Top Stocks Under Rs 50: Do you remember the days when you would get Rs 50 as pocket money? You could buy the world for Rs 50. Sometimes it was a tummy full of snacks. Other times it was a thick bundle of kites. Well, the times they are a-changin’. But did you know you can save 50 bucks and invest in good stocks under Rs. 50?
A quick run on Screener fetches some 1,900 companies trading in the market with a share price of less than Rs. 50 per share. How do you go about picking profitable companies among this large pool? What filters to use: revenue growth, profitability, debt to equity ratio or what else?
In this article, we bring to you top stocks under Rs 50. So without further ado, let us jump in.
Table of Contents
Top Stocks Under Rs 50
Top Stocks Under Rs 50 #1 – Trident Ltd
| Share Price (Rs.) | 36.1 | Market Cap (Rs. Cr.) | 18,400 |
| EPS (Rs.) | 1.48 | Book Value (Rs.) | 7.51 |
| Stock P/E | 23.7 | Price to Book | 4.81 |
| Face Value (Rs.) | 1.0 | Dividend Yield | 22.0% |
| ROCE | 26.8% | ROE | 21.7% |
| Debt to Equity | 0.42 | Promoter Holding | 72.9% |
Trident was established in 1990 as a yarn manufacturing company. It later entered terry towel manufacturing in the late 1990s. Over the years, the company slowly diversified into the paper, chemical and energy sectors.
Fast forward to today, Trident is a well-diversified mid-cap company manufacturing yarn, textiles and paper with an international presence in 150 countries across the globe. It has four manufacturing plants located in India. The Ludhiana, Punjab headquartered country is also the largest manufacturer of wheat straw-based paper and terry towels in the world. It employs 15,000 people and has solid retail and online presence.
The primarily textile company produces various products including rugs, bed sheets, mats, pillows, quilts, writing & printing maplitho paper, and scritta & offset paper.
The China +1 strategy has aided the company to post record profits. As a result, its share price has sky-rocketed more than 486% in the last two years.
Top Stocks Under Rs 50 #2 – RVNL
| Share Price (Rs.) | 32.8 | Market Cap (Rs. Cr.) | 6,850 |
| EPS (Rs.) | 5.99 | Book Value (Rs.) | 30.7 |
| Stock P/E | 5.49 | Price to Book | 1.07 |
| Face Value (Rs.) | 10.0 | Dividend Yield | 4.81% |
| ROCE | 15.0% | ROE | 18.5% |
| Debt to Equity | 1.04 | Promoter Holding | 78.2% |
A government entity on the list, RVNL is tasked with the implementation of infrastructure projects of the Railways Ministry in India. These projects can be the installation of railroad tracks, their upgrade/changes, railway electrification, building major bridges, and setting up workshops or production units. In addition to this, it has also commissioned multiple metro-rail projects.
Rain Vikas Nigam traces back its origin to 2002. It was set up as a part of the larger National Rail Vikas Yojana scheme to reduce the rail infrastructure deficit.
At present levels, the stock offers a high dividend yield of over 4.8%. Furthermore, it trades at an attractive PE of 5.5. The company’s revenues have grown at a rapid CAGR of 26.8% over the last 5 years. It has seen a consistent rise in net profits too.
Top Stocks Under Rs 50 #3 – HUDCO
Housing and Urban Development Finance Corporation (HUDCO) was set up in April 1970 as a public financial institution. It is a public sector company under the Ministry of Housing and Urban Affairs (MoHUA).
HUDCO is responsible for providing long-term finance and provides consultancy services for the construction of residential & urban programmes, satellite towns, and industrial enterprises. Additionally, the company subscribes to debentures, bonds and mutual funds issued by various development bodies.
Barring FY22, the revenues of the company have consistently increased from Rs. 3,270 crores in FY16 to Rs. 7,267 crore and Rs. 6,954 crores in FY21 and FY22 respectively. Likewise, its profits grew at a CAGR of 13.97% since 2016.
As a fundamentally attractive stock, it offers a high dividend yield of 8.8% presently at an impressive price-to-earnings ratio of 4.63.
| Share Price (Rs.) | 39.9 | Market Cap (Rs. Cr.) | 8,000 |
| EPS (Rs.) | 8.61 | Book Value (Rs.) | 72.3 |
| Stock P/E | 4.63 | Price to Book | 0.55 |
| Face Value (Rs.) | 10.0 | Dividend Yield | 8.8% |
| ROCE | 9.2% | ROE | 12.4% |
| Debt to Equity | 4.3 | Promoter Holding | 81.1% |
Top Stocks Under Rs 50 #4 – NHPC Ltd
| Share Price (Rs.) | 36.1 | Market Cap (Rs. Cr.) | 36,250 |
| EPS (Rs.) | 3.64 | Book Value (Rs.) | 34.8 |
| Stock P/E | 9.92 | Price to Book | 1.04 |
| Face Value (Rs.) | 10.0 | Dividend Yield | 5.01% |
| ROCE | 6.5% | ROE | 10.4% |
| Debt to Equity | 0.8 | Promoter Holding | 71.0% |
Another government enterprise with a share price under Rs. 50, NHPC is the largest hydropower development company in India. It offers a full range of services from conceptualization to commissioning in relation to the setting up of hydro projects. It has also diversified in the field of solar and wind power development.
As of today, NHPC has an installation base of 7071.2 MW from 24 power stations including two joint-venture projects. Furthermore, it is constructing 11 projects of varying sizes amounting to a capacity of 7539 MW. In addition to these, its 8 projects worth 7652 MW capacity are presently under clearance stage and 5 projects aggregating to a capacity of 2455 MW are in the survey & investigation stage.
In the last three years, NHPC has given a satisfactory return of 65% to its shareholders. This has been primarily because of the rise in net profits from Rs. 2,885 crores in FY20 to Rs. 3,524 crores in FY22.
Top Stocks Under Rs 50 #5 – IDFC First Bank Ltd
| Share Price (Rs.) | 49.1 | Market Cap (Rs. Cr.) | 30,550 |
| EPS (Rs.) | 1.99 | Book Value (Rs.) | 33.9 |
| Stock P/E | 24.6 | Price to Book | 1.45 |
| Face Value (Rs.) | 10.0 | Dividend Yield | 0.0% |
| ROCE | 4.6% | CASA Ratio | 49.88% |
| Capital Adequacy | 16.74% | Promoter Holding | 36.5% |
IDFC FIRST Bank was established by the merger of erstwhile IDFC Bank and erstwhile Capital First in December 2018. Set up in 1997, IDFC specialized in corporate banking. Founded by Mr Vaidyanathan, Capital First had a strong retail presence and was looking for a banking license to become a bank.
The merger proved beneficial for both companies as it resulted in a diversified loan book amid India’s changing economic landscape.
As of today, IDFC First Bank is a leading tech-driven bank with a customer base of more than 7.3 million and growing. As of March 2022, its CASA deposits stood at Rs. 51,170 crores with a CASA ratio of 49.88%.
It has a well-diversified lending portfolio with more than 20 business lines. The bank has a strong capital adequacy ratio of 16.74%.
Its earnings have been volatile after the merger but there are green shoots visible with improving returns and stellar profits of Rs. 352 and Rs. 485 in the March and June quarters of 2022 respectively.
List of Top Stocks Under Rs 50
We covered the above 5 companies with share prices under Rs. 50. The list below presents more such stocks under Rs. 50.
| Company Name | Industry | Share Price (Rs.) | Market Cap (Rs. Cr.) |
|---|---|---|---|
| SpiceJet | Airlines | 45.6 | 2,750 |
| IDFC First Bank | Banking | 48.6 | 30,250 |
| IDBI Bank | Banking | 45.1 | 48,500 |
| Punjab National Bank | Banking | 35.2 | 38,800 |
| Union Bank of India | Banking | 41.5 | 28,350 |
| NBCC (India) | Construction | 33.2 | 6,000 |
| NHPC | Energy | 36.1 | 36,250 |
| Rail Vikas Nigam | Infrastructure | 32.8 | 6,850 |
| TV18 Broadcast | Media & Entertainment | 40.6 | 7,000 |
| Brightcom Group | Media and IT Services | 42.8 | 8,600 |
| HUDCO | NBFC | 39.9 | 8,000 |
| Equitas Small Finance Bank | NBFC | 45.6 | 5,700 |
| Shree Renuka Sugars | Sugar | 45.9 | 9,800 |
| Trident | Textiles and Paper | 36.1 | 18,400 |
In Conclusion
In this article, we went through some of the top stocks under Rs 50. Some of these companies have given impressive returns in recent years to their shareholders. The companies were of varying sizes across different industries.
While there are some novice trading strategies that advise picking stocks trading near rounded-off numbers. However, they are as ineffective as they are easy. It is not advisable to hold stocks only on the basis of their price.
Having said that what do you keep in mind while picking stocks? Do you also look for a price tag, say stocks under Rs. 50? Or do you look at fundamentals? Or what else? How about you let us know in the comments below?
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