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What is mc essentials in share market?

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Market Buzz. Investors await US poll outcome · Big Story. Big relief for homebuyers · Your Money. MF's overseas investment limit eased · Global

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Kabir Misra
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Answer # 2 #

Get all latest & breaking news on Mc Essential. Watch videos, top stories and articles on Mc Essential at moneycontrol.com.

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Sarthak Mammen
Love politics and food
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Moneycontrol Daily: Your Essential 7 Mrs Bectors Food shares to list on bourses. tags #MC essentials #moneycontrol daily. essential 7

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Kahaan Munshi
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Get all latest & breaking news on Mc Essentials. Watch videos, top stories and articles on Mc Essentials at moneycontrol.com.

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Krisha Agarwal
Bollywood Content Writer | Bollywood Blogger
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Looking for low-price shares in India, say – stocks under Rs. 100? In this article, we have drawn up several lists of the top 10 stocks under Rs. 100 based on various parameters such as debt, net profit margin, dividend, EPS, volume, return on equity and return on capital employed. So, let’s dive right into it!

Here are the best low-debt or debt-free stocks under Rs. 100.

Note: The information is dated 11th April 2023. We have listed the top shares below Rs. 100 based on the following parameters:

Debt is the money a company borrows from outside parties to fund its business. As with any loan, debt also comes with a cost – interest. Therefore, companies with low debt have lower interest payouts. This increases profit and gives access to more funds for growth/expansion. Although debt is not entirely bad, the lower, the better.

Note that zero debt doesn’t mean that the company has no liabilities at all. Debt and liabilities are distinct. Debt is a subset of liabilities. While debt is what the company owes to third parties, liabilities include accrued wages, accounts payable, income tax, and others. Since ‘credit’ is a way of doing business, a company can rarely be liability-free. Therefore, zero debt becomes a good point for evaluating a business.

Top three stocks having low debt:

Brightcom Group is a service company engaged in providing digital marketing services and developing computer software and services. It is a small-cap company with a market capitalisation of Rs. 3,733.16 cr.

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IDFC Limited is a non-banking finance company which is engaged in investing business. It is a small-cap company with a market capitalisation of Rs. 12,727.88 cr.

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Infibeam Avenues is engaged in providing software development services, maintenance, web development, e-commerce and other ancillary services. It is a small-cap company with a market capitalisation of Rs. 3,784.96 cr., and a total debt is Rs. 0.21 cr.

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Here are the top 10 stocks under Rs. 100 based on a high net profit margin.

Note: The information is dated 11th April 2023. We have listed the top 10 stocks under Rs. 100 based on the following parameters:

Net profit margin means the profit/net income of a company measured as a percentage of its revenue. It shows whether a company is generating enough profit. The ratio also indicates whether the company’s operating and overhead costs are in check.

For instance, a company’s revenue may be increasing, but if the operating costs are rising at a faster rate, the net profit margin will reduce. Therefore, an increasing trend in the net profit margin indicates that the company enjoys good financial health overall.

Top three stocks under Rs. 100 based on the net profit margin:

RattanIndia Infrastructure Ltd provides consultancy services to companies planning to venture into the generation, transmission, and distribution of power. It also caters to businesses that are in the process of setting up power generation plants. A small-cap company, RattanIndia Enterprises Ltd, has a market capitalisation of Rs. 5,943.75 cr. While its net profit margin for the last fiscal was 93.40%, the average over the last 5 yrs is -3,86,921.68%.

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Easy Trip Planners is an India-based online travel agency offering a comprehensive range of travel-related products and services for end-to-end travel solutions, including airline tickets, hotels and holiday packages. This small-cap company has a market capitalisation of Rs. 8,178.80 cr. While its net profit margin for the last fiscal was 42.40%, the average over the last 5 yrs is 23.39%.

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IDFC Limited is a non-banking finance company which is engaged in investing business. It is a small-cap company with a market capitalisation of Rs. 12,727.88 cr. While its net profit margin for the last fiscal was 37.55%, the average over the last 5 yrs is -96.99%.

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Here are the below Rs. 100 best shares based on the dividend per share.

Note: The information is dated 11th April 2023. We have listed the top 10 NSE stocks under Rs. 100 based on the following parameters:

A dividend is a portion of the profits that a company pays its shareholders. It indicates that the company is profitable and enjoys good financial health. The dividend yield indicates the percentage of the company’s share price that it pays as dividends. 3-yr historical dividend growth indicates the percentage by which a company’s dividend has grown over the last 3 yrs. The higher these indicators, the better it is.

However, offering a dividend is entirely at the company’s discretion. It may decide not to pay dividends and instead plough the profit back into the business or keep it as a reserve for the future. Therefore, a company that doesn’t declare dividends is not necessarily a bad investment. Tracking the company’s dividend indicators for the past several years reveals insightful information.

Top three stocks under Rs. 100 based on DPS:

Steel Authority of India Limited manufactures flat products such as HR plates, hot- and cold-rolled coils, pipes and electric sheets. It is also engaged in the manufacturing of long products such as thermo-mechanically treated bars and wire rods. SAIL is a mid-cap company with a market capitalisation of Rs. 33,911.61 cr. Its DPS for the last fiscal was Rs. 8.75, and its dividend yield for the same period was 10.66%. The historical dividend growth rate over the last 3 yrs is 159.62%.

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A large-cap company, IOCL has a market capitalisation of Rs. 1,09,722.02 cr. While its DPS for the last fiscal was Rs. 8.40, its dividend yield was 10.54%. The historical dividend growth rate over the last 3 yrs is 10.85%.

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Engaged in the production of alumina, aluminium, and power, National Aluminium Company Limited is a small-cap company having a market capitalisation of Rs. 14,555.31 cr. NACL paid a DPS of Rs. 6.50 in the last fiscal. Its dividend yield at the same time was 8.20%. Over the last 3 yrs, the company’s dividend growth has declined by 4.17%.

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Following is the list of the top 10 stocks under Rs. 100 based on the EPS.

Note: The information is dated 11th April 2023. We have listed the top 10 stocks under Rs. 100 based on the following parameters:

Earnings per share (EPS) is an indicator of a company’s profitability. EPS indicates how much a company earns for each of its shares. Hence, the higher the EPS, the more profitable a company is considered to be. Top three stocks under Rs. 100 based on EPS:

SAIL is a mid-cap company with a market capitalisation of Rs. 33,911.61 cr. In the last financial year, SAIL recorded an EPS of Rs. 29.64.

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A large-cap company, IOCL, has a market capitalisation of Rs. 1,09,722.02 cr. In the last fiscal, IOL recorded an EPS of Rs. 18.22.

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Mangalore Refinery and Petrochemicals Limited are engaged in the business of refinery and manufacturing of refined petroleum products. It has a market cap of Rs. 9,507.85, and the EPS is Rs. 16.88.

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Following are the top stocks under Rs. 100 based on volume.

Note: The information is dated 11th April 2023. We have listed the top 10 stocks under Rs. 100 based on the following parameters:

Volume means the number of shares transacted over a certain period of time. High volumes indicate investors’ interest in buying or selling stock and vice-versa. If a stock with a high trading volume is gaining, investors are buying more of it. In contrast, if the price is falling, more investors are selling it. Top three shares below Rs. 100 based on volume:

Yes Bank Limited is a private sector entity that offers banking services catering to several verticals, including corporate and institutional banking, investment banking, financial markets, branch banking, wealth management, and corporate finance. It is a mid-cap company having a market capitalisation of Rs. 44,282.35. Yes Bank’s 1-week change in the volume is -27.05%, the 1-month average volume is 16,65,88,698.84 shares, and the 3-month average is 15,77,28,865.65.

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Operating in the telecom services sector, Vodafone Idea Ltd was formerly Idea Cellular Limited. With a market capitalisation of Rs. 30,424.81 cr., Vodafone is a mid-cap company. Its 1-week change in volume is -67.35%, the 1-month average volume is 8,26,42,625.00 shares, and the 3-month average is 10,14,81,017.63 shares.

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Zomato is a mid-cap food delivery company with a market capitalisation of Rs. 43,596.76 cr. The 1-week change in the volume of the company is 107.43%, the 1-month average volume is 4,87,18,385.95 shares, and the 3-month average is 6,71,68,503.38 shares.

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Following is the list of the top 10 stocks under Rs. 100 based on a high return on equity.

Note: The information is dated 11th April 2023. We have listed the top 10 stocks under Rs. 100 based on the following parameters:

Return on Equity indicates how much profit a company is earning in comparison to the shareholders’ equity. It indicates how efficiently a company can convert its equity financing into profits. The higher the ROE, the better it is. Top three best stocks under Rs. 100 based on ROE:

Easy Trip Planners is an India-based online travel agency offering a comprehensive range of travel-related products and services for end-to-end travel solutions, including airline tickets, hotels and holiday packages. This small-cap company has a market capitalisation of Rs. 8,178.80 cr. While its ROE is 53.14%, its 5-yr average return on equity is 36.27%.

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Mangalore Refinery and Petrochemicals Limited are engaged in the business of refinery and manufacturing of refined petroleum products. It has a market cap of Rs. 9,507.85. While its ROE is 51.64%, its 5-yr average return on equity is 3.85%.

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Engaged in the production of alumina, aluminium, and power, National Aluminium Company Limited is a small-cap company with a market capitalisation of Rs. 14,555.31 cr. While its ROE is 25.41%, its 5-yr average return on equity is 13.76%.

loading widget to trade NATIONALUM

Following is the list of the top 10 stocks under Rs. 100 based on ROCE.

Note: The information is dated 11th April 2023. We have listed the top 10 stocks under Rs. 100 based on the following parameters:

Return On Capital Employed is an indicator of a company’s efficiency. It measures the profit generated by a company after taking into consideration the capital used to achieve it. Top three stocks under Rs. 100 based on ROCE:

RattanIindia Enterprises Ltd has a market capitalisation of Rs. 5,943.75 cr., and its ROCE is 75.79%.

loading widget to trade RTNINDIA

Easy Trip Planners has a market capitalisation of Rs. 8,178.80 cr, and its ROCE is 61.17%.

loading widget to trade EASEMYTRIP

Motherson Sumi Wiring India is a joint venture with Sumitomo Wiring Systems, Ltd., a global leader in the manufacture of wiring harnesses, harness components, and other electric wires. It has a market capitalisation of Rs. 22,569.76 cr., and its ROCE is 43.13%.

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Evaluating stocks based on a single parameter in isolation can be misleading. A stock can have a high ROE but also a high debt and a decreasing net profit margin. Using multiple parameters and financial ratios to evaluate a stock gives you a holistic picture of the feasibility of investing in the stock. To help you with this, Tickertape’s Stock Screener has 200+ filters to discover stocks based on parameters that matter to you. To evaluate an individual company, use the respective Tickertape’s Stock Page and get access to a treasure of insights into it.

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Moritz Sisk
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Answer # 6 #

Moneycontrol Daily: Your Essential 7 Read more Buzzing Stocks: Torrent Power, ITC, TVS Motor Company (Read tags #MC essentials

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Joseph Gara
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Answer # 7 #

Market capitalization is one of the most effective ways of evaluating the value of a company. It is crucial for readers to understand that this evaluation of a company’s value is done based on a company’s stocks. Essentially, this is defined by the total market value of the outstanding shares of a company. This simple fact also means that publicly owned companies are the only ones that can be evaluated by this method of evaluation.

It is vital to understand what market capitalization is, especially for investors, since this can guide them in choosing the correct shares to invest in. Fluctuating market conditions and stock prices also impact the evaluation of a company when this method of evaluation is being used. For investors, understanding the value of a company is imperative while creating a long-term investment plan.

Understanding the value and risk associated with a company also helps an investor to make a balanced investment which is distributed across stocks from different companies. While judging companies by their market cap, it is important for investors to understand that this shows the stage of development of a company in its business venture. Investors should keep in mind this stage of development of a company while evaluating them to build their investment portfolio.

One of the major factors while evaluating a stock is on the basis of the market capitalization in India. Before going into the finer nuances, knowing the formula for this evaluation method can provide clarity to investors.

MC = N X P

Where,

MC stands for Market Capital,

N for the number of outstanding shares,

And P is the closing price of each share of the concerned company.

An example can demonstrate the calculation of market capitalization with more ease. If a company has 10,000 shares, each with a closing price of Rs.100; the total MC of the company would be computed as follows.

MC = N X P

= 10,000 X Rs.100

= Rs.1,000,000

The total value of this company comes at Rs.10 lakh.

While the importance of market capitalization has been touched upon in its definition, it is crucial for potential investors to understand its need in further detail. This can also help them in understanding the market as well as its impact on the shares and value of a company.

This is the most widely used method around the globe to evaluate a company. Since this is one of the universally accepted methods, this makes it easy for investors to understand a company’s value irrespective of their geographical or economic locus.

Suggesting market conditions is always subject to risks since it can fluctuate due to many factors. Nevertheless, the market cap is one method which is quite precise in its evaluation. As a result, though not full-proof due to obvious reasons, it is a reliable method to judge the risk associated with investing in a company.

This method is also used to weigh the shares of different companies for the index in the share market. Using this method, stocks with higher market capitalization get better weight in the index.

Since this is a universal method that can be applied to evaluate any company’s market worth, it is a convenient method for investors to compare different companies. This comparison not only helps in understanding the size of a company, but also the risk associated with investing in them.

Investors should maintain a balanced portfolio to ensure they do not run the risk of any major loss. This includes opting to invest in a few top companies by market cap, along with the high-risk investments in developing enterprises.

While this evaluation process is convenient and universally accepted, investors should also note that it does not consider debt and other financial liabilities of a company. Furthermore, it also does not take into account the different types of returns, like the splitting of stocks, dividends, etc.

Based on this popular method of evaluating a company, there are 3 different types of stocks from which an investor can choose. Balancing out the portfolio with a good combination of all of these can minimise the chances of risk.

Companies with MC above Rs.20,000 crore are often termed as Mega-Cap Stocks. The 3 major types of stocks which investors go on to invest in are discussed in further detail underneath.

These are some of the most stable groups of companies in the market. Consequently, investing in these companies is the least risky option. However, another important factor to keep in mind is that since these are stable companies, the return from these companies is comparatively low.

Typically, these companies have reached the pinnacle of their growth, and as a result, there is a lesser chance of any drastic change in stock prices. However, the low risk accompanied by less aggressive growth makes investment in these stocks a conservative option.

Companies which have had a certain growth and are somewhat stable; and yet have immense potential of growth, come under this group of evaluation by market capitalization. These stocks indicate that a company is established to a certain extent in its industry, along with the promise of further growth.

While investing in these companies can still be risky since they are not established in their industry, the risk in investing in their stocks is much less than that of the next group of companies. Subsequently, the return on them can be potentially higher than those of large-cap stocks.

Constituting companies which have the least market cap are the riskiest of all stocks. These are companies who are budding and are yet to establish themselves in their industry. This makes them highly risky. Success can sky-rocket their stock prices while failure can lead to a major loss for their shareholders. These are the most aggressive investment options.

While learning about market cap, investors should also learn a few relevant ratios which come into play. These ratios take MC into consideration.

The number of outstanding shares which are meant for trading by the public is called float. Free-float method of evaluating market capitalization uses this float, though it excludes the shares which are owned by company executives.

Vitally, the major difference between conventional MC and free-float method of calculation is that the former takes the total value of stocks while the latter excludes locked-in stocks. This system of indexing has been adopted in most of the major exchanges around the globe.

There are quite a few factors which impact the market cap of a company. Learning these factors can aid investors in judging if a specific company is expected to offer good returns.

The number of outstanding shares of a company depends on factors like buying back of shares or issuing of new shares. In case of stock splits to issue new shares, the market capitalization of a company remains unchanged.

While understanding the impact of different factors on the MC, it is also advisable for investors to understand how investments grow or decline over the years. This is explained with the help of an example.

Considering the price of every share of a company is Rs.100 if a certain Mr. Bhagat invests Rs.10,000 he would acquire 100 shares of the company. Now when the market capitalization of this company goes up, the share prices are affected positively too. If the share prices go up to Rs. 120, the total value of Mr. Bhagats’s investment stands at Rs.12,000. Consequently, Mr. Bhagat stands to make a profit of Rs.2,000 on his initial investment of Rs.10,000.

There are a few other ways that are often used to calculate the value of an enterprise. These methods are discussed below in detail.

This value is calculated by taking into account all of a company’s assets. However, this asset evaluation is done with respect to that of common shareholders (equity investors).

The enterprise value of a company is calculated by evaluating the assets which act as the functional core of a business. Additionally, all shareholders are taken into account. This includes equities, debts, preference shares, etc.

Working in the Indian market, investors should also know the 10 largest companies by market cap in India. These are provided in the table below.

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D.P. Kunder
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