Best Stocks Under ₹100 for Long-Term Investment in India

Many new investors in India think that if a stock price is low, it is cheap. But that is not always true. A stock at 90 can be costly if the company is not doing well. And a stock at 2000 can be cheap if the company is very good. Still, stocks under 100 are attractive because you can buy more shares with less money. This is good for small investors who want to start their journey.

In this article, we will talk about best stocks under 100 for long term investment. Long term means holding for 5 years or more. We will also look at government stocks under 100, fundamentally strong stocks, and multibagger stocks below 100. But we will not give any buy or sell advice. You must talk to your financial advisor before putting money in any stock.

What Does Long Term Mean in Indian Stock Market?

Long term in stocks does not mean one month or one year. It means at least 5 to 7 years. When you stay in a good company for long term, the company grows. Its sales grow. Its profit grows. And slowly the stock price also grows. This is how wealth is made in the stock market.

Many people lose money because they buy a stock today and want to sell next week for profit. That is gambling, not investing. For long term, you must choose companies that do real business. They should make things or provide services that people need every day. These companies survive ups and downs of the market.

How We Picked These Stocks – Simple Rules?

We did not pick random stocks. We used four simple rules that any common person can understand.

1. First rule – The company must have made profit in the last 5 years. If a company keeps losing money, it cannot give you returns.
2. Second rule – The company should not have too much loan. Less loan means the company is safe. Too much loan means the company may break if business slows down.
3. Third rule – The company sales must be growing every year. If sales are growing, the company is doing well. If sales are falling, stay away.
4. Fourth rule – The stock price must be below 100 on National Stock Exchange or Bombay Stock Exchange today. We checked the price before writing this article.

Using these rules, we found some companies that are strong. We will now tell you about them one by one.

Read More: Top Cybersecurity Stocks in India for Big Growth 2026

Top 10 Best Stocks Under 100 for Long Term Investment

Here is our list. We have kept only those companies that are easy to understand. Their business is simple. You do not need a finance degree to understand what they do.

1. Coal India Limited

Coal India is a government company. It is the largest coal producer in the world. The Government of India owns more than 66 percent of this company. This makes it one of the top government stocks under 100. The stock price is near 80 to 90. Coal India pays dividend every year. Dividend means the company gives a part of its profit to shareholders. In the last 5 years, Coal India has given more than 40 percent dividend yield. That is very good for long term.

The company has almost no loan. Sales are stable because India needs coal for electricity. Even with green energy coming, coal will be needed for next 20 years. This is a safe long term stock for patient investors.

2. NTPC Limited

NTPC is another government company. It makes electricity. NTPC is the largest power company in India. Stock price is usually between 90 and 100. Sometimes it goes above 100 but falls back. For long term, buying near 95 is good. NTPC is expanding into solar and wind power. So it is not only coal power.

This helps the company stay relevant in future. NTPC has very small loan compared to its size. It pays dividend regularly. In the last 10 years, NTPC has never missed a dividend. This is a fundamentally strong stock under 100 rupees. You can keep it for 10 years without tension.

3. Power Finance Corporation

Power Finance Corporation gives loans to power companies in India. It is a government company. Stock price is around 80 to 100. Many people do not like this stock because it is a lender. But PFC has recovered most of its loans. The company makes good profit every year. In the last 3 years, profit has grown more than 25 percent every year. That is very strong growth. PFC also gives high dividend. The current dividend yield is near 8 percent.

That is higher than fixed deposits in banks. For long term, this is one of the best government stocks under 100. The government will not let this company fail because it funds power projects across India.

4. Indian Oil Corporation

Indian Oil is the largest oil company in India. It is a government company. Stock price is below 100 most of the time. Indian Oil runs petrol pumps, refineries, and pipelines. Every Indian uses Indian Oil directly or indirectly. The company makes stable profit. Some years profit is low because oil prices go up and down.

But over 5 years, the average profit is good. Indian Oil gives dividend every year. Sometimes it gives bonus shares. Bonus shares mean you get extra shares without paying money. This is a safe stock under 100 for long term. It will not become a multibagger in 2 years. But it will grow slowly and give dividend income every year.

5. SAIL (Steel Authority of India Limited)

SAIL is a government steel company. It makes iron and steel for buildings, bridges, and trains. Stock price is between 70 and 100. SAIL was not doing well for many years. But in the last 3 years, the company has become better. They reduced loan. They increased production. Now SAIL is making profit again.

If India builds more roads, railways, and houses, SAIL will grow. This is a risky stock compared to Coal India or NTPC. But for long term, it can give good returns. Keep only 5 percent of your total money in SAIL. Do not put all money here.

6. NALCO (National Aluminium Company)

NALCO is a government company that makes aluminium. Aluminium is used in cars, wires, and packing. Stock price is below 100 most of the time. NALCO has very low loan. The company also has its own mines. That means they do not have to buy raw material from outside. This saves money. NALCO pays dividend every year.

In the last 5 years, NALCO has given more than 30 percent dividend. This is a good fundamentally strong stock under 100 Rs. Aluminium prices go up and down in the world market. But over long term, the demand for aluminium will only grow. So NALCO is a good choice for patient investors.

7. NHPC Limited

NHPC is a government company that makes hydro power. Hydro power means electricity from water. NHPC runs dams on rivers in North India. Stock price is near 40 to 50. That is very low. But the company is good. NHPC has almost no loan. It makes stable profit every year.

The problem is that hydro power grows slowly. You cannot build many dams every year. So NHPC will not become a multibagger stock below 100 Rs quickly. But it will give dividend every year. For older people who want regular income, NHPC is good. For young people who want fast growth, look at other stocks in this list.

8. ONGC (Oil and Natural Gas Corporation)

ONGC is a government company that finds and produces oil and gas. Stock price is between 70 and 100. ONGC is one of the biggest companies in India. But its stock price is low because the government takes most of the profit as tax and dividend. Still, ONGC is a very safe stock. The company has no loan problem.

It pays dividend every year. In some years, the dividend is very high. For long term, ONGC will not make you rich quickly. But it will protect your money. It will give regular income. This is a good stock to keep in your parents or grandparents portfolio.

9. Bank of Maharashtra

Bank of Maharashtra is a government bank. Stock price is near 40 to 60. In the past, government banks were not good. They had many bad loans. But in the last 3 years, Bank of Maharashtra has improved a lot. The bank is now making good profit. Bad loans are very low compared to other government banks.

The bank is opening new branches in many states. If you believe the Indian economy will grow, banks will grow. This is one of the best stocks under 100 for long term if you want to take some risk. But remember, bank stocks go up and down fast. Do not panic if price falls 10 or 15 percent.

10. HUDCO

HUDCO is a government company that gives loans for housing and urban development. Stock price is below 100. HUDCO is a small company compared to Power Finance Corporation. But it is growing fast. In the last 2 years, profit has grown more than 20 percent every year. The government wants to build more houses for poor people.

HUDCO gives money for these projects. So the demand for HUDCO loans will stay strong. This is a good multibagger stock below 100 Rs for the next 5 to 7 years. But only if you have patience. Do not expect it to go up in 6 months. Think in years, not months.

Top Government Stocks Under 100 – A Special List for Safety

Some people only want government stocks. Government stocks are safer because the government will not let them close easily. They may not grow very fast, but they will not fall to zero. Here is a quick list of the top government stocks under 100 for long term.

• Coal India – safe, high dividend
• NTPC – stable, growing into solar power
• Power Finance Corporation – high dividend, growing profit
• Indian Oil – everyday business, stable
• SAIL – risk but good for long term
• NALCO – low loan, good dividend
• NHPC – slow but very safe
• ONGC – steady income
• Bank of Maharashtra – improving government bank
• HUDCO – small but growing fast

If you are new to stock market, start with these government stocks under 100. Keep them for 5 years. You will not lose money easily. You may also get dividend income every year.

Fundamentally Strong Stocks Under 100 Rs 

Many people ask about fundamentally strong stocks under 100 Rs. But what does fundamentally strong mean in simple words? It means the company has good health. Just like a healthy person does not fall sick often, a healthy company does not fall in bad times.

A fundamentally strong stock under 100 rupees will have three things.

First – The company debt is less than half of its yearly profit. For example, if company profit in one year is 100 crore rupees, the loan should be less than 50 crore rupees. This rule is simple. If a company has too much loan, stay away.

Second – The company sales have grown every year for the last 5 years. Even if growth is small, it should be positive. Sales falling is a big danger sign.

Third – The company has not changed its business many times. Some companies keep changing their business. One year they sell clothes, next year they make software. These companies are not stable. Only choose companies that have done the same business for many years.

In our list above, Coal India, NTPC, NALCO, and HUDCO are good examples of fundamentally strong stocks under 100 Rs. They pass all three rules easily.

Multibagger Stocks Below 100 Rs for Long Term 

Multibagger means a stock that grows 3 times, 5 times, or even 10 times over many years. Everyone wants multibagger stocks below 100 Rs. But be careful. Multibagger stocks are not always safe. They take more risk to give more return.

In our list, three stocks have multibagger chance.

1. HUDCO – Small size, growing fast, government support. If housing and urban development continues, HUDCO can become 3 times in 7 years.
2. Bank of Maharashtra – Bad loans are down, profit is up. If the bank keeps improving, the stock can grow 3 to 4 times.
3. SAIL – Steel is needed for all big projects. If SAIL reduces loan more and increases sales, the stock can surprise many people.

But remember, do not put all your money in multibagger stocks below 100 Rs. Keep most of your money in safe stocks like Coal India and NTPC. Keep only 20 percent of your total money in multibagger stocks.

You May Also Read: Top 10 AI Stocks With Long Term Growth Potential in India and Globally (2026 Guide)

Risks of Buying Stocks Under 100

Not all stocks under 100 are good. Many are very bad. They look cheap but become cheaper. Some stocks under 100 are from companies that will close down in a few years. So you must be careful.

Here are the biggest risks.

Risk one – Low price does not mean cheap. A stock at 80 can be costly if the company makes very low profit. A stock at 500 can be cheap if the company makes very high profit. Always compare price with profit. This is called P/E ratio. Simple rule – if P/E is above 30, the stock is costly. If P/E is below 15, the stock is cheap.

Risk two – Many low price stocks do not pay dividend. That means even if you hold for many years, you get no income. Only capital gain. And capital gain is not guaranteed.

Risk three – Low price stocks fall faster when market crashes. In 2020 when COVID came, many stocks under 100 fell 50 to 70 percent. Good quality stocks also fell but they came back up quickly. Bad low price stocks never came back up.

Risk four – Some companies do stock split or bonus to keep price below 100. This is a trick. The company is not good. They just make the price look low. Do not fall for this.

To avoid these risks, always check the four rules we gave earlier. Profit for last 5 years, low loan, sales growing, and business is simple.

How Many Shares Should You Buy of Stocks Under 100?

This is a very common question from Indian small investors. They have 10,000 rupees or 20,000 rupees and wat to buy stocks under 100. But do not think that buying more shares is better. Quality is more important than quantity.

If you have 10,000 rupees to invest, do not put all in one stock. Buy 3 or 4 different stocks from our list. Put 2,500 rupees in each. And do not buy all shares today. Buy a few shares every month. This is called systematic buying. This way you do not buy everything at high price.

For example, if you like Coal India, buy 10 shares this month at 90. Next month if price is 85, buy 10 more. If price goes to 95, still buy 10. Over one year, your average price will be good. This is the safe way to invest in stocks under 100 for long term.

How to Track Your Stocks Under 100 After Buying?

Buying is only the first step. After you buy a stock under 100, you must track it. Not every day. Not every week. But once in 3 months.

Open the company quarterly report. Do not get scared by big words. Just look at three numbers.

1. First number – Sales. Is sales higher than last year same quarter? If yes, good. If sales is falling for two quarters in a row, then worry.
2. Second number – Profit. Is profit higher than last year? If yes, good. If profit is falling but sales is growing, maybe company spent more money. Check again after next quarter.
3. Third number – Loan. Has loan increased too much? If loan has doubled in one year, that is bad.

If all three numbers are good for 3 or 4 quarters, you can buy more of that stock. If numbers are bad for two quarters in a row, think about selling. But do not sell in a panic. Give the company 2 or 3 quarters to fix things.

Common Mistakes People Make With Stocks Under 100

We see many small investors make the same mistakes again and again. Learn from their mistakes so you do not lose your money.

Mistake one – People see a stock at 20 and think it is very cheap. They buy many shares. But the company is bad. After one year, stock goes to 5. They lose 75 percent of their money. Never buy a stock only because price is very low.

Mistake two – People hear a tip from their friend or a WhatsApp group. They buy without checking anything. Most WhatsApp tips are fake. Some people want to sell their shares to you at high price. Never buy from a tip. Always do your own simple check.

Mistake three – People buy a stock under 100 and expect it to become 200 in 6 months. When it does not happen, they sell in anger. This is the worst mistake. Long term means 5 to 7 years. Give the company time to grow.

Mistake four – People put all their money in one stock under 100. If that stock falls, their whole portfolio falls. Always spread your money in 5 to 6 different stocks from different sectors. One power stock, one bank stock, one oil stock. This way, if one sector does badly, other sectors may do well.

Final Words 

Yes, it is good if you choose the right companies. The Indian stock market has many good companies with price below 100. Many of them are government companies that pay dividend every year. Some are fundamentally strong companies that will grow with the Indian economy.

But do not think that all stocks under 100 are gold. Some are garbage. You must do your own simple check. Use the four rules we gave. And take help from a registered financial advisor before buying any stock.

Also remember, the stock market goes up and down. Sometimes you will see your stocks under 100 falling 20 percent in one month. Do not panic. If the company is good, the price will come back up. Long term investors have seen this many times. In 2008, in 2013, in 2020, markets fell badly. But people who held good stocks for 10 years made very good money.

So be patient. Do not check your stock price every day. Do not listen to TV news that says market will crash. Do not sell in fear. Keep buying good stocks under 100 slowly over many months. After 5 or 7 years, you will look back and be happy that you started today.