Stocks to Buy Under ₹200: Mehul Kothari of Anand Rathi Recommends Three Shares to Watch

In a market often swayed by blue-chip headlines and heavyweight movers, retail investors frequently seek high-potential, low-priced stocks that offer a strong value proposition without putting a dent in their capital. And when such picks come from a seasoned voice like Mehul Kothari, AVP – Technical Research at Anand Rathi, the spotlight is naturally drawn to them.

With the broader indices showing resilience and momentum, investors are increasingly interested in undervalued stocks trading under ₹200 that hold solid growth potential. Kothari’s latest stock picks present a blend of technical strength, fundamental robustness, and attractive pricing—ideal for the retail investor seeking to build long-term wealth.

Let’s dive into the three stocks that have made it to Mehul Kothari’s list and understand the rationale behind each call.

1. Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC)

Current Price (approx.): ₹180
Call: Buy
Target: ₹210–₹225
Stop Loss: ₹165
Time Horizon: Short to Medium Term

Why GNFC?

GNFC, a diversified chemicals and fertilizers company, has steadily built a reputation for operational efficiency and consistent profitability. The recent consolidation in its stock price has created a strong technical base, offering an attractive entry point for value seekers.

Technical Perspective by Mehul Kothari:

“GNFC has formed a strong base near ₹165–₹170 levels, supported by rising volumes and momentum indicators turning positive. The breakout above ₹180 marks a fresh uptrend initiation, suggesting a potential move toward ₹210–₹225,” Kothari observed.

From a charting standpoint, the stock recently gave a bullish breakout from a falling wedge pattern—a classic signal for a potential trend reversal. RSI and MACD are showing positive crossovers, further validating the buy setup.

Fundamental Snapshot:

• GNFC operates in sectors like industrial chemicals, fertilizers, and IT services.

• The company has reported robust EBITDA margins and has been a consistent dividend payer.

• Reduced debt and government subsidies make it a low-risk bet in the chemical space.

2. NLC India Ltd

Current Price (approx.): ₹160
Call: Buy
Target: ₹185–₹195
Stop Loss: ₹148
Time Horizon: Medium Term

Why NLC India?

NLC India, a Navratna PSU, is engaged in lignite mining and power generation. While PSU stocks have historically been under-appreciated, the recent surge in power demand and strong policy tailwinds for domestic energy producers have reignited investor interest.

Technical Analysis from Kothari:

“NLC India is witnessing strong accumulation, and the breakout from the ₹155 resistance zone is a bullish signal. Volume confirmation and a rising 50-day moving average support the uptrend,” said Kothari.

Kothari notes that the stock has completed a bullish inverse head and shoulders pattern, which often indicates the beginning of a new rally. As the stock inches past key resistances, it is poised for a near-term rally.

Key Fundamentals:

• NLC posted improved operational performance in the last two quarters.

• Government emphasis on renewable and thermal energy provides long-term visibility.

• Attractive valuation with a decent dividend yield makes it a preferred PSU pick under ₹200.

3. Federal Bank Ltd

Current Price (approx.): ₹162
Call: Buy
Target: ₹185–₹195
Stop Loss: ₹150
Time Horizon: Medium to Long Term

Why Federal Bank?

Unlike many PSU banks, Federal Bank is a well-managed private sector lender known for its strong retail and SME loan book. As the financial sector continues its structural revival, Federal Bank’s steady performance and prudent asset quality management stand out.

Kothari’s Technical Insight:

“Federal Bank has been consolidating in a narrow range and is now showing signs of breakout. The stock has reclaimed its 200-DMA, which is a bullish signal, supported by good volumes,” Kothari stated.

The momentum is building up with higher lows and rising RSI, indicating a potential uptrend continuation. A breakout above ₹165 with sustained volumes could trigger a move toward ₹185–₹195.

Banking on Fundamentals:

• Consistent loan growth and low NPAs.

• Strong focus on digital banking initiatives.

• A solid track record of earnings with a reasonable price-to-book ratio.

Expert’s Closing View:

“For investors looking for budget-friendly stocks with upside potential and manageable risks, GNFC, NLC India, and Federal Bank offer an ideal mix. Each has shown technical strength and is backed by strong or improving fundamentals. These counters, trading below ₹200, could offer outsized returns in the current market environment,” concluded Mehul Kothari.

Investor Takeaway:

While high-priced stocks get much of the limelight, stocks under ₹200 often hide gems with multibagger potential. The key is to marry technical indicators with strong business fundamentals—something Mehul Kothari’s picks clearly exhibit.

These recommendations are not just short-term trading ideas but can also serve as foundational holdings for investors building a long-term portfolio on a budget. However, as with any investment, it's crucial to perform your own due diligence and monitor market trends regularly.

Disclaimer:

The views expressed in this article are based on the insights shared by Mehul Kothari of Anand Rathi. Stock market investments are subject to market risks. Investors are advised to consult their financial advisor before making any investment decision.