Best Stocks Under 20 in India to Invest

Investing in the Indian stock market offers various opportunities, including a notable category of stocks valued under ₹20. These stocks stand out as an appealing choice for those seeking to engage in the stock market without committing substantial financial resources.

Such investments may present a balanced approach, providing the potential for returns while maintaining a manageable investment scale. Stocks in this price range are particularly enticing due to their affordability.

In this blog, we will explore some top stocks to consider under ₹20. Whether you’re a seasoned investor or just starting out, this guide will help you make informed decisions about investing in the Indian stock market. 

Top 10 Stocks Under ₹20 in 2024

Note: The above list of ₹20 stocks is dated January 4, 2023. These stocks are sorted from highest to lowest based on the market capitalisation. The following parameters were used to get the list:

• The close price should be less than ₹20.

• 5 Year CAGR is set to be above 30%.

• 5 Year Average EBITDA margin is set to be more than 10%.

Now, let’s look at these stocks briefly.

Brightcom Group Ltd

Brightcom Group integrates ad tech, new media, and IoT businesses globally, focusing on the digital ecosystem. Their client list includes major corporations like Airtel and Coca-Cola, while their publisher partners range from Facebook to Yahoo. Brightcom is also invested in IoT, particularly with their LIFE product, a testament to their commitment to the Internet of Things. 

Key Metrics:

• ROCE: 35.81%
• Return on Equity: 21.33%
• 5Y Historical EBITDA Growth: 24.88%

Prakash Steelage Ltd

Prakash Steelage Limited, a subsidiary of the Prakash Group, was founded in 1996. Its mission is to manufacture a range of stainless steel products, including welded pipes, tubes, and U-tubes. Operating out of its Silvassa Division, Prakash Steelage Limited is recognised as a key player in the Indian stainless steel pipe and tube industry.

The company serves various industries, including Oil and Gas, Power, Pharmaceutical, Petrochemical, Sugar, Dairy, Automobile, and Desalination sectors. Its products have garnered widespread acceptance globally, particularly in North America, Southeast Asia, Africa, the Middle East, and Europe, owing to their quality and reliability.

Key Metrics:

• ROCE: -6.40%

NCL Research and Financial Services Ltd

This company operates as a Non-Banking Financial Company (NBFC) and is officially recognised under the RBI Act of 1934. As an NBFC, its core focus lies in providing financial services, particularly targeting Micro, Small and Medium Enterprises (MSMEs) and the corporate and non-corporate sectors. The company offers a mix of secured and unsecured loans, tailoring its financial solutions based on the client’s risk profile.

Additionally, the company actively invests in equity across various companies, including listed and unlisted entities. It maintains a flexible approach towards investment opportunities, exploring various markets and stages without being constrained by predefined criteria.

Key Metrics:

• ROCE: 0.62%
• Return on Equity: 0.64%
• 5Y Historical EBITDA Growth: 43.44%

Sulabh Engineers and Services Ltd

Founded in 1983, Sulabh Engineers and Services Limited is a prominent NBFC registered with the RBI and listed on the BSE. Their services encompass a range of financial products, including various types of loans and asset collateral management in partnership with leading banks and financial institutions. The company’s growth is anchored in its commitment to customer service, transparent practices, and a strong customer base underpinned by a distinctive work culture and high standards in serving stakeholders.

Key Metrics:

• ROCE: 4.17%
• Return on Equity: 3.81%
• 5Y Historical EBITDA Growth: -9.69%

Luharuka Media & Infra Ltd

Luharuka Media & Infra Limited, previously known as Hindustan Stockland Limited, was established in West Bengal on July 7, 1981. In 2015, new promoters took over the company. LMIL, which had been registered as a Non-Banking Financial Company (NBFC) under the name Hindustan Stockland Limited, received a fresh certificate from the Reserve Bank of India with its current name on January 12, 2017.

Key Metrics:

• ROCE: 6.07%
• Return on Equity: 4.62%
• 5Y Historical EBITDA Growth: 10.35%

Danube Industries Ltd 

Based in Ahmedabad, India, Danube Industries specialises in computer peripherals, offering a diverse range of products like monitors, keyboards, and mice. The company prides itself on staying ahead of technological trends to deliver top-quality solutions. They have a wide distribution network with over 2000 distributors and more than 35 authorised partners.

Key Metrics:

• ROCE: 6.29%
• Return on Equity: 5.04%

Utique Enterprises Ltd

Utique Enterprises Limited was established on October 15, 1985, focusing on computer education and financial services. Recently, the company has ventured into the trading and consultancy sectors. Reflecting its evolved business focus, the company rebranded itself from Apple Finance Limited to Utique Enterprises Limited on February 4, 2020.

Key Metrics:

• ROCE: 1.41%
• Return on Equity: 0.92%
• 5Y Historical EBITDA Growth: 21.11%

IEL Ltd

Indian Extractions Limited, founded in 1956, operates in the chemicals and marketing support services sector. Initially starting with a solvent extraction plant in Jamnagar, they’ve expanded to a modern refinery with a capacity of 200 MT per day. Their main product is refined, solvent-extracted groundnut oil, marketed under the brand ‘Diamond’.

Key Metrics:

• ROCE: 125.00%
• Return on Equity: 97.32%
• 5Y Historical EBITDA Growth: 117.25%

Jai Mata Glass Ltd

Established in 1981 and recognised as a prominent player in India’s designer glass industry, this company is listed on the Bombay Stock Exchange (BSE). It is renowned for its innovative and aesthetically pleasing glass products. The company’s product portfolio includes K-series glass, an assortment of patterned glass, and refined frosted glass, catering to a diverse range of applications, both interior and exterior. 

Key Metrics:

• ROCE: 0.69%
• Return on Equity: 0.71%
• 5Y Historical EBITDA Growth: -39.36%

Khoobsurat Ltd

Incorporated in 1982, Khoobsurat Ltd has made its mark in the textile sector, particularly in Kolkata and West Bengal. They trade in various textiles, including grey cloth, synthetic fabric, and traditional Bengali sarees. Additionally, they have ventured into the herbal wash for cloth dying and mobile application development.

Key Metrics:

• ROCE: 1.38%
• Return on Equity: 1.02%
• 5Y Historical EBITDA Growth: 77.26%

Top Stocks Under ₹20 Based on Market Capitalisation

Note: The list of the best stocks under ₹20 is as of January 24, 2024, on a market capitalisation basis. 

Top Stocks Under ₹20 Based on 5Y Avg Return on Equiy

Note: The list of the best stocks under ₹20 is as of January 24, 2024, on a 5Y average return on equity basis. 

Top Stocks Under ₹20 Based on PB Ratio

Note: The list of the best stocks under ₹20 is as of January 24, 2024, on a PB ratio basis. 

Top Stocks Under ₹20 Based on Payout Ratio

Note: The list of the best stocks under ₹20 is as of January 24, 2024, on dividend payout ratio basis. 

Factors To Consider Before Investing In Shares under ₹20

1. Company fundamentals: The first thing to consider is the company’s financial health and fundamentals. Look for companies with a strong balance sheet, good revenue growth, and a positive future outlook. 
2. Market conditions: It’s important to analyse the market conditions before investing in any stock. Study the current market trends, the company’s competitors, industry trends, and economic conditions. 
3. Risk tolerance: Investing in shares under ₹20 can be risky, as these stocks are generally considered more volatile. So, assessing your risk tolerance and investment goals is important before making any investment.
4. Diversification: Diversification is important in any investment portfolio. Invest in a mix of stocks from different sectors and industries to minimise risk and maximise returns.
5. Long-term horizon: Investing in stocks under ₹20 requires a long-term perspective. The stock price may fluctuate in the short term, but if you have a long-term horizon, the stock has the potential to grow and offer higher returns.

Conclusion

It is important to note that the stock market is highly volatile and unpredictable. Therefore, investing in stocks requires careful research and analysis and a good understanding of the market dynamics. 

Additionally, investing in ₹20 stocks can be risky, as they are often associated with small or emerging companies with limited track records. Before investing in any stock, consider consulting a financial advisor. Open a free Demat account with Angel One and start exploring various stocks in the market. 

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