Stock investment is selecting stocks that will grow in value in future to generate significant returns. In the market, sometimes stocks trade lower than their intrinsic value, which can be due to errors in price discovery, news related to the company or sector, or general negative sentiment of investors. These stocks are from companies with solid fundamentals and performance records.
Advantages of investing in undervalued stocks
Some of the advantages of investing in undervalued stocks are mentioned below.
- Undervalued stocks eventually attain their intrinsic value, resulting in an assured profit.
- It allows investors to buy good stocks at lower prices. Undervalued stocks are shares of well-established companies.
- Sometimes these stocks are of small companies on the growth path, which turns these stocks into multibagger.
- These stocks are low-risk, and undervaluation is often cyclic. They will automatically reach their intrinsic price level.
Best stocks to buy today under Rs 100
We have researched to find you the best stocks to buy today under 100 rs. These stocks are selected based on their performance, price trend, news, and fundamental analysis.
|Name of the company||Price (as of 8th Jan 2023)||P/E Ratio (TTM)||Industry P/E|
|Ashoka Buildcon Ltd||₹ 85.90||3.00||8.88|
|L&T Finance Holdings Ltd||₹ 86.90||16.38||13.21|
|Steel Authority of India Ltd||₹ 85.90||8.05||10.92|
|Shree Renuka Sugars Ltd||₹ 56.15||NA||19.60|
|Rail Vikas Nigam Ltd||₹ 72.45||11.12||8.88|
|NLC India Ltd||₹ 82.85||7.76||17.74|
Ashoka Buildcon Ltd.
Ashoka Buildcon is one of the fortune 500 companies based in India involved in highway development. The company has a portfolio of 41 PPP projects, the highest for any private company. Besides, the company is also involved in constructing buildings, power, railways, and city gas distribution.
The company has completed many prestigious projects for central and state governments and an overseas project in the Republic of Maldives.
Currently, you can buy Ashoka Buildcon stocks for under rs 100.
L&T Finance Holdings Ltd.
The holding company offers various financial products and services to rural, housing and wholesale sectors, as well as mutual funds and wealth management services through its various subsidiaries.
Steel Authority of India Ltd.
SAIL is a PSU industry under the ownership of the Ministry of Steel and one of the seven Maharatnas. The company is a leader in integrated iron and steel making – basics and special steels for various industries.
Shree Renuka Sugars Ltd.
It is a sugar-producing company which also has segments that are related to sugar production such as ethanol and power. Its price has increased from Rs. 9.85 in Jan’ 2021 to Rs. 59.10 in Jan’23.
Rail Vikas Nigam Ltd.
It is a special purpose vehicle or SPV focused on arranging finance and implementing projects related to the enhancement of the golden quadrilateral. In the last one year, the share price of Rail Vikas Nigam Ltd. has increased by 102.09%.
NLC India Ltd.
NLC is a government-owned company engaged in fossil fuel mining and thermal power generation under the Ministry of Coal, Government of India. At the present valuation, NLC India is a good share under 100 rs.
Also read: Best Stocks Under Rs 500 to Invest in India
Are undervalued stocks right for you?
Undervalued stocks are different from penny stocks. These stocks have significant upside if investors can successfully reckon and analyse the various variables behind their pricing. Besides, they also explore each organisation’s potential for growth. Since it requires significant knowledge and expertise to understand the stock market‘s dynamics, investors with considerable experience should indulge in it.
You may research the market for more multibagger stocks below 100 rs. Angel One assists investors with market and stock analysis reports, technology-based investment recommendations, and others. Start your investor journey with Angel One by opening your free Demat account.
Disclaimer: This blog is exclusively for educational purposes. The securities quoted are exemplary and are not recommendatory.