265 crores, the company comes under the category of small-cap stocks.
Financial of Gujarat Pipavav Port Ltd
| CMP | ₹ 109 | Market Cap (Cr.) | ₹ 5,265 |
| EPS | ₹ 6.48 | Stock P/E | 15.4 |
| RoCE | 19.6 % | RoE | 15.0 % |
| Promoter Holding | 44.0 % | Book Value | ₹ 47.8 |
| Debt to Equity | 0.03 | Dividend Yield | 5.61 % |
| Net Profit Margin | 37.2 % | Operating Profit Margin | 54.8 % |
| Industry PE | 15.4 | Face Value | ₹ 10 |
For FY23, the company reported a total revenue of Rs. 917 Crores and a net profit of Rs.313 Crores. The company’s 5-year CAGR sales and profit growth rate stood at 7% and 9% respectively.
The company has an RoE and RoCE of 15% and 19.6% which is pretty moderate. The company has managed its debt very well and maintained a debt-equity ratio of 0.03.
The promoters hold a 44% stake in the company which has been constant for quite a few quarters.
The company has a past record of paying the majority of its profits as dividends to its shareholders. For FY23, the company has a dividend payout ratio of 52% and a dividend yield of 5.69%.
Best Dividend Stocks Under Rs 200 #5 – Bajaj Consumer Care
Incorporated in 2006, Bajaj consumer care is engaged in the business of manufacturing hair oils. The company sells its hair oil under the brand names Brahmi Amla, Amla Shikakai, and Jasmine hair oil.
Bajaj Almond Drops is presently the market leader in the light hair oil class and is the main product of the company. They also manufacture oral care items under the brand name Bajaj black teeth powder.
Financial of Bajaj Consumer Care Ltd
| CMP | ₹ 183 | Market Cap (Cr.) | ₹ 2,641 |
| EPS | ₹ 9.63 | Stock P/E | 19 |
| RoCE | 21.1 % | RoE | 17.4 % |
| Promoter Holding | 39.4 % | Book Value | ₹ 54.6 |
| Debt to Equity | 0.01 | Dividend Yield | 4.38 % |
| Net Profit Margin | 14.5 % | Operating Profit Margin | 14.7 % |
| Industry PE | 37.1 | Face Value | ₹ 1 |
With a market capitalization of Rs.2,641 Crores, this is the smallest company on the list.
For FY23, the company reported a total revenue and a net profit of Rs. 961 Crores and Rs. 139 Crores respectively. During the last 5 years, the revenues have grown at a CAGR of bleak 3% and the profits declined by 8%.
Despite the poor revenue and profit growth, the company has a RoCE and an RoE of 21.1% and 17.4% respectively. The company also has very little debt which brings its debt-to-equity ratio to 0.01.
As per the recent quarters, the promoters hold a 39.35% stake in the company which is slightly higher than the previous quarter. The dividend yield given by the company share is 4.35% with a dividend payout of 51%.
List of Top Dividend Stocks under Rs 200
| S.No | Name | Div Yld % | Mar Cap (Rs. Cr) |
| 1 | NMDC | 13.75 | 31430.8 |
| 2 | O N G C | 6.77 | 199963.5 |
| 3 | Castrol India | 5.72 | 11246.32 |
| 4 | Guj Pipavav Port | 5.69 | 5184.78 |
| 5 | Bajaj Consumer | 4.28 | 2706.41 |
| 6 | Redington | 4.13 | 13584.31 |
| 7 | PCBL Ltd | 4.09 | 5069.32 |
| 8 | R C F | 3.78 | 5616.21 |
| 9 | Firstsour.Solu. | 2.73 | 8993.99 |
| 10 | Engineers India | 2.71 | 6228 |
In Closing
Dividends are a nice way of earning additional income apart from a stock apart from its capital appreciation. But if you are planning to buy a stock only for the purpose of receiving dividends, you should check the consistency in which the company is making profits and also consistently paying out dividends from the profits they earn.
Written By – Aaron vas
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