Many investors believe that penny stocks under Rs 100 can yield significant growth opportunities over time. In this blog, we’ll cover everything you need to know, from the basics of India’s penny stock market and the approach to analyzing them effectively, to a list of some of the best stocks under 100 Rs to consider.
Table of Contents
Penny stocks are shares that trade at low prices and have relatively low market cap. These stocks are often listed on smaller exchanges or less prominent segments of major exchanges like the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
Most penny stocks in India are traded on the BSE and NSE, though some are also found in the over-the-counter (OTC) markets.
Investors can trade penny stocks through online trading platforms offered by brokers. These stocks are subject to the same upper and lower circuit limits as other stocks, which prevent excessive price movements within a single trading session.
Stocks under 100 Rs are ideal for investors with:
Lower priced stocks are accessible to all kind of investors, from beginners to experienced investors. They allow you to build a diversified portfolio with limited budget.
Many stocks under 100 Rs are of emerging companies or infrastructure developers with significant growth potential. These companies operate in both domestic and international markets, addressing underserved or financially unserved segments. With the right market conditions and strategic execution, such stocks can achieve impressive growth over time.
While stocks under 100 Rs are highly volatile and carry significant risks, they also present unique opportunities. For investors with a high-risk tolerance, these stocks can deliver substantial profits, especially if market trends are in their favor.
By including lower priced stocks in your portfolio, you can diversify across small companies and industries. This will complement your other stable investments in other asset classes and balance higher returns with overall portfolio stability.
To identify fundamentally strong stocks, you need to do a fundamental analysis of the company. Focus on these key metrics:
Combine stocks under Rs 100 with more stable investments like mutual funds or blue-chip stocks to mitigate risks.
Here are some promising stocks under Rs 100 with growth potential and strong fundamentals:
The table below shows the top-performing stocks under rs 100 based on Return on Capital Employed (ROCE).
| Name | Current Stock Price (₹) | Market Capitalization (₹ Cr) | ROCE (%) | PE Ratio |
| Vintron Info. | 48.4 | 421 | 146.65 | 10.8 |
| Tuticorin Alkali | 92.5 | 1,127 | 146.32 | 18.1 |
| Infronics Systems | 50.0 | 39.6 | 123.82 | 22.5 |
| 21 Century Management Services | 93.08 | 98.81 | 78.43 | 1.69 |
| Jhandewalas Foods | 87.98 | 116.66 | 78.22 | 14.90 |
| Yuranus Infrastructure | 89.88 | 31.46 | 67.47 | 73.16 |
| VJTF Eduservices | 89.11 | 156.83 | 66.33 | 15.96 |
| BNR Udyog | 68.15 | 20.23 | 63.55 | 27.71 |
| Comfort Commotrade | 40.94 | 41.02 | 54.68 | 1.51 |
| Global Education | 76.00 | 386.85 | 54.60 | 13.15 |
Founded in 1991, Vintron Informatics Ltd specializes in manufacturing electronic products and providing related job work services.
Established in 1971, Tuticorin Alkali Chemicals and Fertilizers Ltd specializes in the production and sale of Soda Ash and Ammonium Chloride Fertilizers.
Infronics Systems Ltd operates in the IT sector, offering software development services.
21 Century Management Services
Twentyfirst Century Management Services Ltd was established in 1986. Now the company focuses on investments in the capital markets and the futures and options segment.
Jhandewalas Foods offers a diverse product portfolio, including Desi Ghee, Poha, Mangodi, Papad, and Kesar under the brand name “Namans” and Cow Ghee under the brand “Godhenu.” Additionally, it produces Porridge, Nachos, and Pasta under the “Yumm Yoo” brand, as well as Refined Groundnut Oil under the “Polki” brand.
Founded in 1994, Yuranus Infrastructure Ltd operates in construction, fabric manufacturing, agricultural products, and financial services.
Established in 1984, VJTF Eduservices Ltd specializes in managing operational education projects and offering auxiliary support services to companies in the education sector.
Founded in 1994, BNR Udyog Ltd (formerly known as Rathi Stock & Share Brokers Limited) operates in the fields of ITES, investment, and real estate services.
Founded in 2007, Comfort Commotrade Ltd operates in the commodity and equity markets.
Global Education Ltd offers educational services and consultancy.
Note: These stock picks are illustrative examples. Always conduct thorough research and check company fundamentals before start investing.
These stocks are prone to large price swings, so they are highly speculative.
Emerging companies may not provide detailed financial data. It might be hard to evaluate their intrinsic value and future performance.
While there’s potential for substantial profits, these stocks can lead to significant losses if the company fails to meet growth expectations.
Stocks with low market caps may lack sufficient trading volume. It is difficult to buy or sell at the desired price.
Stocks under Rs 100 are potentially profitable and risky. They are best suited for investors with a high-risk tolerance who are willing to conduct thorough research and hold their investments long-term.
Focus on metrics like PE ratio, net profit margin, debt-to-equity ratio, and market cap. Analyze the company’s financial performance, past trends, and growth potential.
Yes, some stocks under Rs 100 have the potential to become multibagger stocks. This means they can deliver returns several times their initial value.
New investors can explore these stocks as part of a diversified portfolio, but they should balance high-risk investments with stable options like mutual funds or blue-chip stocks.
Diversify your investments, set realistic goals, and use stop-loss orders to limit potential losses. Focus on company fundamentals and avoid speculative decisions.
Investing in stocks under 100 Rs offers an opportunity to tap into high-growth potential. Whether you’re a seasoned trader or just starting out, you need to focus on value investing and fundamental analysis to identify the best stocks to invest.
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