Stocks Under 50 Rs.

You don't need to spend a lot of money to get started in the markets. We have chosen stocks that have a price of less than Rs. 50 per share, a very robust company possibility, and good growth potential. This is advantageous for those on a tight budget. The stocks included in the following list were chosen after considering news, speculation, price chart trends, and a few fundamental characteristics such as debt-to-equity ratio and cashflows. 

Top 5 Stocks Under 50 Rs.

1. South Indian Bank

About the Company: South Indian Bank provides retail and corporate banking, para-banking activities such as debit cards, third-party financial product distribution, in addition to Treasury and Foreign Exchange Business

Positives:  

- The price of the stock is 0.60x its book value.
- Over the past five years, the company has produced strong profit growth of 18.3% CAGR.

Negatives: 

- The low-interest coverage ratio for the company.
- Over the last five years, the company has produced a dismal sales growth of 3.15%.
- The low return on equity for the company over the last three years is 5.09%.

2. Paramount Communications

About the Company: Paramount Communications Ltd is engaged in manufacturing of Wires and Cables comprising of power cables, telecom cables, railway cables and specialised cables.

Positives:  

- Over the past five years, the company has produced solid profit growth of 42.5% CAGR.
- The number of debtor days decreased from 102 to 77.3 days.

Negatives:

- Company's last three-year average return on equity was only 9.33%.
- The business might capitalise the cost of interest.
- Pledged by the promoters is 32.9% of their holding.

3. Magnum Ventures 

About the Company: Magnum Ventures Limited manufactures Paper and operates in Hotel Industry.

Positives: 

- The business has cut its debt.
- Over the past five years, the company has produced strong profit growth of 18.3% CAGR.
- The number of debtor days decreased from 88.4 to 61.8 days.

Negatives:

- Over the previous five years, the company's sales growth was only 8.90%, which is poor.
- 57.0% of the shares are being pledged by the promoters.

4. B L Kashyap & Sons 

About the Company: B.L.Kashyap & Sons Ltd is an EPC company engaged in the business of Construction of Buildings High-Rise Residential and Commercial Complexes, IT Parks, Institutional Buildings, etc. 

Positives: 

- The business has cut its debt.
- Over the past five years, the company has produced strong profit growth of 27.3% CAGR.
- Debtors' days decreased from 163 to 110.
- Working capital requirements for the company have decreased from 180 days to 136 days.

Negatives: 

- Low-interest coverage ratio for the company.
- Over the previous five years, the company's sales growth was only 4.62%, which is poor.
- In the last three years, the company's return on equity was only 0.17%.

5. Bank of Maharashtra

About the Company: Bank of Maharashtra is engaged in providing banking services. The Bank's segments include Treasury, Corporate/Wholesale Banking, Retail Banking and Other banking operations

Positives:

- The dividend yield on the stock is respectable at 4.44%.
- The company has maintained a healthy dividend payout of 20.9% over the past five years 
- The company is delivering solid profit growth of 34.1% CAGR.

Negatives: 

- Low-interest coverage ratio for the company.
- Over the previous five years, the company's sales growth was only 7.46%, which is poor.
- Low return on equity for the company over the last three years is 10.9%.