Best Stocks Under Rs 50 in India in 2024

A common misconception when entering the stock market is that you need a substantial amount of money to kickstart your investment journey in the stock market. In reality, though, you don't need a vast fortune.

With even a modest amount, as low as Rs 50, you can enter the world of stock investments. This opens up opportunities for individuals who once believed that stock market investing was beyond their financial reach.

In this blog, let's explore the top 5 stocks priced under Rs 50 that are likely to perform well in 2024.

Factors to Consider Before Investing in Stocks Priced Under Rs 50

Financial health: Begin by examining the company's financial statements, including its balance sheet, profit and loss statements, and cash flow. It will provide insights into the company's overall financial stability.

Industry analysis: Gain a deep understanding of the industry in which the company operates. Assess growth prospects and potential challenges that the industry may face.

Management quality: Research the leadership team of the company. Evaluate their experience and track record in managing the business effectively.

Debt levels: Assess the company's debt situation to gauge its financial obligations and the associated risk level. High debt can pose challenges to a company's financial health.

Earnings consistency: Check whether the company has consistently delivered earnings over time. Consistency in earnings can indicate stability.

Future growth potential: Consider the company's potential for future growth and expansion. Assess whether it has a solid plan for the future.

Once you have a good understanding of these aspects, go on to invest in a company that meets all the criteria.

Top 5 companies under Rs 50 in 2024

Indian Overseas Bank

IOB is a prominent public sector bank headquartered in Chennai, India. It has an extensive network of approximately 3,220 domestic branches. Indian Overseas Bank extends its services beyond India's borders, with branches in international locations such as Singapore, Colombo, Hong Kong, and Bangkok.

The bank has primarily focused on two key objectives: specialising in foreign exchange operations and delivering overseas banking services. Over the past five years, IOB has demonstrated a profit growth at a CAGR of 18.5%.

Lloyds Enterprises Ltd

Lloyds Enterprises Ltd primarily operates in the trade of Iron & Steel products. The company specialises in trading various steel products, including hot rolled (HR) coils, cold rolled steel sheets, mild steel (MS) channels, MS angles, hot rolled plates, and MS beams.

The company maintains a nearly debt-free status, which indicates solid financial stability. Over the past five years, they have consistently achieved robust profit growth, with an impressive CAGR of 98.0%.

Easy Trip Planners Ltd

Ease My Trip offers end-to-end travel solutions, including booking services for airline tickets, hotels, holiday packages, rail tickets, bus tickets, and taxis.

EMT is ranked as the second-largest and the only profitable entity in India's online travel portal industry. Ease My Trip comprises approximately 60,000 agents across India. ​​​​​​​

Expectations for the company's upcoming quarter are positive, and it has a strong track record of delivering impressive profit growth, achieving a CAGR of 103% over the past five years.

Trident Ltd

Trident Limited conducts its operations primarily through two key segments: Textiles and Paper & Chemicals. Within the textile segment, the company is engaged in the manufacturing of yarn, towels, and bed sheets.

Within the paper & chemicals segment, Trident Ltd focuses on producing and processing paper and sulfuric acid. Trident Limited's manufacturing facilities are in Barnala, Punjab, and Budni, Madhya Pradesh.

In terms of financial performance, the company has consistently maintained a dividend payout ratio of 41.3%, providing regular returns to its shareholders.

Jayaswal Neco Industries Ltd

Jayaswal Neco Industries Limited (JNIL) is the flagship entity within the NECO Group of Industries. It began in 1976 as an iron foundry unit and has evolved into a significant producer of Iron and steel castings.

The company specialises in the manufacturing and distribution of various products, including billets, rolled items, pig iron, skull, sponge iron, pellets, steel, and iron and steel castings.

Over the past five years, the company has demonstrated a profit growth of 20.6% CAGR. There has been a 5% increase in the promoter holding.

Conclusion

Investing in stocks priced below Rs 50 can provide a cost-effective entry point into the stock markets. However, you must recognise that such stocks carry inherent risks, and conducting thorough research is imperative before making any investment decisions. Before investing in these stocks, it's vital to have a clear understanding of your financial objectives, risk tolerance, and investment horizon. These factors should guide your investment choices and strategies.

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