Shares Under 100 Worth Watching in the Indian Stock Market
Investing in the stock market can feel confusing at first, especially when you come across terms like shares under 100. Many beginners wonder whether these are cheap stocks or risky investments. In this article, we will explore what these shares mean, how they work, and whether they are worth your attention.
Before diving deep, it’s good to understand related financial concepts such as the redemption of preference shares, which helps explain how companies manage different types of ownership. Now, let’s begin by uncovering what shares under 100 really represent in the world of investing.
What Are Shares Under 100?
When investors talk about shares under 100, they usually refer to stocks that trade below 100 currency units—such as ₹100 in India or $100 in the U.S. These are considered low-priced shares or affordable stocks that give small investors a chance to participate in the stock market.
However, “shares under 100” can also mean odd-lot shares, where an investor owns fewer than 100 units of a company’s stock. In the stock market, a round lot is 100 shares, while anything below that is considered an odd lot.
Both meanings are valid, depending on context. In India, the term often relates to share price.
Why Investors Look for Shares Under 100
Investors are naturally drawn to low-cost opportunities. Shares under 100 attract both beginners and seasoned traders because they offer affordability and high potential growth. People can buy many such shares without needing a huge amount of money.
These stocks are also easy to diversify. Instead of investing all your funds in one expensive stock, you can spread your investment across multiple low-priced shares, reducing risk.
Are Shares Under 100 Risky?
While these shares look attractive, they also carry higher risk. The main reason is that low-priced shares often belong to small-cap or mid-cap companies. These businesses might not have stable revenue or strong financial backgrounds.
Their stock prices can fluctuate quickly due to market sentiment. For example, a company’s share may jump from ₹80 to ₹120 in a week but fall back to ₹60 later. Hence, understanding the company’s fundamentals is essential before investing.
Difference Between Cheap Shares and Penny Stocks
Not every share under 100 is a penny stock. Penny stocks are usually shares that trade below ₹10 or $1, depending on the market. They belong to small companies that may not even be listed on major stock exchanges.
The key difference lies in stability and transparency. Shares under 100 can include well-known brands that are temporarily undervalued, while penny stocks are typically high-risk investments with limited information.
Here’s a simple comparison:
| Feature | Shares Under 100 | Penny Stocks |
|---|---|---|
| Price Range | Below ₹100 | Below ₹10 |
| Company Size | Small or mid-cap | Micro or nano-cap |
| Exchange Listing | Usually listed | Sometimes unlisted |
| Risk Level | Moderate | Very high |
| Investor Type | Beginner to expert | Speculative traders |
Examples of Shares Under 100 in India
In the Indian stock market, many companies trade below ₹100. These stocks often belong to sectors like power, banking, and infrastructure. Here are some examples:
| Company Name | Sector | Share Price (Approx.) | Market Cap (₹ Crore) |
|---|---|---|---|
| IDFC First Bank | Banking | ₹95 | 68,000 |
| NHPC Limited | Power | ₹84 | 85,000 |
| IRFC | Finance | ₹95 | 1,20,000 |
| Vodafone Idea | Telecom | ₹15 | 75,000 |
| SAIL | Steel | ₹92 | 38,000 |
These are approximate prices and may change daily, but they show how shares under 100 can include reputed and growing businesses.
Benefits of Investing in Shares Under 100
The biggest advantage of these shares is accessibility. Even small investors with limited capital can start investing. These shares allow people to learn about the stock market without risking huge amounts.
Another benefit is growth potential. If you buy quality shares under 100, they might double or triple in value as the company expands. For example, a ₹90 stock growing to ₹180 offers a 100% return.
Lastly, they help diversify portfolios. Owning multiple affordable shares spreads your risk across different sectors.
Things to Check Before Buying Shares Under 100
Even though these shares are cheap, smart investing requires careful research. Always check a company’s financial health before buying.
Key things to review include:
Company’s revenue growth
Debt-to-equity ratio
Earnings per share (EPS)
Dividend history
Management background
You should also monitor news about the industry. For instance, if a government policy supports renewable energy, shares under 100 in that sector might benefit quickly.
Long-Term vs Short-Term Investment in Shares Under 100
You can approach these shares with two strategies: long-term investing or short-term trading.
Long-term investors focus on fundamentals and hold shares for years, expecting value appreciation. Short-term traders, on the other hand, look for quick profits from price swings.
Here’s a quick comparison table:
| Investment Type | Strategy | Risk Level | Ideal For |
|---|---|---|---|
| Long-Term | Hold 1–3 years | Moderate | Beginners and patient investors |
| Short-Term | Trade frequently | High | Experienced traders |
Tax and Regulation on Shares Under 100
Profits from shares under 100 are subject to the same tax laws as other stocks. In India, short-term capital gains (held for less than a year) are taxed at 15%, while long-term capital gains above ₹1 lakh are taxed at 10%.
The Securities and Exchange Board of India (SEBI) monitors these stocks to protect investors from scams or price manipulation. Always ensure the company is listed on recognized exchanges like NSE or BSE.
How to Identify Promising Shares Under 100
A good strategy is to find companies with solid fundamentals that are temporarily undervalued. For example, a stock might trade at ₹85 due to market panic, but its financial performance remains strong.
Look for steady profits, low debt, and clear business models. Also, analyze industry trends. Technology, renewable energy, and finance sectors often have undervalued opportunities.
By mid-article, it’s also interesting to note that India shares border with how many countries—a fact showing how broad and diverse the Indian market is, just like its geography and industries. Understanding diversity helps investors spread risk wisely.
Common Mistakes to Avoid
Many beginners buy shares under 100 without studying the company. This can lead to losses when the share price falls suddenly. Avoid investing only based on low price.
Another mistake is ignoring liquidity. Some low-priced shares have very low trading volume, meaning it’s hard to sell them quickly. Always check average daily trading volume before buying.
Lastly, avoid following tips blindly. Research every stock and use official sources like NSE, BSE, or company annual reports.
Future Outlook for Shares Under 100
India’s growing economy and digital transformation are helping many small-cap companies expand. As sectors like renewable energy, finance, and technology grow, investors might find excellent opportunities in shares under 100.
With better regulation and access to financial information, even small investors can make informed decisions. The goal is not just to find cheap stocks but to find valuable businesses at low prices.
Conclusion
Shares under 100 can be a good entry point for new investors who want to explore the stock market with limited funds. These shares are affordable, offer growth potential, and provide real-world experience in market behavior.
However, wise investing requires patience, research, and discipline. Always evaluate a company’s performance, sector potential, and risk before buying. With the right strategy, even small investments in shares under 100 can yield rewarding results over time.