Top Stocks to Buy Under ₹100: Sumeet Bagadia Recommends These 3 Shares for Monday, 10 February 2025
Top Stocks to Buy: In the ever-evolving landscape of the Indian stock market, investors are continually seeking opportunities to maximize returns, especially in affordable stocks. As of February 9, 2025, the domestic equity indices have demonstrated resilience, with the Nifty 50 advancing by 0.33% to close at 23,559.95, and the BSE Sensex climbing 0.46% to settle at 77,860. However, the market has exhibited volatility, as evidenced by the Sensex’s decline over the past two sessions, totaling a drop of 526 points (0.70%), while the Nifty 50 has fallen by 136 points (0.60%).
Amidst this backdrop, Sumeet Bagadia, Executive Director at Choice Broking, offers insights into potential investment opportunities in stocks priced under ₹100. He observes that the Nifty 50 index is trading within a broad range of 23,300 to 23,800, suggesting a sideways market mood. Bagadia advises traders to adopt a buy-on-dip strategy, emphasizing the importance of a stock-specific approach. He highlights three stocks that exhibit strong technical indicators: Nandani Creation, Southern Petrochemical Industries Corporation (SPIC), and Raj Television Network.
1. Nandani Creation
Nandani Creation, a prominent player in the textile and apparel industry, has garnered attention for its consistent performance and growth prospects. As of the latest data, the stock is trading at ₹56.93. Bagadia recommends a momentum buy with a target price of ₹61 and a stop loss at ₹55.
Key Financial Ratios:
| Ratio | Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 12.5 |
| Earnings Per Share (EPS) | ₹4.55 |
| Return on Equity (ROE) | 15.2% |
| Debt-to-Equity Ratio | 0.3 |
These financial metrics indicate a solid earnings performance and a healthy return on equity, suggesting that Nandani Creation is managing its resources effectively.
2. Southern Petrochemical Industries Corporation (SPIC)
SPIC is a well-established entity in the fertilizer sector, known for its extensive product portfolio and market reach. Currently, the stock is priced at ₹82.21. Bagadia advises a momentum buy with a target price of ₹88 and a stop loss at ₹79.5.
Key Financial Ratios:
| Ratio | Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 8.7 |
| Earnings Per Share (EPS) | ₹9.45 |
| Return on Equity (ROE) | 18.7% |
| Debt-to-Equity Ratio | 0.5 |
The favorable P/E ratio and robust ROE reflect SPIC’s strong profitability and efficient use of equity capital, making it an attractive option for investors.
3. Raj Television Network
Operating in the media and entertainment industry, Raj Television Network has established a significant presence in regional broadcasting. The stock is currently trading at ₹93.75. Bagadia suggests a momentum buy with a target price of ₹100 and a stop loss at ₹91.
Key Financial Ratios:
| Ratio | Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 14.3 |
| Earnings Per Share (EPS) | ₹6.55 |
| Return on Equity (ROE) | 12.8% |
| Debt-to-Equity Ratio | 0.4 |
These ratios indicate a balanced financial position, with reasonable profitability and manageable debt levels, positioning Raj Television Network as a viable investment.
Market Outlook and Strategy
Bagadia emphasizes that the current market conditions call for a cautious yet opportunistic approach. He notes, “Bullish or bearish trends can be assumed on the breakage of either side of the range. Hence, traders are advised to maintain a buy-on-dip strategy.” This perspective underscores the importance of vigilance and strategic entry points in trading.
Investors should conduct thorough due diligence, considering both technical indicators and fundamental analysis, before making investment decisions. Diversifying investments across different sectors and companies can also help mitigate risks associated with market volatility.
In conclusion, while the Indian stock market presents challenges, it also offers opportunities for discerning investors. Stocks like Nandani Creation, SPIC, and Raj Television Network, with their strong financials and favorable technical indicators, stand out as potential candidates for investment under ₹100. As always, aligning investment choices with individual financial goals and risk tolerance is paramount.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions