The National Stock Market features approximately 1600 listed shares. The top 50 listed stocks have the highest market caps and represent some of the best companies to invest in if you aim for your money to grow at the rate of NIFTY's growth.
However, suppose you are interested in earning higher returns (which, of course, come with higher risks). In that case, you might consider investing your money in more affordable stocks to increase your funds rapidly.
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In this blog, we will explore the top 3 affordable stocks that have the potential to yield significant returns.
Easy Trip Planners Ltd
Ease trip planners operate under the prominent brand 'Ease My Trip'. The company offers travel-related products and services. It has answers to all your travel-related queries, as it provides airline tickets, hotel and holiday packages, rail and bus tickets, and taxi services.
It also offers services to enhance the travel experience, such as travel insurance, visa assistance, and tickets for various activities and attractions. Easy Trip Planners is one of the fastest-growing, second-largest, and only profitable online travel agencies in India.
Ease My Trip also has the largest travel agent network in India, with 60,000 partners nationwide. The company operates through three main distribution channels: Business-to-Consumer (B2C), Business-to-Employee (B2E), and Business-to-Business-to-Consumer (B2B2C).
More than 90% of its operations are geared towards direct consumer services, with the remaining portion serving travel agents and corporate clients.
It is currently priced at Rs 47.5 and is in a good consolidation phase. There is a positive sentiment around travel as India has a good domestic movement for religious and medical tourism. This growing demand will only push the prices further higher as the company will be able to do more business.
The company’s strengths can be further validated by the numbers it has achieved. It has achieved a 103% CAGR in profit growth over the last five years and has a strong ROE of 48.7% over the past three years.
KM Sugar Mills Ltd
KM Sugar Mills Ltd is a strong player in the sugar sector. This sector is driven by two key factors: the widespread use of sugar in various consumer goods and the usage of sugarcane residue for application in ethanol blending.
KM Sugar Mills Ltd. was founded in 1971 and produces and sells sugar, ethanol, ethyl alcohol, and power generated from bagasse. The company focuses on producing sugar, distillery products, and electricity. It also exports and trades sugar domestically alongside its manufacturing processes.
The company also produces three grades of sugar packaged in jute and PP bags, which are classified into grades based on quality and size. It also produces rectified spirit, fuel-grade ethanol, and ENA.
It has also significantly reduced its debt. It's currently trading at Rs 32.6 and has the potential to grow like other big players in the sugar sector. If you are keen on the sugar sector, you can also invest in Shri Renuka Sugar, as it still has a lot of untapped potential.
Shyam Century Ferrous Ltd
Shyam Century Ferrous Limited focuses on the production of Ferro Alloys in the North-Eastern region of India. The enterprise benefits from the leadership of Mr. Sajjan Bhajanka and Mr. Sanjay Agarwal, who are also behind the success of Century Plyboards Ltd. and Star Cement Ltd.
Shyam Century Ferrous Limited dedicates 100% of its operations to Ferro Alloys, including essential steel-making additives like Chromium, Manganese, and Silicon, which are vital for enhancing the strength and quality of specific steel grades.
The company’s manufacturing site has an annual capacity of 21,600 metric tonnes and generates about 14 MW of captive power. Its strategic position in North-East India ensures easy access to raw materials such as Coal, Lam Cole, and Quartz.
Energy costs, which constitute 45% of the production expenses, are mitigated by securing power at competitive rates of approximately Rs 4.7 per unit.
The company stands nearly debt-free and has exhibited profit growth, with a CAGR of 20.6% over the past five years.
Conclusion
These stocks represent a high-risk investment category. As an investor, you may be attracted to buy these shares, primarily due to their extremely low prices. But before you buy these stocks, you must evaluate your risk appetite and note how much risk you can take. Accordingly, fit these aspects with your time horizon and build an investment strategy that works for you.
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