Top 5 Stocks Under Rs.1000 for 2020: A Guide for Investors

As an SEO expert, it's essential to identify stocks that offer strong returns. This guide focuses on five under-valued stocks, all trading under Rs.1000, presenting an excellent opportunity for investors in the year 2020.

Technical Analysis and Recommendation

Based purely on technical charts, any of the following five stocks under Rs.1000 are good options to invest in for 2020 for substantial returns:

Five Key Performers

In this section, we will dive deeper into five key performers from the financial industry:

IDFC First Bank

At a share price around Rs. 40, IDFC First Bank is a long-term investment candidate. Over the next decade, this bank is expected to deliver extraordinary returns. The reason behind this potential is the sound management and the highly focused efforts of CEO V. Vaidyanathan.

Manappuram Finance

Manappuram Finance has a share price around Rs. 160. In the last year, the stock has already delivered a 100% return, yet it still has significant growth potential. This is due to its strong fundamentals as an NBFC (Non-Banking Financial Company).

Axis Bank

Axis Bank has a share price around Rs. 680. Although the bank experienced a darker period, with provisions for all bad loans made, its strong presence across India is expected to generate substantial returns. Now that the negative provisions have been accounted for, the stock is poised for a strong performance.

LT Finance

LT Finance is an emerging star in the NBFC sector. With share prices around Rs. 110, this company is outperforming Bajaj Finance on every ratio. It is recommended to hold onto this stock until it starts generating actual returns.

SBI (State Bank of India)

SBI, with a share price of approximately Rs. 310, is a safe bet. Over the years, this stock is expected to provide steady returns. The company’s strong fundamentals and compliance with strict RBI rules are expected to support its growth in 2020.

Conclusion

I have focused on stocks from the financial industry because 2019 saw significant challenges due to bad loans. However, with provisions having been made, and the RBI implementing strict rules, these stocks are expected to perform well in 2020. Additionally, the financial industry in India is under-penetrated, offering a significant potential for growth.

These recommendations are based on thorough analysis and historical data. Remember to conduct your own research before making any investment decisions. I hope this guide helps you make informed investment choices in 2020.