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Best Stocks to Buy Under Rs 50 in 2023

Introduction

Are you new to the stock market and working with a tight budget? You're not alone! It's common to want to build a diverse portfolio with little spending, especially when those expensive, high-priced stocks seem out of reach.

Here's the interesting part: It's easy to think that pricier stocks always perform better. But here's the twist – a low stock price doesn't mean it's a bad choice. In fact, it could be a great deal, trading at a low cost with the potential for significant growth. So, let's explore this and find some affordable opportunities in the stock market together.

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Best Stocks to Buy Under Rs 50 in 2023

BMW Industries Limited

BMW Industries Ltd is one of the largest steel processing companies in India. It manufactures various steel products like coils (HRPO, CR, GP), GC sheets, MS and GI pipes, TMT bars, etc., for major companies that require steel in India. It also has the largest cold rolling and galvanising facilities in the country. 

It has had a profit growth of 90.67%, and the promoters own 74% of the company, which is a positive sign for the company. 

South Indian Bank Limited

The South Indian Bank (SIB) emerged during the Swadeshi movement in 1929 and is headquartered in Thrissur, Kerala. 

They provide a range of banking and financial services like retail banking, corporate banking, and treasury. The bank maintains a network of around 942 banking branches and roughly 1,175 automated teller machines (ATMs) throughout India.

The company has delivered good profit growth of 18.3% CAGR over the last five years. However, their sales growth has been only 3.15% over the past five years.

Trident Limited

Trident Limited primarily operates through two segments: Textiles and Paper and Chemicals. The textile segment has yarn, towel, and bed sheets manufacturing. The Paper and Chemical segment is into manufacturing and processing paper and sulfuric acid.

The company’s manufacturing units are in Barnala (Punjab) and Budni(Madhya Pradesh). 

Trident Ltd. has maintained a healthy dividend payout of 41.3%.

UCO Bank

Next up, we have UCO Bank, formally known as the United Commercial Bank. Established in 1943, this bank boasts a network of over 3,000 branches across India. It operates as a government undertaking and has firmly established itself in the Indian banking sector with its diverse range of financial products.

They have delivered good profit growth of 19.3% CAGR over the last five years, which is a positive sign. 

Magnum Ventures

Magnum Ventures operates in the paper industry and hotel industry. The company has been manufacturing papers for more than 30 years. They are one of the largest paper (newsprint, duplex board, etc.) printing concerns in North India. 

They have reduced debt and delivered good profit growth of 89.6% CAGR over the last five years.

Though the company is reporting repeated profits, it is not paying out a dividend. Promoters have pledged 51.4% of their holding, which may not be a positive sign. 

Key Factors you should consider for Stock Selection:

Investing without understanding is like throwing dice and hoping things will turn out in your favour. We highly recommend that you do proper due diligence before you put your money into any stock. Here are some significant factors you must consider while investing:

Strong Fundamentals

Analysing the fundamental business model of a company is very important. Post this, you must go on to check its growth and profitability over the years. You can use ratios like P/E and P/B to compare its performance with peers. No stocks should have seen negative EPS in the past four to five years.

Investment Strategy

Before you buy a share, you must have an approximate time horizon for which you wish to stay invested in the share. If you plan to do intraday or swing trading, you must have your entry and exit points planned. 

Dividend History

If you’re looking to generate income from stock investments, a thorough analysis of the stock's dividend history is crucial. This analysis can provide valuable insights into its growth, returns, profitability, and other pertinent factors.

Conclusion

Investing takes time, and it's all about being patient and sticking to a plan. It's not about predicting the perfect moment to jump into the market, but rather, it's about giving your investments time to grow.

By choosing stocks that match your goals and how much risk you're comfortable with, you can create a diverse portfolio that can gradually increase your wealth.

So, begin your path to financial success by checking out these affordable stocks in 2023. With the right strategy, you can make wise investment choices and move closer to reaching your financial goals.

 

Related Articles:  Best Education Sector Stocks In India 2023 | Best Real Estate Stocks to Buy in India 2023 Best Sugar Stocks to Buy In India 2023

 

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