Looking for the Best Cheap Stock Under 100 Rs 2024 to invest in? You’re in the right place. In this discussion, we’re going to explore four stocks that might not have crossed your radar yet. Among these stocks, one is trading around the ₹100 mark, falling into the category of penny stocks.
So, if you’re seeking the Best Cheap Stock Under 100 Rs 2024 with the potential for long-term growth and profitability, stay tuned. We’ll be diving into the fundamentals and growth potential of these stocks, helping you make informed investment decisions for a promising portfolio in 2024 and beyond.
Best Cheap Stock Under 100 Rs
When it comes to navigating the stock market for investment opportunities, there are typically two approaches. The first involves conducting a thorough fundamental analysis to identify strong stocks and investing in them for the long term.
This strategy often yields significant returns over time. On the other hand, some investors may not feel comfortable or confident in conducting fundamental or technical analysis. For them, selecting investment options with the potential to provide good returns in the long term without much complexity is preferable.
Rubfila International
Financial Health
At first glance, the numbers paint a promising picture. With a market capitalization of ₹433 Cr and a current price of ₹79.8, Rubfila International stands out as an affordable investment opportunity. But its appeal goes beyond just the price tag.
Stability and Growth
The company’s financials showcase stability and consistent growth. It has maintained a healthy dividend payout of 22.5%, indicating a commitment to rewarding shareholders. Moreover, Rubfila International is almost debt-free, a reassuring sign for investors concerned about financial risk.
Profitability
Rubfila International’s profitability metrics are noteworthy. With a stock P/E of 17.9 and a dividend yield of 1.50%, it offers an attractive balance between growth potential and income generation. Its Return on Capital Employed (ROCE) stands at a respectable 14.5%, reflecting efficient utilization of resources.
Quarterly Performance
Analyzing its quarterly results reveals a pattern of resilience and adaptability. Despite fluctuations in sales and expenses, the company has consistently delivered positive operating profits. This indicates a robust business model capable of weathering market challenges.
Future Prospects
Looking ahead, Rubfila International’s growth trajectory appears promising. Its compounded sales growth over five years stands at 16%, showcasing its ability to capture market share and expand its footprint. Although the trailing twelve months (TTM) show a slight decline, the company’s long-term growth potential remains intact.
Shareholding Pattern
Another aspect that instils confidence is the company’s shareholding pattern. Promoters maintain a significant stake, signalling their belief in the company’s prospects. This alignment of interests between management and shareholders bodes well for future performance.
Allcargo Logistics
Financial Health
The financial metrics of Allcargo Logistics indicate a company that is both stable and poised for growth. With a market capitalization of ₹8,012 Cr and a current price of ₹81.5, this company offers an attractive entry point for investors. Additionally, Allcargo Logistics has reduced its debt burden, a positive sign that strengthens its financial position and reduces risk.
Profitability and Growth
One of the most striking aspects of Allcargo Logistics is its impressive profit growth. Over the past five years, the company has delivered a remarkable 28.9% compounded annual growth rate (CAGR). This underscores its ability to generate sustainable earnings and create value for shareholders over the long term.
Operational Efficiency
Allcargo Logistics has demonstrated operational efficiency by improving its debtor days from 57.6 to 41.2 days. This indicates a more effective management of receivables, which can positively impact cash flows and overall profitability.
Quarterly Performance
Analyzing its quarterly results reveals a consistent pattern of revenue growth and improving operating margins. Despite fluctuations in profitability, Allcargo Logistics has maintained a positive trajectory, showcasing its resilience in navigating market dynamics.
Shareholding Pattern
The company’s shareholding pattern reflects confidence among various investor groups. Promoters maintain a significant stake, indicating their belief in the company’s future prospects. Additionally, institutional investors and the public hold substantial positions, further reinforcing market confidence in Allcargo Logistics.
Future Outlook
Looking ahead, Allcargo Logistics is well-positioned to capitalize on opportunities in the logistics sector. With India’s rapidly growing economy and increasing emphasis on infrastructure development, the demand for logistics services is expected to rise, providing a favourable operating environment for companies like Allcargo Logistics.
Radiant Cash Management
Financial Strength
With a market capitalization of ₹952 Cr and a current price of ₹89.3, Radiant Cash Management offers an entry point that is both accessible and promising. The company’s stock price reflects its underlying strength and growth potential.
Profitability and Growth
One of the most impressive aspects of Radiant Cash Management is its exceptional profit growth. Over the past five years, the company has delivered a remarkable 64.1% compounded annual growth rate (CAGR). This stellar performance underscores the company’s ability to generate robust returns for its investors.
Operational Efficiency
Radiant Cash Management has demonstrated efficiency in managing its operations. The company has reduced its debtor days from 95.9 to 72.2 days, indicating improved cash flow management and a healthier balance sheet. Additionally, the reduction in working capital requirements from 80.3 days to 62.4 days further highlights the company’s operational prowess.
Quarterly Performance
Analyzing its quarterly results reveals a consistent pattern of revenue growth and healthy operating margins. Despite fluctuations in profitability, Radiant Cash Management has maintained a positive trajectory, showcasing its resilience in various market conditions.
Shareholder Returns
The company has a strong track record of rewarding its shareholders. With a healthy dividend payout ratio of 202%, investors can benefit from regular income in addition to potential capital appreciation.
Future Outlook
Looking ahead, Radiant Cash Management is well-positioned to capitalize on opportunities in its sector. With India’s growing economy and increasing emphasis on financial services, the demand for cash management solutions is expected to rise, providing a favorable environment for the company’s growth.
ITBEES
A Lucrative Investment
With ITBEES currently trading around ₹10, it’s worth noting that just a few years back, in 2020, it was priced at a mere ₹10 per unit. Today’s valuation signifies a three-fold increase in returns over the past few years, showcasing its potential for significant capital appreciation.
Long-Term Returns
Over the past few years, ITBEES has demonstrated its ability to deliver substantial returns. Similar to mutual funds, ETFs like ITBEES have the potential to offer attractive long-term returns to investors, making them an appealing choice for those looking to grow their wealth steadily.
Diverse Investment Options
ITBEES is not the only ETF in the market. Several other ETFs track various indices, offering investors a diverse range of investment options. For instance, there’s an ETF focused on the IT index, like ITBEES, while others track different sectors or indices, such as the Nifty or Sensex. Each ETF provides investors with an opportunity to diversify their portfolio and benefit from the movement of specific stocks or indices.
Comparative Analysis
Considering other ETFs in the market, it’s evident that ITBEES offers compelling value. While some ETFs, like those based on SBI or Axis indices, may be trading around ₹400 or ₹1000, respectively, ITBEES provides investors with exposure to the IT sector at a more affordable price point, currently around ₹10.
Understanding Valuations
Investors often perceive lower-priced stocks as cheaper or more affordable. However, it’s essential to analyze the movement and potential appreciation of these stocks. While a ₹400 stock might seem expensive compared to a ₹10 stock, the appreciation potential of both needs to be evaluated. In the case of ITBEES, even though it’s trading around ₹10, its movement over time suggests significant appreciation potential, making it an attractive investment opportunity.
The article “Best Cheap Stock Under 100 Rs 2024 Buy Now” is intended for informational purposes only. The information provided in this article is based on the research analyst’s YouTube Cheap Stock Under 100 Rs 2024 list and should not be considered as financial advice.
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Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Sharedhan. We advise investors to check with certified experts before making any investment decisions.
