Stocks under Rs. 50 like T T, Surana Solar, and KCP Sugar show strong sectoral potential despite price volatility.
Metrics like ROCE, Altman Z score, and profit growth are essential to evaluate the true performance of any stock.
High P/E ratios or low quarterly growth should be red flags, even in low-cost stocks.
Investing in low-cost stocks may be attractive to retail investors looking to invest in the equity markets with a small amount of capital. Indian stocks priced below Rs. Typically, 50 usually represents small-cap businesses or turnarounds that can provide a steep upside if their business fundamentals improve. However, most such stocks carry significant risks, including erratic earnings, poor profitability, or weak balance sheets.
Here is a curated list of seven cheap stocks under Rs. 50 in India for 2025, based on recent financial data from Screener. Investors must approach these with a high-risk appetite and a long-term perspective.
T T operates in the textile sector. Despite a share price of just Rs. 13, the company has a market capitalization of Rs. 331.53 crore. Yet, the company is loss-making with a quarterly net profit decline of Rs. 4.11 crore and a steep profit fall of 165.97%. Interestingly, it posted impressive sales of Rs. 62.49 crore, representing a 21.6% quarterly growth. The return on capital employed (ROCE) is 1.48%, and its Altman Z score is 4.91, indicating moderate financial health.
Verdict: Poor profitability, but the sales growth and reasonable Z-score offer upside potential.
Surana Solar operates in the renewable energy sector, a sector with high long-term growth prospects. Unfortunately, the stock has an expensive P/E multiple of 2716.13. With a market cap of Rs. 162.97 crore, the company has incurred a quarterly loss of Rs. 0.71 crore and shown a sharp fall in profits as well as sales. ROCE is very low at 0.37%, and the growth in profit is down at 96.05%.
Verdict: High valuation over poor fundamentals makes this stock highly risky, even if the sector is promising.
Bartronics is a tech-oriented and smart card solutions company. It has a high market capitalization of Rs. 403.62 crore and reported a modest quarterly net profit of Rs. 0.93 crore. Profit growth is negative at 88.21%, but sales were at Rs. 8.91 crore. The stock's ROCE is 1.27%, while it also boasts a healthy Altman Z score of 22.35, indicating low bankruptcy risk.
Verdict: One of the more financially secure ones on this list. Ideal for risk-inclined investors.
BITS is a lesser-known firm with a small market cap of Rs. 116.46 crore. It reported a narrow quarterly net profit of Rs. 0.09 crore, 200% higher than the previous quarter. While sales remain puny at Rs. 0.31 crore, quarterly growth was 24%. The ROCE is 1.09% and the Z score is 10.41.
Verdict: Promising turnaround signs with sales and profit growth; can be a tipster's bet.
Also Read: Stock Market LIVE Updates: Key Index Movements and Sector-Wise Highlights
It is a micro-cap stock trading below Rs. 1, with a market capitalization of Rs. 115.48 crore. The company is in the red, having posted a quarterly loss of Rs. 0.46 crore. Quarterly sales plummeted by almost 79%. ROCE stands at 0.59%, while profit growth is at -83.50%.
Verdict: Very high-risk stock with weak fundamentals and declining revenues. Avoid unless speculative.
One of the oldest established names in this group, KCP Sugar boasts decades of industry presence. It has a healthy market cap of Rs. 395.37 crore, with an ROCE of 5.70%. While it has reported a quarterly net loss of Rs. 22.22 crore, it has a dividend yield of 0.58%, a rarity in this space.
Verdict: Despite recent losses, the company has a more solid operating foundation. Ideal for moderate-risk investors who want value.
Integra Essentia enjoys a market cap of Rs. 219.97 crore and has operations across various segments such as infrastructure and energy. The stock has a relatively moderate P/E of 57.28. The company posted a marginal quarterly loss of Rs. 0.05 crore with sales of Rs. 99.94 crore and 7.11% positive sales growth. ROCE stands at 4.84%.
Verdict: One of the stronger picks on this list with positive revenue growth and reasonable valuation.
These top stocks under Rs. 50 in India for 2025 offer varied opportunities. Stocks such as Bartronics India, KCP Sugar, and Integra Essentia could provide potential upside if their financial performance continues to improve. Still, investors should remain watchful and diversify suitably since most of these are high-risk penny or small-cap stocks. A careful examination of business fundamentals and potential future prospects is required before investing.
Also Read: Stock Market Today: Nifty Tumbles Below 25,000, Dragged by Bajaj Finance and Infosys Shares
Google Earnings Q2 2025: Revenue Hits $81.7 Billion on AI and Cloud Growth
1. Are stocks under Rs. 50 considered good investments in 2025?
Stocks under Rs. 50 can offer attractive entry points for retail investors, especially in 2025's volatile market conditions. However, their affordability doesn’t necessarily mean they’re undervalued or profitable. Investors must assess key financial indicators like profit growth, return on capital employed (ROCE), and quarterly performance.
2. What financial indicators should I check when picking low-priced stocks?
When evaluating stocks under Rs. 50, it is crucial to review metrics such as the Price-to-Earnings (P/E) ratio, market capitalization, dividend yield, profit and sales growth, ROCE, and Altman Z score. For example, stocks with high P/E ratios and consistent negative quarterly profit variation might indicate weak fundamentals.
3. Why do some low-priced stocks have extremely high P/E ratios?
Extremely high P/E ratios in low-priced stocks typically indicate that the earnings are too low to justify the market price or the market expects future growth despite current losses. High P/E without earnings growth could mean the stock is overvalued or speculative. Always match P/E with earnings trends and industry outlook.
4. Is it safe to invest in penny stocks with negative profit growth?
Negative profit growth in penny stocks is a red flag that demands closer scrutiny. While some companies might be in turnaround phases, many suffer from structural issues. For example, companies like Rajnish Wellness and T T have shown steep profit declines, making them risky choices. If the negative growth is coupled with declining sales and low ROCE, it often points to poor financial health.
5. Which sectors do these low-priced stocks typically belong to?
Low-priced stocks often come from sectors like textiles, renewable energy, IT services, sugar, and wellness products. For instance, T T operates in the textile segment, Surana Solar is from the solar power sector, and KCP Sugar belongs to the sugar industry. While these sectors may offer long-term potential, their stocks under Rs. 50 usually belong to smaller players with limited market share.
Join our WhatsApp Channel to get the latest news, exclusives and videos on WhatsApp
_____________
Disclaimer: Analytics Insight does not provide financial advice or guidance on cryptocurrencies and stocks. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. This article is provided for informational purposes and does not constitute investment advice. You are responsible for conducting your own research (DYOR) before making any investments. Read more about the financial risks involved here.