Top 3 Low-Cost Stocks under INR 200 for Long-Term Investment in 2022
Investing in the stock market can be an effective way to grow your wealth over time, and it doesn't necessarily require a large amount of capital. If you're looking to invest in low-cost stocks for a long-term strategy, you might be interested in the following options. It is always recommended to consult with a financial advisor before making any investment decisions.
Understanding the Stock Market for Beginners
For many, the idea of starting an investment journey can seem daunting. However, with the rise of online trading platforms and educational resources, becoming familiar with the stock market has never been easier. Investing in stocks allows you to own a small piece of a company, and as the company grows, so might the value of your investment. Long-term investments can offer substantial returns, taking advantage of compound interest and sustainable growth.
Best Stocks Under INR 200 for Long-Term Investment in 2022
Based on market research and analysis, here are three stocks under INR 200 that can potentially offer strong returns over the next five years:
1. Paradeep Phosphates
Share Price: INR 48
Reasons: Paradeep Phosphates is a fundamentally strong company, known for its ability to deliver good profit growth. Over the last five years, the company has shown a compound annual growth rate (CAGR) of 29.95%, indicating steady and robust financial performance. Additionally, the company maintains a healthy dividend payout of 28.28%, which is a positive sign of financial stability and a commitment to shareholder returns.
2. TN Petrochemicals Limited
Share Price: INR 104.10
Reasons: This company is known for its significant growth, with a CAGR of 14.51% over the past five years. TN Petrochemicals has demonstrated strong profitability and a consistent return on equity (ROE) over the past three years at 27.47%. This provides a solid foundation for long-term growth and stability.
3. YES Bank
Share Price: INR 14.70
Reasons: YES Bank has shown promising performance, with a consistent CAGR of 18.65% over the last five years. The company's commitment to providing quality financial services and its ability to maintain a debt-free status have made it an attractive option for investors seeking long-term growth. Additionally, YES Bank has been maintaining a good dividend payout ratio, which can provide a steady stream of income to investors.
Additional Recommendations
While Paradeep Phosphates, TN Petrochemicals Limited, and YES Bank are strong contenders for those looking to invest under INR 200, here are a couple of additional companies that can also be considered for long-term investment:
1. Rubfila International Ltd
Share Price: INR 78.7
Reasons: This company is expected to perform well in upcoming quarters. Over the past five years, Rubfila International has demonstrated a CAGR of 29.95% in profit growth and is known for its good dividend payout of 28.28%. Additionally, maintaining a healthy balance of assets and liabilities can contribute to long-term sustainability.
2. Likhitha Infrastructure Ltd
Share Price: INR 253
Reasons: Although slightly above INR 200, Likhitha Infrastructure has shown substantial growth with a CAGR of 42.72% over the past five years. The company has a good track record in terms of return on equity (ROE), with a three-year ROE of 27.47%. This high profitability is a strong indicator of its future potential.
3. Rishiroop Ltd
Share Price: INR 92.2
Reasons: Rishiroop Ltd is trading close to 0.99 times its book value, suggesting a potential undervaluation. This stock has shown a CAGR of 18.65% in profit growth over the past five years. The company’s strong profit growth indicates a well-managed business structure.
4. Multibase India
Share Price: INR 193
Reasons: Multibase India is almost debt-free, a key factor in maintaining financial health. This position ensures that the company can respond flexibly to market conditions without the burden of debt. Additionally, the healthy dividend payout of 19.15% provides a measure of stability and investment appeal.
Conclusion
Choosing the right stocks for long-term investment can significantly impact your financial future. While these recommendations are based on current market analysis, it's important to conduct your own research, consult with a financial advisor, and stay informed about the latest market trends. Happy investing!
Disclaimer: As required by SEBI, this information is for educational and learning purposes only. Before making any investment decisions, consult with a financial advisor.