Best 5 Stocks under ₹ 300

"Stocks under 300" refers to the equities of companies whose stock values are less than ₹ 300. Beginners may find these companies appealing because of their comparatively lower share prices & perceived accessibility. This article examines a list of five Indian stock market stocks that are fundamentally sound & trade for less than 300. The characteristics, varieties, & advantages of purchasing these stocks will also be covered in this article.

Best 5 Under 300 ₹ Stocks

Data as of 03 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 300: An Overview 

1- Oriental Carbon & Chemicals Ltd 

Oriental Carbon & Chemicals was established in 1978 & offers various investments in addition to selling chemicals such as sulfuric acid & insoluble sulfur. The Duncan JP Goenka Group of Companies includes OCCL. It is a manufacturer of specialized & value-added grades of insoluble sulfur, certified by ISO40001 & ISO45001. 

Strength:
1. The stock is currently trading at 0.44 times its book value; 
2. The stock offers a respectable dividend yield of 5.00%; & 
3. The company has been paying out a substantial dividend of 30.5%.

2- Ador Fontech Ltd

Ador Fontech was established in 1974 & offers industrial component reclamation, fusing, surface, & spraying services. The company produces MIG welding machines, welding fume extractors, welding transformers, silver brazing rod, tig welding machines, alloy electrodes, hard-facing alloy electrodes, cast iron electrodes, & other items. It also exports & trades these products.

Strength:
1- The company has nearly no debt; 
2- The stock offers a respectable dividend yield of 4.35%; & 
3- The company has been paying out a healthy dividend of 90.0%.

3- Union Bank of India

The businesses that Union Bank of India is involved in include banking services, government contracts, merchant banking, insurance agency work, mutual funds, & wealth management. With a market share of about 6% in deposits & 5.5% in net advances as of FY24, the bank is the fifth-largest public sector bank. 

Strengths: 
1-Stock is trading at 0.95 times book value; 
2-Company has produced significant profit growth over the previous five years at a compound annual growth rate of 46.4%; & 
3-Company has been paying out a substantial dividend at a rate of 22.9%.

4- Canara Bank

In FY21, Canara Bank amalgamated with the former Syndicate Bank.\# Canara was established in 1906 & was taken over by the Government of India in 1969, along with thirteen other significant commercial banks. Bangalore is home to the bank's headquarters.On April 1, 2020, Canara Bank amalgamated with the former Syndicate Bank (e-SB).

Strengths: 
1-Stock is trading at 1.09 times book value; 
2-Company has had outstanding profit growth over the previous five years, with a compound annual growth rate of 90.8%; & 
3-Company has been paying out a solid dividend of 19.2%.

5- Castrol India Ltd

The primary business activities of Castrol India are the production & distribution of industrial & automotive lubricants as well as associated services. The company produces & markets a range of oil lubricants & other fluids for use in industrial applications, IT cooling, data centres, automobiles, motorbikes, & commercial vehicles.

Strength:
1- The company has nearly no debt; 
2- It has a solid return on equity (ROE) history, with three years of ROE of 45.7%; & 
3- It has been paying out a hefty dividend of 78.8%.

How to Invest in Best 5 Stocks Under ₹ 300?

The following is how investors can make long-term investments in the top stocks under 300 ₹:

1. Create a brokerage, trading, or demat account. Investors can register a demat account with 5 Paisa Capital!

2. Look at the top stocks that are priced under ₹300. The Close Price can be adjusted between ₹ 0 & ₹ 300.

3. Put in a "Buy" order for the equities you want that are less than ₹ 300.

4. Consistently keep an eye on your finances.

How to Identify the Shares Under 300 Rs?

We have compiled a list of fundamentally sound stocks under Rs. 300, sorted by average return on equity over the last five years. When selecting stocks under Rs. 300, investors can take into account additional metrics & considerations. You can also use the filters shown below to get a list of fundamentally sound stocks under 300, which will help you find the top stocks under 300. 

1. Stock Price: Seek for stocks that are currently trading for less than 300 rupees. 

2. Current Ratio: If the top stock under 100 firms have a current ratio above 1, it means that their assets exceed their liabilities, which may be an indication of liquidity & sound financial standing.

3. Earnings Per Share (EPS): An increased earnings per share (EPS) signifies that the company with a share price below 300 is making more money for each outstanding share. Consider a cheap stock under 300 rupees that has a respectable earnings per share (EPS).

4. Dividend Per Share (DPS): Find the best dividend-paying share under 300. A steady & fair dividend per share might be encouraging & give investors some cash flow.

5. Net Profit Margin: A greater net profit margin may be a sign of cost control & profit generation efficiency for the company with the best share below 300.

6. Debt-to-Equity Ratio: A lower ratio indicates that there is less debt for the organization than there is equity. Businesses that have less debt could be viewed as less hazardous.

7. Price-to-Earnings (P/E) Ratio: This ratio looks at how much a stock is worth in relation to its earnings. A lower P/E ratio could indicate that the stock is cheap if it is valued less than 100. It is imperative to take into account both the industry average & the growth possibilities of the organization.

8. PEG Ratio: The PEG ratio adjusts the traditional P/E ratio by taking into account the growth rate in earnings per share that are expected in the future.

Why Invest in Best Stocks Under ₹ 300?

Purchasing stocks for less than 300 INR has a number of benefits. The majority of these equities may be owned by businesses with lesser market capitalizations. In the long run, they might have substantial growth prospects. They also enable more diversity with a less investment budget. Furthermore, cheaper stocks could be more volatile. This can present chances for investors to engage in short-term trading, as swing trading can be employed in volatile markets.

Who Should Invest in Best Stocks Under ₹ 300?

Those looking for inexpensive investing options could find stocks priced under ₹ 300 to be intriguing. 
2. Novice investors with a tight budget who want to start accumulating a portfolio may find these stocks appealing. 
3. Experienced investors who want to explore emerging markets or diversify their holdings may also want to look into buying stocks for less than ₹ 300.

Conclusion

To sum up, if you have limited cash, investing in the best 5 stocks below ₹300 can help you get exposure. Even though these stocks are regarded as "cheap," they may nonetheless have substantial room for profit & growth. But it's imperative to carry out in-depth study, evaluate your risk tolerance, & create a long-term plan. Taking these things into account, buying stocks for less than ₹300 can be a wise & profitable decision for both inexperienced & seasoned investors.