Top Stocks Under Rs 1000: Most people start their SIPs in India with a figure that is a multiple of Rs. 1,000. The amount might be Rs. 2,000 or Rs. 20,000 as per the income level and investing orientation of the investor. In this article, we cover such stocks trading under Rs. 1,000.
Below we present five top stocks under Rs 1000 that an investor can watch out for. The companies we describe here have been in high demand recently. Some have undergone significant changes, strengthening their position as a leader, while others have a history of generating consistent returns for their shareholders.
So without further ado, let us jump in.
Table of Contents
Top Stocks Under Rs 1000 #1 – Bharti Airtel Ltd
| Share Price (Rs.) | 753 | Market Cap (Rs. Cr.) | 434,000 |
| EPS (Rs.) | 9.48 | Book Value (Rs.) | 113 |
| Stock P/E | 87.8 | Price to Book | 6.66 |
| Face Value (Rs.) | 5.0 | Dividend Yield | 0.40% |
| ROCE | 12.0% | ROE | 5.86% |
| Debt to Equity | 2.55 | Promoter Holding | 55.9% |
Bharti Airtel was founded 27 years ago in 1995 by Sunil Bharti Mittal. Also known as Airtel, it is a leading telecommunication company with a global presence. Based out of New Delhi, India, it is present in 17 countries across Asia and Africa. Along with mobile services, it is also one of the most trusted providers of ICT services.
Airtel stands among the top 3 mobile subscribers globally in terms of the number of subscribers. The telecom company has a diverse product portfolio of satellite networks and submarine cables spread across 365,00+ RKMs in 50 countries and 5 continents.
After Mukesh Ambani-led Jio disrupted the Indian telecom industry, the company fought back gaining revenue market share slowly. Revenue Market Share or RMS means the revenue of a company to the total income of the telecommunication industry. Presently, its RMS at 35.5% is second in line with Jio’s 40.3%.
The financial condition of Airtel has improved with the company reporting quarterly profits since December 2020. As a result, foreign institutional investors and domestic institutional investors have flocked back to the company hoping for stellar returns from the stock in the years ahead.
Top Stocks Under Rs 1000 #2 – United Spirits Ltd
| Share Price (Rs.) | 807 | Market Cap (Rs. Cr.) | 58,500 |
| EPS (Rs.) | 14.3 | Book Value (Rs.) | 69.8 |
| Stock P/E | 51.4 | Price to Book | 11.6 |
| Face Value (Rs.) | 2.0 | Dividend Yield | 0.00% |
| ROCE | 24.2% | ROE | 19.8% |
| Debt to Equity | 0.12 | Promoter Holding | 56.7% |
Abbreviated as USL, United Spirits is India’s leading alcohol beverage company. It is a subsidiary of Diageo PLC, a global leader in alcohol production. As of June 2022, it owned a 55.94% stake in USL. It started by initially acquiring a minority stake back in 2013.
The alco-beverages company has an overall portfolio of 80 brands including premium ones such as Johnnie Walker, Black Dog, Black & White, VAT 69, Antiquity, Signature, Royal Challenge, McDowell’s No.1, Smirnoff and Captain Morgan. In the 2022 fiscal year, it sold 79 million cases.
It is the largest spirits company in India and the second largest in the world. The company has a market share of 32% in India. It has more than 47 facilities and a robust distribution network of 70,000 outlets.
USL’s premium segment accounts for 72% of the total revenues. The company has been focusing on premium drinks since Diageo gained control. Premium drinks give better margins to the company. Its McDowell’s No 1 whiskey leads the pack.
Top Stocks Under Rs 1000 #3 – Tata Consumer Products
| Share Price (Rs.) | 826 | Market Cap (Rs. Cr.) | 76,000 |
| EPS (Rs.) | 10.9 | Book Value (Rs.) | 164 |
| Stock P/E | 72 | Price to Book | 5.02 |
| Face Value (Rs.) | 1.0 | Dividend Yield | 0.73% |
| ROCE | 9.6% | ROE | 6.5% |
| Debt to Equity | 0.09 | Promoter Holding | 34.7% |
Tata Consumer Products Ltd. (TCPL) was formed after the merger of the consumer products business of Tata Chemicals and Tata Global Beverages Ltd. (TGBL). The company was later renamed Tata Consumer Products. TCPL has emerged as one of the strongest FMCG companies not just in India but also globally with brands such as Tata Tea, Tetley, Tata Salt, Eight O’Clock Coffe, Tata Sampann, Tata Soulfull and more as part of its portfolio.
Tata Consumer Products traces its origins back to 1964 when the Tata Group created an alliance with Indian tea major James Finlay to launch Tata Finlay. Later in 1983, Tata Salt was rolled out as India’s first iodised and vacuum evaporated salt under Tata Chemicals. Over the years, the company grew organically and inorganically acquiring well-known brands such as Tetley, Good Earth, and Soulfull.
Over the last five years, TCPL has generated a consistent and impressive return of 31.59% every year for its investors. The FMCG company has a low debt-to-equity ratio of 0.09 with a promoter holding of 34.7%.
Top Stocks Under Rs 1000 #4 – Aarti Industries Ltd
| Share Price (Rs.) | 848 | Market Cap (Rs. Cr.) | 38,000 |
| EPS (Rs.) | 36.7 | Book Value (Rs.) | 163 |
| Stock P/E | 23.1 | Price to Book | 5.2 |
| Face Value (Rs.) | 5.0 | Dividend Yield | 0.41% |
| ROCE | 22.1% | ROE | 27.8% |
| Debt to Equity | 0.4 | Promoter Holding | 44.2% |
Incorporated in 1984, Aarti Industries is a global speciality chemical and pharmaceuticals player with a portfolio of over 200 players. The company’s 17 manufacturing facilities (12 for speciality chemicals and 5 for the pharma industry) cater to 400+ international and 700+ domestic customers.
The primarily chemicals company has a workforce of around 5,200 including 400 dedicated engineers and scientists. It has a high-profile clientele including names such as DuPont, UPL, Cipla, Sanofi, Sun Pharma, 3M, and Dabur.
The backward integration allows the company to post better margins because of cost-efficient operations. Its products find applications in a broad range of industries such as agrochemicals, pharmaceuticals, polymers, home & personal care products and pigments.
The stock of Aarti Industries has grown consistently at a CAGR of 32.35% over the last five years. This has resulted in gains of over 307% for its shareholders.
Top Stocks Under Rs 1000 #5 – Adani Ports
| CMP | Rs. 411 | Market Cap (Cr.) | Rs. 158,500 |
| Stock P/E | 16.9 | Face Value | Rs. 10.0 |
| ROCE | 20.7% | Book Value | Rs. 8.99 |
| ROE | 26.0% | Price to Book Value | 45.8 |
| Debt to Equity | 12.6 | Promoter Holding | 75.0% |
| Net Profit Margin | 17.7% | Operating Profit Margin | 35.7% |
| Senior Debt ISCR | 3.38 | Dividend Payout Ratio | 0.0% |
Part of the ports-to-power conglomerate the Adani Group, Adani Ports and SEZ (APSEZ) was started more than two decades ago in 1998. By 2013-2014 it became India’s largest private sector ports company. It has a vision to position itself as the world’s largest private port entity.
As of this day, it has a capacity of handling 498 MMTPA cargo. APSEZ operates 3 logistics parks and 12 ports & terminals. In terms of land space, the company has 15,000 hectares of industrial land and 4 lac sq ft of warehousing. Adani Ports employs 2,736 individuals with an impressive average tenure of 8 years.
Its facilities are strategically located pan-India giving the company an integrated and competitive advantage.
Its turnover has consistently grown in the last few years. The company has scaled inorganically over the years by purchasing various other ports. For instance, last year the company spent Rs. 14,659 crores to acquire three ports, namely Dighi Port, Krishnapatnam Port, and Gangavaram Port.
List of Top Stocks Under Rs 1000
The table below presents a list of top stocks under Rs 1000 along with their industry, market capitalization and share price.
| Company Name | Industry | CMP (Rs.) | Market Cap (Rs. Cr.) |
|---|---|---|---|
| Aarti Industries | Chemicals | 848 | 38,000 |
| Adani Ports & SEZ | Maritime | 874 | 185,000 |
| United Spirits | Breweries & Distilleries | 807 | 58,500 |
| Bharti Airtel | Telecommunication | 753 | 433,000 |
| Tata Consumer Products | FMCG | 826 | 76,000 |
| HCL Technologies | IT | 931 | 253,000 |
| ICICI Bank | Banking | 875 | 610,000 |
| Axis Bank | Banking | 754 | 232,000 |
| Sun Pharmaceuticals Ind. | Pharmaceuticals | 894 | 215,000 |
| Godrej Consumer Products | FMCG | 946 | 97,000 |
| SBI Cards & Payment Serv. | Financial Services | 958 | 90,500 |
| Cholamandalam Invst. & Fin. Co. | Financial Services | 802 | 66,000 |
| Bharat Forge | Forging | 766 | 35,500 |
| Voltas | Consumer Goods | 983 | 32,500 |
| Ipca Laboratories | Pharmaceuticals | 880 | 22,500 |
In Conclusion
In this article, we looked at some of the top stocks under Rs 1000. While it is a good approach to filter companies on the basis of their stock price and market capitalization, it should not be the only metric to pick stocks. Furthermore, an investor should attempt to include companies from different sectors and of different sizes to protect her downside by diversification.
As an investor, what parameters do you choose to filter stocks? How do you go about picking investment-worthy ones from that sample? How about you let us in the comments below?
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