Investing in the stock market can be a great way to grow your wealth over a long period of time. However, finding the right stocks to invest in can be a challenging task.
One way to start investing in the stock market is by investing in low-priced stocks. These stocks can be a good option for investors who have limited capital and want to diversify their portfolios. However, investing in low-priced stocks comes with its own set of risks and challenges.
In this blog, we will discuss some of the factors you should consider before investing in low-priced stocks, as well as some of the top stocks trading under Rs.10 that you can consider investing in. Please note that investing in the stock market involves risks, and you should always consider consulting with a financial advisor before making any investment decisions.
List of Top 6 Best Stocks Under 10 Rs.
| Name | Sub Sector | Market Capitalisation (Rs. in Crore) | Close Price (Rs.) | 5-Yr CAGR (%) |
| Vodafone Idea Ltd | Telecom Services | 29,451.21 | 6.45 | -31.51 |
| Suzlon Energy | Renewable Energy Equipment & Services | 9,328.10 | 7.95 | -5.50 |
| Jaiprakash Power Ventures Ltd | Renewable Energy | 3,906.47 | 5.65 | 5.86 |
| Jaiprakash Associates Ltd | Conglomerates | 1,840.95 | 7.45 | -18.25 |
| RattanIndia Power Ltd | Power Generation | 1,664.73 | 3.05 | -10.63 |
| GTL Infrastructure Ltd | Telecom Infrastructure | 1,013.69 | 0.80 | -20.06 |
*Data as on 22nd April 2023 as per market capitalisation
- Vodafone Idea Ltd
Vodafone Idea Ltd is a telecommunications company based in India that provides mobile and internet services to customers. It was formed as a merger between Vodafone India and Idea Cellular in 2018. It has a market capitalisation of Rs. 29,451.21 cr and PE Ratio of -1.04.
- Suzlon Energy
Suzlon Energy is a renewable energy company based in India that specialises in wind energy. It designs, manufactures, and operates wind turbines for onshore and offshore installations. It has a market capitalisation of Rs. 9,328.10 cr and PE Ratio of -46.74.
- Jaiprakash Power Ventures Ltd
Jaiprakash Power Ventures Ltd is a power company based in India that operates hydroelectric power plants, thermal power plants, and wind power plants. It is a subsidiary of Jaiprakash Associates Ltd. It has a market capitalisation of Rs. 3,906.47 cr and PE Ratio of 36.35.
- Jaiprakash Associates Ltd
Jaiprakash Associates Ltd is a diversified infrastructure company based in India that is involved in engineering, construction, real estate, and power projects. It is the parent company of Jaiprakash Power Ventures Ltd. It has a market capitalisation of Rs. 1,840.95 cr and PE Ratio of -1.25.
- RattanIndia Power Ltd
RattanIndia Power Ltd is a power company based in India that operates thermal power plants and renewable energy projects. It was formerly known as Indiabulls Power Ltd before being acquired by the RattanIndia Group. It has a market capitalisation of Rs. 1,664.73 cr and PE Ratio of -0.84.
- GTL Infrastructure Ltd
GTL Infrastructure Ltd is a telecommunications infrastructure company based in India that provides tower infrastructure to mobile operators. It operates a network of over 28,000 towers across the country. It has a market capitalisation of Rs. 1,013.69 cr and PE Ratio of -0.69.
Also read: Best Stocks under Rs 20 in India
Factors To Consider Before Investing in Below 10 Rs. Share
Before investing in any stock, regardless of its price, it is important to consider several factors to make an informed decision. Here are some key factors to consider before investing in stocks under Rs. 10:
- Company fundamentals: It is important to analyse the company’s financial statements, revenue, profits, debt, and other financial metrics to determine its financial health and stability. You should look for companies with a solid track record of profitability and financial stability.
- Market trends: Analysing the broader market trends can help in identifying whether the company is in a growth phase or not. Understanding the industry trends and demand for the products or services offered by the company can also help in predicting its growth prospects.
- Management and leadership: A company’s management team and leadership play a crucial role in its success. It is essential to investigate the company’s management team, their past track record, and its experience before investing in its stock.
- Risk profile: Stocks under Rs. 10 may be relatively riskier than stocks with a higher price point, so it’s important to understand the risk profile of the company. Look for stocks with a manageable level of risk that aligns with your investment goals.
- Liquidity: Liquidity is important when investing in stocks, especially those with lower prices. Consider the average daily trading volume and the stock’s liquidity before making an investment decision.
- Valuation: It is important to analyse the stock’s valuation before investing in it. A company’s valuation should be in line with its growth prospects, financial health, and industry trends.
- Diversification: It is always advisable to diversify your portfolio by investing in multiple stocks across different sectors to minimise risk.
Overall, it is crucial to do thorough research and analysis before investing in any stock, regardless of its price point. By carefully considering these factors, you can make an informed decision about investing in stocks under Rs.10.
Conclusion
Investing in stocks always carries a level of risk, and investing in the best share to buy under 10 may be even riskier. These stocks are typically issued by smaller companies that may have a lower market capitalisation, lower liquidity, and higher volatility. While these stocks may have the potential for high returns, they also come with a greater risk of loss.
Investors should always conduct thorough research before investing in any stock, including those priced under Rs.10. They should consider factors such as the company’s financial performance, management team, competitive landscape, and market conditions.
It’s also important to have a clear investment strategy and diversify your portfolio to minimise risk. A financial advisor or a reputable investment platform like Angel One can provide guidance and support in making informed investment decisions.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations.
