This article provides an in-depth fundamental analysis of the best stocks below rs 50 in India. In this article, we have Analyzed the business, financials, fundamentals, and stock performance of every company.
This will help you evaluate to choose the best stocks below rs 50 in India for investment. But before I proceed, please note that our analysis is only for educational purposes and not to provide stock tips. This article is to empower you with the right knowledge so that you can make an informed investment decision.
Before going to know about the best stocks below rs 50, I would suggest you invest only by seeing the fundamentals, financials, and management analysis of the company but not by the price of the stock.
Most people think that if they buy a stock priced at 1000rs, they can get only a few shares. But if they buy stocks priced below 100 or even less they can get more quantity of shares.
The quantity of the shares doesn’t matter, what matters is the quality of the shares. in this article, we have shared the top 10 quality stocks below 50 rs in India 2021.
Best stocks below rs 50 in India 2021
- IDFC first bank.
- Trident.
- Man infra.
- HFCL.
- Subex.
- Sarlapoly.
- Ujjivan small finance.
- BHEL.
- NHPC.
- Vodafone Idea
Blindly, don’t invest in those stocks which we are going to discuss in this article. Do your own research after reading this article, the reason for this is, if you invest without your own research if there is a fall in the market you will not have any confidence to hold the stock and you may sell the stock for a loss. But if you have done your research, even when the market falls you will have full confidence in that company and will continue to hold even when the market falls.
1. IDFC First Bank
Will IDFC first bank become another HDFC bank? well, let’s dive into it.
In 1997, IDFC limited was started for project financing of private-sector infrastructure development. Initially, after starting IDFC limited the main focus was only on project financing for infrastructure development. In the year 2005, Rajiv Lall joined the company who is the present chairman of the company.
After joining the company Rajiv Lall started diversifying the company into multiple businesses like IDFC mutual fund, IDFC capital market and played a major role in the growth of IDFC Limited.
In the year 2013, when RBI started accepting fresh banking licenses, IDFC Limited has applied for a banking license and on 24 June 2015, RBI has granted the banking license for IDFC limited.
IDFC limited started banking operations on 1 October 2015, at that time IDFC bank was a part of IDFC Limited. On 6 November, they demerged IDFC bank from IDFC limited and listed it in the stock market.
The main reason why you need to invest in IDFC first bank is because of the CEO & MD of the company V.Vaidyanathan.
Not only you, almost every person who is investing in IDFC first bank in the hope that it will become HDFC bank is only because of V.Vaidyanathan.
What is special about V.Vaidyanathan?
The journey of V.Vaidyanathan
While discussing about any company, no one will focus on any individual person but while discussing about IDFC first bank you need to know about the achievements of V.Vidyanathan.
From 1990 to 2000, V.Vaidyanath was worked as a Business Head for the auto business in Citi bank. After that, when ICICI Bank was still a local bank he worked as a country head for retail lending business for two years and then worked as country head for retail banking and later worked as executive director for retail banking and as one of the board members.
V.Vaidyanathan has played a key role in the development of ICICI bank from a domestic bank to a universal bank. In the journey, V.Vaidyanthan has opened more than 1,400 branches in 800 cities across the country. In that period, ICICI bank was achieved 25 million customers and also acquired 1,35,000 crore retail loan book.
after that, he bought a company called future capital which is already running with huge losses. After buying he changed the company name to capital first. Later V. Vaidyanathan transformed the company from a loss-making company to generate a revenue of 330 crores per year.
In the year 2018, IDFC bank was merged with capital first and changed its name to IDFC first bank. V.Vaidyanathan was appointed as MD & CEO of the company.
V.Vaidyanathan has set some targets for the bank to achieve in the next five years.
Growth targets
- The bank plans to grow retail loan asstes from 36,236 CR in 2018, to Rs 1,00,000 Cr in the next 5 years.
- The bank plans to wind down loans to infrastructure to NIL within five years ( Rs 22,710 Cr as of Dec 2018).
- The bank plans to reduce the total wholesale loan assets including the infrastructure loans.
- Net interest margin: the bank plans to extenf the NIM to about 5% to 5.5% in the next 5 years based on better cost of funds and carefully selecting the product segments where there will be strong proven capabilities over the years.
- ROA of 1.4% to 1.6%.
- ROE of 13% to 15%.
Financials
| Particulars | IDFC first bank |
|---|---|
| Market cap | 31,713 Cr |
| CASA | 51.75% |
| P/B | 1.56 |
| ROE ( 5 years ) | -2.61& |
| ROA ( 5 years ) | -0.22 |
| Profit growth | 115% |
| Net NPA ( 5 years ) | 1.39% |
Profit & loss
| Particulars | IDFC first bank ( FY21 ) |
|---|---|
| Interest earned | 15,967 Cr |
| Other income | 2,253 Cr |
| Profit before tax | 475 Cr |
| Net profit | 452 Cr |
| Adjusted EPS | 0.80 |
Shareholding pattern
| Holding % | |
|---|---|
| Promoters | 36.52 |
| Public | 34.33 |
| FII | 14.76 |
| DII | 14.39 |
2. Trident
The flagship company of USD 1 billion Trident Group, Trident Limited is one of the world’s leading integrated home textiles manufacturers, and the largest wheat straw-based paper manufacturer. Headquartered in Ludhiana, Punjab. The company is also one of the largest exporters of home textile products.
Trident is the leading manufacturer of yarn, bath linen, bed linen, wheat straw-based paper, and chemicals. In the year 2016, the company also entered into the bed linen space by commissioning a facility in Budni, Madhya Pradesh. Trident has spread its footprint in over 150 countries worldwide.
Trident geography-wise revenue distribution
Trident segment-wise revenue distribution
Indian textile industry
The textile industry alone accounts for 12% of Indian exports, 7% of the nation’s total industry output, and 2.3% of the GDP. It also makes up 5% of the global trade in textiles and apparel.
After agriculture, the Indian textile industry is the second largest employer in India.
Indian textile industry is one of the oldest industries which is there for several centuries. After China, India is the second-largest producer and exporter of textiles, and the majority of the exports are to US and UK.
After China, Bangladesh, and Vietnam, India is the fourth-largest producer and exporter of apparel. Superior quality makes companies in India export leaders.
Indian governement support to textile industry
- Lowered the GST slab to 5 percent.
- Both national and international players are showing interest to invest in the textile industry. In the Indian textile industry, up to 100%, foreign direct investment is allowed through the direct route.
- Between April 2020 and December 2020, foreign direct investment and equity inflows were stood at USD 3.7 billion.
- The Indian government also introduced schemes to boost textile exports and set a target of USD 100 billion worth of exports in the next five years.
- The schemes are the Technology degradation fund scheme and the scheme for integrated textile parks to attract investment in the textile industry.
- Cabinet also approved a production-linked incentive scheme worth rupees 10,683 crores for the textile sector with an aim to boost domestic manufacturing and exports.
- In budget 2021-22, the government of India also proposed a scheme for setting up mega-investment textile parks in the country to enable India’s textile industry to become globally competitive and to attract large investments.
- National investment promotion and facilitation agency for information in India said that by 2024-25, India’s market share in Textile and apparel will reach 15% from 5%, which is three times, and exports by both textile and the apparel industry are expected to reach USD 300 billion.
Textile industry growth drivers
- Adoption of modern technologies.
- Superior capacity building.
- Availability of low-cost skilled labor.
- Growth of online fashion industry.
- increasing penetration of organized retail.
- Growing youth population and ubranization.
- Support from governement with several schemes.
Financials
| Particulars | Trident |
|---|---|
| Market cap | 20,230 Cr |
| P/E | 30.3 |
| P/B | 5.67 |
| ROE | 11% |
| ROCE | 10.59% |
| Profit growth ( 5 years ) | 7.37% |
| Sales growth ( 5 years ) | 4.28% |
| Debt to equity | 0.46 |
Profit & loss
| Particulars | Trident ( FY 2021 ) |
|---|---|
| Net sales | 4,519 Cr |
| Profit before tax | 445 Cr |
| Net profit | 345 Cr |
| Adjusted EPS | 0.68 |
Shareholding pattern
| Holding % | |
|---|---|
| Promoters | 73.02 |
| Public | 23.91 |
| FII | 2.14 |
| DII | 0.93 |
3. Man Infra
Man infra construction is one of the leading construction companies in India. The company has constructed some of the prestigious ports in the country, the company is continuing to alter the structural landscape through several other prestigious projects in the segments like residential, industrial, commercial, and institutional.
The company also entered into new business segments like real estate development. The company is currently developing premium residential projects with an area of 5 sq ft. in various parts of navy Mumbai. Man infra is one of the top builders in Mumbai.
Business verticals
Port infrastructure: On-shore container terminals and freight stations, land reclamation, soil consolidation, operational services like firefighting, drainage systems, etc.
Commercial & institutional constructions: IT parks, office complexes, hotels, shopping malls, schools, hospitals, etc.
Road construction: Earthwork & paving, electrification, landscaping, widening, up-gradation and drainage and beyond.
Residential constructions: High-rise buildings, townships, luxury villas, and more.
Industrial constructions: Factories, cold storage, warehouse facilities, heavy engineering, manufacturing and processing units, etc.
Financials
| Particulars | Man Infra |
|---|---|
| Market cap | 3,234 Cr |
| P/E | 28.23 |
| P/B | 3.28 |
| ROE ( 5 years ) | 10.32% |
| ROCE ( 5 years ) | 14.03% |
| Profit growth ( 5 years ) | 16.5% |
| Sales growth ( 5 years ) | -10.79% |
| Debt to equity | 0 |
Profit & loss
| Particulars | Man Infra ( FY 21 ) |
|---|---|
| Net sales | 119.61 Cr |
| Profit before tax | 109.81 Cr |
| Net profit | 92.42 Cr |
| Adjusted EPS | 3.72 |
Shareholding pattern
| Holding % | |
|---|---|
| Promoters | 66.48% |
| Public | 31.78% |
| FII | 0.25% |
| DII | 1.48% |
4. HFCL
HFCL manufactures telecommunication equipment, optical fiber cables, and intelligent power systems. HFCL has implemented over 25,000 2G/3G cell sites and rolled out over 1,00,000 kilometers of optical fiber cable networks for telecommunication companies, railways, gas & oil industry, and high-security applications as required by the defense and internal security establishments.
HFCL is focused on serving new growth opportunities like railways, smart homes, smart cities, and defense.
Products & services
Products
- Optical fiber cables.
- Telecom equipment.
- Electronics.
Services
- Telecom networks.
- Railways telecom networks.
- Safe & smart cities.
HFCL offers its products and services in four major sectors, which are telecom, defence, railway, and security & surveillance.
Offerings in telecom sector
- Optical fiber.
- Optical fiber cables.
- WI-FI products.
- High capacity radio relay.
- Switches.
- Passive connectivity solutions.
- Routers.
- Passive optical network.
- 5G small cell & 5G macro radio unit.
Offerings in defence sector
- Night vision devices, electronic fuses.
- OFC and optical transport network.
- Fiber monitering and managemnent systems.
- Routing network.
- Microwave radio backhaul solutions.
- Ground survillance radar.
- Uncooled engines core.
- Software defined radio.
Offerings in railway sector
- Passenger information display system.
- Fiber optic transmission system.
- CCTV video surveillance system.
Offerings in security & surveillance sector
- Video management system.
- Video analytics.
- Automatic number plate reognition.
- Red light violation detection system.
Customers of HFCL
- JIO.
- Tata .
- Airtel.
- Vodafone IDEA.
- Nokia.
- BSNL.
- Raitel.
- L & T.
- Indian oil.
- HP petroleum.
- Bharat electonics.
- ITI limited.
- Bharat petroleum.
- Gail.
- Powergrid.
HFCL’s customer base is very strong, almost every customer of HFCL is a big company.
The reason why HFCL is the best stock below rs 50 in India is HFCL plays a major role in optical fibers, due to the adoption of the new 5G technology HFCL will benefit a lot from it.
Financials
| Particulars | HFCL |
|---|---|
| Market cap | 9,805 Cr |
| P/E | 31.81 |
| P/B | 4.87 |
| ROE ( 5 years ) | 13.3% |
| ROCE ( 5 years ) | 17.38% |
| Sales growth ( 5 years ) | 9.83% |
| Profit growth ( 5 years ) | 8.18% |
| Debt to equity | 0.43 |
Profit & loss
| Particulars | HFCL ( FY 2021 ) |
|---|---|
| Net sales | 4,105 Cr |
| Profit before tax | 295 Cr |
| Net profit | 222 Cr |
| Adjusted EPS | 1.74 |
Shareholding pattern
| Particulars | Holding % |
|---|---|
| Promoters | 41.89% |
| Public | 53.52% |
| FII | 3.96% |
| DII | 0.63% |
5. Subex
Subex is a pioneer in the space of digital trust. Providing solutions for 75% of the world’s top 50 telcos.
A Snapshot
- Founded in 1994.
- 25+ plus years of experience.
- 1000+ employees.
- presence in 90+ countries.
- 200+ customers globally.
- 35+ industry awards.
- USD 3 million R&D spend in new areas.
- USD 40 million order book in FY 2021
Products & services
- HyperSense.
- Business asuurance.
- Fraud management.
- Network asset management.
- Capacity management.
- Partner ecosystm management.
- Analytics center of trust.
- Subex secure.
- IDcentral.
Financials
| Particulars | Subex |
|---|---|
| Market cap | 2,317 Cr |
| P/E | 147 |
| P/B | 4.8 |
| ROE ( 5 years ) | -6.63% |
| ROCE ( 5 years ) | -5.88% |
| Sales growth ( 5 years ) | -23.91 |
| Profit growth ( 5 years ) | 16.27% |
| Debt to equity | 0 |
Profit & loss
| Particulars | Subex( FY 2021 ) |
|---|---|
| Net sales | 75 Cr |
| Profit before tax | 26.51 Cr |
| Net profit | 26.22 Cr |
| EPS | 0.47 |
Shareholding pattern
| Holding % | |
|---|---|
| Promoters | 0 |
| Public | 99.71 |
| FII | 0.26 |
| DII | 0.03 |
6. Sarlapoly
Sarlapoly manufacture and export polyester, nylon textured, twisted & dyed yarns, covered yarns, high tenacity yarn, and sewing thread. Beginning as a manufacturer of commodity years the company has shifted its focus as a manufacturer of specialized and higher value-added yarns.
the company customizes the products as per the customer requirement, this is the biggest advantage of the company.
Products of Sarlapoly
- Textured polyster yarn.
- Textured nylon stretch yarn.
- High bulk textured polyster yarn.
- Textured sewing thread.
- Speciality sewing threads.
- High tenacity yarns.
- Covered yarns.
- Dyed yarns & threads.
Customers ( direct& indirect )
- Nike.
- Adidas.
- Jockey.
- Tommy hilfiger.
- Zara.
- Calvin Klein.
- Walmart.
- JW marriott.
- Target.
- Hanes.
- Decathlon.
Revenue by geography
Popular products in India that utilize Sarlapoly’s yarn
- Sewing thread.
- Innerwear briefs.
- Socks.
- Industrial fabric.
- Fishing nets.
Fianancials
| Particulars | Sarlapoly |
|---|---|
| Market cap | 496 Cr |
| P/E | 14.45 |
| P/B | 1.26 |
| ROE ( 5 years ) | 10.77% |
| ROCE ( 5 years ) | 11.65% |
| Sales growth ( 5 years ) | 0.64% |
| Profit growth ( 5 years ) | -21.2% |
| Debt to equity | 0.40 |
7. Ujjivan small finance
Ujjivan small finance bank stock price has fallen due to key management exit, but the bank is very strong in terms of fundamentals and financials. you can hold it for the long term for stellar returns.
Key highlights
Asset book was grown by 7% year over year. Affordable housing business saw a growth of 35% year-over-year with the total number of customers reaching 24,000 during the financial year 2021. CASA was grown by 85% year-over-year which is 22% of the total deposits book as of March 2021, retails deposits only account for 48% of the deposits book which is valued at 6,242 crore rupees. Financial institution lending books was grown by 18% year-over-year.
Ujjivan small finance bank also partnered with Airtel payments bank.
Ujjivan small finance at a glance
- 575 banking outlets.
- 491 ATMs.
- 59.2 lakh customer base.
- 16,571 workfoce.
Region-wise deposits
8. BHEL
BHEL is India’s largest engineering & manufacturing enterprise and the second largest employer in the Indian capital goods industry, the largest contributor to the country’s total installed conventional generation capacity with a 53% share.
BHEL has 16 manufacturing units and 8 services centers across India. The company has a total order book of 1,02,000 crore rupees, 193 GW power generating capacity installed in India and abroad, and more than 700 crore rupees invested in R & D and innovation, the company filed 526 patents & copyrights filed, and the company has a total of 5,052 intellectual capital. BHEL has its presence in over 86 countries.
Installed power capacity
Offerings
- Power-thermal, hydro gas, nucler, and solar PV.
- Transportation.
- Transmission.
- Defence & Aerospace.
- Oil & gas.
- Energy storage.
- Water.
Products
- Ac machines.
- Heat exchnagers.
- Cryogenic air separation plants.
- Pumps.
- Boilers.
- Gas turbine based cp-generation and combined cycles plants.
- Pressure vessels, reactors.
- Diesel engine based power plants.
- Steam turbine based power plants.
Financials
| Particulars | BHEL |
|---|---|
| Market cap | 24,966 Cr |
| P/B | 0.96 |
| ROE ( 5 years ) | -1.36% |
| ROCE ( 5 years ) | 1.32% |
| Sales growth ( 5 years ) | -7.44% |
| Profit growth ( 5 years ) | -212.84% |
| Debt to equity | 0.18 |
9. NHPC
NHPC is the largest organization for hydropower development in India. NHPC also diversifies its business in the segments like solar and wind power. NHPC has an installed capacity of 7,000 MW from 24 power stations across the country.
NHPS is currently constructing 9 projects which have a total capacity of 6,000 MW includes 2 hydroelectric projects.
Key highlights
NHPC has earned its highest net profit of 3,333 crore rupees in the financial year 2021 compared to 3,000 crore rupees in the previous financial year.
NHPC power stations achieved a generation of 24,471 million units during the financial year 2021.
NHPC has signed MoU with JKSPDCL, Bihar state and Indian renewable energy distribution agency limited.
| Particulars | NHPC |
|---|---|
| Market cap | 31,089 Cr |
| P/E | 9.76 |
| P/B | 1.25 |
| ROE ( 5 years ) | 12.49% |
| ROCE ( 5 years ) | 9.86% |
| Sales growth ( 5 years ) | 2.96% |
| Profit growth ( 5 years ) | 5.88% |
| Debt to equity | 0.97 |
10. Vodafone Idea
No need to discuss about Vodafone Idea because everyone knows about the company and its business. The financials of the company are very very poor. Vodafone Idea is a hero or zero stock, either you will become a hero or zero. very risky stock, at the same time high rewarding stock, if the things go in the right way.
Fianancials
| Particulars | Vodafone Idea |
|---|---|
| Market cap | 28,821 Cr |
| ROE ( 5 years ) | -50.38% |
| ROCE ( 5 years ) | -11.1% |
| Sales growth ( 5 years ) | 3.08% |
| Profit growth ( 5 years ) | -277.25% |
| Debt to equity | -4.78 |
Frequently asked questions
Which stocks will go up in 2021?
Stocks related to 5G technology, artificial intelligence, textiles, and electric vehicles will go up in 2021. We have shared best stocks below 50 rs from different sectors like AI, textiles, electric vehicles, and 5G.
Which stocks will grow in future?
Stocks related to artificial intelligence like Kelton tech, Cyient, Zensar technologies, Persistent systems, Tata elxsi, and stocks related to EV technology like Exide Industries, Tata elxsi, Sonacomstar will grow in the future as the demand for both AI and Ev will rapidly increase in the coming years.
Which sectors will grow in the next 10 years?
IT sector, Artificial intelligence & machine learning, real estate sector, power sector, and EV sector will grow rapidly in the next 10 years. AI is the future so focus mainly on stocks related to AI.
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