Top 5 Stocks Under 100 for Long Term Holding || Best Share Under Rs. 100 for 2024
“High price of stocks doesn’t determine its growth potential.“
What do you think about the above statement? Do you also think so?
In the Indian stock market, more than 5000 companies are listed. Some have high value, some have low value. Most beginner investors think that only high-value stocks, such as MRF Limited, Honeywell Automation India Ltd, Page Industries Ltd, etc., are good stocks for long-term holding. They also think that they have lost the opportunity to invest in these shares as these shares are already at very high prices.
However, it’s not completely true; the potential of a stock is determined by its past records, such as Earnings Per Share (EPS), Price-to-Earnings (P/E) Ratio, Dividend Per Share (DPS), Dividend Per Share (DPS), Dividend Per Share (DPS), Current Ratio, and Book Value.
So, here in this blog we will discuss some stocks under Rs. 100 that have the potential to become a multibagger stock. These stocks have performed well in the past, and their financial & profit margins have made them the best choice for domestic and foreign institutions.
List of 5 Fundamentally Strong Stocks for Long Term Holding
Indian Overseas Bank
Indian Overseas Bank was founded by M. Chidambaram Chettyar in 1937. It emerged as one of the key players in the Indian banking sector. If we talk about the past 5 years of this stock, it has shown massive growth and has given 491.6% of the return to the investors. It is a large cap public sector bank.
In the above chart we can observe that after consolidating for more than 10 years, this stock has shown massive movement and is near its strong resistance. Once it will break the zone of 100 then the potential targets would be 150 and 200. Some of the key factors that makes it best choice of the investors are:-
| Current Market Price | Rs. 70 |
| Market Capitalization | 1,32,033.35 Cr. |
| Book Value | 13.41 |
| Price-Earning Ratio (PE) | 49.53 |
| Category | Large Cap |
NHPC Ltd
NHPC is a mini Ratna PSU established in 1975. It is one of the best stocks you can buy for the long term. Two three months ago, it was trading at Rs. 60, and after making a high of 120, it is currently trading at Rs 100. This is one of the cheapest stocks in the Indian stock market, having great potential to provide investors with high returns. You can add this stock to your portfolio and hold it for at least 1.5 yrs to get high returns.
In the above chart we can see that after being sideways and range bound for 12 years, a strong breakout has been formed. Buyers are highly interested in this stock and in the past two years it has made a new high. The buyers are highly active and institutions are also interested in this stock. If you are looking for significant long term returns add this stock in your portfolio and hold it for at least 2-3 years.
| Current Market Price | 101 |
| Market Capitalization | 1, 01, 746.16 Cr |
| Book Value | 38.53 |
| Price-Earning Ratio (PE) | 31.51 |
| Category | Mid Cap |
UCO Bank
UCO Bank is another public sector bank with great potential for the future. Currently, it is trading at Rs. 56.15, a 2% decline from its opening price. The 52-week range of UCO Bank is between Rs. 25-70. For the investor, it is a speculative investment with potential risk.
If we observe the chart of UCO bank, listed at 20, this stock has hitted the high of 150. It has shown continuous lower circuits for consecutive 3 yrs.Due to a strong support at its listed price i.e. 10 rs, it bounced back with high volume and showed aggressive breakout to reach the price of Rs. 56 in few months.
| Current Market Price | 57.30 |
| Market Capitalization | 69,308.69 Cr |
| Book Value | 20.25 |
| Price-Earning Ratio (PE) | 41.46 |
| Category | Mid Cap |
Central Bank of India Ltd
Central Bank of India is a leading public sector bank with a market capitalization of 55,288.14 Cr. In the past five years, it has given its investors a return of 150.9%. If we talk about the fundamentals of this stock, its relative strength Index is 53.08%, which is neutral. However, the moving average Convergence/Divergence of the stock is 0.75, which is positive. The promoters have 93.08% shareholding in this stock, and FII and DII have 0.17 and 2.80% holding, respectively.
If you want to know more about, “How to Take a Perfect Entry In a Stock?”, you can check out our about us page and get in touch with our experts.
If we see the current chart of this stock it has already done a breakout. It has crossed a strong resistance of rs. 50-60. The market was in the sideways position for the last 3 years but now it is near a trendline of 3 month time frame. If the stock has potential to build this level and the next target is 150-200. So, if you are looking for big returns, keep this stock in your watchlist and make entries according to your risk reward.
| Current Market Price | 64.75 |
| Market Capitalization | 56,582.36 Cr |
| Book Value | 32.59 |
| Price-Earning Ratio (PE) | 21.21 |
| Category | Mid Cap |
Bank of Maharashtra Ltd
Registered on 16 September 1935, Bank of Maharashtra Ltd is one of the oldest public sector banks in India. This bank’s one-day, one-week, and one-month returns are not impressive and have fallen by 5.1%. But when we talk about six-month, two-year, five-year, and ten-year returns, it has shown great growth. If we talk about the shareholding of this stock, 86.46% is with promoters, led by 1.04% with FII and 4.68% with DIIs. The major reason to invest in this stock is its fundamentals are quite strong, and another reason is its government organization.
If we observe the chart, it is clear that this stock has started making a continuous upper circuit for the past two years. Now, it is strongly moving towards its next resistance and has shown the breakout of the trendline (in 3 month chart). You can add this stock to your watchlist and wait for a perfect entry.
| Current Market Price | 69.00 |
| Market Capitalization | 49,010.19 Cr |
| Book Value | 26.02 |
| Price-Earning Ratio (PE) | 12.04 |
| Category | Mid Cap |
Wrapping Up
If you want to grow your capital significantly, then holding for the long term is a great option. There are numerous stocks available in the Indian Stock market which are undervalued but are in great observation of FII and DIIs. Investment in these stocks can give you significant returns in the upcoming few years.
Indian stock market is an ocean of opportunities from where you can earn signeifant amount of money but only with the right approach and knwoldge. If you want to know about doiffernt forms of trading you can browse our blog, What are the Different Types of Trading in India?
If you want to earn extra income through the stock market or want to make the stock market your career, you can enroll in our stock market course. In our module, we will teach you about swing trading strategy, how to choose the best stock for swing trading and the perfect entry and exit on a trade.
“We are not a SEBI or NSE registered stock advisor; we provide you educational content based on our past 6 years of experience in the Indian Stock market. DO not fall into any trap and invest your money wisely“.
Click Here to Download the List of Top Dividend Paying Companies of Indian Stock Market.
Frequently Asked Questions
1. Is Long term Holding and swing trading the same?
No. In swing trading, we basically aim to capture 20-25 points and hold stocks for 7-15 days as per our setup. In long-term holding, we hold stocks for a year or more to get more than 50-60% returns on investment.
2. What are the possible returns we get in Long-term holding?
The stock market is only predictive, and we cannot surely say how much return we will get. The growth of stocks completely depends on the functioning of the company. However, we can analyze the fundamentals of the stock and make necessary decisions based on the past records of stocks.
3. Can we buy penny stocks in huge volumes to get maximum returns?
Penny stocks are considered the most volatile stocks. Such stocks have very low market capitalization and a high daily volume of transactions. So, it is advised to choose fundamentally good stocks to make good returns. (Do invest your money wisely.)
4. How to invest in the stock market without knowledge?
If you have no knowledge of the Indian stock market, I recommend investing in the companies of Nifty50 or simply, you can go with Nifty ETF or Bees.
5. What would be an ideal period for holding a stock?
There is no specific holding period you can hold a stock as per your convection. If you are looking for high returns, the holding period would be longer, but if you want to keep your capital risk-free, you can leave a trade after withdrawing your small profit.
Leave a Reply