Attractive Shares Below Rs 100 To Buy For The Long Term

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Here are a few stocks that are under Rs 100 and could be worthy picks. Buy them if you have a time frame of 2-3 years. It is important to note that before you take position in these stocks, that stocks below Rs 100 tend to be very volatile. So just be careful before buying and ideally set a target. For example, if you see a stock at Rs 82, just wait as you may even get the stock low. Do not rush to buy the stock. At all times the price should be kept in mind. Here are a few stocks to consider.

Triveni Engineering

Sugar prices are rising and with it sugar stocks. Triveni Engineering is one of the largest sugar companies in India, it is also one of the leaders in high speed gears, gearboxes, and water treatment solutions. Sugar stocks have been on fire and most of this has to do with the rise in sugar prices. Triveni is a among the leaders and is likely to benefit from rising sugar prices. The company has a very small equity capital and it reported an EPS of Rs 2.66 for the quarter ending Dec 31, 2016. The company can report an EPS of Rs 10 for FY 2017-18, which makes the stock inexpensive at the current levels of Rs 92. If sugar prices continue to rally, expect a good jump in the share price of Triveni Engineering. This can be a sweetener to your portfolio given the big player that Triveni Engineering is. 

Chambal Fertlizers

Chambal Fertilizers is a good stock to own given the fact that the government is laying an increased emphasis on the agriculture business and a boost to the rural agrarian economy. This is likely to give an impetus to a company like Chambal Fertilizers. The company is a good dividend paying profit making company. For the quarter ending December 2016, the company reported an EPS of Rs 3. For the full year 2016-17 it could report an EPS of Rs 12, which makes the stock inexpensive at the current price of Rs 120, given that the p/e is just about 10times. Fertilizers are likely to get support from the government through various farmer initiatives, which should make Chambal an interesting pick.

We believe that there would be great enhancement by the government for farmers in the coming years. This makes the stock a good bet at the current levels.

SI Bank

If you are betting on a stock that is relatively cheap in terms of price to earnings ratio you cannot look beyond South Indian Bank. This is a good stock to own as the p/e is not very high at around 7 times. Yes like other  stocks in the banking sector there are worries on the non performing assets, but, we believe that this should be much better in the coming days. Buy the stock, if you are having a long term holding time frame. Banking shares at some stage are definitely going to show a recovery. SI Bank at Rs 21 is not very expensive. Go for the stock and hold it for the next 2-3 years to make some respectable gains from it.

Welspun India

Welspun India is among the largest home textile manufacturers in the world. The company supplies to retail stores across 50 countries and is also amongst the largest home textile manufacturers in the world. The shares of Welspun India is currently trading at Rs 89, wherein it is not a bad bet exactly. Recently, the company reported a good set of results for the quarter ending December 31, 2016, wherein the profits were placed at Rs 156 crores, taking the EPS to Rs 1.56. The company in all probability can report an EPS of Rs 8, for 2017-18, which translates to a p/e of just about 11 times, one year forward earnings. A good stock to own for the long term.

Being a stock into the retail segment, Welspun India deserves a better discounting. Buy on declines. 

Andhra Bank

If one is looking at another play on the banking sector, then the ideal belt would be the stock of Andhra Bank.

We believe that at some stage you would see some recovery in the stock of Andhra Bank like most other public sector banks. The next few quarters are expected to be bad and thereafter one may see a good recovery. Buy the stock on declines.

This year do not expect any dividends from the company owing to the bad performance of the last few quarters. Buy on declines around the Rs 69 levels should work for the stock. A good stock to own under Rs 100. However, you have to be exceedingly patient to make money from government banking shares. So hold on at least for 3 years at the very least.

A list of small cap stocks that you can buy

We have also in the past recommended some small and mid cap stocks that you should own. These have the potential to generate good returns in the coming years. Read by clicking on the links below:

Best small cap stocks to own

Best midcap stocks to own

Taxation on shares below Rs 100

It is important to note that if you sell your shares at a profit before one year, you are liable to pay taxes and its does not matter whether your shares are under Rs 100 or not. Short term capital gains tax on shares is applicable if you sell your shares before one year. On the other hand, if you sell your shares after a period of one year, there is no tax that is applicable. So, you need to factor the same before you sell your shares. It is advised that if you are making a decent sum you can also pay the required taxes on the same. There are roumours that the Union Budget 2017-18 could also consider a change in the norms for how capital gains is charged. So far we do not know of any such move. Will have to wait and watch. 

Disclaimer

The article is not a solicitation to buy, sell in securities or other financial instruments mentioned in the article. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and do not accept culpability for losses and/or damages arising based on information in this article.

Also read: A look at the best high return investments in India

Also read: The best dividend yield companies in India

 

 

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