Best Small Cap Stocks Under Rs 100: Most retail Indian investors are constantly on the lookout for good small-cap stocks in the hope of multi-bagger returns. In addition to this, a few investors have this inclination toward stocks with low prices such as under Rs 50 or Rs 100. Thus, in this article, we present you the best small cap stocks under Rs 100 that you can add to your watchlists.
Best Small Cap Stocks Under Rs 100
In our article on the best small cap stocks under Rs 100, we’ll learn about the history, business, and any recent development of the companies. Alongside this, we have also provided the key metrics for the stocks. So without further ado, let us jump in.
Best Small Cap Stocks Under Rs 100 #1 – Rail Vikas Nigam
|CMP||₹74||Market Cap (Cr.)||₹15,500|
|Promoter Holding||78.2%||Book Value||₹33.7|
|Debt to Equity||0.91||Price to Book Value||2.2|
|Net Profit Margin||6.1%||Operating Profit Margin||6.1%|
Rail Vikas Nigam Ltd. (RVNL) was formed in 2003 under the National Rail Vikas Yojna to expand the rail infrastructure capacity and mobilize more budgetary resources for SPV projects.
As of the present date, RVNL is a central public sector enterprise under the Ministry of Railways, Government of India. It is responsible for the execution of rail infrastructure projects in India.
The company’s scope of operations covers the installation of railway tracks, their upgradation/changes, electrification, railway bridges construction, and establishment of worksheds or production sites. In addition to the projects of Indian railways, this rail PSU has also executed multiple metro projects across the country.
Some of the marquee projects of the company are Vallarpadam –Idapally longest rail bridge, the Marathwada rail coach factory, and the building of the Indian Railways Institute of Financial Management.
In the last two years, this rail stock has generated more than 150% return for its investors. During the past few years, the earnings have increased at a tremendous rate as the company won bids for and executed more and more rail projects.
The government holds a majority of 78.2% as a promoter. The stock offers a high return to equity (RoE) ratio of 19.7% and presently trades at a price-to-book value (P/B) ratio of 2.2.
Best Small Cap Stocks Under Rs 100 #2 – HFCL
|CMP||₹63||Market Cap (Cr.)||₹8,600|
|Promoter Holding||39.2%||Book Value||₹21.1|
|Debt to Equity||0.26||Price to Book Value||2.96|
|Net Profit Margin||7.0%||Operating Profit Margin||13.8%|
HFCL Ltd. (formerly Himachal Futuristic Communications) was founded in 1987 by Mr Mahendra Nahata. Over the years, the company has emerged as a leading manufacturer of telecom equipment, optical fiber cables, and intelligent power systems.
It has been involved in the execution of several greenfield projects such as CDMA/GSM networks, satellite communications, cell sites, cable networks, and more. Its product offerings are spread across fiber optics, telecommunications, defense, and passive networking components.
The company owns 5 manufacturing sites in the Southern states of India and is working towards capacity expansion and setting up a new assembly unit in NCR for the production of networking and telecom products.
HFCL is eying various opportunities in 5G, domestic telecom ex-5G, OEC-related, defense, and domestic railways with huge total addressable markets (TAM).
For the nine months period ended December 2022 (9MFY23), the exports accounted for a total of 18.30% of the total revenue. Furthermore, the company has marked a shift towards higher revenue share from private customers (82% in 9MFY23 against 51% in FY21).
The profits of the telecom gear maker have consistently grown from Rs 172 crore in FY18 to Rs 326 crore in FY22. During this period, the company focused heavily on capacity building, partnerships, backward integration, R&D, and export promotion.
Best Small Cap Stocks Under Rs 100 #3 – Equitas Small Finance Bank
|CMP||₹70||Market Cap (Cr.)||₹7,800|
|Promoter Holding||0.0%||Book Value||₹33.9|
|Debt to Equity||5.08||Price to Book Value||2.11|
|Net Profit Margin||8.1%||Operating Profit Margin||38.6%|
Equitas Small Finance Bank Ltd. is an offshoot of Equitas Holdings Ltd. which started as a microfinance lender in 2007. Equitas SFB was demerged and later listed in November 2020 but was later merged again with Equitas Holdings as recently as in 2023.
As per its December 2022 investor presentation, the bank employs 20,005 people. It has 901 banking outlets and 347 ATMs across 18 Indian states and UTs. It caters to retail, business, and NRI customers offering a broad range of products and services including deposits, loans, forex, insurance, investment, and more.
Small business loans (SBL) and vehicle finance are the key constituents of the advances book of Equitas contributing to 62% of the total advances as of Q3FY23.
The gross advances and total deposits stood at Rs 24,915 crore and Rs 23,393 crore respectively. The asset quality ratios demonstrated an improving trend with GNPA at 3.46% and NNPA at 1.73% respectively.
Equitas SFB posted a profit after tax of Rs 170 crore in Q3FY23 taking it’s trailing twelve months (TTM) net profit to Rs 503 crore against Rs 281 crore in FY22.
Furthermore, DSP Mutual Fund and SBI Funds Management have received approval to pick a 9.99% stake each in Equitas SFB highlighting the faith of institutional investors in the bank.
Best Small Cap Stocks Under Rs 100 #4 – Karur Vysya Bank
|CMP||₹96||Market Cap (Cr.)||₹7,700|
|Promoter Holding||2.3%||Book Value||₹95|
|Debt to Equity||9.22||Price to Book Value||1.02|
|Net Profit Margin||12.0%||Operating Profit Margin||56.4%|
Karur Vysya Bank was started way back in 1916 with a seed capital of only Rs 1.20 lakh. Over the years, it has grown into a pioneering financial institution offering a broad range of financial services.
As per the data from the investor presentation for Q3FY23, the bank has 792 branches and 2,233 ATMs and cash recyclers. The bank offers retail, business and corporate banking services such as agricultural loans, home loans, credit & debit cards, commercial loans, and more.
The asset quality of the bank has considerably improved in recent years. Its GNPA and NNPA have come down to 2.66% and 0.89% in Q3FY23 from their highs of 8.79% and 4.98% in FY19 respectively.
This has gotten reflected in the profitability of the Tamil Nadu headquartered bank. Its net profit which was only Rs 211 crore in FY19 grew more than threefold to Rs 673 crore in FY22. Furthermore, the TTM profit after tax after Q3FY23 was Rs 982 crore.
Despite delivering impressive gains of 86% in twelve months, the stock of this small-cap bank trades at a price-to-book value ratio of 1.02 and a price-to-earnings ratio of 8.
Best Small Cap Stocks Under Rs 100 #5 – Lemon Tree Hotels
|CMP||₹77||Market Cap (Cr.)||₹6,000|
|Promoter Holding||23.6%||Book Value||₹10.7|
|Debt to Equity||2.49||Price to Book Value||7.14|
|Net Profit Margin||-34.2%||Operating Profit Margin||29.6%|
Lemon Tree Hotels was founded in 2002 and started in 2004 by Mr Pattu Keswani with 1 hotel having only 49 rooms. Fast forward to the present date, the company is one of the most prominent Indian hoteliers in the mid-priced segment operating 88 hotels having 8,451 rooms in 50+ locations across its 7 brands.
Presently, the company has 2,789 rooms in 34 hotels in its pipeline. By the end of FY25, the management plans to have an inventory of 11,240 rooms across 122 properties.
In recent years, the company has marked a shift from an asset-heavy to an asset-light model. It is actively onboarding more leased hotels. Previously, the primary focus was on company-owned hotels.
As for the financial performance, the hotel company has come out of the Covid-19 inflicted losses. The TTM profit after tax after December quarter results stood at Rs 42 crore against the losses of Rs 137 crore and Rs 187 crore in FY22 and FY21 respectively.
To stock of Lemon Tree Hotels presently trades at a high price-to-earnings ratio of 133 in the hope of better earnings prospects in the coming quarters. The promoters hold a 23.6% stake in the business.
List of Top Small Cap Stocks Under Rs 100
The table below puts together the names, current market prices, industry and market capitalization of the stocks we studied above and some more.
|Company Name||CMP (Rs)||Market Cap (Rs Cr)||Industry|
|Rail Vikas Nigam||74||15,500||Construction|
|National Aluminium Co.||81||14,800||Alumininum|
|Equitas Small Finance Bank||70||7,800||BFSI|
|Karur Vysya Bank||96||7,700||BFSI|
|Lemon Tree Hotels||77||6,000||Hospitality|
|JM Financial||62||5,950||Financial Services|
|Edelweiss Financial Services||55||5,200||Financial Services|
|Restaurant Brands Asia||93||4,600||QSR|
|Shipping Corp. of India||90||4,200||Maritime|
|Himadri Speciality Chemical||91||3,950||Chemicals|
|Sundaram Finance Holdings||82||1,800||Finance|
From our study of the best small cap stocks under Rs 100, we can conclude that most of these businesses have been on good growth and recovery trajectory in their businesses since the Covid-19 crash in 2020. It will be interesting to track their performance in the near future as they come out with their Q4FY23 and Q1FY24 results.
However, investors must broaden their horizons when it comes to investing. They should look beyond the stock price and take a holistic look at the business. In your opinion, is investing solely on the basis of stock price viable? How about you let us know your views in the comments below?
Vikalp Mishra is a commerce graduate from the University of Delhi. He likes to write on finance, money and business. He is a voracious reader with a genuine interest in investing. Drop him a mail at email@example.com.
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