Best Stocks Under 50 Rs in India in October 2024- 5-yr CAGR Basis

Stocks under ₹50 are shares that trade for less than ₹50 in the stock market. These stocks can provide investment options for people with a limited budget. However, it is important to check the financial metrics and understand the associated risks before investing in them. In this article, we’ll explore the top stocks under ₹50  in India in October 2024 based on the 5-year CAGR.

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

Note: The list of stocks to buy under ₹50 in India list is sorted based on 5-yr CAGR as of October 11, 2024.

Overview Of Best Stocks Under ₹50 In India in October 2024

• Jaiprakash Power Venture Limited

Incorporated in 1994, Jaiprakash Power Venture Limited is involved in coal mining, sand mining, cement grinding, and generating thermal and hydroelectric power. Jaiprakash Power currently owns and operates 3 power plants with a total capacity of 2220 MW, 2 cement grinding units with a combined capacity of 2 million tonnes per annum (MTPA), and a coal mine with a capacity of 2.8 MTPA.

For the quarter ended June 2024, the company’s revenue increased to ₹1,754.70 crore from ₹1,514.83 crore in the preceding quarter. Meanwhile, the net profit increased to ₹348.48 crore from ₹252.84 crore in the previous quarter. 

Key metrics: 

• Earning per share (EPS):₹1.23
• Return on equity (ROE): 7.35%
• RattanIndia Power Limited

RattanIndia Power Limited was founded in 2007 and is one of India’s largest private power generation companies, with a total installed capacity of 2,700 MW from thermal power plants located in Amravati and Nashik, each with 1,350 MW.

For the quarter ended June 2024, the company’s revenue increased to ₹931.83 crore from ₹913.96 crore in the preceding quarter. Meanwhile, the net profit decreased to ₹91.51 crore from -₹1,094.37 crore in the previous quarter. 

Key metrics: 

• EPS: -₹1.82
• ROE: –21.36%
• Trident Ltd

Trident Ltd, established in 1990, is a significant manufacturer and seller of yarn, terry towels, bed sheets, paper, and chemicals. It is the largest producer of wheat straw-based paper globally and is a leading brand in the copier paper market in North India. Furthermore, Trident has the highest production capacity for terry towels and is one of the biggest companies in India’s home textiles industry.

For the quarter ended June 2024, the company’s revenue increased to ₹1,734.69 crore from ₹1,679.03 crore in the preceding quarter. Meanwhile, the net profit increased to ₹73.59 crore from ₹64.19 crore in the previous quarter. 

Key metrics: 

• EPS:₹0.73
• ROE: 8.65%
• Hindustan Construction Company Limited

Founded in 1926, Hindustan Construction Company Limited (HCC) is the main company of the Hindustan Construction Company Group. It specializes in engineering and constructing infrastructure projects, including dams, tunnels, bridges, hydro, nuclear, and thermal power plants, expressways and roads, marine works, water supply systems, irrigation systems, and industrial buildings throughout India.

For the quarter ended June 2024, the company’s revenue decreased to ₹1,265.73 crore from ₹1,428.35 crore in the preceding quarter. Meanwhile, the net profit decreased to ₹22.75 crore from ₹38.76 crore in the previous quarter. 

Key metrics: 

• EPS:₹1.09
• ROE: 19.80%
• UCO Bank Ltd

UCO Bank, founded in 1943 and based in Kolkata, is a commercial bank that provides a variety of banking services. Its offerings include retail banking, corporate banking, and treasury operations. According to 2020 data, the bank is ranked 80th on the Fortune India 500 list and 1,948th on Forbes’ Global 2000 list for 2018.

For the quarter ended June 2024, the company’s revenue decreased to ₹6,023.99 crore from ₹5,859.70 crore in the preceding quarter. Meanwhile, the net profit decreased to ₹550.96 crore from ₹525.77 crore in the previous quarter. 

Key metrics: 

• EPS: ₹1.66
• ROE: 7.24%

Risks of Investing in Stocks Under ₹50

• Lower Liquidity: Some stocks in this price range may have lower liquidity, making it hard to buy or sell large quantities quickly without affecting the stock price.
• Limited Information: Companies with low share prices may not always provide enough information about their financial status, leading to decisions based on incomplete data.
• Risk of Delisting: Companies with consistently low share prices face a higher risk of being delisted for not meeting stock exchange requirements.
• Market Sentiment Sensitivity: Stocks under ₹50 can be more influenced by market sentiment and speculation, causing price movements that don’t reflect the company’s fundamentals.

Conclusion

When looking for the best stocks under ₹50, check the company fundamentals, including revenue, profit margins, debt levels, and key indicators like Earnings Per Share (EPS) and Price-to-Earnings (P/E) ratio. Additionally, monitor market trends and sector performance to identify stocks in growing areas that may offer better growth potential.

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.