Stocks under ₹100 let you build a diversified portfolio without needing a large amount of capital. Many quality mid-cap and small-cap companies trade in this range, offering solid growth potential. The lower price per share also means you can accumulate more shares over time through systematic investing.

Not necessarily. While many stocks in this price range are small-caps, some mid-cap companies with large share bases also trade under ₹100. The stock price alone doesn't determine the company's size — market capitalization (price multiplied by total shares) is a better measure. Always check the market cap before assuming a stock is small.

Focus on fundamentals like revenue growth, profit margins, debt-to-equity ratio, and return on equity rather than just the stock price. Check the promoter holding and whether institutional investors (FIIs/DIIs) are increasing their stake. A low share price combined with strong financials and growing institutional interest is often a good sign.