The Indian equity market continues to offer long‑term investors a wealth of opportunities, especially in the mid‑cap and PSU segments. While many investors focus on blue‑chip giants, there are several fundamentally strong stocks trading below ₹100 that have delivered solid returns and still possess meaningful growth potential.
In this article, we identify and analyse some of the best stocks under ₹100 in India (2025) for long‑term investment. These are companies with sound fundamentals, steady earnings visibility, and strong sectoral tailwinds — not speculative penny stocks.
Market Rationale for Investing in Stocks Under 100
Stocks priced under ₹100 are often overlooked by many investors but present significant potential for long-term wealth creation. Historically, many multi-bagger stocks started with low prices before gaining market recognition for their strong fundamentals and growth prospects.
These stocks offer an affordable entry for new and small investors, enabling them to accumulate meaningful positions without large capital requirements.
In addition, the Indian stock market under ₹100 segment has improved in transparency and liquidity over the years due to regulatory reforms and technological enhancements in stock trading platforms. This makes long-term investing in stocks under ₹100 more feasible than in the past.
Framework for Selecting the Best Stocks Under ₹100
Choosing the best stocks in this price segment requires a well-defined framework focusing on factors beyond price alone. Key criteria include:
- Strong financial health: Companies with manageable debt, consistent revenue and profit growth, and healthy cash flows.
- Growth potential: Businesses operating in expanding sectors or niches with favorable demand trends.
- Business model resilience: Companies with competitive advantages, scalable operations, and sound management.
- Corporate governance: Transparency, ethical management, and shareholder-friendly policies.
- Sector diversification: Exposure across sectors such as banking, energy, infrastructure, and consumer goods.
Advanced stock screeners and market research platforms can efficiently identify candidates meeting these criteria.
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Why Consider Stocks Under ₹100?
- They are accessible to retail investors and ideal for beginners building diversified portfolios.
- Some of these stocks belong to established PSUs or turnaround stories with improving balance sheets.
- They offer potential for higher percentage returns, especially when bought at the right valuations.
- Stock splits, corrections, or temporary undervaluation can bring quality companies into this price range.
Key Factors to Evaluate Before Investing
Before buying any low‑priced stock, investors should focus on:
- Fundamentals: Revenue growth, profitability, debt levels, and cash flow trends.
- Valuation: Compare P/E and P/B ratios with industry peers.
- Sector Outlook: Prefer industries aligned with government initiatives, infrastructure, or renewable energy growth.
- Management Quality: Transparency, governance, and dividend history matter.
- Liquidity: Avoid illiquid micro‑caps that can be easily manipulated.
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Top 10 Best Stocks to Buy in India for Long Term Under ₹100 (As of Oct 31 2025)
| Company | Sector | Price (₹) | P/E | Market Cap (₹ Cr) | 1‑Year Return (%) |
|---|---|---|---|---|---|
| Indian Railway Finance Corp (IRFC) | PSU Finance | 94 | 15.8 | 1,25,000+ | +115% |
| Rail Vikas Nigam Ltd (RVNL) | Infrastructure | 92 | 17.2 | 45,000+ | +130% |
| NHPC Ltd | Power & Renewables | 88 | 14.6 | 88,000+ | +48% |
| Suzlon Energy Ltd | Renewable Energy | 68 | 20.5 | 22,000+ | +160% |
| Trident Ltd | Textiles & Paper | 46 | 26.1 | 23,500+ | +25% |
| UCO Bank | Banking (PSU) | 58 | 10.3 | 70,000+ | +85% |
| Central Bank of India | Banking (PSU) | 69 | 11.4 | 65,000+ | +78% |
| IRCON International Ltd | Infrastructure | 97 | 13.0 | 28,000+ | +95% |
| India Tourism Dev Corp (ITDC) | Hospitality | 94 | 22.8 | 8,000+ | +40% |
| NLC India Ltd | Power & Mining | 99 | 12.1 | 37,000+ | +52% |
1. Indian Railway Finance Corporation (IRFC)
IRFC remains one of the most stable PSU financials. As the dedicated financing arm for Indian Railways, IRFC enjoys sovereign backing and predictable earnings. Its loan book continues to expand in line with the government’s infrastructure push.
- Strengths: Low credit risk, consistent dividend yield (~3%), and strong asset growth.
- Outlook: Continued railway capex and modernisation should sustain earnings momentum.
2. Rail Vikas Nigam Ltd (RVNL)
RVNL has transformed into a key player in India’s railway infrastructure expansion. With a robust order book exceeding ₹80,000 crore, it is benefiting from electrification, metro, and station redevelopment projects.
- Strengths: Healthy margins, PSU support, and strong execution track record.
- Outlook: Long‑term visibility from government infrastructure spending.
3. NHPC Ltd
NHPC, India’s largest hydropower company, is a steady compounder in the renewable energy space. It has diversified into solar and wind projects, aligning with India’s green‑energy objectives.
- Strengths: Stable cash flows, consistent dividends, and strong balance sheet.
- Outlook: Rising renewable capacity and government incentives support long‑term growth.
4. Suzlon Energy Ltd
Suzlon has completed a major turnaround, reducing debt and returning to profitability. With India’s renewable energy capacity targets rising sharply, Suzlon is well‑positioned to capitalise on wind turbine demand.
- Strengths: Improved financial health, strong order pipeline, and sectoral tailwinds.
- Risks: Cyclicality in raw‑material costs and execution challenges.
5. Trident Ltd
Trident is a diversified manufacturer of textiles, paper, and chemicals. The company’s focus on exports and premium home‑textile products has helped it maintain profitability even in volatile markets.
- Strengths: Integrated operations, strong brand presence, and consistent dividends.
- Outlook: Demand recovery in the US and Europe could boost exports.
6. UCO Bank
UCO Bank has seen a significant turnaround in asset quality and profitability over the past two years. With NPAs declining and credit growth improving, the bank is regaining investor confidence.
- Strengths: Improved CASA ratio, PSU credibility, and rising net interest income.
- Outlook: Continued digitalisation and loan growth to drive earnings.
7. Central Bank of India
Like other PSU peers, Central Bank has benefited from improved asset quality and capital adequacy. The bank’s digital transformation and retail‑lending initiatives are paying off.
- Strengths: Strong government backing, improving profitability, and attractive valuation.
- Outlook: Expected to sustain double‑digit credit growth through FY 2026.
8. IRCON International Ltd
IRCON is another railway‑linked PSU with a diversified infrastructure portfolio, including highways and electrification projects. Its execution capability and order visibility make it a steady performer.
- Strengths: Healthy order book, strong cash position, and consistent dividends.
- Outlook: Infrastructure expansion under Gati Shakti and PM GatiShakti Yojana to drive growth.
9. India Tourism Development Corporation (ITDC)
ITDC operates hotels and tourism services under the Ministry of Tourism. With domestic travel and hospitality witnessing a strong rebound, ITDC is poised for steady growth.
- Strengths: Monopoly in government hospitality, debt‑free balance sheet.
- Outlook: Rising domestic travel and government tourism campaigns to support expansion.
10. NLC India Ltd
NLC India (formerly Neyveli Lignite Corp) is a diversified PSU engaged in lignite mining and power generation. The company is expanding into renewable energy and has a solid dividend record.
- Strengths: Integrated mining‑to‑power model, strong cash flows.
- Outlook: Renewable expansion and thermal modernisation to enhance profitability.
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Sector‑Wise Insights
- Infrastructure & Railways: IRFC, RVNL, and IRCON benefit from India’s record railway and infrastructure spending.
- Energy & Renewables: NHPC, Suzlon, and NLC India align with the government’s 500 GW renewable‑capacity goal by 2030.
- Banking & Finance: UCO Bank and Central Bank are part of the PSU banking revival story.
- Manufacturing & Exports: Trident represents India’s manufacturing and export resilience.
- Tourism & Hospitality: ITDC benefits from rising domestic and inbound tourism.
Risks and Considerations
- Stocks under ₹100 can show higher volatility compared to large caps.
- Liquidity risk in smaller PSUs or micro‑caps.
- Macroeconomic factors such as interest‑rate changes and fiscal policy can impact valuations.
- Investors should diversify and avoid over‑concentration in one sector.
Conclusion
Investing in quality stocks under ₹100 can be a smart way to build long‑term wealth if done with proper research and patience. Many of these PSUs and emerging private players are financially sound and aligned with India’s growth story.
As always, investors should perform independent due diligence or consult a financial advisor before making investment decisions. The goal is not to chase low prices but to identify high‑potential businesses available at reasonable valuations.
FAQs
1. Are stocks under ₹100 risky?
Not necessarily. Many PSUs and mid‑caps trade below ₹100 due to stock splits or temporary undervaluation. The key is to focus on fundamentals and liquidity.
2. How long should I hold these stocks?
For meaningful wealth creation, a holding period of 3–5 years or longer is ideal.
3. Which sector looks most promising for 2026?
Infrastructure, renewable energy, and PSU banking are expected to continue outperforming given strong policy support.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Stock prices and metrics are as of October 31 2025. Investors should conduct their own research or consult a SEBI‑registered financial advisor before investing.
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I am an IT professional with more than 17 years of experience in the industry. Over the past five years, I have developed a strong interest in the stock market, investing in both direct stocks and mutual funds. My background in IT has helped me analyze and understand market trends with a logical approach. Now, I want to share my knowledge and firsthand experiences to help others on their investment journey. Read more about us >>