Cheapest Stocks in India 2025

In 2025, the hunt for the cheapest stocks in India is heating up; especially among everyday investors juggling full-time jobs, long commutes, and careful savings goals. With blue-chip giants already trading at sky-high valuations, many people are wondering: “where can I actually afford to start investing?”

When top companies have P/E ratios hovering around 40-70x and share prices well above ₹1,000, it’s easy to feel priced out. For someone investing ₹5,000-₹10,000 at a time, finding stocks in the ₹10-₹20 range can seem like a golden opportunity.

But here’s the catch: cheap doesn’t always mean good. A ₹40 stock might be a hidden gem, or a trap. The real question is whether the company behind that price tag is actually worth your money.

FYI: The price of a stock is determined by the number of shares issued by the company, indicating high stock prices when the no. of shares is less and vice-versa.

So, in this blog, let’s unpack how to evaluate low-priced Indian stocks smartly.

We’ll look at what really makes a “cheap” stock worth buying and how small-ticket investors can build meaningful portfolios without breaking the bank.

Let’s dive in.

What Do We Mean by “Cheapest” Stocks?

The phrase “cheap stocks” can mean very different things to different people.

Here are the common interpretations:

1. Low price per share: For example, stocks priced under ₹100 or even ₹50. Such share price levels naturally feel affordable to a small budget investor.
   
   
2. Low valuation: Here price per share matters less; what matters is how the market is valuing the company compared with peers; e.g., a P/E or P/B significantly below its sector average.
   
   
3. Small-cap / micro-cap space: Many sub ₹100 stocks fall in the small, or micro-cap category. These companies might be lesser known, have lower liquidity, and carry higher risk, but they also offer potential for outsized upside if things go right.
   
   

Cheap stocks attract small-budget investors because they feel affordable. You can buy 100 shares of a ₹20 stock more easily than you can one share of a ₹2,000 company.

Caution: A low share price or low valuation may also reflect deeper business issues, such as weak earnings, heavy debt, regulatory stress, or management problems. Cheap can be a trap if you don’t apply filters.

Ground Rules for This List

Before we get into the actual stocks, let’s set a few simple ground rules:

1. Not a stock tip: This isn’t a list telling you what to buy. Always do your own research, check company updates, and talk to a financial advisor if needed.
   
   
2. Prices change fast: A stock that looks cheap today might not stay that way tomorrow ; things move quickly in 2025.
   
   
3. No gamble picks: We’re only talking about real businesses that share proper information and aren’t in trouble, not random penny stocks that feel like lottery tickets.
   
   
4. Examples are placeholders: You’ll see a few examples later. These are just sample names. Always verify and choose your own after proper screening.
   
   

Now that we’re clear on the basics, let’s learn how to actually judge cheap stocks the right way.

Cheapest Stocks in India List Under Rs. 20 in 2025

Here are some stocks that are listed at some of the lowest prices in the Indian stock market for your quick reference:

Name of the Stock	Market Cap (₹ Cr.)	CMP (₹)	P/E Ratio	Div. Yield (%)
Vodafone Idea	1,07,909.70	9.96	–	0
JP Power Ventures	12,240.31	17.86	16.49	0
Alok Industries	8,450.82	17.02	–	0
RattanIndia Power	5,531.21	10.3	64.61	0
Hathway Cable	2,338.31	13.21	23.77	0
Orient Green Power	1,582.36	13.49	28.35	0
India Power Corporation	1,106.25	11.36	145.37	0.44
Vakrangee	883.89	8.16	91.29	0
Urja Global	649.46	12.36	424.45	0
Sarveshwar Foods	592.22	4.82	19.16	0

Data available is updated as of 11.11.25.

Suggested Read: Richest Traders in India 2025 with Explosive Portfolios

How to Judge a “Cheap” Stock Properly

The most common mistake small-budget investors make is equating low price with value. But value is not simply price; it is price relative to fundamentals and growth potential.

Price vs Value

Imagine two stocks: one trades at ₹40, the other at ₹400. The ₹40 stock might have weak business, high debt, low growth, and no other catalysts – it may actually be overvalued. The ₹400 stock might be in a strong niche, growing rapidly, and selling at a modest valuation relative to peers – it might in fact be a bargain. Price alone doesn’t tell the story.

Key Filters for Small Investors

Here are the important attributes to check:

1. Market cap & free float: Is the company large enough to generate liquidity? A tiny market cap with illiquid shares can create execution risk when you want to sell.
   
   
2. 3-5 year sales growth: Is the business growing top-line? A cheap stock in a stagnating business is less compelling.
   
   
3. Profitability (PAT, margins): Are profits positive and margins stable or improving? If profits are negative, there should be a credible turnaround story.
   
   
4. Debt-to-equity: High debt can strain cash flows and raise risk. Cheap stocks often come with hidden liabilities.
   
   
5. Promoter holding & pledging: High promoter pledging or falling holding can signal governance risks.
   
   
6. Cash flows vs reported profits: A company may show profits but have weak free cash flow, which is a warning sign.
   
   
7. Liquidity / trading volumes: If daily volumes are negligible, you may face difficulty entering or exiting. For small ticket investors it’s especially important to pick stocks where you can trade.
   
   

By applying these filters, you reduce the risk of buying what’s cheap for a reason, rather than good value.

Suggested Read: Top Multibagger Stocks to Invest in 2025 for a Strong Portfolio

Metrics to Track in 2025

The 2025 market is moving fast, and for small-budget investors, knowing which numbers to focus on makes all the difference.

Here’s a simple breakdown of the key metrics and a quick checklist to keep in mind before investing:

Key Metrics

• P/E vs Sector P/E: Always compare a stock’s P/E ratio with its sector average. If it’s much lower, find out why – is it genuinely undervalued or just overlooked for a reason?
  
  
• P/B (Price-to-Book): Best used for banks, financials, and manufacturing companies. A P/B below 1 can be attractive, but only if the company’s assets are healthy.
  
  
• EV/EBITDA: Useful when comparing companies within the same industry, especially if their debt levels differ.
  
  
• Dividend Yield: Some lower-priced stocks offer steady dividends, which can appeal to cautious investors. Just make sure the business isn’t struggling, as very high yields can be a red flag.
  
  
• Price-to-Sales Ratio: Helpful for companies where profits fluctuate. If revenue is growing and the price-to-sales ratio is low, there could be potential.
  
  

Mini Checklist

Before buying, ask yourself:

• Is the P/E at least 30% lower than the sector average?
  
  
• Is the Debt-to-Equity ratio below 1.0x for non-financial companies?
  
  
• Do promoters hold more than 50% of the company, with less than 15% pledged?
  
  
• Is the average daily trading volume in the past six months above ₹5-10 lakh?
  
  
• Has free cash flow been positive or improving over the past two years?
  
  

If most of these answers are “yes,” you’re likely looking at one of the stronger options in the low-priced stock space.

Suggested Read: How to Analyze a Stock Using AI in 2025? Powerful AI Stock Analysis Tools & Smart Strategies

Where to Find Cheap Stocks?

Low-priced stocks aren’t spread evenly across all industries, some sectors naturally have more of them.

Here’s where you’ll often find them in 2025, and what’s worth watching.

1. PSU / Government-Linked Companies

Many state-run enterprises still trade at low prices because of old inefficiencies or policy hurdles. But if reforms or divestments come through, these stocks can see sharp re-ratings.

Suggested Read: Top PSU Stocks in India to Invest for a Smart Portfolio in 2025

2. Textiles, Chemicals, and Manufacturing SMEs

These smaller companies often stay undervalued due to cyclical demand or high capital costs. However, with India’s push for local manufacturing and PLI incentives, this space could surprise on the upside.

3. Small Financials / NBFCs

Regional and Tier-2/3 focused NBFCs can look cheap but carry credit risk. In 2025, investors should pay close attention to their asset quality, provisioning, and compliance with new regulations.

Suggested Read: Top Banking Stocks to Invest in 2025 for a Balanced Portfolio

4. Logistics and Infra Ancillaries

Many small logistics and infrastructure-support firms are low-priced because they haven’t yet reached scale. With the government’s continued focus on housing, defence, and railways in 2025, some of these could see better days ahead.

The 2025 Tailwind

With policy themes like PLI-driven manufacturing, defence localisation, rail electrification, port expansion, and housing incentives gaining steam, even a currently ignored, low-priced stock in these sectors could turn into a strong re-rating story if its fundamentals start improving.

Suggested Read: Top Penny Stocks to Invest in 2025 for a Smart Portfolio

How Small-Budget Investors Can Approach Low-Priced Stocks

Low-priced shares often attract attention because they seem affordable, but managing exposure is just as important as finding them. Instead of treating them as quick-gain opportunities, investors can think about a balanced way to participate while limiting risk.

• Avoid over-concentration: Putting all funds into a single low-priced stock increases volatility and exit risk. Diversification helps reduce that.
  
  
• Think in categories: Some investors prefer to balance between relatively stable companies, potential turnaround ideas, and a few higher-risk names. The actual mix depends on individual goals and risk comfort.
  
  
• Use gradual investing methods: Systematic or staggered buying can help smooth out market fluctuations rather than committing a lump sum at once.
  
  
• Maintain financial safety nets: Keeping emergency savings separate from stock investments ensures that short-term needs aren’t affected by market moves.
  
  

Ultimately, managing expectations and staying disciplined matters more than chasing the “cheapest” stock. The goal is to build habits that support long-term participation, not speculation.

Risks Small Investors Shouldn’t Ignore

Low-priced stocks might look tempting, but they often come with hidden risks. Before jumping in, here’s what you need to watch out for:

1. Value traps: Just because a stock is cheap doesn’t mean it’s a bargain. Sometimes, it’s low for a reason, the business could be struggling, demand might be falling, or management simply lost direction.
   
   
2. Weak corporate governance: Smaller companies can have issues like promoter pledging, constant share dilution, or unclear financials. Always dig into how transparent and trustworthy the management is.
   
   
3. Low liquidity: If it’s hard to buy or sell a stock quickly, your risk goes up. Prices can swing sharply, and even small trades can move the market.
   
   
4. Theme rotation: In 2025, trends change fast; one month everyone’s chasing infrastructure stocks, the next it’s textiles. Low-priced stocks can get hit hard when the hype shifts.
   
   
5. Operator activity: Cheap, small-cap stocks often attract speculators trying to pump up prices. Without discipline, you could end up buying high and selling low.
   
   

In short, low price doesn’t always mean low risk. A little caution now can save you a lot of regret later.

Conclusion: Cheap Stocks, Smart Moves

So, what’s the real takeaway?

In 2025, finding the cheapest stocks in India isn’t about chasing price tags, it’s about spotting potential where others see noise. Low-priced shares can open doors for small-budget investors, but only when backed by real numbers, not rumours.

Think of it like buying a house: a low price gets your attention, but the foundation, location, and builder’s trust decide if it’s worth it. Stocks work the same way. Price alone is just the headline – value is the full story.

If you’ve read this far, you already have what most beginners miss, i.e., perspective. The best investors aren’t those who find the cheapest stock; they’re the ones who know why it’s cheap and when it’s worth the risk.

Stay curious, stay patient, and let knowledge, not hype guide your portfolio. Because in the market, it’s not about buying cheap. It’s about buying smart.

Disclaimer: Investments in the securities market are subject to market risks, read all the related documents carefully before investing. The securities are quoted as an example and not as a recommendation.

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