Today, young people who have recently started earning or are in school or college are becoming very interested in the stock market. To them, having vast sums of money to invest or trade is a huge challenge. Desperately, these people begin investing and watching stock market webinars or stock market courses online for free with a certificate or the best stock market courses in Delhi and with certification. They tend to put all their money into just one or two companies due to a lack of funds. This kind of allocation is terrible because there is a need for more diversification. What if they couldn’t access India’s top 5 Online Stock Market Courses? Then, how should they act in such a situation?
To solve this issue to this issue, we have made this blog on the best stocks under 500. This amount is something which can easily save and use for investing. However, we’ve done our best to identify excellent companies that are safe to invest in as per our stock market paid course. Following are the primary filters that we used to find these stocks, which are often utilized for stock selection by best stock market courses:
• Market Capitalization should be more than 3000 Crores
• Sales growth for 5 Years (CAGR Basis)>15%
• Profit growth for 5 Years (CAGR Basis) >15%
• Average Return on capital employed for 5 Years >15%
• Average Return on equity for 5 Years >15%
Sumitomo India Chemical
The first in the list of best stocks under 500 isSumitomo Chemical India Ltd. (SCIL). It is a leading player in the Agrochemicals industry, having a balanced portfolio of technical and formulation products and backward integration. It is well-known for marketing proprietary Sumitomo Chemical Company Limited products domestically. These products lie in agrochemicals, environmental health business and animal nutrition segments. Sumitomo Chemicals now has a strong portfolio of generics with the integration of Excel Crop Care Limited. With this integration, the company has moved up several notches in the Indian crop protection industry.
Diversified product portfolio
The company is well diversified with company’s agrochemical products covering multiple crop segments in both Kharif and Rabi seasons and non-agrochemical, including environment health products and animal nutrition.
The company has a solid market position in the domestic crop protection business segment. This portfolio includes weedicides, insecticides, fumigants, rodenticides and fungicides. Its portfolio also includes plant growth bio-rationals, nutrition products, and plant growth regulators. A company with a diversified portfolio is a cherry as per Top 5 Online Stock Market Courses in India.
New product launches- well on track
Sumitomo launched nine new domestic products in the nine months of FY23 (4 insecticides, one fungicide, one metal phosphide, and 3 PGRs). The company launched three new unique proprietary products, Sumi Blue Diamond, Pyclome and Danitol NXT, in the domestic market. Additionally, the company has recently received registrations for two more unique proprietary products and is in the process of commercially launching them in the market. These new launches would support revenues and margins in the near term.
Capex to drive Sales
The company had earlier announced a capex of Rs 120 Cr to manufacture proprietary products for the parent over and above its annual maintenance capex of Rs 70 Cr. One project is for an essential global proprietary product (commercial production already started in 2QFY23), and the 2nd project involves multiple products (expected to begin commercial production in 1QFY24). Although the company has not formally announced capex in the future, the management has hinted at a capex of Rs 250 Cr capex in FY24.
Strong parent group
The company has access to SCC’s global supply chain and global R&D activities (one of the largest spenders), resulting in developing activities and a broad range of formulation research.
Financials
| Company | Share Price(Rs) | Market Cap (Cr) | Sales growth 5 years ( CAGR %) | Profit growth 5 years ( CAGR %) | Average ROE for 5 yrs (%) | Average ROCE for 5 yrs (%) |
| Sumitomo Chemical India Ltd | 395 | 19,704 | 30.80% | 47.70% | 22.10% | 30.30% |
Technicals
The company’s stock has massively fallen and close to its support. From Rs 350-370 is a good buying zone for the company. Thus, Sumitomo Chemicals finds its place in the list of best stocks under 500.
Saregama
You would be puzzled to think about this stock in the list of best stocks under 500. India’s oldest music label company, Saregama India Ltd, is the youngest film studio and multi-language TV content producer. Almost 50% ownership of all the music ever recorded in India is with Saregama. It also has expanded into other branches of entertainment – film & series production, live events, and music-based consumer products. The business of Saregama can be divided into three divisions: Music Licensing, Yoodle Films, and Carvaan.
Reduction in Piracy
In the last 7-8 years, there has been an exponential increase in revenues of music label companies. This increase in revenue is due to the reduction of piracy in the music industry and the advent of streaming music through applications such as Spotify, Wynk Music and Gaana.com. But Saregama not only earns money through Music streaming platforms but also from streaming music in
- Social Media platforms (Instagram, Youtube and Facebook etc.)
- Video Streaming Platforms (Netflix, Amazon and Hotstar etc.)
- Broadcasting Platforms-TV Channels and Brands (Sony, Star and Zee TV etc.)
Longevity of revenue
“INVEST ONCE, DIVIDENDS FOR NEXT 60+ YEARS”-It is because the company has publishing rights to the song’s author even after 60 years of the author’sauthor’s demise.
The very high entry barrier
Saregama India Limited is India’sIndia’s largest music IP, with about 130000+ songs covering multiple languages and genres, indicating a very high entry barrier. To put things in perspective, a new music label acquiring music from 200 films per year (a typical movie has five songs) will take 100 years to build a library of this size. This entry barrier provides an unfair advantage, which is a very big positive as per stock market paid course.
Consistent growth in license fees
Saregama’s licensing fee increased at a compounded annual growth rate (CAGR) of 24% during FY20-FY22 and a y-o-y increase of 28% in FY22. The increase has been a result of the company transforming its business model. With a gradual phasing out of physical music content, the company’scompany’s changing business model has been capturing newer and profitable ways to monetise its existing music content, particularly retro on digital platforms through OTT platforms (including YouTube) and publishing (through movies, TV shows and brand usage). With the cheaper availability of data and increased usage of smartphones, the digital use of content has been growing significantly.
Launch of big Budget Film Music
The company has indicated big-budget film music release over FY23 and FY24. The slate of movies includes Rocky Aur Rani Ki Prem Kahani (Ranveer Singh), Zara Hatke Zara Bachke (Vicky Kaushal), Rolla ((Vicky Kaushal), Maidaan (Ajay Devgn), Tippa (Vijay Deverkonda movie), Prithviraj Sukumaran film, two Vijay films, Ajith film in Tamil and Mammootty film.
New Segment of live events
The company has entered into the events business (mainly for musical events) and talent management business (whereby it will nurture young talents and provide opportunities in big production projects, subsequently banking on commission income the talent earns in the future).
During Q3FY23, two concerts of Diljit Dosanjh were held in Mumbai and Jaipur in Q3FY23. Saregama Live Stage Adaptation of Bollywood’s iconic film – Disco Dancer premiered in London. Six live shows were held during Q3FY23.
But this segment is a low-margin business for the company. It has guided for 32-33% of OIBCID Margin ahead due to likely change in the business mix with higher contributions from low-margin events business. If it is a low-margin business, why is the company getting into it?
To which the company explained in its con call:
“What it does is that when an artist comes to know that not only can he sing songs for Saregama, but he can also do Live Concerts with Saregama, then the artist wants to work with the company that much more than he wants to work with the competition”.
“The competition may be offering only songs and nothing else. That’sThat’s our main edge. So multiple artists are now reaching out to us and saying, listen, we want to give you our songs, maybe at a discount, but can you also do something on the live business with us? So, it’s just building synergies”.
Financials
| Company | Share Price(Rs) | Market Cap (Cr) | Sales growth 5 years ( CAGR %) | Profit growth 5 years ( CAGR %) | Average ROE for 5 yrs (%) | Average ROCE for 5 yrs (%) |
| Saregama India Ltd | 329 | 6,342 | 21.60% | 78.50% | 15.20% | 21.20% |
Dur to solid financials, Saregama finds its place in the list of best stocks under 500.
Technicals
The company is forming ascending triangle and currently it is in its support zone and good point to enter right now.
Laxmi Organic
Established in 1989, another one in the list of best stocks under 500, Laxmi Organic Industries Ltd is a speciality chemical manufacturer that operates in 2 business segments-
- Acetyl Intermediates (AI)
- Specialty Intermediates (SI)
It is India’s largest producer of Acetyl Intermediates, with a capacity of 2,32,000 MTPA. The company is also the largest exporter of Acetyl Intermediates in India. These Acetyls are used as intermediates in various applications such as solvents, adhesives, water-based paints, pharmaceuticals, dyestuff, and emulsifiers. Company being a market leader is an unfair advantage and positive as per stock market courses in Chennai.
Laxmi Organic Industries holds the largest market share of the domestic Specialty Intermediaries business. The company is also the only significant integrated Diketene manufacturer, making it a preferred partner for customers. Diketene produces different agrochemicals, such as pesticides, insecticides, and others. These agrochemicals are rigorously used to prevent crops from weeds & pests. Hence, the growing demand for food and crop production will boost the demand for diketene.
Since its commencement in 2011, the company has quadrupled the number of products it manufactures and increased its production capacity for Diketene and derivatives. Moreover, the product offerings have been steadily ascending the value chain.
New segment
The company is now entering a new segment, which is Fluoro-Specialty Intermediaries. This vertical has highly complex chemistry and limited competition. The products being developed have diverse and growing applications across industry segments with the potential to enter new customer segments. The production will commence in Q4 FY23.
The company acquired 92 acres of land during the quarter, which will be used primarily for expanding speciality Intermediates and Fluoro-specialty Intermediates with commencement by FY25.
Going ahead, the company has a clear vision to expand the speciality type business and capex in the AI business will be less than 10%.
The strategy in SI is import substitution, while in FI, the company is working on 10-12 products within the 100-product portfolio acquired from Miteni, which are at various stages of qualification with the customers.
Long-term relationships with globally diverse customers and suppliers
Laxmi Organic Industries has a large, diversified customer base across high-growth industries. It has marquee clients such as Alembic Pharma, Dr Reddy’s Lab, Laurus Labs and UPL Ltd., to name a few.
Financials
| Company | Share Price(Rs) | Market Cap (Cr) | Sales growth 5 years ( CAGR %) | Profit growth 5 years ( CAGR %) | Average ROE for 5 yrs (%) | Average ROCE for 5 yrs (%) |
| Laxmi Organic | 271 | 7,176 | 23.40% | 29.00% | 18.80% | 21.10% |
With such good financials, Laxmi Organic Industries finds its place in the list of best stocks under 500. Also, being one of the favorites of Harsh Goela, this stock is also a good stock as per stock market courses in Chennai.
Technicals
The company has got recently listed hence there is no technical and has outperformed nifty despite falling so steeply.
Orient Electric
The next one in the list of best stocks under 500 is one of the leading Indian consumer electrical brands. Orient Electric has a diverse portfolio of fans, lighting, home appliances and switchgear. Under this segment, the company manufactures a range of products like fans, air coolers, water heaters, kitchen appliances, etc. It is the largest manufacturer and exporter of fans in India. It also has more than 60% market share in exports.
Established market position in the fans segments with solid brand recall
The company is among the top three players in the organised fans industry and the largest exporter of fans from India. It has a strong presence in West Asia and Africa and exports selected product categories to the USA and European countries. The company sells its products under the well-known ‘Orient Electric’ brand. It has spent around 3-4% of its net sales on advertising and promotion activities. The company has a pan-India presence. Its products are sold through a vast distribution network of around 5,000 dealers and 1,25,000 retail outlets nationwide. The company also sells its products through leading online marketplaces.
Diversified product portfolio
The company operates in two broad segments – Electrical Consumer Durables (ECD) and Lighting & switchgear. Over the years, it has diversified into various products and on a y-o-y basis, the concentration in fans has been reducing. In the ECD division, the company sells ceiling fans, portable and airflow, components and accessories, and appliances – air coolers, geysers, home appliances, etc. The segment contributed about 73.5% of the total sales in FY22.
The company also has an exclusive strategic partnership with De’longhi group, Italy, since FY19 to market and sell its premium international brands in India (i.e., De’longhi, Kenwood and Braun). De’Longhi, Kenwood and Braun have a strong product basket for small household appliances in coffee preparation, food preparation and cooking, cleaning and ironing and home comfort.
Distribution realignment starts to deliver
The company has implemented a direct-to-market strategy in four states, yielding 60% YoY revenue growth for Q3. This strategy will be implemented in Andhra Pradesh and Telangana by end-Q4. The company estimates that it has captured 25% of the potential market in states where the distribution realignment is complete and sees scope to expand market share further.
The company used to sell products through distributors but is now gradually selling products directly to customers. This new approach should result in an improvement in margins in the long term.
Increase in premium fan sales
The company has four broad categories of fans – (i) basic (white and brown fans), which contribute roughly half of the business, (ii) premium – priced at Rs 5,000+ (10% of revenue), (iii) BLDC (10%), and (iv) decorative (30%). The share of premium fans is steadily improving and is guided to accelerate further with mandatory Bureau of Energy Efficiency (BEE) norm upgrades.
Financials
| Company | Share Price(Rs) | Market Cap (Cr) | Sales growth 5 years ( CAGR %) | Profit growth 5 years ( CAGR %) | Average ROE for 5 yrs (%) | Average ROCE for 5 yrs (%) |
| Orient Electric Ltd | 222 | 4,724 | 63.10% | 60.70% | 26.20% | 31.50% |
Due to such high potential in this company and dominating market share, it finds itself in the list of best stocks under 500. With its great numbers, it also becomes one of thebestinvestment candidates as per stock market paid course.
Technicals
The company has just recently broken its long-term support hence no buy signal for now.
IDFC First Bank (As this company is the banking space the financial criteria won’t apply here)
You would be puzzled to see IDFC First Bank in the list of best stocks under 500. IDFC FIRST Bank came to the world by merging Erstwhile IDFC Bank and Erstwhile Capital First on December 18, 2018.
Erstwhile IDFC Bank started its operation as a Bank after being demerged from IDFC Ltd, a premier, successful infrastructure Financing Domestic Financial Institution since 1997. The loan assets and borrowings of IDFC Limited were transferred to IDFC Bank at the inception of IDFC Bank.
Erstwhile Capital First has been a successful consumer and MSME financing entity since 2012. It has a strong track record of growth, profits, and asset quality. On the merger, the bank was renamed IDFC FIRST Bank.
Strong Promoter group
Mr V. Vaidyanathan, who is currently the MD and CEO of IDFC First Bank, was the one who built ICICI Bank’s Retail Banking business from 2000-2009. He was then the CEO and MD of the famous ICICI Prudential Life Insurance Company in 2009-10. He quit the ICICI group for an entrepreneurial foray. He took a stake in an existing NBFC. Then he secured an equity backing of Rs. 8.10 billion from Warburg Pincus and went on to found Capital First Limited. A good promoter group is a symbol of a strong company as per stock market courses online free with certificate.
Capital First was a successful NBFC, growing its loan book and net profits at a 5-year CAGR of 29% and 56%, respectively, with stable asset quality of Gross NPA of <2% and Net NPA of <1% for nearly a decade.
CASA ratio
CASA is the cheapest source of funds for the bank. The CASA ratio has been stable at 50%. The company has reduced its deposit rates from 7% to 4%. Despite this, deposit growth continues to be strong. The company, to attract customers, offered a rate of 7%.
The deposits growth has been exceptional. The total Customer Deposits (Retail Deposits + Wholesale Deposits) have grown enormously by 4 Year CAGR (Mar-19 to Mar-23) of 36%.
Reduction in Infrastructure financing book
In the last five years, the infrastructure financing book as % of overall Loans & Advances has decreased from 36.7% to 2.9% as of March 31, 2023.
NPA numbers reduce
The Gross NPA numbers have drastically reduced from 4.01% in FY21 to 1.65% in FY23, and Net NPA numbers decreased from 1.90% in FY21 to 0.55% in FY23. It is a good sign for a bank as per stock market course in Noida.
Reduction in cost to income ratio
Bank has reduced the Cost to Income ratio from 95% to 72% in 4 years, and it is expected to drop further. During the last three years, the bank invested significantly in building liabilities and credit card franchises. Despite this, the cost-income issue has come down from 95% to 72% because of the bank’s solid incremental unit economics, which allows the bank to make investments.
Improvement in ROA and ROE
We can see consistent improvement in ROE from 5.44% in Q3FY22 to 13.45% in Q4FY23 and ROA from 0.64% in Q3FY22 to 1.41% in Q4FY23. It is also a good sign for a bank as per stock market course in Noida.
Because of its potential, IDFC First finds itself in the list of best stocks under 500.
Technicals
If the company breaks its resistance Rs 69.40 then there can be strong bullish momentum so have watch until then.
Conclusion
Because these are high risk, high growth business, only investors who are willing to risk ought to consider it. If you’re not ready to risk their money and invest in the best stock market courses in Delhi. Knowing the basics before investing is essential!
