Best Penny Stocks India To Buy

What Are Penny Stocks?

Penny Stocks are stocks which trade at very low price and have a low market capitalization.

Typically, penny stocks in India generally trade at Rs 0.05 to Rs 10 per share.

These are ultra micro-cap companies with a market capitalisation of less than Rs. 50 crore.

Advantages of investing in penny stocks

Penny stocks are generally not known to the investing public at large. Regular investors do not invest in such stocks because of a fear that the fundamentals are not known. Institutional investors also stay away from such stocks because of the low market capitalisation.

However, this is where the advantage arises to an investor who is prepared to do proper homework into the fundamentals of the penny stock.

If the investor is able to find a penny stock with good fundamentals and is able to buy the stock at extremely low valuations, he can make an enormous fortune.




Risks and Disadvantages

The first risk of investing in penny stocks is that their fundamentals are not very well. The investor has no access to proper research reports. Even the credibility of audited accounts can be called in question.

The second risk is that they have an extremely low volume of shares traded. This means them an easy target for unscrupulous operators to manipulate the price of the stock by cornering a large quantity of the stock and sending the price to soar or dumping a large quantity and sending the price plunging.

Risk of Stock Exchange restrictions

Because these are generally ultra small companies, their compliance with the law and the stock market regulations may be casual. This may attract adverse regulatory action from the stock exchanges which may culminate in suspension of the scrip from trading.

The other risk is that the Stock Exchanges (BSE & NSE) imposing upper and lower circuits on the companies to prevent excessive speculation in them

The imposition of a UC or LC on the stock can adversely impact the ability of the trader to exit the stock when he wants to.

Penny Stocks which have been delisted by SEBI

SEBI has passed an order by which it has ordered that nearly 2000 companies which includes a number of penny stocks be delisted from the BSE and NSE for non-compliance of the requirements of the stock exchange and SEBI.

Multibagger penny stocks which have created wealth for investors

if investors are lucky and are able to find the proper stock, these stocks can become multibaggers and investors can make enormous wealth.

Some penny stocks like Gayatri Sugars, netvista Ventures Ltd, KM Sugar Mills Ltd, Sybly Industries Ltd etc have given more than 300 stocks.

Upto 33 penny stocks have given a return ranging from 100% to 300%.

Best penny stocks to buy

These stocks have been recommended for investment by well known and respected stock market experts.

Stock

Market Cap (Rs Cr)

YoY Return (%)

Sumeet Industries

93

40

Lakshmi Energy & Foods

282

309

Mercator

1049

101

Dark Horse stocks

Dark Horse stock

Price on date of reco (Rs)

CMP (Rs)

Gain/ Loss (%)

Pasupati Acrylon

22

27

21

Saksoft

226

242

7

JHS Svendgaard

33

38

16

Freshtrop Fruit

105

92

(13)

Others Worthy Of Consideration

Name of stock

PTC India Financial Services

TAKE Solutions

HEG Limited

Cosmo Films

APL Apollo Tubes

Jubilant Life Sciences

SpiceJet

Dish TV

Navin Flourine

Indo Count Industries

Mercator

DLF 

GHCL 

Uniply

Maithan Alloys

GPT Infra

JK Tyre

Tata Metaliks




Stocks Quoting below 10

Penny Stocks quoting below Rs. 10 are the most promising candidates for multibagger gains.

Some of these stocks have good fundamentals as well and have the potential to give hefty gains to investors.

It is notable that there are well known stocks in the list such as Indian Overseas Bank, Idea Vodafone, Trident, Alok Industries etc.

Stocks with good fundamentals quoting below Rs. 10
Stock Stock Price
IOB INDIAN OVERSEAS BK 7.40
IDEA VODAFONE IDEA LTD 4.25
MAHABANK BK OF MAHARASHTRA 9.00
TRIDENT TRIDENT LTD. 4.78
ALOKINDS ALOK INDUSTRIES 8.30
FCONSUMER FUTURE CONSUMER 8.52
SUZLON SUZLON ENERGY LTD. 2.37
SOUTHBANK SOUTH INDIAN BANK . 5.51
RENUKA SHREE RENUKA SUGAR 4.95
DISHTV DISH TV INDIA LTD 4.80
DPSCLTD DPSC LIMITED 7.80
HCC HINDUSTAN CONSTRUC 4.55
IFCI IFCI LTD. 3.99
RPOWER RELIANCE POWER LTD. 2.06
BAJAJHIND BAJAJ HINDUSTHAN S 4.85
RTNPOWER RATTANINDIA POWER 1.30
PFS PTC INDIA FINANCIAL SERVICES 8.78
JPPOWER JAIPRAKASH POWER 0.75
CGPOWER CG POWER 7.04
TTML TATA TELESERVICES (MAH 2.17
MTNL MAHANAGAR TELEP NI 6.95

We have to keep a lookout for the best penny stocks to buy now. If you have any ideas use the comment form below to indicate your best penny stock.

Best Penny Stocks India

Rules For Investing In Penny Stocks

Investors desiring to invest in such stocks must do so with the following rules in mind. These rules will ensure that even in the worst case scenario, the investor will not be badly affected:

(i) Invest only petty amounts:

Ensure that only a small amount of the portfolio is invested in such stocks, not exceeding 10% of the portfolio.

(ii) Diversify widely and have a basket of penny stocks:

It is always sensible to treat penny stocks as a basket and spread the investment and risk across four or five stocks.

However, the downside of this strategy is that even if one or two the stocks become big winners, the impact on the portfolio will be reduced because of the other stocks in the portfolio.

(iii) Monitor the performance regularly:

Penny stocks are not buy and forget stocks. By their very nature, they require to be watched carefully. At the slightest sign of trouble with regard to the fundamentals, the investor must be prepared to sell his stocks.

(iv) Be suspicious of research reports which paint a rosy picture:

Penny stocks are the favourite hunting ground of operators and manipulators. They try to lure in naïve investors by projecting an unrealistic and rosy picture of the the stock. Then, when the naïve investors have bought the stock, the operators dump the stock leaving the investor high and dry.

(v) Keep a strict loss:

Unlike stocks with good fundamentals where a weakness or dip in stock prices provides Investors an opportunity to average the stock price, penny stocks should be subject to a strict stop loss. A dip in the stock price is usually a sign that the fundamentals of the stock are deteriorating. Trying to average such stocks can lead to further losses for the investor.

33 thoughts on “Best Penny Stocks India To Buy”

  3. I have added portfolio of stocks 5000rs each.
    JP Associates, Syncom formulation, zee learn,pnb gilts,ncc limited, uttam value steel,national fertilizer. Is it good portfolio?

    Reply

  4. I am new here and new to markets. I need to know where you can trade such penny stocks??? Any specific platform or place where it needs to be traded.

    TIA

    Regards

    Reply

    1. Penny stocks are available on BSE and NSE as well along with other large, mid segment stocks, just need to search the stock you need and trade in it. You need to have demat account in order to trade on NSE or BSE. You can open your format account online with Zerodha or Upstock. Zerodha has very good reviews.

      Reply

    1. LT Foods is a very good stock. It has a well known brand “Daawat” for basmati rice. It also has other brands for packaged foods. The stock will do well because the Monsoon is also expected to be good. Hold the LT foods stock tight in the portfolio. It may be a multibagger.

      Reply

  16. 1. Trident Ltd is fundamentally good. we can take a limited risk on it.
    2.Brightcom group ltd is going to have prefertial alotment of shares in near feature, so you can consider it and it is available at attractive price. (caution: pledge:19.65%)……better to go with not more than Rs. 2000/- worth shares in each.

    Reply

    1. Sanwaria consumer offers a good risk reward scenario amongst multibagger penny stocks. It is engaged in the manufacturing and trading of Soya Seed and their products, Crude Edible Oil, De-oiled Cake, Crude/refined Edible Oil, Bas-mati Rice, Rice Products and Other Foods Grains and Food Products and Retailing of various Products.

      All of these products have an infinite demand from customers. So, I think the stock will keep growing from strength to strength so long as the management handles the business properly and does not do any mischief.

      It should be remembered that in January 2018, Sanwaria consumer was trading at a a high of Rs. 33.4.

      Therefore, it has already given multibagger returns to investors in the past.

      Imagine if the stock goes back to the level of Rs. 30. What the gains will be if the investors buy the stock at the CMP of Rs. 2.7

      Reply

  18. Sir ji .namaste. 1.suzlon energy ltd. 2.renuka sugar 3.alok idustrij 4.hisar metal ltd . 5.r com pz sir good quality penny stock hai. Yah mai by krdu. Sir pz by karenga to acha growth mil shakti hai .

    Reply

    1. Penny stocks mein diversified portfolio bahut jaroori hai (you must have a diversified portfolio of penny stocks). Kaunsa chal jayega aur kaunsa flop hoga pata nahin (It is not known which one will be a hit and which will be a flop).

      Aap Urja Global aur Trident bhi add kar sakte hain.

      Reply

    1. Trident is a fundamentally good stock available at reasonable valuations. Even Kesar Products looks promising. A small allocation to many stocks is a better strategy when dealing with penny stocks.

      Reply

  20. यार शेयर बाजार का एबीसीडी पेनी स्टॉक होता है जिस प्रकार जब तक बच्चा सही से 123 एबीसीडी का खा गा गा नहीं जानता है तब तक किसी अच्छे मुकाम पर नहीं जा सकता आते बिना पेनी स्टॉक के कोई भी आज चर्चित निवेशक नहीं है जो की इसे नहीं किया हो छोटा पौधा बड़ा वृक्ष बनता है बड़े वृक्ष का कहानी केवल फर्नीचर दे सकता है

    Reply

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