Stocks Under ₹50

Stock investment doesn’t always require large amounts. Several stocks are available at a low price and may have good fundamentals. However, when looking for low-price stocks, analyse their fundamentals and understand their associated risks. Diversify your portfolios across different sector stocks and asset classes to minimise the overall risk.

In this article, explore the stocks under ₹50 and learn about the pros and cons of investing in such low-priced stocks.

10 Stocks Under ₹50 (As of June 6, 2024)

Note: This table lists top companies by market capitalisation, along with their respective sub-sectors, market capitalisation, closing price, and 5-year compound annual growth rate (CAGR).

Overview of the Stocks Under ₹50

1. Trident Ltd
   Trident Ltd was established in 1990 and manufactures, trades, and distributes various products, including yarn, terry towels, bed sheets, paper, and chemicals. It operates globally, with a presence in more than 150 countries.
2. Jaiprakash Power Ventures Limited
   Jaiprakash Power Ventures Limited was established in 1994 and is involved in coal mining, sand mining, cement grinding, and thermal and hydroelectric electricity production. It currently possesses and manages three power plants with a combined capacity of 2220 MW, 2 MTPA cement grinding units and a 2.8 MTPA coal mine.
3. Alok Industries
   Alok Industries was incorporated in 1986 and is a textile company specialising in cotton and polyester segments. It manufactures textiles, including mending and packing activities, and leather and other apparel products.
4. Reliance Power
   Reliance Power was founded to develop, construct, and manage power projects in domestic and international markets. Reliance Power and its subsidiaries possess a substantial portfolio of power generation capacity comprising operational facilities and projects under development.
5. Ujjivan Small Finance Bank Limited
   Ujjivan Small Finance Bank Limited is a prominent bank in India that targets the mass market. It mainly serves financially underserved and unserved segments and is dedicated to fostering financial inclusion across the nation.
6. Shree Renuka Sugars Ltd
   Shree Renuka Sugars Ltd was established in 1995. It manufactures and refines sugar, ethyl alcohol, and ethanol and generates and sells power. It operates six sugar mills in Karnataka and Maharashtra. These mills process sugarcane to produce sugar, with ethanol, power, and organic manures as by-products.
7. Infibeam Avenues Ltd
   Infibeam Avenues Ltd was established in 2017 and specialises in software development services, maintenance, web development, payment gateway services, e-commerce, and related ancillary services.
8. RattanIndia Power Limited
   RattanIndia Power Limited is a prominent private power generation entity in India. It boasts an installed capacity of 2,700 MW across thermal power plants located in Amravati and Nashik, each with a 1,350 MW capacity. The plants are situated in Maharashtra.
9. Ease My Trip
   Through its primary brand, Ease My Trip, Ease My Trip provides various travel-related products and services. They offer comprehensive travel solutions, including airline tickets, hotel accommodations, holiday packages, railway and bus tickets, and taxi services.
10. TV18 Broadcast Ltd
    TV18 Broadcast Ltd, a part of the Mumbai-based Network 18 Group, was established 1996 as a private limited company. It operates multiple channels under the NBCUniversal group, catering to the Indian audience. These channels comprise CNBC Awaaz, CNBC TV18, CNBC-TV18 Prime HD, and WarnerMedia-CNN News 18.

Benefits of Investing in Stocks Under ₹50

• Investing in stocks under Rs 50 allows individuals with limited capital to enter the stock market without a substantial financial commitment.

• Investing in lower-priced stocks has the potential to grow as they are at the beginning phase of their growth.

• Affordable stocks enable investors to diversify their portfolios easily, spreading risk across different assets and sectors.

Cons of Investing in Stocks Under ₹50

• Lower-priced stocks are often more volatile, subjecting investors to more significant price fluctuations and potential losses.

• Some low-priced stocks may face liquidity issues, making it difficult to buy or sell shares in the market without impacting the stock price.

• The standardised brokerage charges per order may offset returns from lower-priced stocks. For example, even a gain of ₹10 from a stock priced at ₹50, i.e. a 20% return, can be offset if the charges per order is ₹20. This same ₹20 would be insignificant for the same percentage return if the order value is in lakhs of rupees.

Key Factors To Consider Before Investing

When you invest in shares below 50 rupees, here are a few factors to remember.

• Avoid these stocks if you are investing in the short term. They are better for long-term investors.

• Don’t select stocks blindly. Before investing, studying the investment strategies and choosing one that suits your style is essential. Value investing is a principle where investors select undervalued stocks of companies with significant growth potential.

• Check the financials of the company before investing.

• Compare the company against its peers to realise its potential.

Conclusion

Do your research before trading in shares that are below ₹50. Talk to your financial advisor before making a decision. To learn more about stocks and invest in them, open a Demat Account on Angel One today for free. Happy Investing!

Disclaimer: This blog is exclusively for educational purposes. The securities quoted are exemplary and are not recommendatory.