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Exploring Tata Group stocks under Rs 250; why do retail investors prefer low-priced stocks?

05 October 20235 mins read by Angel One
What are the benefits and risks of investing in low-priced stocks and why do people prefer them? Let's find out
Exploring Tata Group stocks under Rs 250; why do retail investors prefer low-priced stocks?
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Tata Group is an iconic conglomerate that stands as a symbol of India’s industrial prowess, innovation, and philanthropy. This diversified multinational conglomerate has played a pivotal role in shaping India’s economic landscape. Over the decades, the Tata Group has expanded its reach far beyond its beginnings in steel manufacturing, venturing into a diverse array of industries that encompass automotive, information technology, telecommunications, hospitality, energy, and more.

Tata Group has earned a reputation for unwavering ethics, social responsibility, and commitment to excellence. It is a conglomerate that believes in not just business success but also in contributing positively to society. The group’s philanthropic endeavours, notably through the Tata Trusts, have resulted in significant contributions to education, healthcare, and community development, benefiting countless lives in India and beyond.

So, what are the benefits and risks of investing in low-priced stocks and why do retail investors prefer them? 

People prefer low-priced stocks for several reasons. Firstly, they are seen as more affordable, allowing investors with limited capital to buy more shares. Additionally, low-priced stocks can offer the potential for higher percentage gains, making them attractive for traders seeking short-term profits. They are also perceived as having more room for growth, which can be appealing to investors looking for undervalued opportunities.

However, it’s important to note that low-priced stocks often come with higher volatility and risk, so investors should conduct thorough research and exercise caution. Overall, the affordability and perceived growth potential of low-priced stocks makes them a popular choice for many investors.

Here is a list of Tata Group stocks which are under Rs 250:

Company  CMP  Market Capitalization (INR Crore)  Latest YoY Quarterly Profit Growth (%)  Latest Annual Profit Growth (%)  3-year returns (CAGR)  Industry Median PE 
Tayo Rolls  92.0 94.4 4.60 -0.86 45.66 30.49
Tata Teleservices (Maharashtra) Ltd  98.6 19,276 -2.26 -5.76 220.42 65.17
Oriental Hotels Ltd

 

88.2 1,574 -25.65 370 59.95 32.34
Artson Engineering Ltd

 

161 595 121.06 -380

 

79.01 35.2
TRF Limited 238 262 -58.77 486 44.30 35.49

Tayo Rolls Limited operates as a subsidiary of Tata Steel Limited and specializes in manufacturing ingots, engineering forgings, forged rolls, and other related products. Tata Teleservices Ltd is actively involved in wired and wireless telecommunications, holding a Unified License with Access Service Authorization for Maharashtra and Goa. Oriental Hotels Ltd primarily focuses on owning, operating, and managing hotels, palaces, and resorts.

Artson Engineering Limited operates as an Engineering, Manufacturing, and Construction (EMC) contracting company. They are involved in various activities, including pressure equipment manufacturing for the Oil and Gas, Petrochemicals, Power and Metallurgy sectors. TRF Limited specializes in the production of material handling equipment and executes turnkey projects related to material handling for the infrastructure and industrial sectors.

Conclusion 

The Tata Group’s remarkable journey from its inception to becoming a global conglomerate is a testament to its commitment to excellence, ethics, and social responsibility. Its impact on India’s economic and social fabric is undeniable. Meanwhile, low-priced stocks, despite their volatility and risks, continue to attract investors due to their affordability and potential for significant gains. Whether one chooses to invest in iconic groups like Tata or explore opportunities in low-priced stocks, it’s crucial to conduct thorough research and make informed decisions to achieve financial goals.

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.

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