Top Stocks Under Rs 4000: Many investors look out for stocks with higher share prices, the reasoning being that they have lower volatility. While we shall not be testing the authenticity of this claim, we’ll surely provide you with a list of top stocks trading at high quotations. In this article, we present the top stocks under Rs 4000.
Below we have covered companies from different sectors. Three of them have given eye-popping returns to their investors in the last five years. One of the five is expected to perform better in the coming years as the auto industry turns around.
So without further ado, let us jump in.
Top Stocks Under Rs 4000
There are many stocks listed on NSE and BSE for a share price under 4000. Here is a list of top stocks under Rs 4000
Top Stocks Under Rs 4000 #1 – Info Edge
Founded in 1995 by Sanjeev Bikhchandani, Info Edge (India) is a consumer internet company that owns and operates multiple businesses. It runs:
- Naukri.com, a classified recruitment online business
- Jeevansathi.com, an online match-making portal
- 99acres.com, an online real estate search portal
- Shiksha.com, an online education classifieds
The technology company has 4,805 employees in 62 offices located in 43 cities across India.
Additionally, the management has also shaped the business as an investment company by providing funding to early-stage companies and startups. Info Edge has investments in Zomato, Policybazaar, Meritnation, Adda247, Happily Unmarried, and more companies.
Info Edge is a debt-free stock with a high return on capital and returns on equity ratios. Its stock has appreciated at a CAGR of 27.60% every year over the past five years.
| CMP | ₹3,775 | Market Cap (Cr.) | ₹48,700 |
| EPS | ₹992 | Stock P/E | 16.6 |
| ROCE | 24.3% | ROE | 21.8% |
| Face Value | ₹10.0 | Book Value | ₹1,339 |
| Promoter Holding | 38.1% | Price to Book Value | 2.84 |
| Debt to Equity | 0 | Dividend Yield | 0.35% |
| Net Profit Margin | 157% | Operating Profit Margin | 28.1% |
Top Stocks Under Rs 4000 #2 – Britannia Industries
The Wadia Group owned-Britannia is one of the nation’s leading FMCG companies. It comes with a legacy of over 100 years and owns renowned brands such as Good Day, Tiger, NutriChoice, Milk Bikis, and Marie Gold. It has a presence in over 60 countries.
The FMCG giant manufactures and sells biscuits, dairy products, bread, cakes, rusks, creme wafers, and croissants.
Its diary business contributes to almost 5% of the company’s revenue. Britannia Bread is the largest organized bread brand in India. The company sells 1 million loves daily in over 100 Indian cities and towns.
The revenues of Britannia have grown at a CAGR of 7.5% every year from Rs. 9,914 crores in FY18 to Rs. 14,136 crores in FY22. It has maintained a high dividend payout ratio of 89%, 204%, and 60% in FY22, F21, and FY20 respectively.
| CMP | ₹3,787 | Market Cap (Cr.) | ₹91,000 |
| EPS | ₹61.1 | Stock P/E | 62.2 |
| ROCE | 41.5% | ROE | 49.7% |
| Face Value | ₹1.0 | Book Value | ₹106 |
| Promoter Holding | 50.6% | Price to Book Value | 35.7 |
| Debt to Equity | 0.97 | Dividend Yield | 1.50% |
| Net Profit Margin | 10.7% | Operating Profit Margin | 15.6% |
Top Stocks Under Rs 4000 #3 – Bajaj Auto
Bajaj Auto is India’s largest motorcycle exporter and the world’s largest three-wheelers manufacturer. It started as a trading company in 1945. It imported and marketed two-wheelers and three-wheelers in the nation. Later in 1959, Bajaj obtained a license to manufacture the vehicles.
Fast forward to today, the automobile company has a presence in over 70 countries.
In FY22, it sold 1,632,897 motorcycles in India commanding an 18.2% market share. As for three-wheelers, it sold a total of 160,599 units gaining a majority market share of 61.5% (passenger and cargo combined).
The company also manufactures renowned KTM & Husqvarna motorcycles at its plant in Maharashtra in a joint venture with KTM, a premium European motorcycle brand.
To ramp up its EV efforts, Bajaj Auto recently committed Rs. 300 crores towards manufacturing 500,000 EV units every year. A small investment in electric scooter rental startup Yulu is another EV initiative by the company. It also manufactures scooters for the startup.
| CMP | ₹3,626 | Market Cap (Cr.) | ₹105,000 |
| EPS | ₹202 | Stock P/E | 18.7 |
| ROCE | 23.4% | ROE | 19.0% |
| Face Value | ₹10.0 | Book Value | ₹900 |
| Promoter Holding | 53.8% | Price to Book Value | 4.06 |
| Debt to Equity | 0 | Dividend Yield | 3.84% |
| Net Profit Margin | 16.4% | Operating Profit Margin | 15.9% |
Top Stocks Under Rs 4000 #4 – Divis Laboratories
Divi’s was started over 3 decades ago in Hyderabad by Murali Divi. Over the years, it emerged as one of the top Indian pharmaceutical companies and one of the top 3 API manufacturers globally.
It has two manufacturing facilities with a combined production capacity of approx. 14000 m3. It has a workforce of over 16,500 employees across three countries. Additionally, the pharma company has a strength of 400 scientists working in its three research and development centers.
Divis Laboratories has three business segments: generic APIs, custom synthesis, and nutraceuticals. As a world leader in more than 10 generic APIs, it supplies the ingredients to clients in more than 95 countries.
Its range of highly customized technology solutions for big pharmaceutical players includes late life cycle APIs, registered starting materials, and advanced intermediates.
It has been one of the fastest-growing pharmaceutical companies in the country. It grew its revenues at a CAGR of 18.18% from FY18 to FY22. During the same period, its stock appreciated at an annual rate of an impressive 32.66% generating multi-bagger returns for its shareholders.
| CMP | ₹3,587 | Market Cap (Cr.) | ₹95,000 |
| EPS | ₹117 | Stock P/E | 30.6 |
| ROCE | 35.1% | ROE | 28.2% |
| Face Value | ₹2.0 | Book Value | ₹442 |
| Promoter Holding | 51.9% | Price to Book Value | 8.11 |
| Debt to Equity | 0 | Dividend Yield | 0.83% |
| Net Profit Margin | 33.1% | Operating Profit Margin | 43.4% |
Top Stocks Under Rs 4000 #5 – L&T Technology Services
L&T Technology Services (LTTS) Ltd. is a publicly listed subsidiary of Larsen & Toubro (L&T) Ltd, an Indian conglomerate with operations in over 30 countries. LTTS was founded in 2006 as an engineering arm of L&T.
Later it was demerged in 2013 from the parent company. It went public in 2016. Slowly the company also entered into technological development for other companies.
As of today, LTTS is a technology and engineering services provider to a broad range of industries including oil & gas, media & entertainment, healthcare, industrial products, telecommunications, semiconductors, and more.
The company provides four types of services: product engineering, manufacturing engineering, operations engineering, and engineering consultancy.
Being in the services industry, LTTS has a very low debt-to-equity ratio of only 0.11. In the last five years, LTTS’ stock has given an impressive return of 34.78% to its shareholders every year compounded annually.
| CMP | ₹3,589 | Market Cap (Cr.) | ₹38,000 |
| EPS | ₹96.30 | Stock P/E | 37.3 |
| ROCE | 30.8% | ROE | 24.5% |
| Face Value | ₹2.0 | Book Value | ₹394 |
| Promoter Holding | 73.9% | Price to Book Value | 9.08 |
| Debt to Equity | 0.11 | Dividend Yield | 0.70% |
| Net Profit Margin | 14.3% | Operating Profit Margin | 21.5% |
List of Top Stocks Under Rs 4000
The table below presents a list of top stocks under Rs 4,000 along with their industry, market capitalization, and share price.
| Company Name | Industry | CMP (Rs.) | Market Cap (Rs. Cr.) |
|---|---|---|---|
| Info Edge (India) | Technology | 3,775 | 49,000 |
| Britannia Industries | FMCG | 3,787 | 91,000 |
| Bajaj Auto | Automobile | 3,626 | 105,000 |
| Coforge | IT Services | 3,769 | 23,000 |
| Persistent Systems | IT Services | 3,633 | 28,000 |
| Divis Laboratories | Pharmaceuticals | 3,587 | 95,000 |
| L&T Technology Services | IT Services | 3,589 | 38,000 |
| Hitachi Energy India | Electric Equipment | 3,385 | 14,500 |
| Mindtree | IT Services | 3,325 | 55,000 |
| Adani Enterprises | Diversified | 3,211 | 365,000 |
In Conclusion
In this article, we looked at some of the top stocks under Rs 4000. While it might be a good strategy to filter companies on the basis of their stock price and market capitalization, it should not be the only metric for investment decisions.
Along with this, investors should perform a holistic analysis of the companies in which they want to invest their hard-earned money.
As an investor, at what stage of your investment journey are you? How do you go about picking investment-worthy ones from that sample? How about you let us in the comments below?
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