Top Stocks Under Rs 8000: Are you looking for stocks with high prices specifically? Do you hope to avoid volatile price fluctuations in your portfolio brought in by lower-priced stocks? In your opinion Rs 8000 a high enough mark? In this article, we cover top stocks under Rs 8000 that you can add to your watchlist.
List of Top Stocks Under Rs 8000
We have put together a list of top stocks under Rs 8000. In this article, we look at their history, business, and key ratios. Additionally, in some instances, we also take note of how they have grown over the past 5 years.
So without further ado, let’s jump in.
|CMP||₹7,119||Market Cap (Cr.)||₹430,000|
|Face Value||₹2.0||Book Value||₹794|
|Promoter Holding||55.9%||Price to Book Value||8.93|
|Debt to Equity||3.81||Dividend Yield||0.29%|
|Net Profit Margin||22.3%||Operating Profit Margin||62.4%|
Bajaj Finance Ltd. is the lending and investment arm of the Bajaj Finserv group. The company traces its roots to 1987 when it was founded as an automobile financier known as Bajaj Auto Finance. It slowly diversified into consumer durables and property financing. Later in 2010, its name was changed from Bajaj Auto Finance to Bajaj Finance.
It is a diversified NBFC catering to more than 38 million customers across the country. It focuses on the affluent category of clients. The company’s structure allows it to cross-sell efficiently making Bajaj Finance one of the most profitable firms in this category.
The non-bank offers consumer finance, commercial lending, corporate finance, investment, and SME finance products/services. It has a strong pan-India presence in 1,997 locations with a wide distribution network of over 1,02,600 active points of sale.
The AUM of Bajaj Finance has grown at an impressive rate of 19.02% every year for the last five years from Rs. 82,422 crore in FY18 to Rs. 1,97,452 crore in FY22. During the same period, its income from operations compounded at an annual rate of 19.93% to Rs. 31,648 crores.
The NBFC posted an impressive return on assets of 4.2% in FY22 with a 17.4% return on equity. Additionally, its net NPA stood at 0.68% giving its asset quality a top-notch mark.
|CMP||₹6,713||Market Cap (Cr.)||₹194,000|
|Face Value||₹10.00||Book Value||₹1,784|
|Promoter Holding||60%||Price to Book Value||3.7|
|Debt to Equity||0.25||Dividend Yield||0.59%|
|Net Profit Margin||13.6%||Operating Profit Margin||21.9%|
The cement flagship company of the Aditya Birla Group, UltraTech Cement is the largest producer of grey cement & ready mix concrete (RMC) and one of the largest white-cement manufacturers of white cement in the nation.
It was established in the mid-1980s. Over the years the company has grown organically and inorganically.
The company has an installed manufacturing capacity of 119.95 Million Tonnes Per Annum (MTPA) of grey cement. It has 22 integrated production facilities, 27 grinding units, one clinkerisation unit, and 8 terminals devoted to bulk packaging.
UltraTech’s large network of more than one lakh channel partners along with its strategically located units give it a market reach of over 80% across the country.
In June this year, UltraTech announced a large capital expenditure of Rs. 12,886 crores for brownfield and greenfield projects. The company has planned production targets of 137 MTPA by FY24 and 159.25 MTPA by FY25 respectively.
For a large-cap company, it has grown its revenues at an impressive CAGR of 12.41% from Rs. 30,979 crores in FY18 to Rs. 52,599 crores in FY22. During the same period, the net profits grew even faster at an annual rate of 26.95% to Rs. 7,334 crores in FY22 from Rs. 2,224 crores in FY18.
Top Stocks Under Rs 8000 #3 – Tata Elxsi Ltd.
|CMP||₹6,998||Market Cap (Cr.)||₹43,500|
|Face Value||₹10.00||Book Value||₹272|
|Promoter Holding||44%||Price to Book Value||25.8|
|Debt to Equity||0.11||Dividend Yield||0.60%|
|Net Profit Margin||22.2%||Operating Profit Margin||31.0%|
Tata Elxsi is the technology services arm of the salt-to-software conglomerate the Tata Group. It was founded in 1989 and provides advanced R&D in new technologies, system architecture, actual development, validation, and deployment services.
The company’s range of services includes AI, broadcast & media, automotive, and healthcare products. As for its services portfolio, it offers research & strategy, product engineering, enterprise learning, and more.
Tata Elxsi caters to leading clients from automotive, communications, healthcare, rail, semiconductor, pharmaceutical, biotechnology, and other industries.
Its stock has given an impressive return of 347% in the last two years and a 709% return in the last 5 years.
As for its revenue growth, Tata Elxsi’s sales have grown at a CAGR of 12.26% every year in the last 5 years. It is virtually a debt-free stock with a high return on capital employed and return on equity ratios of 47.7% and 37.2% respectively.
|CMP||₹7,589||Market Cap (Cr.)||₹18,000|
|Face Value||₹10.00||Book Value||₹433|
|Promoter Holding||75%||Price to Book Value||17.5|
|Debt to Equity||1.04||Dividend Yield||0.79%|
|Net Profit Margin||9.2%||Operating Profit Margin||22.7%|
Blue Dart Express Ltd. is not only India’s but also South Asia’s premier logistics company. An integrated transportation and distribution company, it covers over 35,000 locations across the nation and offers express air delivery services as well.
With its worldwide express and logistics network, it is able to reach over 220 nations and territories by offering a broad range of distribution services: supply chain solutions, freight forwarding, air express, and customs clearance.
In addition to this, Blue Dart has partnered with major portals in India making it a preferred choice for B2B and B2C eCommerce solutions.
The logistics company has warehouses spread across 85 locations in India. Its indigenously developed state-of-the-art technology for Track and Trace, MIS, ERP, Customer Services, and more offers it a competitive edge over the other players.
In FY22, the company handled 263.28 million domestic and 0.862 million international shipments through its 2,347 facilities and strong 12,200 workforces.
It was started in November 1983. In 2002, DHL Express picked a majority 81.03% stake in the company. The stake was diluted eventually in 2012. This was because the then Singapore-based DHL Express had a promoter holding of 75% in Blue Dart Express.
Top Stocks Under Rs 8000 #5 – Wendt India Ltd.
|CMP||₹7,627||Market Cap (Cr.)||₹1,500|
|Face Value||₹10.00||Book Value||₹847|
|Promoter Holding||75%||Price to Book Value||9|
|Debt to Equity||0||Dividend Yield||0.85%|
|Net Profit Margin||14.5%||Operating Profit Margin||23.7%|
Established in 1980, Wendt (India) Ltd. is a joint venture between Wendt GmbH and Carborundum Universal Ltd. (CUMI). Each party holds a 37.5% stake in the company taking the total promoter ownership to 75%.
Carborundum Universal is owned by the renowned Murugappa Group making Wendt a house of Murugappa’s enterprise as well. The group owns well-known companies such as Coromandel International, EID Parry, Cholamandalam Investment and Finance Company, and Tube Investments of India.
Wendt manufactures various industrial products including bonds & abrasives, grinding machines, honing machines, precision products, and other allied products. Its products find applications in automobile, aerospace, steel, ceramics, and refractory industries.
The industrial product’s manufacturer is debt-free with high return ratios of capital at 23.4% and equity at 17% respectively. Over the last five years, it has grown its revenues at a CAGR of 4.01% from Rs. 147 crores in FY18 to Rs. 179 crores in FY22. However, during the same period, its profits more than doubled from Rs. 13 crores in FY18 to Rs. 27 crores in FY22.
List of Top Stocks Under Rs 8000
We covered five top stocks under Rs 8000 above. The table below lists more such companies with stock price trading below the Rs. 8000 mark.
|Company Name||Industry||CMP (Rs.)||Market Cap (Rs. Cr.)|
|Tata Elxsi||IT Services||6,998||43,500|
|Blue Dart Express||Logistics||7,589||18,000|
|Wendt India||Industrial Products||7,627||1,500|
|Bajaj Holdings & Investment||Finance||6,622||74,000|
|Fine Organic Industries||Chemicals||5,750||17,500|
In our study of top stocks under Rs 8000, two outliers emerged. Except for Blue Dart Express and Bajaj Finance, the other three companies have minimal or nil debt. Even for Bajaj Finance, it is imperative to have a large debt-to-equity ratio as it is an NBFC. Two companies have promoter holding at the upper band of 75%.
But why did these stocks trade at such high quotations? Why didn’t these companies conduct a stock split?
One narration can be that the management of these companies wants to keep the ownership concentrated to avoid small investors’ ownership and consequent volatile price fluctuations. How about you let us know your perspective in the comments below?
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Vikalp Mishra is a commerce graduate from the University of Delhi. He likes to write on finance, money and business. He is a voracious reader with a genuine interest in investing. Drop him a mail at [email protected]
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