10 Common Stocks at Rs 100 or less as Market Price

10 Common Stocks at Rs 100 or less as Market Price.

10 Common Stocks at Rs 100 or less as Market Price. Many people think that they require huge lot of money to invest in share market. But it is not so true.There are lots of company in Indian stock market whose market price is even less than the cost of a burger.

There are a number of penny stocks trading between Rs 1 to 10 (find more here). Even, big companies like Ashok leyland, Tata Power, Steel Authority etc are also selling at a market price lower that Rs 100. So, today I am listing the list of such 10 Common Stocks at Rs 100 or less as Market Price.

10 Common Stocks at Rs 100 or less as Market Price

S.No Company Price (In Rs)
1 Idea Cellular 86.70
2 Federal Bank 92.70
3 Ashok Leyland 82.50
4 Tata Power 85.55
5 Crompton Greaves 79.50
6 IDBI Bank 75.10
7 National HyroElectric Power Corporation (NHPC) 32.25
8 Reliance comm 36.80
9 SAIL (Steel Authority India Ltd) 63.85
10 Bombay Dyeing 83.50

Funny, the stock prices of these companies are even less than the Ola or Uber ride fare.  Still people speculate that buying stocks are expensive.

In addition, you can further find a list of large number of stocks, who range from RS 1 to 100  here: http://money.rediff.com/companies/price-sorted/10-100

Disclaimer: Please note that I am not recommending  you to buy these stocks just because their price is low. You should always buy a stock only when its selling at a bargain price. Bargain stocks are not such stocks whose share price is low. Its those stocks which are trading at a much lower than its intrinsic value.

Tags: 10 Common Stocks at Rs 100 or less, Indian stock market 10 Common Stocks at Rs 100 or less as Market Price, 10 Common Stocks at Rs 100 or less as Market Price in India

10 Common Stocks that gave more than 100% return last year

10 Common Stocks that Gave More Than 100% Return Last Year -2017

10 Common Stocks that gave more than 100% return last year. Peter lynch, the legendary investor and fund manager, used to say ‘‘Invest in what you know’’ in his best-selling book “One up on the Wall Street”. By this he means –‘there are a number of common stocks which anyone can find easily around them if they are looking’. You do not need to find a rare petroleum stock which no over has ever heard.  You just have to look around and find some decent companies in your surroundings to invest in.

“Know what you own, and know why you own it.”

“The simpler it is, the better I like it.”

“The worst thing you can do is invest in companies you know nothing about. Unfortunately, buying stocks on ignorance is still a popular American pastime.”

– Peter Lynch

So, toady I have compiled a list of 10 such common stocks which a common people could have found easily while walking in their city or during travelling in the city-bus.

Here is the list of the 10 Common Stocks that gave more than 100 percent return last year. I hope few of them are in your portfolio for over a year.

10 Common Stocks that gave more than 100% return last year.

STOCK 8-May-17 9-May-16 % Change
SENSEX 29926.15 25688.86 16.49
NIFTY 9314.05 7866.05 18.40
INDIAN BANK 352 92.9 278.90
RURAL ELECTRIFICATION 216.6 84.82 155.36
FEDERAL BANK 118.9 49.15 141.91
BAJAJ FINSERV 4409.05 1875 135.14
SUN TV 851 364.5 133.47
PUNJAB NATIONAL BANK 176 82.8 112.56
BANK OF INDIA 185.4 89.35 107.49
INDIAN IOL CORP (IOC) 428.55 209.9 104.16
JAYPEE INFRATECH 14 6.95 101.43
MRF 67501 33650 100.59

Here is the list of other six common stocks that has given more than 50 percent return for the last year.

Best book to learn investing mindset: Rich Dad Poor Dad: What the Rich Teach their Kids About Money that the Poor and Middle Class Do Not! I highly recommend you to read this book.

10 Common Stocks that gave more than 50% return last year.

STOCK 8-May-17 9-May-16 % Change
GITANJALI  GEMS 68.75 35.65 92.84
HPCL 531.5 278.5 90.84
MARUTI SUZUKI 6626 3846.5 72.26
YES BANK 1616.25 945.05 71.02
APOLLO TYRES 240.45 157.2 52.95
TATA COMM 652.05 429.08 51.96

 

Tags: 10 Common Stocks that gave more than 100% return last year, List of 10 Common Stocks that gave more than 100% return last year 2016-17

Six Different Types of Stock in Indian Market according to Peter Lynch

Six Different Types of Stock in Indian Market according to Peter Lynch:

Peter Lynch is the renowned American investor and ex-manager of Magellan fund at Fidelity investment. He is famous for his averaged 29.2% annual return for the duration of 13 years. The prodigal mutual fund manager divided the stocks into six categories during his investment experience. Namely: slow growers, stalwarts, fast growers, cyclical, asset plays, and turnarounds.

We are also going to follow lynch’s path.  Here are the categories with the examples of stocks from Indian markets so that they are easier to understand.

N

Six Different Types of Stock in Indian Market according to Peter Lynch:

1. Slow growers / Sluggards

Slow growers, which originally once were fast growers, can be identified easily with a slow growth rate i.e. a low upward slope of earnings growth and stock price. The growth is usually between 2-5%. They can also be identified by the size and generosity of their dividend.

Peter Lynch did not like to spend time on these ‘sluggards’ and his portfolio consisted of very less percentage of slow growers. According to him, the only reason to buy these stocks is their dividends. They generally give a very good dividend (about 4-6%) and are a good asset during the recession as its very unlikely for their stock to feel too hard.

Example: Reliance, Power Grid Corp

2. The Stalwarts

They are the second type of categories of the Six Different Types of Stock in Indian Market according to Peter Lynch.

These stocks have average growth rate and are usually large companies that have earnings growth in the 10-12 percent range – higher than the slow growers.

According to Peter lynch, you can get a good return from these stocks if you wait for a long time. They generally end up from two-baggers (two times your buying price) to four-baggers. It’s good to have few stalwarts in your portfolio.

Example: HPCL, Bajaj Auto, Mahindra & Mahindra

Best book for Stock Market Beginners– If you are new to stocks, I will highly recommend to read ‘ONE UP ON THE WALL STREET‘ by Peter Lynch. It is available currently at the best price on Amazon.

3. The fast growers

The fast growers are everyone’s first choice. These stocks are generally small aggressive new enterprises and they grow at an impressive rate of 20-25% per year. But one should be open-eyed when they own a fast grower. There is a great likelihood for the fast growers to get hammered if they run out of steam and become a slow grower.

Peter lynch’s portfolio consisted mainly of the fast growers. He looks for fast growers with good balance sheets and which have good profitability. This category is also the lynch’s favorite among the Six Different Types of Stock in Indian Market according to Peter Lynch

Example: MRF, Eicher Motors, axis bank, Infosys, Maruti

4. The Cyclicals

The Cyclical can be distinguished from the fast growers as the cyclical keep on expanding and contracting and again repeating the same cycle (while the fast growers keep on expanding). They tend to flourish when coming out of a recession into a vigorous economy.

Automobiles, Metals, Chemicals, Tyres etc are the examples of the cyclical. Their charts tend to be very up and down over time. It is advised to owning the cyclical only on the right part of the cycle.  That is when they are expanding. Sometimes, it even takes them years before they perform. Timing is everything and you need to be able to detect the early signs that business is falling off or picking up.

Example: GAIL, Coal India, SBI

5. The turnarounds

The turnarounds are identified by Lynch as ‘no growers’ rather than ‘slow growers’. They are potential fatalities that have been badly hammered by the market for one or more of a variety of reasons. But they can make up lost ground very quickly.

Peter lynch identifies different types of turnarounds in his book ‘One up on the Wall Street’ and admits to being burnt by a number of them but suggests that the occasional success can be exciting and rewarding.

Example: Tata Steel, Phoenix Mills etc

6. The Asset Plays

This is the last category from the Six Different Types of Stock in Indian Market according to Peter Lynch.

The asset plays are those stocks whose stocks are greatly undervalued and those stocks that have assets overlooked by the market. These assets may be simply cash that the company is holding but which is not valued when there has been a general market downturn. The cash may be worth more than the market capitalization of the company.

Many of the PSUs are key asset plays because of the real estate property they are holding. For example- State bank of India. SBI has over 24,000 branches all over India. A similar example is ONGC.

Peter lynch understands the worth of the asset plays. He suggests owning few of these stocks in your portfolio as they are most likely to give you a good return in the future. The only significant thing in these stocks is to carefully find these stocks and right estimate for the worth of the assets. If you are able to do it, own that stock.

Try it out yourself!

So, these are the six different types of Stock in Indian Market according to Peter Lynch. If you followed the post, you can also easily categorize any stock in the six types given above. So, go on, play around different stocks and classify them accordingly to above categories.

NOTE: The research on Six Different Types of Stock in Indian Market according to Peter Lynch is derived from his Book ONE UP ON WALL STREET.

Further, please comment below with the name of stocks that fits the above categories. I will really appreciate it and it will be very beneficial for the other post viewers.

New to stocks and confused where to start? Here’s an amazing online course for the newbie investors: INVESTING IN STOCKS- THE COMPLETE COURSE FOR BEGINNERS. Enroll now and start your stock market journey today!

BSE initial public offering in the market on 23 January at Rs 805- 806

BSE Initial public offering (IPO) is set to enter the market on 23 January. The bidding will be open until 25 January. The analysts are expecting a huge demand for the issue of the oldest stock exchange in asia.

The issue price for the Bombay stock exchange initial public offering will be Rs 805 – 806 per share. The minimum order quantity will be 18 shares.

Here are the details about the BSE Initial public offering:

Issue Open: Jan 23, 2017 – Jan 25, 2017

Issue Price: Rs. 805 – Rs. 806 Per Equity Share
Minimum Order Quantity: 18 Shares
Market Lot: 18 Shares

Face Value: Rs 2 Per Equity Share

Issue Type: Book Built Issue IPO
Issue Size: 15,427,197 Equity Shares of Rs 2 aggregating up to Rs 1,243.43 Cr

Know more here.

PM Modi Inaugurates the India International Exchange (INX) at GIFT city.

For an auspicious day for the India’s financial sector, Prime minister Narendra Modi inaugurated the India International Exchange (INX) located at the International Financial Services Centre (IFSC), Gujrat International Finance tech –city (GIFT City), Gandhinagar on Monday, Jan 9, 2017.

The INX is a owned subsidiary of Bombay Stock Exchange (BSE) Ltd and is expected to start trading from 15th January 2017. The new exchange will greatly improve the service and quality of transactions across the world.

Here are 5 important updates about India International Exchange (INX):

1) INX at will be open for trading for 22 hours every day. The trading will open daily at 4 am (when exchanges in Japan opens), and close at 2 am (when exchanges in the US closes).
2) World’s fastest international exchange: India INX will be the fastest international exchange in the world with a median trade speed of four microseconds, in terms of order response time,. This is way better than the second ranked Singapore International exchange (60 microseconds) and domestic BSE’s exchange at Mumbai (6 microseconds).

3) The India INX can trade securities and products other than Indian rupees. The securities and products that could be traded on the India INX are: equity shares of companies incorporated outside India, debt securities, depository receipts, index based derivatives, currency and interest rate derivatives, commodity derivatives and similar other securities.

4) A highly robust risk management system is in place to prevent money laundering and market manipulation.

5) A huge investment of Rs 500 Crore will be invested by the Bombay stock exchange in the upcoming three years. Further, INX will begin operations with 100 employees, most of whom have relocated from Mumbai, apart from local and foreign personnel.

What are stocks? And what is a Stock Market?

What are stocks and what is a stock Market? This is probably the biggest financial question whose answer billions of people are searching for. “What are stocks?”,”What is a stock market?”,”How stock market works?”,”Why stock market exists?” You might have also wondered the answers to these questions if you are a newbie to stock market industry. Although a simple booking answer/definition of all the above questions can be found easily in a book or online, it would be simpler and more interesting if we explain the whole scenario in the form of a story.

In this article, we’ll cover the stock market story to understand what are stocks. In the later section, we will also give you the standard definition for all these for your better understanding. Let’s get started.

The Stock Market Story

It all starts with a company. Let’s say there is a company XYZ. It is private company which means that the company is totally owned by the owners (promoters). Further, let’s say that the Company XYZ is a manufacturing company and is doing well in its industry.

Now the owners wants to expand their company in new cities and also to perform new Research and development in their field for growth. And for all these, the company requires capital (money).

what are stocks and stock market

Now, let’s see what the options for the owners to get the required capital.

At first, the company will try to get the capital from its own promoters (owners) to expand the company. This is the easiest way to raise capital as the promoters can easily put their their savings/holdings in the company for its growth. A similar option can be going to FFF (Friends, Family, Fools) who might me ready to in invest money in the company. If both these are not sufficient, another option can be going to Angel investors or VC (Venture capitalists) for raising money. But here, the owners have to give a portion of their company (Stakes) to these investors or VCs. Moreover, Angels and VCs are a little difficult to find.

If none of the above options meet the full capital requirement for the company, then it has to go to the biggest money source, the BANKS. These banks can give big loans to the company for which they have to pay some interest and have to fully return the capital at the end of the term. However, paying debts along with interests can be a troublesome options for companies.

Them, what’s the option for the company XYZ now? From where can the company X get such a large capital? The answer is public. The company XYZ can get a large sum of money by giving a little ownership of the company to the people in exchange of their money. And here begins the journey of the company XYZ in the stock market.

A stock market is a place where the company will be able to sell its ownership (in the form of the stocks) to the public. And why will the people buy the stocks of the company XYZ? It totally depends on how positive the people is about the growth of the company in terms of sales, earnings, revenue etc. If the people think that the company will be able to grow to new heights or if they believe in the visions of the company X, then, the public will buy the stocks to trade their money with the ownership of the company. These stocks may rise in value as the company performs well in future, giving the public investors good returns.

Thus by giving the portion of the ownership, the company XYZ will be able to pool a great amount of money for its growth and development.

ALSO READ

How to Invest in Share Market? A Beginner’s Guide!

Now, generally, the company does not offer its complete shares to the public. Almost all of the times the owners (promoters) keep a portion of the stock with them to keep the ownership in their hands. For example, Mukesh Ambani from Reliance Industries own around 51% stake of the company. Rest they have sold to the public, FII, DII etc.

equity ownership

Let’s understand it better with another example. Assume, the company XYZ decided to provide 10,00,000 shares which constitutes the entire value of the company. Out of the total, it decides to offer 7,00,000 shares to the public and to keep remaining 3,00,000 shares with promoters. Here, the promoters 30% ownership in the company.

Quick Note: We would also like to define the term free-float market capitalization here. It is the product of the total shares offered to the public and the price of per share. Let’s say the company XYZ’s each share price costs Rs 50 and it offers 7,00,000 public shares. Then, the free float market capitalization here will be equal to 50*7,00,000. The total market capitalization will be 50*10,00,000.

Now, let’s move the story further. The company XYZ has decided to enter the stock market. When the first time the company enters the market, it has to provide an offering price of the shares for the public to buy. This process of entering the market is called initial public offering i.e. IPO (or going public). The IPO is offered in the primary market, where the seller is the company and the buyer is the public. After the IPO, the stock goes to the secondary market, where the buyer and sellers both are the public. Here, the public generally exchanges the ownership of the company in order to trade/invest or simply to book profits.

That’s the simplest story of the stock and the company XYZ from private stage to going public.

Stock Market Definitions

As promised, now that you have understood what are stocks, let us also look into the standard definitions of the above discussed stock market terms.

— Stock: A stock is a general term used to describe the ownership of any company. Stock represents a claim on the company’s assets and earnings. As you acquire more stock, your ownership stake in the company becomes greater. Shares, equity, or stock, all basically mean the same thing.

— Stock Market: The stock market is the market in which shares of publicly held companies are issued and traded either through exchanges or over-the-counter markets. It is a place where shares of publicly listed companies are traded. The stock market can be split into two main sections: the primary market and the secondary market.

  1. Primary Market: It’s where new issues are first sold through initial public offerings. Retail Investors, mutual funds, domestical, and foreign institutional investors buy the share from the promoters. Institutional investors typically purchase most of these shares during this first-time issue by the company.
  2. Secondary Market: All subsequent trading goes on in the secondary market where participants include both institutional and individual investors.

— Initial Public Offering (IPO): An IPO is the first time that the stock of a private company is offered to the public. It is a source of collecting money from the public for the first time in the market to fund its projects. In return, the company gives the share to the investors in the company. IPOs are often issued by smaller, younger companies seeking capital to expand, but they can also be done by large privately-owned companies looking to become publicly traded.

— Market Capitalization: Market Cap or Market capitalization refers to the total market value of a company’s outstanding shares. It is calculated by multiplying a company’s shares outstanding by the current market price of one share. The investment community uses this figure to determine a company’s size, as opposed to its competitor, industry and market as a whole.

 

In this post, we discussed what are stocks and what is a stock market. By now, you would have a basic knowledge of stocks. However, this is just the beginning. Next, you need to learn little advance stock market terms like Sensex, NSE, BSE, Bulls, Bulls, etc.

I hope you continue your stock market education journey on Trade Brains. Have a great day and Happy Investing!