Top Stocks Under Rs 50: Do you remember the days when you would get Rs 50 as pocket money? You could buy the world for Rs 50. Sometimes it was a tummy full of snacks. Other times it was a thick bundle of kites. Well, the times they are a-changin’. But did you know you can save 50 bucks and invest in good stocks under Rs. 50?
A quick run on Screener fetches some 1,957 companies trading in the market with a share price of less than Rs. 50 per share. How do you go about picking profitable companies from this large pool? What filters to use: revenue growth, profitability, debt to equity ratio or what else?
In this article, we bring to you the top stocks under Rs 50. So without further ado, let us jump in.
Top Stocks Under Rs 50
Top Stocks Under Rs 50 #1 – Trident Ltd
|Share Price (Rs.)||34||Market Cap (Rs. Cr.)||17,000|
|EPS (Rs.)||1.10||Book Value (Rs.)||7.48|
|Stock P/E||30||Price to Book||4.57|
|Face Value (Rs.)||1.0||Dividend Yield||1.03%|
|Debt to Equity||0.31||Promoter Holding||72.9%|
Trident was established in 1990 as a yarn manufacturing company. It later entered terry towel manufacturing in the late 1990s. Over the years, the company slowly diversified into the paper, chemical and energy sectors.
Fast forward to today, Trident is a well-diversified mid-cap company manufacturing yarn, textiles and paper with an international presence in 150 countries across the globe. It has four manufacturing plants located in India. The Ludhiana, Punjab headquartered country is also the largest manufacturer of wheat straw-based paper and terry towels in the world. It employs 15,000 people and has a solid retail and online presence.
The primarily textile company produces various products including rugs, bed sheets, mats, pillows, quilts, writing & printing map litho paper, and scritta & offset paper.
The China +1 strategy has aided the company to post record profits. As a result, its share price has sky-rocketed more than 363% in the last three years.
Top Stocks Under Rs 50 #2 – NBCC (India)
|Share Price (Rs.)||39.7||Market Cap (Rs. Cr.)||7,200|
|EPS (Rs.)||1.15||Book Value (Rs.)||9.82|
|Stock P/E||21.2||Price to Book||4.04|
|Face Value (Rs.)||1.0||Dividend Yield||1.26%|
|Debt to Equity||0.0||Promoter Holding||61.8%|
Founded in 1960, NBCC (India) is a Navratna-status central public sector enterprise in the construction sector providing project management consultancy (PMC), engineering procurement & construction (EPC), and real estate development.
As part of its PMC division, the PSU supervises the execution of engineering products from its ideation to the subsequent commissioning. The division accounts for a majority of 93% of the revenue and covers a wide range of construction projects such as residential, institutional, environmental, border fencing works, and more.
NBCC has an international presence with its clients spread across Libya, Iraq, Yemen, Nepal, Maldives, Mauritius, Turkey, and Botswana.
It is a debt-free stock and comes under the purview of the Ministry of Housing and Urban Affairs, Government of India. It offers high return ratios with RoCE and RoE at 23.3% and 16.2% respectively.
Top Stocks Under Rs 50 #3 – HUDCO
|Share Price (Rs.)||52||Market Cap (Rs. Cr.)||10500|
|EPS (Rs.)||8.74||Book Value (Rs.)||72.3|
|Stock P/E||6.0||Price to Book||0.73|
|Face Value (Rs.)||10.0||Dividend Yield||6.68%|
|Debt to Equity||4.3||Promoter Holding||81.1%|
Housing and Urban Development Finance Corporation (HUDCO) was set up in April 1970 as a public financial institution. It is a public sector company under the Ministry of Housing and Urban Affairs (MoHUA).
HUDCO is responsible for providing long-term finance and provides consultancy services for the construction of residential & urban programmes, satellite towns, and industrial enterprises. Additionally, the company subscribes to debentures, bonds and mutual funds issued by various development bodies.
Barring FY22, the revenues of the company have consistently increased from Rs. 3,270 crores in FY16 to Rs. 7,267 crore and Rs. 6,954 crores in FY21 and FY22 respectively. Likewise, its profits grew at a CAGR of 13.97% since 2016.
As a fundamentally attractive stock, it offers a high dividend yield of 6.68% presently at an impressive price-to-earnings ratio of 8.74.
Top Stocks Under Rs 50 #4 – NHPC Ltd
|Share Price (Rs.)||39||Market Cap (Rs. Cr.)||39,500|
|EPS (Rs.)||3.84||Book Value (Rs.)||36.8|
|Stock P/E||10.2||Price to Book||1.07|
|Face Value (Rs.)||10.0||Dividend Yield||4.64%|
|Debt to Equity||0.7||Promoter Holding||71.0%|
Another government enterprise with a share price under Rs. 50, NHPC is the largest hydropower development company in India. It offers a full range of services from conceptualization to commissioning in relation to the setting up of hydro projects. It has also diversified in the field of solar and wind power development.
As of today, NHPC has an installation base of 7071.2 MW from 24 power stations including two joint-venture projects. Furthermore, it is constructing 11 projects of varying sizes amounting to a capacity of 7539 MW. In addition to these, its 8 projects worth 7652 MW capacity are presently under clearance stage and 5 projects aggregating to a capacity of 2455 MW are in the survey & investigation stage.
In the last three years, NHPC has given a satisfactory return of 64% to its shareholders. This has been primarily because of the rise in net profits from Rs. 2,885 crores in FY20 to Rs. 3,524 crores in FY22.
Top Stocks Under Rs 50 #5 – Indian Railway Finance Corporation
|Share Price (Rs.)||32.7||Market Cap (Rs. Cr.)||42,700|
|EPS (Rs.)||4.94||Book Value (Rs.)||33.3|
|Stock P/E||6.6||Price to Book||0.98|
|Face Value (Rs.)||10.0||Dividend Yield||4.3%|
|Debt to Equity||0.42||Promoter Holding||86.4%|
Indian Railway Finance Corporation is a Miniratna-status public sector enterprise under the Ministry of Railways, Government of India. It is the financing arm of the Ministry of Railways. It was established in 1986 to arrange funds for the railways to help them secure funding at a lower cost.
It has raised funds for various rail enterprises: Rail Vikas Nigam Limited (RVNL), Konkan Railway Corporation Limited, Rail Land Development Authority, Railtel Corporation of India, and Pipavav Railway Corporation.
IRFC borrows funds from sources such as taxable and tax-free bond issuances, commercial papers, term loans from banks and financial institutions, external commercial borrowings, and more.
Its assets under management have grown to Rs 429,851 crore at the end of March 2022. It reported a net profit of Rs 6,090 crore on sales of Rs 20,299 crore in FY22.
The company has a high government holding of 86.4%. Its share price has rallied 64% in the last six months as the company posted record profits. This comes on the back of increased borrowing-led expenditure by the railways.
List of Top Stocks Under Rs 50
We covered the above 5 companies with share prices under Rs. 50. The list below presents more such stocks under Rs. 50.
|Company Name||Industry||Share Price (Rs.)||Market Cap (Rs. Cr.)|
|Punjab National Bank||Banking||57||62,500|
|Indian Railway Finance Corporation||Finance||33||43,000|
|TV18 Broadcast||Media & Entertainment||37||6,350|
|Equitas Small Finance Bank||NBFC||59||7,400|
|Shree Renuka Sugars||Sugar||57||12,000|
|Trident||Textiles and Paper||34||17,350|
In this article, we went through some of the top stocks under Rs 50. Some of these companies have given impressive returns in recent years to their shareholders. The companies were of varying sizes across different industries.
While there are some novice trading strategies that advise picking stocks trading near rounded-off numbers. However, they are as ineffective as they are easy. It is not advisable to hold stocks only on the basis of their price.
Having said that what do you keep in mind while picking stocks? Do you also look for a price tag, say stocks under Rs. 50? Or do you look at fundamentals? Or what else? How about you let us know 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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