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Stocks Under 50 Rupees

Many investors, especially beginners, search for stocks under 50 rupees hoping to find the next big multibagger. After all, low-price stocks give you the chance to buy more shares with less money — and even a small price jump can look like a huge percentage gain. But like any investment, cheap stocks come with their own set of risks and rewards

What Are Stocks Under 50 Rupees?

In simple terms, these are shares that trade on the stock exchange for less than ₹50 per share. They usually belong to small-cap or micro-cap companies. In some cases, even well-known mid-cap companies can see their share prices drop under ₹50 during tough market cycles.

  • Example: If a stock trades at ₹35, buying 1,000 shares would cost you only ₹35,000.

  • Opportunity: If the stock moves up to ₹50, that’s over 40% return.

But not every stock under ₹50 is a good buy — the price is low for a reason. So, you need to do proper research.

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Why Do People Look for Shares Below 50 Rupees?

Low-priced shares attract attention because they look affordable and offer high potential upside if the company grows.

Common reasons why investors look for these stocks:

  • 1.  Affordable Entry: Start investing with a small amount.

     

  • 2.  Higher Quantity: Buy more shares for the same money.

     

  • 3. Potential for Multibagger Returns: Some well-known companies started small.

     

Portfolio Diversification: A few low-price stocks can balance your main portfolio.It’s natural to get attracted to cheap stocks. Here’s why people hunt for stocks under 10 rupees:

  • Low Entry Cost: You don’t need a big budget.
  • High Return Potential: Small price movements can mean big percentage gains.
  • Dream of Multi-Baggers: Some well-known companies today were once penny stocks.

Portfolio Diversification: Some investors keep 5-10% of their portfolio for high-risk, high-reward stocks.

Are Low-Price Stocks Always Good?

  • No! A low price does not mean a good deal. Many times, companies trade below ₹50 because they’re struggling with debt, poor management, or low profits. Some stocks stay at this price level for years.

    Risks you should know:

    • 📉 Weak Fundamentals: Many small companies have irregular profits.

    • ⚠️ Price Manipulation: Easier to rig prices in low-volume stocks.

    • Low Liquidity: Harder to sell shares quickly.

    📊 Lack of Information: Limited updates on company performance.

How to Identify Good Stocks Under 50 Rupees

Finding quality stocks in this price range takes homework. You must look beyond just the price.

Key things to check:

  • Business Model: Is the company’s product or service in demand?

  • Revenue Trends: Look at quarterly and annual results for steady sales growth.

  • Promoter Holding: Higher promoter stake often shows management confidence.

  • Debt-to-Equity Ratio: Avoid companies with heavy debts.

  • Liquidity: Check trading volumes — higher is safer.

Regulatory History: Make sure there are no fraud cases or SEBI actions.

Examples of Stocks Under 50 Rupee

Many well-known companies have traded under ₹50 at different times. Here are some names that investors watch in this range (not a recommendation — always do your own research):

  • Vodafone Idea: Popular among traders for price swings.

  • South Indian Bank: Sometimes trades under ₹50.

  • Yes Bank: Well-known banking stock, often available under ₹50.

  • IDFC First Bank: Frequently finds buyers in this range.

  • NHPC Limited: PSU stock with steady operations, sometimes trades under ₹50.

JP Power Ventures: Known for big swings, attracts penny stock traders.

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How to Buy Shares Under 50 Rupees

  • Buying these stocks is the same as buying any share — you need:

    • Demat Account: Stores your shares digitally.

    • Trading Account: Places your buy/sell orders.

    • Linked Bank Account: For transferring funds.

    Simple steps:

    1. Research the company.

    2. Log in to your broker’s app or website.

    3. Search the stock symbol.

    4. Place a limit order (better for low liquidity stocks).

    5. Monitor your holdings.

    Popular brokers like Zerodha, Upstox, Angel One, Groww, ICICI Direct, and HDFC Securities make this easy.

Best Sectors to Look for Cheap Stocks

Sometimes, certain sectors have hidden gems under ₹50, especially during bear markets.

Common sectors:

  • Banking & NBFC: Regional banks or small finance banks.

  • Power & Infrastructure: Small energy or construction companies.

  • Textiles & Apparel: Micro-cap textile players.

  • Renewable Energy: Solar and wind energy small caps.

PSUs: Some government companies can trade below ₹50.

Safety Tips for Investing in Low-Price Shares

Cheap stocks can be exciting, but they need extra caution. Follow these smart practices:

  • 1. Diversify: Don’t put all your money in one low-price stock.

     

  • 2. Use Stop-Loss: Limit your losses if things go wrong.

     

  • 3. Book Profits: Don’t wait forever for unrealistic prices.

     

  • 4. Stay Updated: Follow news and quarterly results.

     

  • 5. Beware of Tips: Ignore suspicious stock tips on social media.

     

  • 6. Avoid Margin: Never borrow money to buy penny stocks.

     

Should You Invest in Stocks Below 50 Rupees?

It depends on your risk appetite and financial goals. For some investors, stocks under ₹50 can be a small part of a diversified portfolio. For others, they may be too risky. If you’re new to investing, it’s wise to balance them with stable blue-chip stocks or ETFs.

Important Points to Remember

  • 📌 Always invest through registered brokers.

  • 📌 Keep your Demat and Trading Account details safe.

  • 📌 Track your investments regularly.

  • 📌 Be patient — growth can take time.

  • 📌 Never chase overnight riches. Focus on steady research.
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