Investing in the stock market can be a great way to grow your wealth over time. With so many options available, it can get difficult to know where to start.
If you are a beginner or a budget-conscious investor looking for guidance on where to begin in the stock market in India, you may be wondering about which stocks are worth buying that will not be priced very high.
This article will glance at some of the best stocks to buy under ₹200 in India, focusing on factors to consider before investing, top stock picks and suggestions for strategy.
Factors to consider before investing in stocks under ₹200 in India
Before investing in any stocks, it is essential to consider several factors to ensure that you make informed decisions that align with your financial goals and risk tolerance.
Here are some of the most important factors to keep in mind when investing in stocks under ₹200 in India.
- Consider your financial goals and risk tolerance to determine which stocks best suit your investment strategy.
- Evaluate the company's financial health and performance by analysing key financial metrics such as revenue growth and return on equity.
- Consider industry trends and market conditions that may affect the stock you are considering.
- Assess the leadership and management of the company by examining its track record and ability to capitalise on opportunities.
Best stocks under INR 200 in India in 2023
With a long-standing history and commitment to meeting the specialised electronic equipment requirements of the Indian Defence Services, Bharat Electronics Limited (BEL) has firmly established itself as a significant player in India's aerospace and defence industry.
Boasting a diverse product line that includes state-of-the-art electronic warfare devices, communication tools, and radar systems, the company is well-positioned to capitalise on the Indian government's increased focus on defence modernisation.
With a dedication to innovation and strong financial performance, including a healthy balance sheet and P&L, it is no wonder that BEL's market price continues to climb.
Since its incorporation in 1984, GAIL has solidified its position as a leading unsegregated natural gas company in India, owning an impressive network of pipelines, LPG gas-processing units, and a petrochemical facility.
The company's joint-venture interests in Petronet LNG Ltd. and Ratnagiri Gas and Power Pvt. Ltd. as well as its involvement in the CGD business in several cities, further reinforce its status as a significant player in the industry.
GAIL's strong financial performance, evidenced by its impressive dividend yield, makes it an appealing option for investors looking for a stable and reliable investment opportunity.
With a current trading price of just over ₹100, GAIL's stock presents an enticing opportunity for those looking to invest in India's growing natural gas industry.
As India's first swadeshi bank, Punjab National Bank (PNB) has a rich history serving the country's banking and financial needs. With its headquarters in New Delhi and owned by the Government of India, PNB is the third-largest public sector bank after IOB, showcasing its significant influence in the industry.
PNB's impressive growth in revenue, asset quality, profitability, and other key metrics make it a highly sought-after investment option for investors.
Its strong balance sheet and attractive valuation further solidify its position as an attractive option for investing in the banking and financial services sector.
At a trading price of around ₹50, PNB offers a compelling investment opportunity for those seeking to benefit from India's growing economy.
NLC India Limited (NLC) is a Navratna government corporation that has made significant strides in the fossil fuel mining and thermal power generation using renewable energy sources.
With a strong focus on lignite mining and power generation, the company is well-positioned to capitalise on India's growing energy needs. As a Navaratna company, under the ownership of the Ministry of Coal, Government of India, NLC has a moderately strong balance sheet, P&L statement, and cash flow.
Despite its impressive financial performance, NLC is undervalued in the market, trading around ₹90. Investors looking for a solid investment opportunity in India's energy sector should look closely at NLC India Limited.
With a tower market share of 33% and a tenancy market share of 42%, Indus Towers Limited is the largest telecom tower company in India, boasting an impressive portfolio of over 1.26 lakh towers across the country.
As a leader in the wireless communication towers industry, Indus Towers is well-positioned to benefit from India's rapidly growing telecom sector. The company's solid financial performance is reflected in its strong balance sheet, profit and loss statement, and cash flow.
Despite its impressive performance, Indus Towers is undervalued in the market, with the stock trading around ₹150. Indus Towers Limited presents an attractive option for investors seeking a sound investment opportunity in India's burgeoning telecom industry.
Strategies for investing in stocks to buy under ₹200
Below is a curated list of the strategies for investing in stocks to buy under ₹200:
- Diversify your portfolio by investing in multiple stocks across different industries.
- Focus on long-term investing to maximise returns and reduce risk.
- Keep a close eye on market trends and conditions, and be willing to adapt your investment strategy accordingly.
- Consider investing in blue-chip stocks with a proven financial success and stability track record.
Conclusion
As we've noted, investing in the stock market can be an exciting way to grow wealth. However, it is crucial to approach it cautiously and invest in companies with solid growth prospects, well-positioned to benefit from industry trends.
The stocks we discuss represent some of the best options for investors looking for exposure to the Indian market. With a moderate level of risk and strong growth prospects, these stocks are well-positioned to benefit from industry trends.
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Disclaimer
The investment options and stocks mentioned here are not recommendations. Please go through your own due diligence and conduct thorough research before investing. Investment in the securities market is subject to market risks. Please read the Risk Disclosure documents carefully before investing. Past performance of instruments/securities does not indicate their future performance. Due to the price fluctuation risk and the market risk, there is no guarantee that your personal investment objectives will be achieved.