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Top Stocks under Rs 200 to add to your watchlist – Detailed Analysis

Top Stocks under Rs 200 to add to your watchlist – Detailed Analysis

Top Stocks Under Rs 200 - Cover Image

Top Stocks Under Rs 200: A Red Bull energy drink costs just under Rs. 200. and So does a Chai at Chaayos. But did you know you can also own good stocks under Rs. 200. There are many options to choose from small-cap, mid-cap and even large-cap. You may be a novice investor hoping to buy low-quotation stocks or a trader looking for profits on volume. These stocks under Rs. 200 can be useful for you.

Though the investor appetite for such fundamentally strong stocks is huge, the availability is in short supply. A quick run on Screener fetches some 2,900 companies trading in the market with a share price of less than Rs. 200 per share. How do you go about picking profitable companies among this large pool? What filters to use: revenue growth, profitability, debt to equity ratio or what else? 

In this article, we bring to you Top Stocks Under Rs 200. So without further ado, let us jump in.

Top Stocks Under Rs 200

Let us look at the 5 top stocks under Rs 200 in detail.

Top Stocks Under Rs 200 #1 – GMDC Ltd

GMDC Cover Image
Share Price (Rs.) 177 Market Cap (Rs. Cr.) 5,650
EPS (Rs.) 22.4 Book Value (Rs.) 150
Stock P/E 7.9 Price to Book 1.2
Face Value (Rs.) 2.0 Dividend Yield 0.12%
ROCE 16.8% ROE  9.2%
Debt to Equity 0.0 Promoter Holding  74.0%

Founded in 1963, Gujarat Mineral Development Corporation (GMDC) Ltd. is a leading state-owned mining and mineral processing company. Based out of Ahmedabad, it is also India’s second-largest lignite-producing company.

GMDC has no debt and was ranked 132nd on India’s Fortune 500 Companies list in 2017. It is amongst the top five Indian entities by market capitalization in the mining sector. 

The company is involved in the exploration of Manganese, Silica Sand, Bauxite, Lignite, Ball Clay, Limestone, and other minerals. These minerals find their uses in a variety of industries: glass making, ceramics, chemicals, water treatment, oil drilling and more.

In addition to this, GMDC has a significant presence in the energy sector. It has a sizable portfolio of thermal power projects and also renewable energy projects (wind and solar power both). 

On the back of strong earnings growth, its stock price has rallied 190% in the last year giving a multi-bagger return to its investors.

Top Stocks Under Rs 200 #2 – EPL Ltd

EPL Cover Image
Share Price (Rs.) 167 Market Cap (Rs. Cr.) 5,300
EPS (Rs.) 6.01 Book Value (Rs.) 57.8
Stock P/E 27.7 Price to Book 2.9
Face Value (Rs.) 2.0 Dividend Yield 2.6%
ROCE 13.4% ROE  12.2%
Debt to Equity 0.4 Promoter Holding  51.9%

Owned by the Blackstone Group, EPL is the world’s largest speciality packaging company. The global asset manager purchased the company from Essel Group of Companies in August 2019. Later in mid-2020, Blackstone trimmed almost ⅓ of its stake to 51.91%.

EPL manufacturers laminated plastic tubes and dispensing systems. These products find their application in oral care, beauty & cosmetics, pharmaceuticals & healthcare, and food & home care segments. 

EPL has 20 plants spread across 12 countries around the world producing 8 billion tubes every year for its 1200 clients. It has strong relationships with reputed MNCs and Indian companies such as P&G, Colgate, Unilever, GSK, Reckitt Benckiser, Johnson & Johnson, Dabur, Emami, Himalaya, Patanjali, and more.

Though the company has reported profits consistently, its share price has declined more than 37% since its IPO in October 2020. It has low debt and the stock offers a good dividend yield of over 2.5%.

Top Stocks Under Rs 200 #3 – Ashok Leyland Ltd

Top Stocks Under Rs 200 - Ashok leyland
Share Price (Rs.) 149 Market Cap (Rs. Cr.) 44,000
EPS (Rs.) -0.27 Book Value (Rs.) 24.9
Stock P/E 574 Price to Book 6.0
Face Value (Rs.) 1.0 Dividend Yield 0.67%
ROCE 6.25% ROE 1.68%
Debt to Equity 3.3 Promoter Holding 51.5%

Ashok Leyland was founded as Ashok Motors in 1948. It is owned by Hinduja Group and is India’s second-largest commercial vehicle manufacturer, the fourth largest manufacturer of buses in the world and the 19th largest manufacturer of trucks globally.

This Chennai-headquartered company has a global footprint with 7 manufacturing facilities in India and 2 overseas. It has a well-diversified portfolio across the automobile industry producing heavy commercial vehicles, light commercial vehicles, engines, and even defence vehicles.

Ashok Leyland has also emerged as a leader in the EV space with its EV arm Switch Mobility. It has modified its various models into electric vehicles. Recently Switch Mobility unveiled India’s first double-decker EV bus. It will replace the entire fleet of 200 double-decker buses in Mumbai. 

However, Ashok Leyland reported losses in the last two fiscal years because of the heavy interest it had to pay on its debt. Optimistically, the rebound in the auto-cycle may result in a favourable change in the fortunes of the debt-laden auto-maker.

Top Stocks Under Rs 200 #4 – IEX

Top Stocks Under Rs 200 - IEX
Share Price (Rs.) 160 Market Cap (Rs. Cr.) 14,500
EPS (Rs.) 3.42 Book Value (Rs.) 7.67
Stock P/E 46.7 Price to Book 20.8
Face Value (Rs.) 1.0 Dividend Yield 1.3%
ROCE 63.3% ROE 48.6%
Debt to Equity 0.0 Promoter Holding 0.0%

Indian Energy Exchange (IEX) was promoted by 63 Moon Technologies and Power Trading Corporation of India in June 2008. It is an electronic system-based power trading exchange regulated by Central Electricity Regulatory Commission.

It has become India’s premier energy marketplace by providing an automated trading platform for the physical delivery of electricity, renewables, and certificates. Not only this, IEX also pioneered cross-border electricity trade.

Today it has a network of 6,800+ participants spread across India comprising more than 500 distribution utilities and over 500 conventional generators. In addition to this, the power exchange has upwards of 4,400 commercial and industrial customers.

Its revenues and profits have consistently grown over the years. The company is debt free and has maintained a high dividend payout ratio of more than 55% in the last two years.

Top Stocks Under Rs 200 #5 – Oil India Ltd

Top Stocks Under Rs 200 - Oil India
Share Price (Rs.) 192 Market Cap (Rs. Cr.) 21,000
EPS (Rs.) 68 Book Value (Rs.) 282
Stock P/E 2.86 Price to Book 0.69
Face Value (Rs.) 10.0 Dividend Yield 4.82%
ROCE 22.0% ROE 20.7%
Debt to Equity 0.55 Promoter Holding 56.7%

Oil India Ltd. (OIL) is a Navratna status company which was incorporated on 18th February 1959. It comes under the Ministry of Petroleum and Natural Gas and is the nation’s second-largest national oil and gas company.

It has a sizable presence across the entire value chain in the hydrocarbon space. It owns and runs a variety of facilities for exploration, drilling, oil & gas field development, production, and transportation making it an integrated E&P company. 

Recently the company also made a foray into the city gas distribution projects in an attempt to diversify its non-E&P energy value chain. In addition to this, OIL has taken forward-looking steps by investing in renewable & alternate energy by installing solar and wind projects.

Barring 2021, its net profit and sales have consistently increased over the last 6 years. The stock offers a high-dividend yield of 4.85% at a very low P/E of 2.81 only.

Key Metrics

We covered top stocks under Rs 200 in detail above. The list below lists more such companies with share prices less than Rs. 200.

Company Name Industry Share Price (Rs.) Market Cap (Rs. Cr.)
Indus Towers Telecommunication 198 53,500
Mahindra & Mahindra Financial Services Financial Services 197 24,500
KIOCL Metals 192 11,500
Oil India Oil & Gas 191 21,000
Devyani International Hospitality 188 22,500
City Union Bank Financial Services 178 13,000
Indian Bank Financial Services 178 22,500
Gujarat Mineral Development Corporation Mining 177 5,600
EPL Packaging 167 5,300
Sterlite Technologies Telecommunication 167 6,500
Gujarat State Fertilizers & Chemicals Fertilizers & Chemicals 165 6,500
NTPC Power 161 156,000
Indian Energy Exchange Trading 160 14,500
Exide Industries Battery 158 13,500
Ashok Leyland Automobile 149 44,000

In Conclusion

In this article, we covered Top Stocks Under Rs 200. While it is good to have an idea of the stock prices of different companies, it is not advisable to pick stocks only on the basis of their price. An investor should have a holistic view.

As a retail investor, what investment approach do you follow? Do you prefer small-cap companies, mid-cap or large-cap or keep a balance between them? How about you let us know in the comments below?

You can now get the latest updates in the stock market on Trade Brains News and you can even use our Trade Brains Portal for fundamental analysis of your favourite stocks.

The post Top Stocks under Rs 200 to add to your watchlist – Detailed Analysis appeared first on Trade Brains.

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