3 Stocks Under ₹100 Worth a Look – My Take
Man, the markets have been rough lately, huh? Nifty’s down nearly 2% in just two days—geopolitical tensions, inflation worries, the usual suspects. But here’s the thing: when everyone’s panicking, that’s often when you find the real gems. Sumeet Bagadia—you know, that analyst who called the Adani crash before it happened—has his eye on three stocks under ₹100 that might just surprise us. Sigachi Industries, Udaipur Cement, and Asian Granito. Let’s break ’em down.
Why Bother With Cheap Stocks Anyway?
Look, I get it—when you hear “stocks under ₹100,” you think penny stocks, pump-and-dump schemes, all that shady stuff. But that’s not always the case. Here’s why these can work:
- You don’t need deep pockets: For beginners or folks with limited cash, it’s an easy way to get skin in the game.
- The math works in your favor: A ₹10 move on a ₹50 stock? That’s 20%. On a ₹2000 stock? Just 0.5%.
- Diversification: You can spread your bets across sectors without breaking the bank.
But—and this is a big but—there are catches:
- They’re jumpy: Small caps swing wild. If you can’t handle seeing -8% days, look elsewhere.
- Liquidity traps: Ever tried selling a stock where only 500 shares trade daily? Not fun.
- Homework is non-negotiable: Cheap ≠ good. Some are cheap for a reason.
The Three Contenders
1. Sigachi Industries (₹95-ish)
What they do: Pharma excipients—basically, the stuff that turns chemicals into actual pills. Boring? Maybe. Essential? Absolutely.
Why I like it:
- India’s pharma exports are booming—more drugs mean more excipients.
- Revenue’s grown steadily, even during COVID. That’s resilience.
- Chart looks ready to pop. Technicals aren’t everything, but they help.
Quick numbers:
- Market cap: Around ₹1,200 crore
- P/E: 25x—not dirt cheap, but reasonable for growth
Bagadia’s target: ₹120 (but I’d take profits at ₹110-115)
2. Udaipur Cement Works (₹85)
Story here: Mid-sized cement player strong in Rajasthan and MP. Not an Ultratech, but that’s the point—less attention, more upside.
What’s interesting:
- Government’s going nuts on infrastructure. Roads, bridges, housing—all need cement.
- Their cost control is solid. In this business, that’s half the battle.
- Price dipped recently. Could be a buying window.
By the numbers:
- Debt-to-equity: 0.5 (not bad for a cement company)
- Capacity: 3.5 million tonnes annually
Target: ₹110, but watch coal prices—they can wreck margins.
3. Asian Granito (₹75)
In one line: Tiles and ceramics, riding India’s real estate wave.
Why it stands out:
- Brand recognition matters in tiles. AGIL’s got that.
- They’ve trimmed costs—margins improved last quarter.
- PMAY and other housing schemes mean steady demand.
Key stats:
- Revenue growth: 12% YoY
- Margins: 8-10%—could be better, but trending up
Upside: ₹95 seems achievable if real estate doesn’t tank.
Playing the Current Market
Let’s be real—the next few months will be bumpy. Elections, oil prices, Fed decisions… it’s a minefield. But that’s also when money’s made. My two cents:
- Don’t go all-in: Maybe allocate 10-15% of your portfolio to these.
- Set stop losses: I’d put them at 15-20% below entry. Protects your capital.
- Think quarters, not days: These aren’t meme stocks. Give them time.
What Could Go Wrong?
No sugarcoating—risks everywhere:
- Macro stuff: If Israel-Iran blows up or oil hits $100, all bets are off.
- Sector-specific: Pharma regulation changes, cement oversupply, tile import duties—any could hurt.
- Management risk: Especially with small caps, keep an eye on promoter actions.
Wrapping Up
Are these guaranteed winners? Of course not—nothing is. But in a shaky market, Sigachi, Udaipur Cement, and Asian Granito have solid stories behind them. Do your own research, maybe start with small positions, and see how they play out.
Pro tip: Set Google alerts for these companies. News moves these stocks faster than fundamentals.
Useful Links
- Moneycontrol’s small-cap screener (better than blindly following tips)
- Cement demand tracker (for Udaipur Cement holders)
- Pharma export reports (Sigachi’s bread and butter)
Source: Livemint – Markets