Best Stocks to Invest Under ₹20

Finding good stocks under ₹20 can be a smart way to start investing with a small budget. These low-cost stocks give investors a chance to build a strong portfolio without needing large amounts of money. While the prices are low, many of these companies have strong growth potential, especially if they belong to rising sectors like finance, technology, or manufacturing. However, it is important to choose carefully, as cheaper stocks can also carry more risks. In this article, we will look at some of the best stocks trading under ₹20 that could offer good opportunities for patient and smart investors.

Invest like a pro - research, track, & trade shares with 5paisa’s all-in-one app

Open Account Now

What are the Best Stocks in India to Invest Under ₹20?

The best stocks under ₹20 are often from companies with strong future potential but are still growing in their industries. These may include firms from sectors like finance, infrastructure, energy, and technology.

These companies have shown steady improvements in their operations and financial health. Investing in low-priced stocks can offer good returns if picked wisely, but it is important to research carefully. Look for strong balance sheets, business growth, and sector trends before investing to manage risks effectively.
 

Stocks to Invest Under ₹20 in India

Low-priced stocks can be a smart way to start building a portfolio. While they carry some risks, the right picks can offer strong rewards over time. Here are some of the best stocks available under ₹20 today.

Easy Trip Planners Ltd

Easy Trip Planners is a well-known online travel agency in India. Despite facing challenges in the past year, the company remains one of the key players in travel bookings. With an asset-light model and focus on profitability, Easy Trip continues to strengthen its presence in the growing tourism sector.

Sindhu Trade Links Ltd

Sindhu Trade Links operates mainly in logistics, transportation, and coal handling services. The company has been expanding its operations steadily and is diversifying into new business areas. With its presence across India, it aims to build a stronger portfolio in infrastructure and trading activities.

Vodafone Idea Ltd

Vodafone Idea is a major telecom provider struggling with high debt and stiff competition. However, the company is actively working on fundraising plans to upgrade its network. If successful, its vast customer base could help it regain market share in the fast-growing telecom sector.

JP Power Ventures Ltd

JP Power Ventures is involved in hydro and thermal power generation. It is focusing on reducing debt and improving operational efficiencies. With India’s growing demand for clean energy and power infrastructure, the company is positioning itself for a possible turnaround.

Hathway Cable & Datacom Ltd

Hathway Cable is a leading provider of cable television and broadband services in India. The company is part of the Reliance Group, which strengthens its brand. With the increasing demand for internet and OTT services, Hathway is well-placed for steady growth in the digital market.

Yes Bank Ltd

Yes Bank, once facing serious financial troubles, is now on a recovery path. The bank is improving its asset quality, raising fresh capital, and expanding its retail loan portfolio. It remains a strong turnaround story in the private banking space, attracting investors looking for value. 

PC Jeweller Ltd

PC Jeweller is a well-known name in the jewellery retail industry. After a difficult phase, the company has shown an impressive recovery, delivering strong stock returns. With an extensive network and rising consumer demand, PC Jeweller aims to rebuild its position in the organised jewellery sector.

Infibeam Avenues Ltd

Infibeam Avenues is a leading player in digital payments and e-commerce solutions. The company offers online payment services to businesses across India. Although the stock has been under pressure recently, its strong position in the growing fintech space provides potential for a better future.

Alok Industries Ltd

Alok Industries is a major textile manufacturing company, now part of the Reliance Group. It is working on operational improvements after facing earlier financial stress. With support from Reliance and rising demand for textiles, Alok is expected to rebuild steadily over the coming years.

RattanIndia Power Ltd

RattanIndia Power focuses on coal-based thermal power projects. The company is aiming to restructure its operations and improve its financial health. Given the continuous power demand in India, RattanIndia’s strategic focus on efficiency may support its future growth.

Why Invest in Top Stocks to Buy Under ₹20 in India?

Affordable Entry

Stocks under ₹20 let you start investing without needing a big amount. It makes it easy for new investors or those with limited funds to build a portfolio.

High Growth Potential

Many low-priced stocks belong to companies working on turning their business around. If they succeed, the growth in stock value can be very rewarding.

Diversification

With small amounts, you can invest in multiple stocks across different sectors. This spreads the risk and improves your chances of finding a winner.

Hidden Opportunities

Some good companies may be undervalued due to market conditions. Careful research can help spot such hidden gems early.

Low Capital Risk

Since the investment per stock is small, the overall financial risk remains low. It gives you a chance to learn and grow without heavy losses.

Long-Term Rewards

Quality low-cost stocks, when held patiently, can deliver strong long-term returns. Small steps today can lead to big gains in the future.

Access to Emerging Sectors

Many affordable stocks operate in sectors like fintech, energy, or technology. These areas are expected to grow fast, offering big potential.

Factors to Consider Before Buying the Best Stocks to Invest Under ₹20 in India

Financial Health

Always check the company’s balance sheet. Look for steady revenue growth, manageable debt levels, and positive cash flow before making an investment.

Business Model

Understand how the company earns money. A simple, strong, and scalable business model is more likely to succeed over the long term.

Market Position

Choose companies with a good presence in their sector. Businesses with growing market share or strong branding often have better chances to survive tough times.

Management Quality

Good leadership is very important. Companies run by experienced and honest management teams usually perform better in the long run.

Sector Growth

Focus on stocks operating in industries that are expected to grow. Sectors like energy, fintech, technology, and infrastructure offer better future opportunities.

Valuation Metrics

Check valuation ratios like P/E and P/B. Buying stocks at reasonable valuations reduces the risk of paying too much for future growth.

Liquidity

Pick stocks that have decent trading volumes. Stocks with very low liquidity can be harder to sell quickly when needed.

Risk Factors

Understand the risks, including market volatility and business challenges. Invest only amounts you are comfortable risking in lower-priced stocks.

Conclusion

Investing in stocks under ₹20 can be a smart way to start building your portfolio with small amounts. Many of these companies offer strong future potential, especially if they belong to growing sectors or are undergoing a business turnaround. However, it is important to research carefully before investing. 

Look at the company’s financials, management quality, and sector trends. While low-cost stocks can deliver good returns, they may also be more volatile. A balanced approach, patient investing, and proper risk management are key to success. With the right choices, even small investments can create big opportunities over time.