Stocks Under 50 Rs.

While starting your journey in the stock market you don’t need to spend a lot of money. We the 5paisa Research team have selected a list of stocks that have a price of less than Rs.50 per share, which have a very good potential to grow in the time ahead. The stocks which are mentioned in the list are chosen after analyzing price trends, news, speculation, and fundamental analysis.

Top 5 Stocks Under 50 Rs.

1. Bank of Maharashtra

About the Company: Bank of Maharashtra is a public sector bank in Maharashtra, which offers personal banking, cash management, retail loans, and other financial services. Their services include deposits, savings/current bank accounts, vehicle loans, personal loans, retail trade finance, global banking, lending to priority sector and small scale sector, foreign exchange and export finance, corporate loans, and equipment loans. 

Positives:
Mutual funds have increased holding in the last month, Strong Annual EPS Growth, Growth in Quarterly Net Profit with increasing Profit Margin (YoY)

Negatives:
Inefficient use of capital to generate profits - RoCE declining in the last 2 years

2. Rail Vikas Nigam Ltd

About the Company: Rail Vikas Nigam is a wholly-owned government company, as a project executing agency working for and on behalf of the Ministry of Railway (MoR). The Company was incorporated with an objective to undertake rail project development, mobilization of financial resources, and implementation of rail projects pertaining to strengthening of golden quadrilateral and port connectivity and raising of extra-budgetary resources for project execution.

Positives:
The valuation is affordable. The company’s net cash flow and cash from operating activities are on the rise. The stock has given 375.3% returns over 5.9 years. Its annual profits are improving in the last two years.

Negatives:
The company’s costs are growing YoY for long-term projects.

3.NHPC Ltd.

About the Company: NHPC Ltd is a Mini-Ratna Category-I Enterprise of the Government of India. The company is one of the largest organisations in the field of hydropower development in the country. The company is a hydroelectric power generating company dedicated to the planning, development, and implementation of an integrated and efficient network of hydroelectric projects in India. They execute all aspects of the development of hydroelectric projects, from concept to commissioning of the projects.

Positives:
NHPC is a stock where mutual funds have increased holding in the last month. The company's net cash flow and cash from operating activity are rising. It is effectively using its capital to generate profit - RoCE improving in the last 2 years. Further, FII/FPI or Institutions have been increasing their shareholding in the stock.

Negatives:
It has seen a fall in its YoY net profit.

4. GMR Infrastructure Ltd (GMRI)

About the Company: GMR Infrastructure Ltd is the infrastructure holding company formed to fund the capital requirements of various infrastructure projects across the sectors. The company undertakes the development of infrastructure projects through its various subsidiaries. The company is engaged in the development of various infrastructure projects in the power and transportation sectors through several special purpose vehicles. The company, through subsidiaries, operates in four business sectors, namely energy, airports, highways, and urban infrastructure.

Positives:
GMRI’s airports in Delhi and Hyderabad have seen a faster recovery in domestic volumes versus their counterparts. Mutual Funds have increased holding in the last quarter.

Negatives:
Promoters have decreased their shareholding and the company has seen a decline in net profit with a falling profit margin on a QoQ basis. 

5. Trident Ltd. 

About the Company: Trident Limited, a part of the USD 1 billion Trident Group is headquartered in Ludhiana, Punjab. Established in the year 1990, the company has evolved into a global textile player under the visionary leadership of its founder-chairman Mr. Rajinder Gupta, a first-generation entrepreneur. Trident Limited is a leading manufacturer of Yarn, Bath Linen, Bed Linen, Wheat Straw-based Paper, Chemicals, and Captive Power. It has state-of-the-art manufacturing facilities in Barnala (Punjab) and Budni (Madhya Pradesh). 

Positives:
Trident is a stock where mutual funds have increased holding in the last month. It is a low-debt company and its revenue is increasing every quarter for the last 4 quarters. FII/FPI’s are also increasing their holding in the company. The average broker target price on the stock is 73 which implies a 46% upside. 

Negatives:
QoQ net profit and profit margins have declined. ROA has declined in the last 2 years.