Low Price Shares to Invest

The phrase “low price shares” often rings alarm bells for many investors. And rightly so—many penny stocks on Indian exchanges trade below ₹20 for a reason: inconsistent financials, weak governance, or highly speculative business models. However, amidst the noise lie a few undervalued small-cap or micro-cap stocks trading at low prices but backed by promising fundamentals, sector tailwinds, or turnaround potential.

This article goes beyond basic definitions to explore fundamentally sound low-price shares worth analysing for long-term wealth creation in the Indian market.

What Do We Mean by ‘Low Price Shares’?

Let’s be clear—low price is not the same as undervalued. A stock trading at ₹10 can be overvalued, while a stock at ₹500 can be deeply undervalued. In this blog, “low price shares” refers to stocks under ₹100 that show relative valuation comfort, positive cash flows, turnaround stories, or are sectoral beneficiaries with improving fundamentals.

Why Look at Low Price Shares in 2025?

As of 2025, several themes are reshaping India’s capital markets:

• Retail Participation Boom: 15 crore+ demat accounts and counting.
• Budget 2025 Reforms: Manufacturing, green energy, and MSME support.
• Small-Cap Index Resilience: The Nifty Smallcap 250 has shown 20%+ YTD returns amid broader volatility.
• Revival of PSUs & Infra Push: Government capex has made PSU small-caps attractive again.

Overview of 5 Cheap Stocks to Buy in 2025

Here are the 5 Cheap Stocks to buy on the Indian Stock Market

1. Ircon International Ltd 

Recent Update: Ircon International Limited (IRCON) commenced its business in 1976 as a railway construction company. It diversified progressively since 1985 as an integrated engineering and construction PSU specialising in large and technologically complex infrastructure projects in various sectors such as railways, highways, etc.

Why Is It Attractive?

A strong balance sheet, dividend-paying PSU with government backing, and rail infra projects under the National Rail Plan make Ircon a solid low-price stock. It trades at a P/E of ~10, lower than most infra peers.

2. South Indian Bank 

Recent Update: During Q3FY24, the bank had identified certain irregularities like fraud at one of the branches, and the loss is determined at ₹2,863 Lakhs. The bank had provided the entire amount of~ ₹2,863 Lakhs during Q3FY24.

Why Is It Attractive?

After a prolonged struggle, the bank has turned around its asset quality and is showing consistent profit growth. With RoA improving and management restructuring done, it offers a strong value proposition among small-cap banking stocks.

3. GMR Power & Urban Infra 

Recent Update: GMR has signed an MoU with the UP Govt. for a total outlay of ₹45,000 Cr by 2028. This partnership will enable GMR to invest in several sectors, such as solar, energy efficiency, EV charging infrastructure, Green Hydrogen plants, and data centres, etc.

Why Is It Attractive?

A pure-play on India’s urban infrastructure buildout, the stock is currently underfollowed. GMR’s business demerger has unlocked value, and this unit is expected to benefit from both real estate monetisation and power reforms.

4. Dish TV 

Recent Update: The Co. is actively looking beyond its contemporary offerings of Hybrid Boxes and OTT platform and is exploring newer possibilities that would make its service bouquet more appealing to an even wider set of audience. It plans to incorporate content from more languages on its Watcho platform.

Why It’s Attractive:

With the Zee merger off the table, Dish TV is exploring digital monetisation. Its extremely low price-to-sales ratio and resolved board issues could make it a high-risk, high-reward turnaround bet.

5. ITI Ltd 

Recent Update: As per FY21, the company has an order book of ~12,000 crores.[5] Its major projects include 3 tenders, viz. Mahanet, Gujnet, and West Bengal under BharatNet Phase-2 worth ~4,800 crores. It also won the ASCON Phase-4 project worth ~7,800 crores in October 2020, which will be executed over 7 years.

Why Is It Attractive?

With 51% government ownership and renewed defence-tech focus, ITI is diversifying beyond legacy telecom into data security and defence manufacturing. Order visibility and capex plans are improving, making it an interesting PSU bet under ₹100.

How to Analyse Low Price Shares Like a Pro

Investors should not rely on price alone. Here are 6 advanced filters to screen low-price shares:

• Debt-to-Equity Ratio < 1.5 – Ensures the company isn’t over-leveraged.
• Operating Cash Flow > Net Profit – Signals earnings quality.
• Consistent ROCE > 10% – Points to efficiency in capital deployment.
• P/E < Industry Average – For value plays with relative comfort.
• Turnaround in EBITDA Margins (QoQ or YoY) – Indicates improving operating performance.
• Insider Buying/Promoter Holding > 50% – Reflects management’s skin in the game.

Sectoral Trends Benefiting Low-Price Shares

• PSU & Infra Revival: The Centre’s ₹11 lakh crore capex focus in Budget 2025 has lifted prospects for low-priced PSU stocks in infra and construction.
• Power Distribution & Renewables: Low-cost power stocks (like IREDA or GMR Power) are benefiting from policy-led demand and electrification across rural India.
• Banking Turnarounds Post-NPA cleanup, several regional and mid-sized banks under ₹50 (e.g., DCB, South Indian Bank) are showing profitability resurgence.

Risks to Watch Out For

• Liquidity Trap: Thinly traded stocks under ₹100 may show high volatility.
• Pump-and-Dump Schemes: Avoid stocks with sudden price spikes and no news.
• Corporate Governance Red Flags: Low promoter holding, pledging, or frequent auditor resignations are red flags.
• Always verify recent quarterly filings, management commentary, and conference call transcripts before investing.

Conclusion

Low-price shares are not just for speculation—they can serve as strategic long-term bets if selected using a disciplined, fundamentals-based approach. In 2025, India’s growth trajectory presents a fertile ground for discovering undervalued opportunities in niche segments, PSU reforms, banking revivals, and infra execution stories.

Rather than chasing price, focus on value, visibility, and viability.