Synopsis: This project focuses on four strong companies that are all under ₹100: Suzlon Energy, Easy Trip Planners Ltd, Geojit Financial Services, and Magellanic Cloud. These businesses have good business models and ROE above 15%, which demonstrate sound financial management and future growth potential.
Do you know? Affordability and quality are two benefits of investing in fundamentally sound stocks under Rs. 100. These businesses frequently have strong financials, such as steady growth, low debt, and healthy profit margins. These stocks reduce the risks usually associated with low-priced shares while offering retail investors an easy way to get into high-quality companies with the potential to grow over the long run.
The following are the four fundamentally strong stocks under Rs. 100 with good returns in the past five years.
Suzlon Energy Ltd
Suzlon is a prominent worldwide provider of renewable energy and a manufacturer of vertically integrated wind turbine generators (WTGs). In addition to designing, producing, and installing essential WTG components, it offers full wind project solutions, including resource evaluation, power evacuation, and operation and maintenance (O&M) services both domestically and internationally.
With a market valuation of Rs. 89,373 crores, Suzlon Energy is a major player in the renewable energy industry and is currently trading at Rs. 65.8. High investor expectations are reflected in the stock’s P/E ratio of 43.17x. With a ROCE of 32.41 percent and an exceptionally low debt-to-equity ratio of 0.05, it exhibits sound fundamentals and financial stability.
The company’s sales CAGR over the last five years has been 29.65 percent, its profit CAGR has been 23 percent, and its price CAGR has been 70 percent. Its strong profitability is demonstrated by its high ROE of 41.3percent.
Magellanic Cloud Ltd
Originally established in 1981 as South India Projects Limited, Magellanic Cloud Ltd is a multinational provider of IT services with offices in Europe, the United States, and Asia. It provides human resource solutions, including job postings and placement services, software development, and consulting.
Magellanic Cloud has a market value of Rs. 4,540 crores and is priced at Rs. 77.7. The high P/E of 44.08x at which it trades suggests that growth expectations are high. With a debt-to-equity ratio of 0.5 and a moderate ROCE of 22.9 percent, the company exhibits low leverage.
It has performed well over the past five years, with an impressive price CAGR of 113 percent, a sales CAGR of 27.96 percent, and a profit CAGR of 77 percent. Its operational strength and profitability are further demonstrated by its 22.2 percent ROE.
Easy Trip Planners Ltd
Easy Trip Planners Ltd provides a variety of travel-related services, such as bookings for flights, hotels, vacations, trains, buses, and taxis. Additionally, it offers value-added services like activity and attraction tickets, visa assistance, and travel insurance.
One of India’s top online travel agencies, Easy Trip Planners Ltd was established in 2008 and is renowned for its steady profitability and operational effectiveness. With operations in ten countries, the company has maintained a strong global presence and has grown entirely through internal accruals.
It has more than 3 crores users, works with more than 400 airlines, and provides access to 29 lakh hotel listings. It runs a huge distribution network with 25 franchise locations and more than 72,000 registered travel agents. With 1,706 employees, the business enjoys a high rate of customer loyalty, as evidenced by 94 percent of repeat business.
With a market valuation of Rs. 3,657 crores and a current price of Rs. 10.3, Easy Trip Planners is trading at a P/E of 34.52x. The business has demonstrated sound financial performance by maintaining a strong ROCE of 20.89 percent and a very low debt-to-equity ratio of 0.05. It has achieved a strong sales CAGR of 33.01 percent and a profit CAGR of 28 percent over the last five years. It is still a profitable company with strong foundations at a very reasonable price, with a ROE of 16.2 percent.
Geojit Financial Services Ltd
Geojit Financial Services Limited provides a full range of financial services, such as margin funding, portfolio management, online broking, and the distribution of financial products.
In addition to providing specialized financial planning and asset allocation services, the company provides a broad range of investment options, such as stocks, ETFs, mutual funds, commodities, and derivatives.
The market capitalization of Geojit Financial Services is Rs. 2,276 crores, and its price is Rs. 81.6. Its P/E ratio of 14.22x indicates that its value is comparatively lower than that of its peers. With a low debt-to-equity ratio of 0.13 and a ROCE of 18.84 percent, the company exhibits strong financial health.
Over the last five years, Geojit has achieved a price CAGR of 17 percent, a profit CAGR of 27 percent, and a sales CAGR of 19.61 percent. It delivers a decent ROE of 16.8 percent, indicating consistent returns.
Written by Akshay Sanghavi
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