Are you primarily interested in stocks with high prices? Do you want to prevent having your portfolio experience erratic price changes brought on by cheaper stocks? Is Rs. 8000 a high enough bar, in your opinion? We discuss the best stocks under Rs 8000 in this post, which you may add to your watchlist.
Top Stocks Under 8000 Rupees for your Portfolio
We’ve compiled a list of the best stocks under Rs 8000. In this essay, we examine their background, operations, and important ratios. In certain cases, we also keep track of how they have changed over the last five years.
So let’s get started right now.
1. Bajaj Finance Ltd.
The loan and investing division of the Bajaj Finserv group is called Bajaj Finance Ltd. The firm was originally started in 1987 as Bajaj Auto Finance, a lender of automobiles. It gradually expanded into lending for real estate and consumer durables. Later in 2010, Bajaj Auto Finance’s name was changed to Bajaj Finance.
It is a diverse NBFC that serves more than 38 million clients nationwide. It concentrates on clientele in the wealthy class. Due to the organization’s ability to effectively cross-sell, Bajaj Finance is one of the most successful businesses in this field.
The non-bank provides goods and services in consumer finance, commercial lending, corporate finance, investment, and SME financing. With a large distribution network of more than 1,02,600 operational points of sale, it has a strong presence over all of India in 1,997 locations.
In the previous five years, Bajaj Finance’s AUM has increased at a remarkable pace of 19.02% annually, from Rs. 82,422 crore in FY18 to Rs. 1,97,452 crore in FY22. In the same time frame, its operating income increased by 19.93% annually to Rs. 31,648 crores.
In FY22, the NBFC reported an outstanding 4.2% return on assets and a 17.4% return on equity. Additionally, it had a net NPA of 0.68%, which earned its asset quality an A+.
2. UltraTech Cement Ltd.
The Aditya Birla Group’s main cement firm, UltraTech Cement, is the biggest producer of ready-mix concrete (RMC) and grey cement in the country as well as one of the top producers of white cement.
It was started in the middle of the 1980s. The business has expanded both organically and inorganically throughout the years.
The company’s installed production capacity for grey cement is 119.95 million tonnes per year (MTPA). It contains 28 grinding units, 1 clinkerization unit, 22 integrated manufacturing facilities, and 8 bulk packaging terminals.
UltraTech announced a large capital investment of Rs. 12,886 crores for brownfield and greenfield projects in June of this year. By FY24 and FY25, the business plans to produce 137 MTPA and 159.25 MTPA, respectively.
For a large-cap firm, its revenue growth from Rs. 30,979 crores in FY18 to Rs. 52,599 crores in FY22 was excellent, with a CAGR of 12.41%. In the same time frame, net profits increased even more quickly, increasing at an annual rate of 26.95% from Rs. 2,224 crores in FY18 to Rs. 7,334 crores in FY22.
With its strategically placed operations and extensive network of more than one lakh channel partners, UltraTech has a market reach of more than 80% nationwide.
3. Tata Elxsi Ltd.
The technology services division of the salt to software giant, the Tata Group, is called Tata Elxsi. It was established in 1989 and offers services for real development, validation, and deployment, as well as cutting-edge R&D in new technologies and system design.
AI, broadcast & media, automotive, and healthcare goods are among the company’s services. Research & strategy, product engineering, enterprise learning, and other services are included in its services package.
Leading customers from the rail, semiconductor, pharmaceutical, biotechnology, automotive, communications, healthcare, and other sectors are served by Tata Elxsi.
In the previous two years, its stock has returned an outstanding 347%, and over the last five years, it has returned an astounding 709%.
In terms of revenue growth, Tata Elxsi’s sales have increased annually over the previous five years at a CAGR of 12.26%. With excellent return on capital employed and return on equity ratios of 47.7% and 37.2%, respectively, it is essentially a debt-free stock.
4. Blue Dart Express Ltd.
The leading logistics firm in South Asia and not only in India is called Blue Dart Express Ltd. It provides quick air delivery services and serves over 35,000 sites throughout the country as an integrated transportation and distribution enterprise.
It can reach over 220 countries and territories thanks to its global express and logistics network and comprehensive variety of distribution services, including supply chain management, freight forwarding, air express, and customs clearing.
Additionally, Blue Dart has alliances with important Indian websites, making it a popular option for B2B and B2C eCommerce solutions.
The logistics firm has 85 sites in India with warehouses. It has a competitive advantage over the other businesses because to its homegrown cutting-edge technology for Track and Trace, MIS, ERP, Customer Services, and more.
Through its 2,347 facilities and capable 12,200 workforces, the business processed 263.28 million domestic and 0.862 million overseas exports in FY22.
The project began in November 1983. DHL Express acquired a majority 81.03% ownership in the business in 2002. In the end, the ownership was reduced in 2012. This was due to the fact that at the time, Blue Dart Express had a promoter stake of 75% owned by Singapore-based DHL Express.
5.Wendt India Ltd
Wendt (India) Ltd. was formed in 1980 as a partnership between Wendt GmbH and Carborundum Universal Ltd. (CUMI). Each party has a 37.5% interest in the business, bringing promoter ownership to a total of 75%.
Since the famous Murugappa Group owns Carborundum Universal, Wendt is also a Murugappa company. The group is the owner of well-known businesses including Tube Investments of India, EID Parry, Cholamandalam Investment and Finance Company, and Coromandel International.
Wendt produces a wide range of industrial goods, such as bonding and abrasives, grinding and honing equipment, precision goods, and other related goods. Its goods are used in the steel, ceramics, refractory, aerospace, and automotive sectors.
The maker of the industrial product is debt-free and has strong equity and capital return ratios of 17% and 23,4%, respectively. From Rs. 147 crores in FY18 to Rs. 179 crores in FY22, it increased revenues at a CAGR of 4.01% during the previous five years. However, within the same time frame, its earnings increased from Rs. 13 crores in FY18 to Rs. 27 crores in FY22, more than doubling.
Two outliers stood out in our analysis of the top stocks under Rs 8000. The other three businesses, with the exception of Blue Dart Express and Bajaj Finance, have little to no debt. Being an NBFC, it is essential for Bajaj Finance to have a high debt-to-equity ratio. Promoter ownership is at the top band of 75% in two enterprises.
However, why were these stocks trading at such high prices? Why didn’t these businesses divide their stock?
One explanation is that the management of these businesses wishes to prevent the ownership of small investors and the resulting erratic price swings. Would you mind sharing your thoughts in the comments section below?