Best 5 Stocks under 2000

"Stocks under 2000" refers to the equities of companies whose stock values are less than ₹ 2000. New comers may find these companies costlier relatively because of their comparatively higher share prices & perceived accessibility. This article examines a list of five Indian stock market stocks that are fundamentally sound & trade for less than 2000. The characteristics, varieties, & advantages of purchasing these stocks will also be covered in this article.

Best 5 Under 2000 ₹ Stocks

Data as of 3rd September 2024

(Disclaimer: Please note that the above list is for educational purposes only, & is not recommendatory. Please do your own research or consult your financial advisor before investing.)

Best 5 Stock below 2000: An Overview

1- HDFC Bank

Mumbai is home to the Indian banking and financial services firm HDFC Bank Limited, commonly
referred to as HDFC. As of May 2024, it was the tenth-biggest bank in the world by market value and
the largest private sector bank in India in terms of assets.
With a $145 billion market value as of April 2024, HDFC Bank is the third-biggest firm listed on Indian
stock exchanges.

Strengths:

1- Company has delivered good profit growth of 23.4% CAGR over last 5 years

2- Company has been maintaining a healthy dividend pay-out of 22.9%

3- Company's median sales growth is 16.4% of last 10 years.

2- Bajaj Finserv

The holding company for the different financial services companies that make up the Bajaj group is called Bajaj Finserv Ltd. It offers solutions for the purchase of assets through financing, the protection of assets through general insurance, the protection of family and income through life and health insurance, and retirement and savings plans to millions of consumers.

Strengths: 

1- Expected to have a strong quarter; 

2-Has produced solid profit growth over the previous five years at a 20.4% CAGR; and 

3-Median sales growth of 27.6% over the previous ten years.

3-Jyoti Resins and Adhesives Ltd

Synthetic resin adhesives are produced by Jyoti Resins And Adhesives Ltd. The company, which was founded in 2006 and is currently the second-largest selling wood adhesive brand in India's retail sector, produces a variety of wood adhesives (also known as white glue).

Strength:

1- The company has nearly no debt, and during the last five years, 

2- It has produced good profit growth of 98.1% CAGR.

3-  The business has a strong history of return on equity (ROE): 3 Years ROE: 48.2%; 

4- Median revenue growth for the company is 31.7% over the last ten years.

4-Dalmia Bharat

Manufacturing and selling cement is Dalmia Bharat's line of business. Founded in 1939, the company ranks fourth in India's installed capacity for cement manufacturing.

Strengths:

1- 4th largest cement manufacturer in India and a market leader in Eastern India with an 18% market share,

2- 15 manufacturing plants and a total cement manufacturing capacity of ~44 MnTPA,

3- offers a wide range of cement variants, including being the largest manufacturer of slag cement in India.

5-Dynacons Systems & Solutions Ltd

Dynacons Systems & Solutions Ltd. was founded in 1995 and offers services linked to IT infrastructure. System Integration and Services is the only market in which DSSL works.

Strength:

1. The company's debt has decreased.

2. The company has produced strong profit growth over the last five years, with a CAGR of 66.7%.

3. The business has a strong history of return on equity (ROE): Three-Year ROE of 37.8%

4-The business has grown its median revenues by 27.5% over the previous ten years, and its working capital needs have decreased from 46.9 days to 35.4 days.

Why Invest in Best Stocks Under ₹ 2000?

Investing in stocks priced under ₹ 2000 can be a strategic move for several reasons. 
Firstly, these stocks often belong to well-established companies with strong fundamentals, offering a balance between growth potential and stability. They are typically more affordable, allowing investors to diversify their portfolios without requiring a large capital outlay. This affordability makes it easier to purchase multiple shares, spreading risk across different sectors and companies.

Moreover, stocks under ₹ 2000 can provide significant upside potential. Many of these companies are in growth phases, meaning their stock prices have room to appreciate as they expand and increase their market share. Additionally, these stocks often pay dividends, providing a steady income stream while you wait for capital gains.
Investing in these stocks also allows you to take advantage of market inefficiencies. Sometimes, stocks are undervalued due to temporary market conditions or lack of investor awareness. By conducting thorough research, you can identify and invest in these undervalued opportunities before the broader market recognizes their true potential.

Who Should Invest in Best Stocks Under ₹ 2000?

Investing in stocks under ₹ 2000 is suitable for a wide range of investors. Beginners can benefit from these investments as they provide an affordable entry point into the stock market. With lower prices, new investors can start building their portfolios without needing substantial capital, making it easier to learn and gain experience in stock trading.
Experienced investors can also find value in these stocks. They offer opportunities for diversification and can be a good addition to a well-rounded portfolio. These stocks often belong to companies with solid growth prospects, making them attractive for those looking to balance risk and reward.

Additionally, investors with a moderate risk tolerance may find these stocks appealing. While they may not have the same level of volatility as penny stocks, they still offer significant growth potential. This makes them a good option for those looking to achieve higher returns without taking on excessive risk.

Conclusion

To sum up, our investigation of top equities under Rs 2000 that are fundamentally sound is now complete. Investing in firms based solely on stock price is not inherently incorrect, but it shouldn't be the main motivation.
Before making an investment, an investor should conduct a thorough fundamental research of equities. When it comes to allocation, sector diversification, and other variables that impact portfolio performance, the investor should take a comprehensive strategy.