Best Stocks Under ₹50 in February 2025: Jaiprakash Power, Trident, and More Based on 5-yr CAGR

Stocks priced under ₹50 present an affordable entry point for investors while offering significant growth potential. As of November 2024, several Indian stocks in this price range have demonstrated strong performance, backed by a solid five-year compound annual growth rate (CAGR).

These budget-friendly stocks provide an opportunity to diversify investment portfolios without requiring a large capital outlay. Investors looking for high-growth potential at lower price points can explore these top-performing stocks, selected based on their consistent market performance and financial strength.

Best Stocks Under ₹50 In November 2024 – 5-Yr CAGR Basis

Note: The list of stocks to buy under ₹50 in India has been selected based on the 5-year CAGR in the Nifty 500. The following parameters have been used to screen the stocks.

Overview Of Best Stocks Under ₹50 In India 

1. Jaiprakash Power Ventures Ltd

Jaiprakash Power Ventures Ltd (JPVL), a subsidiary of the Jaypee Group, operates thermal and hydropower plants, including Jaypee Vishnuprayag Hydro (Uttarakhand) and Jaypee Nigrie Super Thermal (Madhya Pradesh), with subsidiaries like Jaypee Powergrid and Jaypee Arunachal Power.

In Q3 FY25, Jaiprakash Power Ventures reported a drop in consolidated net profit to ₹126.68 crore in Q3 FY25, down from ₹172.85 crore a year ago, as total income fell to ₹1,256.63 crore from ₹2,213.68 crore.

Key metrics:

• Earning per Share (EPS): ₹1.32
• Return On Equity (ROE): 7.57%

2. Trident Ltd

Trident Limited, based in Ludhiana, manufactures textiles, paper, and chemicals. It produces yarn, towels, bedsheets, writing paper, copier paper, and sulfuric acid, serving industries like home textiles, publishing, and commercial battery production.

Trident Ltd reported a decline in its Q3 2024-25 financial results, with revenue falling to ₹1,682.36 crore and net profit dropping to ₹79.70 crore. The net profit margin stood at 4.74% while operating expenses decreased by 6.03%.

Key metrics:

• EPS: ₹0.59
• ROE: 6.99%

3. Indian Overseas Bank Ltd

Indian Overseas Bank (IOB), a public sector bank founded in 1937 and headquartered in Chennai, offers banking services, including loans, credit cards, savings, and investments. With a vast branch network, it also caters to Non-Resident Indians (NRIs).

Indian Overseas Bank reported a rise in net profit to ₹874 crore, with NII growing to ₹2,789 crore. Asset quality improved, while provisions declined sequentially but increased year-on-year to ₹1,029 crore in the December quarter.

Key metrics:

• EPS: ₹1.64
• ROE: 10.86%

4. Bank Of Maharashtra Ltd

Phoenix Mills Limited, a leading manufacturer of railway rolling stock, specialises in producing trains, metros, and wagons, along with electric propulsion equipment like traction motors and vehicle control systems. The company was founded by Jagadish Prasad Chowdhary, who began his career as an accounts assistant at a tea estate in Darjeeling, West Bengal, before building one of India’s prominent rail systems enterprises.

Bank of Maharashtra reported a rise in net profit to ₹1,406 crore in Q3 2024-25, driven by higher interest income. Total income grew to ₹7,112 crore, while gross NPAs improved to 1.80% from 2.04% year-on-year.

Key metrics:

• EPS: ₹6.82
• ROE: 23.17%

5. Central Bank of India Ltd

Central Bank of India, a public sector bank under the Banking Companies Act of 1970, is 93.08% government-owned. It operates under defined powers and duties, serving customers with various banking and financial services across India.

Central Bank of India reported a YoY rise in net profit to ₹958.93 crore for Q3 FY25, with net interest income up 12.31% at ₹3,540.12 crore. Provisions declined to ₹556.64 crore from ₹821.98 crore last year.

Key metrics:

• EPS: ₹5.33
• ROE: 13.93%

BestStocks Under ₹50 in February 2025- Based on Market Cap

Note: The list of best stocks under ₹50 is as of February 4, 2025. The stocks are sorted based on market capitalisation.

Best Stocks Under ₹50 in February 2025- Based on Return on Assets

Note: The list of best stocks under ₹50 is as of February 4, 2025. The stocks are sorted based on return on assets.

Key Considerations for Investing in Stocks Under ₹50

Investing in stocks priced under ₹50 can be an attractive opportunity for retail investors looking for affordable entry points into the market. However, such investments come with inherent risks, including higher volatility, lower liquidity, and limited financial disclosures. Here’s what investors should consider before adding these stocks to their portfolios.

1. Higher Volatility Poses Risks

Stocks priced under ₹50 tend to experience greater volatility, leading to sharp price fluctuations within short periods. While this can create opportunities for quick gains, it also increases the risk of significant losses. Investors should be prepared for price swings and have a clear risk management strategy in place.

2. Lower Liquidity Can Impact Trading

Many low-priced stocks suffer from lower liquidity, making it difficult for investors to buy or sell large quantities without affecting the stock’s price. This illiquidity can lead to wider bid-ask spreads, increasing transaction costs and complicating exit strategies, especially during market downturns.

3. Limited Financial Information Available

Stocks under ₹50 often belong to small-cap or mid-cap companies that may not provide comprehensive financial or operational data. This lack of transparency can make it challenging for investors to assess a company’s financial health, growth potential, and risk factors. Conducting thorough research, including analysing financial statements and historical performance, is crucial.

Conclusion

While investing in stocks under ₹50 can be appealing for those with limited capital, it requires careful analysis and risk assessment. Investors should evaluate key financial metrics such as revenue growth, profit margins, debt levels, and overall industry trends before making a decision. A diversified approach and a long-term perspective can help mitigate risks associated with these stocks.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.