Best Stocks Under Rs 50 in India

Answer this. What is required while investing in a stock market?

Well, you would say knowledge about listed companies, details about the Indian economy, a Trading and Demat account, and huge sums of money. Well, the last one is not true.

Yes, you do not need megabucks to get started in the stock market. Just a small amount, as low as Rs 50, would do.

Curious to know what are the best stocks to buy under Rs 50 in 2023 ? Read on!

Best Stocks Under 50 In India 2023

Factors to Consider Before Investing in Top Stocks Under Rs 50

Here are some significant factors to consider while investing in shares below 50 Rs-

• Stock Performance

If you are keen to buy a stock below Rs 50, it is necessary to check its performance over the past period of years. Check how it has performed in specific economic changes, which factors affected its price, how it performed compared to the competitors, etc.

This will help you understand the trends a stock might be occasionally encountering.

• Company Fundamentals

The next factor on the list is checking the fundamentals of the company. Analyse how a company has grown over the years, run through its profitability, growth graph, performance compared with peers, debt levels, etc.

You can use financial ratios such as PE Ratio, PB Ratio, etc., to determine the company fundamentals and understand its growth in numeric terms.

• Investment Strategy and Time Horizon

Another factor to consider is your own investment strategy and the time horizon. Based on your financial goals, determine how long you would like to stay invested in a particular stock. It can be for short, mid or long term.

Along with this, assess which investment strategy you would like to adhere to. It can be value investing, growth investing, income investing, etc.

Once you have clear thoughts about your investment strategies, the journey to invest in stocks will become much easier.

• Financial Reports

To know the financial fitness of a stock, check its income statements, balance sheets, cash flow statements, etc. This can help you get a fair glimpse of the stock’s performance.

Such reports can shed some light on the company’s revenue, costs, expenditures, profits and many more facets.

Understanding such numbers can help you make decisions while finding the best shares below 50 Rupees.

• Dividend History

If you are a little indecisive about investing in a certain stock, make sure to check its dividend history once.

If you seek to gain income through your stock investments, then analysing the dividend history of the stock is a must. It can help you determine its growth, returns, profitability and more.

Best Shares to Buy Below 50 Rs - A Brief Overview 

Here is a brief overview of the best stocks available in Rs 50-

1) Indian Overseas Bank

The Indian Overseas Bank was established in 1937 with the aim of enhancing the foreign exchange business in the banking sector. Besides India’s 3000+ branches, IOB currently marks its presence in Singapore, Hongkong, Thailand and Sri Lanka.

The bank offers a variety of personal and business banking products and services catering to all kinds of financial needs.

The Indian Overseas Bank has been a stable performer and a choice for many when it comes to buying the best stocks under Rs 50 in 2023.

2) UCO Bank

The United Commercial Bank, often referred to as UCO Bank, is next on the list. The bank was established in 1943 and currently has over 3000 branches in India.

It is a commercial bank operating as the Government of India Undertaking. With its wide range of financial products, UCO Bank has created a strong presence in the banking sector in India.

It has been a good performer in the stock market and has given decent returns to investors in the past.

3) Trident Ltd

Trident Group is a renowned textile fabric manufacturer. With its wide variety of products and services related to home textiles, paper, chemicals and yarn, it has built a strong niche for itself in the fabric ecosystem.

Because of its credible and stable performance over the years, Trident Group has built a strong niche for itself in the textile, paper and chemical industry. It has been a top choice for many investors seeking low-priced stocks.

4) Suzlon Energy Ltd.

Suzlon Energy Ltd is a global leader in renewable energy solutions. The company is involved in developing wind and solar energy products. Its global headquarters are located in Pune, India.

With its pioneering since 1995, the company has been a solid performer in the stock market as well. Over the years, it has earned consistent revenue that offered decent returns to its investors.

5) IRB Infrastructure Developers

IRB Infrastructure Developers is one of the most renowned highway construction companies. It has contributed significantly towards developing road infrastructure in India since 1998.

The company has been consistently generating good revenue with its numerous projects related to highway construction, connecting several terrains in India.

Due to its solid management, focused vision, and financial soundness, IRB Infrastructure Developers often comes in the list of stocks available for low cost.

The Bottom Line

Every stock market trader wishes to earn more by investing less. You might be desiring the same, right? Well, it is possible if you invest strategically while being patient and careful with your investment choices.

Simply ensure to consider all the prominent factors and market conditions while investing. Also, ensure to determine your risk tolerance level simultaneously so that you never witness unanticipated losses.

Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.

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Research Analyst - Aakash Baid