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Best financial stocks under Rs 100: Check if you hold them

07 February 20244 mins read by Angel One
In this article, we will explore and analyse the top performers in the financial sector, revealing key metrics and insights.
Best financial stocks under Rs 100: Check if you hold them
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India’s financial sector is diverse, experiencing rapid growth with both existing firms and new entrants. It includes commercial banks, insurance companies, non-banking financial companies, co-operatives, pension funds, mutual funds, and smaller entities. Recent regulatory changes have introduced payment banks, broadening the sector’s scope.

Despite this, commercial banks remain dominant, holding over 64% of the total financial system assets. The government has implemented reforms to liberalise and regulate the industry, facilitating finance access for Micro, Small, and Medium Enterprises (MSMEs). Initiatives like the Credit Guarantee Fund Scheme and Micro Units Development and Refinance Agency (MUDRA) aim to support MSMEs. With government and private sector collaboration, India stands as one of the world’s vibrant capital markets.

Growth Drivers 

Growing demand for financial services, fueled by rising incomes, positions India’s insurance sector to reach a potential US$ 1 trillion investment corpus by 2025. With over 2,100 fintechs leveraging the expanding mobile and internet landscape, India is set to become a global digital market. Innovations include digital gold investments and the announcement of a central bank digital currency, Digital Rupee, in the Union Budget 2022-23. Supportive policies, such as 100% FDI for insurance intermediaries and a raised FDI limit to 74%, bolster the sector. Increasing penetration in rural areas and a growing wealth management segment reflect untapped growth opportunities, despite mutual fund penetration standing at 5-6%.

Explore our analysis of the financial sector’s top performers, revealing key metrics and insights in the table below.

S.No. Name CMP (Rs) Mar Cap (Rs crore) Debt / Eq B.V. (Rs) ROA 12M % NPM Latest Qtr % Int Coverage
1 Std. Capital Mkt 3.32 488.04 0.96 1.06 1.76 62.8 2.45
2 PTC India Fin 44.35 2,848.50 1.94 38.53 2.05 31.42 1.52
3 IFCI 32.24 8,026.52 1.53 15.13 -0.77 28.72 1.59
4 U. Y. Fincorp 26.81 510.05 0 16.22 2.59 175.84 997
5 Niyogin Fintech 81.73 772.09 0.04 29.97 -8.02 -20.79 -10.9
6 Dhanlaxmi Bank 41.05 1,038.59 14.4 37.99 0.34 7.62 1.15
7 Ujjivan Small 61.20 11,974.03 7.08 20.51 3.87 23.56 1.88
8 Edelweiss.Fin. 76.17 7,188.64 4.6 46.69 0.93 4.4 1.16
9 Geojit Fin. Ser. 84.25 2,014.71 0.25 31.11 7.39 26.04 15.08
10 Punjab Natl.Bank 98.90 1,08,898.92 13.22 93.43 0.24 7.41 1.14

Key Observations:

  1. Std. Capital Mkt: With a remarkable 1-year return of 176.27%, Std. Capital Mkt leads the pack, showcasing robust financial performance.
  2. U. Y. Fincorp: Despite having no debt, U. Y. Fincorp stands out with an impressive 1-year return of 124.5%.
  3. Niyogin Fintech: While facing challenges in net profit margins, Niyogin Fintech displays a noteworthy 1-year return of 118.22%.
  4. Dhanlaxmi Bank: Despite high financial leverage, Dhanlaxmi Bank delivers a strong 1-year return of 109.88%, indicating resilience.
  5. Ujjivan Small: Ujjivan Small showcases a balanced performance with a 1-year return of 107.61%, emphasising stability.

In conclusion, these top-performing financial stocks under Rs 100 present a mix of stability, growth, and resilience, making them potential contenders for investors seeking value in the financial sector. Investors are advised to conduct further research and consider their risk tolerance before making investment decisions in this dynamic market landscape.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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