Best Stocks Under ₹100 in September 2024 – 5Y CAGR Basis

If you’re looking to invest in stocks without spending a fortune, there are plenty of stocks under ₹100. These stocks can be appealing because they offer the chance to invest in the market at a low cost. However, it’s important to recognise that such stocks can carry risks. In this article, check the best stocks under ₹100 in September 2024, listed based on their 5Y CAGR and also understand the pros and cons of investing in stocks below ₹100.

Best Stocks Under ₹100 in September 2024 – 5Y CAGR Basis

Note: The best stocks under ₹100 list provided here is as of September 3, 2024. The stocks are picked from the Nifty 500 universe and sorted based on the 5-yr CAGR.

Overview of the Best Stocks Below ₹100

1. Rattanindia Enterprises Ltd

RattanIndia Enterprises Limited, the flagship of the RattanIndia Group, drives growth through cutting-edge technologies aimed at transforming the lives of over a billion Indians. The company’s portfolio includes tech-focused ventures in e-commerce, electric vehicles, fintech, and drones. In FY 2024, the company’s total income rose to ₹61,916.94 million, up from ₹41,382.11 million in FY 2023. Net profit also saw a turnaround, reaching ₹4,244.54 million in FY 2024, compared to a loss of ₹2,861.43 million in FY 2023.

Key metrics:

• Return on Equity (ROE): -51.00%

• Return on capital employed (ROCE): 122.76%

• Debt to Equity: 233.18%

2. Tata Teleservices (Maharashtra) Ltd

Tata Teleservices (Maharashtra) Limited (TTML) is a prominent provider of connectivity and communication solutions for enterprises. Operating under the brand Tata Tele Business Services (TTBS), the company offers a wide range of information and communication technology (ICT) services, including connectivity, collaboration, cloud, security, IoT, and marketing solutions. In FY 2024, TTML’s total income increased to ₹1,200.23 crore, up from ₹1,113.34 crore in FY 2023. However, the company reported a net loss of ₹1,228.44 crore in FY 2024.

Key metrics:

• ROCE: -6.31%

3. Suzlon Energy Ltd

Suzlon Energy is one of the leading global renewable energy providers and a vertically integrated wind turbine generator (WTG) manufacturer. The company handles the entire lifecycle of wind projects, from the design and component manufacturing to installation, operation, and maintenance. In FY 2024, Suzlon’s revenue increased to ₹6,497 crore, up from ₹5,947 crore in FY 2023. Profit after tax (before exceptional items) also improved, reaching ₹714 crore compared to ₹167 crore in FY 2023.

Key metrics:

• ROE: 26.31%
• ROCE: 19.75%
• Debt to Equity: 3.83%

4. IRB Infrastructure Developers Ltd

IRB Infrastructure Developers Ltd is an infrastructure development and construction company in India with extensive experience in the roads and highways sector. It also operates in other business segments in the infrastructure sector, including road maintenance, construction, airport development, and real estate. In FY 2024, the company’s total income increased to ₹8,20,175.99 lakh, from ₹6,70,331.35 lakh in FY 2023. Net profit dropped, reaching ₹60,581.64 lakh compared to ₹72,001.16 lakh in FY 2023.

Key metrics:

• ROE: 4.47%
• ROCE: 6.88%
• Debt to Equity: 135.72%

5. Shree Renuka Sugars Ltd

Shree Renuka Sugars is one of the largest sugar and green energy producers in India. The company operates 8 state-of-the-art sugar mills and also operates 2 of India’s largest port-based refineries. In FY 2024, the company’s revenue from operations increased to ₹1,13,190 million, from ₹90,207 million in FY 2023. In the financial year ended March 2024, the company’s net profit reached -₹6,272 million compared to -₹1,967 million in FY 2023.

Key metrics:

• ROCE: 18.97%

Advantages of Investing in Stocks Below ₹100

• Affordability: Stocks priced under ₹100 can allow investors to buy shares without a significant financial investment. This makes them suitable for those new to investing or with a limited budget.
• Diversification: Lower-priced stocks enable investors to diversify their portfolios without a substantial investment.
• Potential for High Returns: Although riskier, stocks under ₹100 can offer significant growth potential. Some emerging companies may experience substantial appreciation, leading to impressive returns.
• Flexibility: Investing in lower-priced stocks can provide the flexibility to experiment with different sectors or industries, which can be advantageous for a diversified investment strategy.

Risks of Investing in Stocks Below ₹100

• Volatility: Stocks priced under ₹100 can be highly volatile, with significant price swings that can lead to substantial losses.
• Limited Information: Smaller companies might not have the same level of disclosure and transparency as larger, more established companies. This can make it harder for investors to obtain detailed information for informed decision-making.

Conclusion 

Before making any investment, it’s important to evaluate your investment goals and risk tolerance to ensure they align with your financial objectives. Additionally, consulting with a financial advisor can help tailor your investment choices to your individual needs and circumstances.

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.