Have you heard of this saying in Gujarati – “Bhav Bhagwan Che”? This Gujarati phrase means “price is god”. While it may sound like a slogan, the Gujarati phrase is more of a philosophy that implies that the stock market is always right and the price of a stock is the most critical factor to consider while investing. Investing in stocks can be a great way to grow your wealth over time. However, many individuals are hesitant to invest in the stock market because they assume that most stocks are too expensive. The truth is that there are many great stocks out there that are priced under Rs. 100 per share. In this blog post, we’ll take a look at some of the top stocks under Rs. 100 and how you can invest in them. By investing in these stocks, you can start building your portfolio without breaking the bank.
Read More – Best Stocks under Rs 500 in 2023
How to identify the top stocks under Rs. 100
In order to identify safe and investment-worthy companies, we have used some filters. These are:
- Market Capitalization should be more than 1000 Crores
- Sales growth 5 Years >12%
- Profit growth 5 Years >12%
- Average return on equity 5 Years >15%
- Average return on capital employed 5 Years >15%
Top stocks under Rs. 100
Here are the details of the top stocks under Rs. 100 that you can consider for your portfolio:
Ease my trip planners
Ease My Trip operates in the online travel agency market, with offices located in both Indian and international cities. As the second-largest online travel platform, it has successfully served over 11 million happy customers. Established in 2008, the company’s primary objective was to address the challenges faced by small B2B agents by offering a comprehensive platform for all their booking needs. Today, Ease My Trip provides end-to-end travel solutions, encompassing airline tickets, hotels, holiday packages, rail tickets, bus tickets, taxis, and a range of value-added services like travel insurance, visa processing, and tickets for various activities and attractions.
USP
Easy Trip Planners Limited is the only key Online Travel Agency in India and amongst the few globally to report a profit during a pandemic hit year. It has also reported profits since its inception. The company has established a widespread presence across every pin code in India through its extensive agent network, offices, and franchises.
Amidst the challenges of the pandemic and a period of low business and heightened uncertainty, the company demonstrated its ingenuity through innovative initiatives. Leveraging its robust balance sheet, the company provided advances to airlines, particularly low-cost carriers, as well as bus operators and select hotels to address their liquidity needs. This strategic move not only helped the company foster stronger relationships but also resulted in additional commissions of approximately Rs 40 crore during FY22.
Business performance
Easy Trip Planners has delivered impressive business performance over the past five years, as evident from the following key statistics:
| Company | Sales Growth 5Yrs % | Profit Growth 5 Yrs % | Average ROE for 5 yrs % | Average ROCE for 5 yrs % | PE | Market Cap(Cr) |
| Easy Trip Planners | 17.75 | 39.75 | 43.97 | 58.79 | 61.55 | 8,189 |
These numbers reflect the company’s consistent sales and profit growth, strong returns on equity and capital employed, and favorable market valuation. Easy Trip Planners’ achievements underscore its success and positive outlook in the industry.
Marksans Pharma
Marksans Pharma is engaged in the Business of Formulation of pharmaceutical products with key focus on OTC & prescription drugs that have wide-ranging applications across fields like Oncology, Gastroenterology, Antidiabetic, Antibiotics, Cardiovascular, Pain Management, Gynaecology, etc.
The company has 3 manufacturing units – one each in India, USA and UK. All the manufacturing facilities are accredited by various health authorities of regulated markets and are well equipped for manufacturing medicines.
Expansion plans
The company is planning to enhance its existing production capacity for which it has acquired a manufacturing plant from Tevapharm India Private Limited. The plant has an installed capacity to manufacture 1.50 billion units per annum and has approvals to manufacture products from EU, Health Canada, and Japanese Health Authority. The project will be executed in two phases and is expected to be completed by FY27 with an estimated cost of Rs. 450 crores.
Business performance
Marksans Pharma has delivered impressive business performance over the past five years, as evident from the following key statistics:
| Company | Sales Growth 5Yrs % | Profit Growth 5 Yrs % | Average ROE for 5 yrs % | Average ROCE for 5 yrs % | PE | Market Cap(Cr) |
| Marksans Pharma | 14.21 | 83.66 | 19.67 | 24.49 | 15.46 | 3275 |
Marksans Pharma has delivered impressive sales and profit growth, showcasing its strong financial performance and positioning it for continued success in the market.
Radiant Cash Management Services Ltd
Radiant Cash Management Services Limited is market leader in retail cash management services for banks, financial institutions, and organized retail and e-commerce companies in India. The company offers a range of services under this segment consisting of collection and delivery of cash on behalf of its clients from the end user
Radiant Cash Management Services operates across 13,044 pin codes in India, serving all districts (except Lakshadweep) with 55,513 touchpoints and over 5,388 locations as of July 31, 2022.
Notably, the company’s key clients include Axis Bank, Citibank, Deutsche Bank, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Standard Chartered Bank, State Bank of India, The Hongkong and Shanghai Banking Corporation, and Yes Bank. Additionally, the company acquired 24 new clients during FY23.
Business performance
In FY23, the company posted stellar revenue growth of 25% Y-o-Y. Its EBITDA grew at 51% Y-o-Y and PAT grew at 64% Y-o-Y.
| Company | Sales Growth 5Yrs % | Profit Growth 5 Yrs % | Average ROE for 5 yrs % | Average ROCE for 5 yrs % | PE | Market Cap(Cr) |
| Radiant Cash Management | 12.68 | 64.17 | 30.61 | 45.86 | 16.26 | 1022 |
Radiant Cash Management has demonstrated consistent sales growth of 12.68% over the past five years, accompanied by impressive profit growth of 64.17%. The company also maintains strong average return on equity (ROE) and return on capital employed (ROCE) figures, standing at 30.61% and 45.86%, respectively. With a price-to-earnings (PE) ratio of 16.26 and a market capitalization of Rs. 1,022 Cr, Radiant Cash Management showcases promising financial performance and market value.
IDFC first bank
IDFC FIRST Bank is a leading private sector bank in India which was created through the merger of Erstwhile IDFC Bank and Erstwhile Capital First on December 18, 2018. Over the years, the bank has successfully transformed from an infrastructure and corporate financing institution to a diversified retail led financial institution.
Some of the major performance breakthroughs for the bank are:
- Current and savings account ratio increased from 8.7% to 50.0%
- Retail financing increased from 30% to 67%
- Deposits from retail customers has increased from 17.1% to 71.5%
- Core Operating profits (annualized) increased from Rs. 1,097 crores in Q3 FY19 to Rs. 4,873 crores in Q3 FY 23
Strong management
Tha bank is led by V. Vaidyanathan, who joined in 2012. Under V. Vaidyanathan’s leadership, IDFC Bank has experienced remarkable growth by focusing on technology, customer-centric solutions, and financial inclusion. His vision has propelled the bank to prominence in the Indian banking sector and inspired industry-wide innovation.
Financial performance
CASA or Current account and savings account is the cheapest source of funds for any retail bank. CASA ratio for IDFC bank in FY 18 was 11.54%. This increased to 49.8% and has been hovering around these levels. This is higher than HDFC bank’s CASA of 44% and ICICI bank’s CASA ratio of 43.6%.
Bank’s NPAs (Non performing assets) have decreased from 1.53% in FY22 to about 0.86% in FY23. Bank’s ROA (Return on Assets) was 0.64% in Q3FY22 which increased to 1.41% in Q4FY23. Bank’s Return on Equity has also expanded massively from 5.44% in Q3FY22 to 13.45% in Q4FY23.
Conclusion
Overall, these 4 stocks under Rs. 100 are on a high growth trajectory considering their financial performance and business methodologies. With all these companies showing strong growth, their stocks may reflect positive performance in the long run. If you are looking to invest in any of these, make sure to do your own research and evaluate your risk-return profile carefully before investing.
FAQs
Key factors to consider include market capitalization, sales and profit growth, return on equity and capital employed, and the company’s valuation.
The price of a stock alone does not determine its risk. Factors such as the company’s financial health, industry prospects, and market conditions should be evaluated to assess risk.
Look for stocks with a market capitalization above a certain threshold, consistent sales and profit growth, and strong returns on equity and capital employed over a sustained period.
Yes, there are several quality stocks available under Rs.100 that can help you diversify your portfolio across different sectors and industries.
No, it is crucial to evaluate other fundamental aspects such as the company’s financial performance, competitive position, management quality, and industry outlook before making investment decisions.
**Important Disclaimer**
This blog post and information included here are not intended to serve as investment advice and should NOT be used as a substitute for the advice of an appropriately qualified and licensed professional registered investment adviser.
Please note the information provided here is for educational/informational purposes only. Although we attempt to provide accurate and up-to-date information, no guarantee is made to that effect. Investment in securities market are subject to market risks, please read the scheme related documents carefully.
