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.
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.
Hi, I am new to this forum. I’ve 500 shares of Sintex Industries Ltd. Any expert opinion on the it’s future?
Muze koi solid fundamental penny stock bata sakte ho sir plz.
I have portfolio in this stocks, please advise wih ur views , 1.Alankit 2.MGL 3.Onepoint 4.prithviexc 5.scandent 6.shyamcent 7.equity small fin 8.aplab 9.sadhana nitro Chem 10. Orient cement 11.COALindia 12.KPIT techno
RANA SUGARS LTD . Stock will double by SEPT 21
Super duper penny stock recommend . If I would see at that time ! Anyway I request to advise once more penny stock at present condition .
Suzlon is the best penny stock for future. You can invest for future and can make money.
Hi, but suzlon pledge is too high , around 88 perc..i dnt think thats a good choice.
i agree with your point Pledged is too high but they are decreased their debt this year. You can check the same Data with balance sheet on their website
update latest penny stock bellow 10
Please post 5-10 stocks latest
what about boigen pharmachem.
I have added portfolio of stocks 6000rs
Deepak nitrate, Lauras lab, Tata motor, infosys, Adani Power, quests corp., Borosil renewable. Is it good portfolio?
All of the above shares have good potential to growth in long term…you will get good returns from your portfolio and I’m also having few of the quoted shares…
Hello,
Any advice on the latest high conviction penny stocks to look at in March 2021
Can you recommend a new list of penny stocks to buy in July 2021?
WHO AM I DOES NOT MATTER , “RPOWER” WILL BE TRADING ABOVE 17 RS BY THIS APRIL,2021. BUY OR WATCH CHOICE IS URS…………… 🙂
Reliance Power Ltd
RPOWER
4.500.15 (+3.44%) – Date : 13/04/2021
Rpower – 15/-
Date- 30/6/21
😂😅🤣
can i get ur contact info
Mohit u seem to be a genius
can i get ur contact info
Hello Mohit Kansal,
Your prediction is awesome man..Can we get few more predictions like this ?
U are a fortune teller in real. Any more predictions to bet on?
Can you suggest any penny stock for begginer
What happend to Rpower stock why it is so down…now….what is the future of the stock ahead….
In 10 years it will hit 1000 rupees, hold for long term
All the gentlemen who have commented must understand one thing very clearly and that is , the art of investing in penny stocks is something that one achieves when one has already mastered the art of investing in large and mid cap stocks. you can only gain profits in penny stocks if you have a deep and sound understanding of the market and its functioning. Thus investors be very very cautious when investing in penny stocks.
Sir
what is the position of shree quality cements,it was not trading. How to sold.
KHOW MUCH KSERA SERA(KSS) PRICE WILL REACH WITHIN INE MONTH?
hi bharat
you don’t buy the kss ltd ,because worst fundamental in market and also low volumn
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?
Uttam valve steel lol its delisted
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
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.
Thanks for this wonderful suggestion
Please send any new new penny stock research
KSERASERA(KSS)
Op thx.sir
Is an ant raj,prozone intu are good to buy
Can anyone comment on
1) JHS Svendgaard
2) Syncomm formulations
3) NMDC
Syncom formulation have low circuit I also planning to buy for long term.
Please give me one strong penny share..
bhaut badiya janakkriaur share kijiye
Please give me 1 very strong penny share
JP Power, Go ahead with it…
At what price we should buy JP Power. Please recommend
Lypsa Gems
Sir what about GFL and LT Foods
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.
Sir Thomas cook ke bare me jankari de sir kya accha return mil skta h future me
can anyone advise on Jhs Svendgaard , syncomm formulations ,
Sir can u tell me about RPower and reliance infra wether to invest in it or not
Sir ji namaste hisar metal delta cor stock fendamental strong hai
sir ,i think RAJ RAYON is good
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.
what about sanweria consumer
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
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 .
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.
Sir ache good quality fundamental analysis technical strong 2 hi stock . P/z sir
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.
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
Ruchi Soya 😀