Best Stocks Under Rs 1000 in India to Invest

Investing in the stock market can be a great way to grow your wealth, but it can also be intimidating and overwhelming, especially for beginners. One of the key considerations when investing in stocks is the price of the stock, as it determines the initial investment required to purchase a share.

In India, there are many high-quality companies with stocks that are priced under ₹1,000, making them affordable for many investors. These companies may have strong fundamentals, a history of consistent growth, and the potential for future appreciation. In this blog, we will explore some of the top stocks under ₹1,000 and discuss their financial performance through the years. 

List of Top 5 Best Stocks Under ₹1,000 in 2023

Note: The above stocks have been filtered on the basis of 5Y-CAGR, and the data is as of November 28, 2023

Let us now delve into the operational and financial performance of the stocks mentioned above:

1. Tata Motors Ltd: Tata Motors Limited is an automobile company engaged in the manufacturing of motor vehicles. The company has operations in India, the UK, South Korea, South Africa, China, Brazil, Austria and Slovakia through a strong global network of subsidiaries, associate companies and Joint Ventures (JVs), including Jaguar Land Rover in the UK and Tata Daewoo in South Korea. During Q1 FY 2024, the EBIT margin stood at 8.6%, which was supported by higher volume and mix. For FY 2024, the company will continue to improve supply availability and focus on brand activation to secure order books.
2. Bharti Airtel Ltd: Bharti Airtel Limited is a telecommunications company that provides voice and data telecommunication services through wireless as well as fixed line networks and broadband technology. The company has a rich presence in 18 countries, representing India, Sri Lanka, and 14 countries in Africa. During FY 2023, the company’s revenue rose by ~19.39% to ₹1,391,448 million.
3. ICICI Bank Limited: ICICI Bank Limited is engaged in providing a range of banking and financial services, including commercial & retail banking, project & corporate finance, insurance, venture capital and private equity, investment banking and broking. During Q2 FY 2024, the bank’s core operating profit rose by 21.7% YoY to ₹143.14 billion. During the quarter, the bank’s domestic loans and retail loans book grew by 19.3% and 21.4%, respectively, on a YoY basis.
4. NTPC Ltd: NTPC (National Thermal Power Corporation) Ltd, along with its subsidiaries/ associates & JVs, is mainly engaged in the generation and sale of bulk power to State power utilities. Other business of the group includes providing consultancy, project management & supervision, energy trading, oil & gas exploration and coal mining. During FY 2023, it reported revenue amounting to ₹1,77,609 cr as compared to ₹1,34,616 cr in FY 2022. It generated 89% of its revenue from fossil fuel energy, ~7% from non-energy business and the remaining 4% from green energy.
5. State Bank of India: State Bank of India is a Fortune 500 company. It is an Indian multinational, public sector banking and financial services statutory body headquartered in Mumbai. During 1H FY2024, the bank witnessed continued credit growth of ~12.39% on a YoY basis. Net Profit for half-year stood at ₹14,330 crores. ROA was improved by 34 bps over 1H FY 2023 and stood at 1.10% for 1H FY 2024

Factors To Consider Before Investing In Stocks Under ₹1,000

Investing in stocks can be a good way to build wealth over time, but it is important to consider certain factors before investing in the best stocks under ₹1,000. Here are some factors to consider:

• Company fundamentals: Before investing in a stock, it is important to research the company’s fundamentals, such as revenue, profit margins, debt levels, and growth prospects. Look for companies that have a strong financial position and a history of steady growth.
• Industry trends: Consider the industry the company operates in and its potential for growth. Look for industries that are growing and have a promising future.
• Valuation: Evaluate the stock’s valuation relative to its peers and the overall market. A company with a low valuation may be undervalued, while a high valuation may be overvalued.
• Risk tolerance: Consider your risk tolerance before investing in stocks under Rs.1000. Lower-priced stocks can be more volatile and risky, so make sure you are comfortable with the level of risk.
• Diversification: Diversification is key to minimising risk in your investment portfolio. Invest in a mix of stocks across different sectors and industries to spread your risk.
• Investment horizon: Consider your investment horizon or the amount of time you plan to hold the stock. If you have a longer investment horizon, you may be able to tolerate more volatility in the short term.
• Brokerage fees: Keep in mind the brokerage fees and other costs associated with buying and selling stocks. Make sure the potential returns justify the costs.

Remember that investing in stocks involves risks, and it is important to do your research and consult with a financial advisor before making any investment decisions.

Conclusion

Investing in the best share under ₹1,000 can be a viable option for investors who are just starting out or who have a limited budget. However, it’s important to remember that investing always involves some level of risk, and it’s crucial to do your research and analysis before making any investment decisions. If you are considering investing in these stocks, then open a Demat account right away with Angel One for free and start investing. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations.