Stock investment doesn’t always require large investments. You can also invest small amounts and accumulate considerable wealth in the long run.
Most value investors search for stocks that are trading cheaper than their fair price to profit when they attain their intrinsic value. These shares are from companies with solid fundamentals.
Financial advisors always recommend diversifying portfolios. One way to do it is to buy undervalued stocks. Some undervalued stocks are from small companies, and you can buy stocks under 50 rs. But for these stocks to generate good returns, you must stay invested for the long term.
Here we have researched the market to find the best stocks to buy below Rs 50.
Bank of Maharashtra
The current market capitalisation of the company is Rs 12114.89 crore.
Bank of Maharashtra is a public sector bank which offers a complete suite of banking products and services, including personal banking, cash management, retail loans, and others.
Recently mutual fund companies have increased their holdings of the bank’s stock.
Follow Angel One to get updates on the Bank of Maharashtra share price.
Rail Vikas Nigam Ltd.
Rail Vikas Nigam is another PSU stock on the list. The company engages in project execution on behalf of the Ministry of Railway. The company was formed to undertake railway project developments – mobilise financial resources, and implement railway projects to strengthen and expand Indian railway connectivity.
It is one of the most active shares below Rs 50.
Follow Rail Vikas Nigam Ltd. share price on Angel One.
NHPC belongs to the mini-Ratna category-1 of the Government of India and another PSU company in the share under 50 rs list. NHPC is one of India’s largest hydropower generating companies, involved in the planning, development, and implementation of integrated hydropower generating projects. From concept to project commission, the company engages in all aspects of hydropower generation.
The company is currently generating profit from its operating capital. In the last two years, its RoCE has seen a handsome boost in value.
If you want to buy this undervalued stock, track NHPC share price on Angel One’s website.
GMR Airport Infrastructure Ltd.
GMR engages in the development of various infrastructure projects in the power and transportation sectors through its subsidiaries. It operates in four business verticals of business sectors: airport infrastructure, highway and urban infrastructure development.
They have a current market capitalisation of Rs 21,518 crore.
Asset management companies have increased their holdings in the company in 2022.
Trident Ltd. is a part of the USD 1 billion Trident Group that manufactures bath linen, yarn, bed Linen, wheat straw-based paper, chemicals, and captive power. The company has a global reach with diversified products.
The company has low operating debt, and its revenue has grown steadily over the years, making it one of the good shares below 50 rupees.
Benefits of investing in undervalued stocks
Some of the critical benefits of investing in undervalued stocks are the following.
- The price of the undervalued stocks will return to the original or intrinsic price during a market correction, ensuring profit.
- Low price allows investors to buy stocks of well-established and fundamentally solid companies at a low price.
- Often these stocks are low risk because undervaluation is usually cyclical, and the company eventually attains its intrinsic value.
Key factors to consider before investing
When you invest in shares below 50 rupees, here are a few factors to keep in mind.
- It is better to avoid these stocks if you are investing in the short term. These stocks are better for long-term investors.
- Don’t select stocks blindly. Before investing, it is essential to study the investment strategies and choose one that suits your style. Value investing is a principle where investors select undervalued stocks of companies with significant growth potential.
- Famous investors like Warren Buffett advice to compare the companies and fundamentals before investing.
- Compare the company against its peers to realise its potential. An undervalued stock will eventually attain its fair or intrinsic value.
Do your research to find the best share to buy below 50 rs. You can profit significantly from stock market investment if you select stocks carefully and invest according to your financial goals. Start your investment journey with Angel One. Open free Demat account today.
Disclaimer: This blog is exclusively for educational purposes. The securities quoted are exemplary and are not recommendatory.