Top 7 below Rs. 100 stocks to invest in the Indian stock market.


7 min read
Top 7 below Rs. 100 stocks to invest in the Indian stock market.

  1. Rail Vikas Nigam Ltd.(Current Price : 23 Rs.)

About RVNL: Rail Vikas Nigam Ltd. engages in the development and construction of railway infrastructure. The firm also provides vital port linkage including the corridors connecting the port of Hinterlands. It railway projects include new lines, doubling, gauge conversion, railway electrification, metro projects, workshops, major bridges, construction of cable-stayed bridges, and institutional buildings. The company was founded on January 24, 2003 and is headquartered in New Delhi, India.

Top Reasons:

  • Stock is trading at 1.17 times its book value so undervalued.
  • Promoter holding: 87.84 % (Indian Government)
  • Stock is providing a good dividend yield of 3.84%.
  • Pledged percentage: 0.00 %
  • Company has good consistent profit growth of 29.85% over 5 years.
  • Company has been maintaining a healthy dividend payout of 47.40%.
  • Strong fundamentals: ROE: 16.83 % | Debt to equity: 0.82 | Current ratio: 3.45 | Quick ratio: 3.45 | PEG Ratio: 0.21 | Return on invested capital: 15.59 %.
  • The company 18 times potential to pay back its short term debts like interest payments.
  • Stock P/E: 6.28 Vs Industry PE: 25.71
  • Sales Growth (3Yrs) is whopping 30.37 %

2. Engineers India Ltd (Current Price : 89 Rs.)

About EIL: Engineers India Ltd. engages in the engineering consultancy, and procurement and construction. It operates through the Consultancy and Engineering and Turnkey Projects segments. The company was founded on March 15, 1965 and is headquartered in New Delhi, India.

Top Reasons:

  • Stock is providing a good dividend yield of 4.49%.
  • Company is debt free. (no debt).
  • Promoter holding: 51.50% (Indian Government)
  • Pledged percentage: 0.00 %
  • Compounded Sales Growth of last 3 years: 17.13%
  • Compounded Profit Growth of last 3 years: 9.94%
  • The company has been maintaining a healthy dividend payout of 65.20%.
  • Strong fundamentals: ROE: 15.76 % | Debt to equity: 0 | Current ratio: 1.63 | Quick ratio: 1.62 | Return on invested capital: 19.52 %
  • The company 423 times potential to pay back its short term debts like interest payments.
  • Stock P/E: 14.28 Vs Industry PE: 18.08

3. Oil & Natural Gas Corpn Ltd (Current Price: 105.35 Rs.)

About ONGC: Oil and Natural Gas Corporation Limited is a global energy holding company. The Company is engaged in the exploration, development and production of crude oil and natural gas. The Company’s segments include Exploration & Production (E&P), and Refining. The Company’s geographical segments include operations in two categories: In India, which includes Onshore and Offshore, and Outside India. The Company’s business spread include various areas, such as oil field services, transportation of the oil and natural gas, and production of value-added products, such as Liquefied Petroleum Gas (LPG), Naphtha, Refining, Petrochemicals, Power, unconventional and alternate sources of energy. The Company’s subsidiaries include ONGC Videsh Limited (OVL), Mangalore Refinery and Petrochemicals Limited (MRPL) and ONGC Mangalore Petrochemicals Limited. The Company’s oil and gas reserves are located internationally at Russia, Colombia, Vietnam, Brazil and Venezuela.

Top Reasons:

  • Stock is trading at 0.59 times its book value (undervalued).
  • Stock is providing a good dividend yield of 6.64%.
  • Promoter holding: 62.78 % (Indian Government)
  • Pledged percentage: 0.00 %
  • Compounded Sales Growth of last 10 years: 15.73%
  • Company has been maintaining a healthy dividend payout of 35.62%.
  • Fundamentals: ROE: 14.91 % | Debt to equity: 0.47 | Current ratio: .80 | Quick ratio: .57 | Return on invested capital: 75.14 %
  • The company 9 times potential to pay back its short term debts like interest payments.
  • Stock P/E: 4.95 Vs Industry PE: 15.95.
  • On ONGC Nomura Maintained ‘Buy’ with a price target at Rs 175

4. SpiceJet (Current Price: 89 Rs.)

About Spicejet : SpiceJet Ltd. engages in the provision of air transport services for the carriage of passengers and cargo. It operates a fleet of aircrafts across India under the SpiceJet brand. The company was founded on February 9, 1984 and is headquartered in Gurgaon, India.

Top Reasons:

Basically SpiceJet Ltd. expects a turnaround in its cash flow in the last four months of 2020 once Boeing Co.’s grounded 737 Max aircraft returns to the fleet by mid-year, its clients should expect a return of 737 Max by mid-2020. SpiceJet grounded 13 737 Max planes in March 2019 after technical faults led to two crashes involving Lion Air and Ethiopian Airlines flights, leaving 346 people dead.

Privately, what we’ve been told is that they’re going to have a test flight in February, and they expect that certification will happen by April. After that, there’s a small process of pilot-training. With all that, we expect that the aircraft should return to service in May or June of 2020, There’s a massive financial impact, it’s tough to quantify but it has been tremendous, large. So, in every which way, the cash flow situation will dramatically improve in the last four months (of 2020). We would’ve grown more had Max been there but we’ve grown 50 percent of our capacity, Hopefully, the Max will come back in the middle of the year and we can keep growing this year as well. We have to get a level playing field with the airlines around the world and I hope that can happen.

— Ajay Singh, Chairman, SpiceJet

Additionally: Recently, the throughput tax was rescinded, giving the aviation industry close to Rs 1,000 crore relief. SpiceJet would benefit by Rs 100 crore

  • Cash flow activity.
  • Brent is trading at $57 so COGS will be down for Spicejet.
  • Compounded Sales Growth of last 10 years is 18.35%
  • The company is expected to give a good quarter.

5. Ashok Leyland Ltd (Current Price: 80 Rs.)

About Ashok Leyland : Ashok Leyland Ltd. engages in the manufacture of commercial vehicles. It operates though the Commercial Vehicle and Financial Service business segments. The Financial Service segment covers the vehicle and housing financing. Its products include buses, trucks, light vehicles, defense vehicles, and power solutions. The company was founded by Raghunandan Saran on September 7, 1948 and is headquartered in Chennai, India.

Top Reasons:

  • Stock is providing a good dividend yield of 3.80%.
  • The company has good consistent profit growth of 38.99% over 5 years.
  • Company has been maintaining a healthy dividend payout of 37.37%
  • Promoter holding: 51.13%
  • Compounded Sales Growth of last 5 years: 22.86%
  • Fundamentals: ROE: 25.23 % | Current ratio: 1.63 | Quick ratio: 1.33 | Return on invested capital: 25.13 % | PEG Ratio: 0.58
  • Stock P/E: 22.61 Vs Industry PE: 104.32.

6. Firstsource Solutions Ltd(Current Price: 41.85 Rs.)

About FSL: Firstsource Solutions Ltd. engages in the provision of customized business process management services. It offers contact center, transaction processing, customer management, healthcare claims administration, underwriting, consulting and debt collection services including revenue cycle management in the healthcare industry. The company was founded on December 6, 2001 and is headquartered in Mumbai, India.

Top Reasons:

  • Stock is trading at 1.08 times its book value.
  • Promoter holding: 53.92 %.
  • Stock is providing a good dividend yield of 4.70%.
  • Pledged percentage: 0.00 %
  • Compounded Profit Growth of last 10 years : 28.73%
  • Strong fundamentals: ROE: 14.78 % | Debt to equity: 0.43 | PEG Ratio: 0.58 | Return on invested capital: 14.91 %.
  • The company 9 times potential to pay back its short term debts like interest payments.
  • Stock P/E: 8.48 Vs Industry PE: 12.50

7. Himadri Speciality Chemical Ltd(Current Price: 55.10 Rs.)

About HSCL: Himadri Speciality Chemical Ltd. engages in the provision of carbon products. It operates through the Carbon Materials and Chemicals, and Power segments. The Carbon Materials and Chemicals focuses on manufacturing operations. The Power segment involves in the generation and distribution. The company was founded by Damodar Prasad Choudhary, Shyam Sundar Choudhary, Bankey Lal Choudhary, Vijay Kumar Choudhary, Anurag Choudhary, Amit Choudhary, and Tushar Choudhary on July 28, 1987 and is headquartered in Kolkata, India.

Top Reasons:

  • Strong Fundamentals: ROE: 21.29 % | ROCE: 25.49 % | Debt to equity: 0.23 | Current ratio: 1.24 | Return on invested capital: 22.69 %
  • The company 6 times potential to pay back its short term debts like interest payments.
  • Stock P/E: 11.75 Vs Industry PE: 12.35
  • Pledged percentage: 0.00 %
  • Free cash flow 5years: 1,134 Cr.
  • Debt 3Years back: 887.36 Cr. | Debt preceding year: 660.16 Cr. | Current Debt: 399.16 Cr.
  • Promoter holding: 48.92 %

Note: If you haven’t started investing then start with Upstox. The Demat account is charge 0 Rs for delivery trades. Ratan Tata-backed Upstox is opening free Demat accounts.

“Long term investor should only buy fundamentally strong stocks when they are in pain & in oversold territory” — My 10 years of Experience

Most of these stocks are safe and can be invested for short as well as for the long term.

Thanks!

Akshay Seth
Linkedin | Twitter | Quoraakshay.equity@gmail.com

Source: Blog | equityboxx

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