As the Indian stock market has recovered from the recent loss and Sensex and Nifty reached a new peak in this election year, investors might be interested in looking out for opportunities to invest in stocks.

Theoretically, in this volatile time, the best approach is to identify the best low price shares to buy right now. As these are the stocks which could someday become multi-bagger stocks in the future.

Here is the list of 10 best stocks you can buy in the Indian stock market at below Rs. 20

10 Best Stocks to Buy at Below Rs. 20

1. South Indian Bank Ltd.

Share Price = Rs. 16.40 (as on 28/04/2019)

This is a major private sector bank headquartered at Thrissur, Kerala.

In India, South Indian Bank Ltd. has around 857 branches along with 4 service branches,54 ext.counters, and 20 regional offices spread over more than 27 states and 3 union territories.

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It has placed around 1334 ATMs and 42 bulk note acceptor/cash deposit machines all over India.

As of March 2019, South Indian Bank Ltd. has covered more than 100 villages and around 15 urban centers, which spreads across the states of Kerala, Andhra Pradesh, Tamil Nadu, and Chhattisgarh, under financial inclusion and opened around 11 exclusive FLC centres in the bank premises.

If you are looking to buy stocks in the banking sector, that have the potential to generate returns in the long term, South Indian Bank Ltd. should be a good bet.

This bank is likely to focus on retail lending and has been gradually improving performance in this area.

Performance of the Stock

Parameters BSE NSE
Current Price (₹) 16.40 16.35
1 Year Profit / Loss (%)  – 37.12  – 76.00
3 Year Profit / Loss (%)  – 10.41  – 86.71
5 Year Profit / Loss (%)  – 32.30  – 88.46
Beta (1 year) 1.47 1.52
Avg. Daily Volatility (% on year basis) 2.63 2.70

Key Market Indicators

Market Cap (₹ Cr) 2,968
Book Value (₹) 27.82
P/E 8.86
Industry P/E 42.10
P/B 0.59
Dividend Yield (%) 2.44

Latest Quarterly Results

Q3 2018 Results % Chg (Yearly)
Int./Disc on Adv/Bills (₹ Cr) 1,365.33 11.25
Net Profit (₹ Cr) 83.85  – 27.09
Gross NPA (% of the total asset) 4.88 43.53
EPS (₹) 0.46  – 28.13

Note: All the above values as on 28/04/2019

The company has reported a gross non-performing asset (NPAs) of Rs. 2930.00 Crore (4.88 % of the total assets) and a standalone interest income of Rs. 1365.33 Crore (up 2.52 % from last quarter).

Also, the bank has reported a net profit after tax of Rs. 83.85 Crore in the 3rd quarter of 2018.

2. Sanwaria Consumer Ltd.

Share Price = Rs. 8.80 (as on 28/04/2019)

Sanwaria Consumer Ltd., incorporated in the year 1991, FMCG food processing company of the Sanwaria Group and commenced its operations in 1993.

Founded by Lt. Shri Ram Narayan Agrawal, it is one of the largest integrated food processing companies in India and is engaged in the business of manufacturing and selling of FMCG products like rice, edible oil, pulses, sugar, soya chunks, wheat flour, rice flour, salt, suji, maida, besan, daliya, soya meal etc.

Recently, the company has ventured into direct retail of its product by opening up ATM sized retail outlets under the brand name ´Sanwaria Kirana´ to reach the end customer directly.

Sanwaria Consumer Ltd. has 3 manufacturing sites at­ Mandideep, Itarsi, and Betul, strategically located in the food production and consumption belt of the Indian consumer.

also, the company has its presence in the international market for import and export of various commodities.

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Performance of the Stock

Parameters BSE NSE
Current Price (₹) 8.80 8.80
1 Year Profit / Loss (%)  – 52.30  – 52.23
3 Year Profit / Loss (%) 210.95 210.78
5 Year Profit / Loss (%) 122.78 122.67
Beta (1 year) 1.18 1.22
Avg. Daily Volatility (% on year basis) 3.49 3.51

Key Market Indicators

Market Cap (₹ Cr) 648
Book Value (₹) 9.33
P/E 4.02
Industry P/E 26.71
P/B 0.97
Dividend Yield (%) 0.71

Latest Quarterly Results

Q3 2018 Results % Chg (Yearly)
Sales (₹ Cr) 1,301.38 2.19
Operating Profit (₹ Cr) 76.22 42.34
Net Income (₹ Cr) 42.80 70.65
EPS (₹) 0.58 70.59

Note: All the above values as on 28/04/2019

The company has reported a standalone sales revenue of sales of Rs 1,301.38 crore, in Q3 2018 (which is an increase of 2.19 % on a yearly basis)

Also, the company has reported a net profit of Rs. 42.80 Crore in the latest quarter.

3. Vodafone Idea Ltd.

Share Price = Rs. 16.35 (as on 28/04/2019)

Vodafone Idea Ltd. is the largest telecom operator in India with its vision is “to create world-class digital experiences to connect and inspire every Indian to build a better tomorrow“.

It is a combined entity formed on 31st August 2018, with Vodafone India merged with Idea Cellular, but the merged entity continues using both the Idea and Vodafone brand.

Currently, the Vodafone Group holds a 45.1% stake in the Vodafone Idea Ltd., the Aditya Birla Group holds 26% and the remaining shares will be held by the public.

Mr. Kumar Mangalam Birla heads the combined entity as the Chairman, with Mr. Balesh Sharma as the CEO.

Vodafone Idea Ltd. is a pan-India telecom operator offering 2G, 3G, and 4G integrated GSM mobile services under two brands named Vodafone and Idea.

Also, this combined entity provides services in the field of IoT, advanced enterprise offerings, mobile payment and entertainment, accessible via both digital channels as well as on-ground touchpoints, centers across the country.

As of December 2018, Vodafone Idea has little more than 35% market share in India with around 418 million subscribers, making it the largest mobile telecommunications network in India and the second-largest mobile telecommunications network in the world.

Performance of the Stock

Parameters BSE NSE
Current Price (₹) 16.35 16.25
1 Year Profit / Loss (%)  – 58.93  – 76.00
3 Year Profit / Loss (%)  – 7.92  – 86.71
5 Year Profit / Loss (%) 1.16  – 88.46
Beta (1 year) 1.43 1.37
Avg. Daily Volatility (% on year basis) 4.04 4.09

Key Market Indicators

Market Cap (₹ Cr) 46,982
Book Value (₹) 31.14
P/E  – 1.33
Industry P/E 12.52
P/B 0.53
Dividend Yield (%) 0

Latest Quarterly Results

Q3 2018 Results % Chg (Yearly)
Sales (₹ Cr) 11,751.60 80.62
Operating Profit (₹ Cr) 1,136.90  – 7.07
Net Income (₹ Cr)  – 5004.6 289.61
EPS (₹)  – 5.74 60.34

Note: All the above values as on 28/04/2019

The company has reported a standalone sales revenue of sales of Rs. 11,751.60 crore, in Q3 2018 (which is an increase of 80.62 % on a yearly basis).

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Also, the company has reported a net loss of Rs. 5004.60 Crore in the latest quarter due to high depreciation and interest but it has increased by 289.61 % on a yearly basis.

4. GMR Infrastructure Ltd.

Share Price = Rs. 16.95 (as on 28/04/2019)

Founded in 1978 by Grandhi Mallikarjuna Rao, GMR Group Ltd. is an infrastructural company headquartered in Bengaluru.

Using the Public Private Partnership model (PPP), it has implemented several infrastructure projects in India.

The company started with the agri-based sector by setting up small industries for Jute, Sugar, Breweries, etc. and slowly moved in the Infrastructure space over the past decade.

Now, the GMR group interests lie in areas of Airports, Energy sector, Highways, and Urban Infrastructure.

The GMR Group also has a global presence with infrastructure operating assets and projects in several countries including Nepal, Indonesia, Singapore, Philippines, and Greece.

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Performance of the Stock

Parameters BSE NSE
Current Price (₹) 16.95 16.95
1 Year Profit / Loss (%)  – 16.71  – 16.70
3 Year Profit / Loss (%)  – 37.36  – 7.34
5 Year Profit / Loss (%)  – 34.05  – 33.96
Beta (1 year) 1.72 1.72
Avg. Daily Volatility (% on year basis) 2.48 2.51

Key Market Indicators

Market Cap (₹ Cr) 10,231
Book Value (₹) 4.46
P/E  – 41.34
Industry P/E 23.61
P/B 3.80
Dividend Yield (%) 0

Latest Quarterly Results

Q3 2018 Results % Chg (Yearly)
Sales (₹ Cr) 1,850  – 8.62
Operating Profit (₹ Cr) 412.24  – 14.23
Net Income (₹ Cr)  – 561.04  – 0.87
EPS (₹)  – 1.17 10.38

Note: All the above values as on 28/04/2019

The company has reported a standalone sales revenue of sales of Rs 1,850.60 crore, in Q3 2018 (which is a decrease of 8.62 % on a yearly basis)

Also, the company has reported a net loss of Rs. 561.04 Crore in the latest quarter due to high interest but it has decreased by just 0.87% on a yearly basis.

5. Bank of Maharashtra

Share Price = Rs. 19.30 (as on 28/04/2019)

Bank of Maharashtra is a major public sector bank (PSBs) in India, where the government of India (GOI) holds 87.01% of the total shares.

It has more than 15 million customers across the length and breadth of the country served through 2000 branches as of March 2018.

Also, it has the largest network of branches by any PSB in the state of Maharashtra.

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Performance of the Stock

Parameters BSE NSE
Current Price (₹) 19.30 19.25
1 Year Profit / Loss (%)  – 40.36  – 40,34
3 Year Profit / Loss (%)  – 36.09  – 36.02
5 Year Profit / Loss (%)  – 49.54  – 49.51
Beta (1 year) 1.33 1.30
Avg. Daily Volatility (% on year basis) 2.64 2.66

Key Market Indicators

Market Cap (₹ Cr) 5,507
Book Value (₹) 32.39
P/E  – 1.06
Industry P/E 0.77
P/B 0.60
Dividend Yield (%) 0

Latest Quarterly Results

Q3 2018 Results % Chg (Yearly)
Int./Disc on Adv/Bills (₹ Cr) 1,663.12  – 5.35
Net Profit/Loss (₹ Cr)  – 3,764  530.85
Gross NPA (% of the total asset) 17.31  – 9.13
EPS (₹)  – 14.31 207.74

Note: All the above values as on 28/04/2019

The company has reported gross non-performing asset (NPAs) of Rs. 15,509.36 Crore (17.31 % of the total assets) and a standalone interest income of Rs. 1,663.12 Crore (up 1.19 % from last quarter).

Also, the bank has reported a net loss after tax of Rs. 3,764 crore in the 3rd quarter of 2018 on account of high expenditure.

6. GVK Power & Infrastructure Ltd.

Share Price = Rs. 7.54 (as on 28/04/2019)

GVK is an Indian conglomerate, spanning diverse sectors including energy, resources, transportation, hospitality, and life sciences.

GVK Power & Infrastructure Ltd., incorporated in the year 2005, has expanded itself to combined cycle power plant (gas/naphtha based), thermal (coal-based) and hydropower projects across the country and currently has over 2400 MW projects under generation and development.

Projects under operation are:

  • 330 MW Shrinagar Hydro Electric Project, Uttarakhand
  • 445 MW Jegurupadu CCPP (Phase: 1&2), East Godavari district, Andhra Pradesh
  • 469 MW Gautami CCPP, East Godavari district, Andhra Pradesh
  • 540 MW Goindwal Sahib Thermal Power Project, Tarn Taran district, Punjab.

Projects under development are:

  • 850 MW Ratle Hydro Electric Project, Jammu & Kashmir

Performance of the Stock

Parameters BSE NSE
Current Price (₹) 7.54 7.50
1 Year Profit / Loss (%)  – 49.49  – 49.45
3 Year Profit / Loss (%) 10.29 10.28
5 Year Profit / Loss (%)  – 42.75  – 42.56
Beta (1 year) 1.50 1.59
Avg. Daily Volatility (% on year basis) 3.65 3.67

Key Market Indicators

Market Cap (₹ Cr) 1,184
Book Value (₹) -5.33
P/E  NA
Industry P/E 9.10
P/B 1.41
Dividend Yield (%) NA

Latest Quarterly Results

Q3 2018 Results % Chg (Yearly)
Sales (₹ Cr) 3.16 0.96
Operating Profit (₹ Cr) 0.09  – 89.89
Net Income (₹ Cr) 16.15 47.62
EPS (₹) 0.10 42.86

Note: All the above values as on 28/04/2019

The company has reported a standalone sales revenue of sales of Rs. 3.16 Crore, in Q3 2018 (which is an increase of 0.96 % on a yearly basis)

Also, the company has reported a net profit of Rs. 16.15 Crore in the latest quarter which is a jump of around 47% from last year.

7. Zee Media Corporation Ltd.

Share Price = Rs. 14.90 (as on 28/04/2019)

Zee Media Corporation Ltd. is an Indian news media company, which owns 14 television channels across 6 languages with a viewership of around 190 million people.

It includes national news channel Zee News and newspaper daily news and analysis along with its online properties include zeenews.com and dailynewsandanalysis.com

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Performance of the Stock

Parameters BSE NSE
Current Price (₹) 14.90 14.95
1 Year Profit / Loss (%)  – 49.49  – 49.45
3 Year Profit / Loss (%) 10.29 10.28
5 Year Profit / Loss (%)  – 42.75  – 42.56
Beta (1 year) 1.37 1.35
Avg. Daily Volatility (% on year basis) 3.60 3.52

Key Market Indicators

Market Cap (₹ Cr) 701
Book Value (₹) 15.39
P/E 35.48
Industry P/E 48.52
P/B 0.97
Dividend Yield (%) NA

Latest Quarterly Results

Q3 2018 Results % Chg (Yearly)
Sales (₹ Cr) 194.22 21.98
Operating Profit (₹ Cr) 57.99 55.07
Net Income (₹ Cr) 27.20 164.95
EPS (₹) 0.58 163.64

Note: All the above values as on 28/04/2019

The company has reported a standalone sales revenue of sales of Rs. 194.22 crore, in Q3 2018 (which is an increase of nearly 22 % on a yearly basis)

Also, the company has reported a net profit of Rs. 27.20 Crore in the latest quarter, which is a jump of around 165% from last year.

8. Ruchi Soya Industries Ltd.

Share Price = Rs. 7.36 (as on 28/04/2019)

Incorporated in the year 1986, Ruchi Soya Industries Ltd. engages in the manufacture and sale of edible oils, vanaspati, bakery fats, and soya food primarily in the Indian market.

The company is a part of the Ruchi group.

Mr. Dinesh Shahra is the founder and Managing Director (MD) of Ruchi Soya Industries Ltd. and is well known in the industry for his strategic business understanding and maverick leadership.

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Performance of the Stock

Parameters BSE NSE
Current Price (₹) 7.36 7.20
1 Year Profit / Loss (%)  – 52.52  – 52.23
3 Year Profit / Loss (%)  – 74.66  – 74.58
5 Year Profit / Loss (%)  – 81.03  – 81.00
Beta (1 year) 1.53 1.48
Avg. Daily Volatility (% on year basis) 4.26 4.12

Key Market Indicators

Market Cap (₹ Cr) 246
Book Value (₹) -140.85
P/E  – 0.63
Industry P/E 37.38
P/B  – 0.05
Dividend Yield (%) NA

Latest Quarterly Results

Q3 2018 Results % Chg (Yearly)
Sales (₹ Cr) 3,473.65 2.19
Operating Profit (₹ Cr) 44.38 5.24
Net Income (₹ Cr) 6.29 NA
EPS (₹) 0.20 NA

Note: All the above values as on 28/04/2019

The company has reported a standalone sales revenue of sales of Rs. 3,473.65 crore, in Q3 2018 (which is an increase of 2.19 % on a yearly basis)

Also, the company has reported a net profit of Rs. 6.29 Crore in the latest quarter.

9. Suzlon Energy Ltd.

Share Price = Rs. 7.19 (as on 28/04/2019)

Suzlon Energy Ltd., incorporated in the year 1995, is a wind turbine supplier based in Pune, India and was ranked by MAKE as the world’s 5th largest wind turbine supplier in the year 2014.

It has since dropped out of the Global top 10 rankings due to extensive losses and inability to repay debt in time.

As of now, it makes and installs wind turbines, manufacturing blades, generators, panels, and towers in-house.

Having over 17,000 MW of wind energy capacity installed globally, this company operates across 18 countries with a workforce of over 8,000.

Despite financial issues, it continues to be a major manufacturer of wind turbines and is expected to overcome these impediments in the future.

Performance of the Stock

Parameters BSE NSE
Current Price (₹) 7.19 7.20
1 Year Profit / Loss (%)  – 32.39  – 32.40
3 Year Profit / Loss (%)  – 20.81  – 20.85
5 Year Profit / Loss (%)  – 12.93  – 12.91
Beta (1 year) 1.80 1.77
Avg. Daily Volatility (% on year basis) 4.57 4.55

Key Market Indicators

Market Cap (₹ Cr) 3,825
Book Value (₹)  – 15.51
P/E  – 2.21
Industry P/E 29.53
P/B  – 0.46
Dividend Yield (%) NA

Latest Quarterly Results

Q3 2018 Results % Chg (Yearly)
Sales (₹ Cr) 1,090.68  – 50.51
Operating Profit (₹ Cr) 292.20  – 15.07
Net Income (₹ Cr)  – 37.76 35.05
EPS (₹)  – 0.07 40.00

Note: All the above values as on 28/04/2019

The company has reported a standalone sales revenue of Rs. 1,090.68 crore, in Q3 2018 (which is a decrease of 50.5 % on a yearly basis)

10. Urja Global Ltd.

Share Price = Rs. 2.60 (as on 28/04/2019)

Urja Global Ltd., incorporated in the year 1992, is a small cap company operating in the service sector.

It is in one of India’s leading non-renewable and renewable energy developers and operators and is engaged in design, consultancy, integration, supply, installation, commissioning & maintenance of off-grid and grid-connected solar power plants.

The company is approved channel partners for the ministry of New and Renewable Energy (MNRE), Govt. of India.

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Performance of the Stock

Parameters BSE NSE
Current Price (₹) 2.65 2.60
1 Year Profit / Loss (%)  – 46.39  – 46.40
3 Year Profit / Loss (%)  NA  NA
5 Year Profit / Loss (%)  NA  NA
Beta (1 year) 1.10 1.10
Avg. Daily Volatility (% on year basis) 3.94 3.92

Key Market Indicators

Market Cap (₹ Cr) 134
Book Value (₹) 3.03
P/E  NA
Industry P/E 9.10
P/B 0.87
Dividend Yield (%) NA

Latest Quarterly Results

Q3 2018 Results % Chg (Yearly)
Sales (₹ Cr) 34.35 8.98
Operating Profit (₹ Cr) 0.65 19.06
Net Income (₹ Cr) 0.64 21.21
EPS (₹) 0.01 0

Note: All the above values as on 28/04/2019

The company has reported a standalone sales revenue of sales of Rs. 34.35 crore, in Q3 2018 (which is an increase of 8.98 % on a yearly basis)

Also, the company has reported a net profit of Rs. 0.64 Crore in the latest quarter.

How Are the Above Stocks Selected?

All the above mention companies are expected to outpace their peers in terms of earnings and stock performance and are often expected of booming in expansionary economies.

Following are the characteristics of above-mentioned companies :

  • Stellar management team
  • The company competes in a fast-growing market
  • Recorded a strong growth in sales
  • Valuation based on PE ratio
  • Caters to the large target market

While these stocks don’t usually pay out a dividend the returns can be exponential in 3-4 years, and they can even emerge into a dividend-paying company in the future as they grow.

The Bottom Line

Stocks under Rs. 20 are generally small-cap stocks, whose price can be extremely volatile in the market.

But in most of the cases, the downside risk is very low, given the huge destruction already in the stock in the recent past. So remember, if you hold any of these for a longer period of time, there may be a possibility of making good money.

Happy Investing!

Disclaimer: The views expressed in this post are that of the author and not those of Groww. Groww does not recommend/advice any mutual fund/stock through its’s articles.

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