Top 100 Best Penny Stocks List to Buy in India on NSE and BSE

This post was most recently updated on April 12th, 2023

Penny stocks in India are a popular investment option for those looking to invest in the stock market with limited capital. These stocks are priced at a low value, typically below Rs. 10, and are known for their high volatility and potential for significant returns. In India, penny stocks have gained popularity among investors due to their low prices and potential for high returns. In this article, we will explore the best penny stocks list to buy in India, based on market trends, company performance, and expert analysis.

Top 100 Best Penny Stocks List to Buy Now in India

Here are the Top 100 Best Penny Stocks List to Buy in India:

What is a Penny stock?

A penny stock is a type of stock that is traded at a low price, typically below Rs. 10 in India or below $5 in the United States. These stocks are issued by companies that are small or struggling financially, which makes them risky investments.

They are often traded on smaller exchanges, and their trading volume is typically lower than that of larger, more established companies.

Penny stocks are popular among investors who have limited capital because of their low prices. However, investing in penny stocks can be risky, as these stocks are more vulnerable to market fluctuations and can be manipulated by unscrupulous traders.

It is important to carefully evaluate the potential risks and rewards associated with investing in penny stocks before making any investment decisions.

Investing in penny stocks should be considered a speculative investment and should only be undertaken by investors who have a high tolerance for risk and are willing to conduct thorough research and analysis before investing.

History of Penny Stocks

Penny stocks have a long and interesting history that dates back to the early days of the stock market. In the United States, the term “penny stock” was first used in the 1930s to refer to stocks that were trading for less than $1 per share.

These stocks were often issued by small, unknown companies that were looking to raise capital to fund their operations.

During the Great Depression, many investors turned to penny stocks as a way to make quick profits. This led to a surge in the popularity of penny stocks, and many unscrupulous traders and promoters took advantage of the situation by manipulating penny stock prices and engaging in fraudulent activities.

In the 1950s and 1960s, the Securities and Exchange Commission (SEC) began to regulate the trading of penny stocks in an effort to protect investors from fraudulent activities.

The SEC required companies to disclose more information about their operations, finances, and management and also mandated that brokers follow certain procedures when trading penny stocks.

Despite these regulations, penny stocks remained a popular investment option for many investors, particularly those with limited capital. In recent years, the rise of online trading platforms and the democratization of investing has led to a renewed interest in penny stocks among retail investors.

Today, penny stocks continue to be a popular investment option for those looking to invest in the stock market with limited capital. While investing in penny stocks can be risky, with the right research and analysis, investors can potentially earn significant returns on their investments.

What are Penny Stocks in India?

Although there is no definition of penny stocks in India as a general consensus in Indian stock markets, any stock that trades below Rs 50 is considered a Penny stock in India.

These stocks are generally volatile with their stock price, il-liquid, and have got stock market operator’s involvement.

Although many retail investors try to stick to Best Blue chip stocks in India for their investment preference and look for mainly zero debt companies to find safe havens, recently it’s seen that there is an appetite to take risks and invest in Penny stocks in India. We will only look at the stocks which have stock prices higher than Rs 1.

You need to be extremely careful while investing in these types of stocks as they are highly risky and you may lose your entire capital. History shows that investing in stocks just because they are available under Rs 50 doesn’t mean that the stock will give higher returns.

How to Evaluate the Penny Stocks List in India?

Despite the risks, penny stocks can be attractive to investors due to their potential for high returns. However, it is important to be aware of the risks and do thorough research before investing in penny stocks.

Here are a few tips for evaluating penny stocks list in India:

1. Research the company: It is important to thoroughly research the company behind the penny stock to understand its financial health, management team, business model, and growth potential. Look for companies with strong financials, a solid business plan, and a track record of stability.
2. Evaluate the industry: Consider the industry in which the company operates and how it is likely to perform in the future. Look for industries that are growing and have a positive outlook, as this can increase the chances of success for the company and its stock.
3. Understand the risks: Penny stocks carry a higher level of risk due to their low price and lack of liquidity. It is important to be aware of these risks and understand that there is a possibility of losing your investment.
4. Diversify your portfolio: As with any investment, it is important to diversify your portfolio to spread the risk and minimize potential losses. Don’t put all your eggs in one basket and consider investing in a mix of different types of stocks and other investments.
5. Use stop-loss orders: Consider using stop-loss orders to limit your potential losses. This allows you to set a predetermined price at which you will sell your stock to minimize potential losses.

Overall, penny stocks can be a risky but potentially lucrative investment option in India. It is important to do thorough research, understand the risks, and diversify your portfolio to minimize potential losses.

Consider reading: Highest Dividend Paying Stocks in India

Factors to Consider Before Investing in Penny Stocks India

Penny stocks can be attractive to investors due to their potential for high returns, but they also carry a higher level of risk. Here are a few factors to consider before investing in penny stocks in India:

1. Company financials: It is important to thoroughly research the company behind the penny stock and understand its financial health. Look for companies with strong financials, including a solid balance sheet, stable revenue, and consistent profits.
2. Management team: The management team of a company can have a significant impact on its success. Look for companies with experienced and competent management teams that have a track record of stability and success.
3. Business model: Consider the company’s business model and how it plans to generate revenue and profits. Look for companies with a clear and sustainable business plan that has the potential for growth.
4. Industry outlook: Evaluate the industry in which the company operates and how it is likely to perform in the future. Look for industries that are growing and have a positive outlook, as this can increase the chances of success for the company and its stock.
5. Market conditions: Be aware of the current market conditions and how they may impact the company and its stock. Look for companies that are well-positioned to weather economic downturns and have the potential to outperform in good times.
6. Risks: Penny stocks carry a higher level of risk due to their low price and lack of liquidity. It is important to be aware of these risks and understand that there is a possibility of losing your investment.

Overall, it is important to do thorough research and carefully consider these factors before investing in penny stocks in India. Investing in penny stocks carries a higher level of risk, but it also has the potential for high returns. It is important to be aware of the risks and understand that there is a possibility of losing your investment.

What are the Risks of Buying Penny Stocks in India?

While penny stocks can be tempting for those looking for a low-cost investment opportunity, they also carry a high level of risk. Here are some risks to consider when buying penny stocks in India:

1. Volatility: Penny stocks are often more volatile than other types of stocks, which means that their price can fluctuate dramatically over short periods of time. This can make it difficult to predict their future performance and can increase the risk of loss.
2. Lack of liquidity: Penny stocks are often traded in smaller quantities, which can make it difficult to sell them when you want to. This lack of liquidity can make it harder to get out of a losing position and can increase the risk of loss.
3. Lack of transparency: Many penny stocks are traded on small, unregulated exchanges or over the counter, which can make it difficult to obtain accurate and reliable information about the company. This lack of transparency can make it harder to evaluate the risks and potential returns of the investment.
4. Fraud risk: Some penny stocks are promoted through fraudulent or deceptive practices, such as insider trading or misleading information. This can increase the risk of loss and can make it harder to identify legitimate investment opportunities.
5. Limited regulation: Penny stocks are often not subject to the same level of regulation as other types of stocks, which can increase the risk of fraud and other unethical practices.

A general recommendation is to create a penny stocks list that avoids the above risks and keep them as a watch list.

Debt-Free Penny Stocks List in India

Here is a penny stocks list that is low in price and debt-free:

Penny Stocks List that Pays Highest Dividends in India

Here is the penny stocks list that is low in price and pays good dividends:

Penny Stocks List BSE – Cheapest Stocks in India 

These are some of the penny stocks on the Bombay Stock Exchange with the highest market capitalization and are among the cheapest shares in India. It’s worth noting that these stocks have the highest net profit margin within the price range of ₹0-25.

What is meant by Multi-Bagger Penny Stocks?

A “multi-bagger” is a stock that has the potential to generate significant returns for an investor. The term “multi-bagger” refers to the fact that the stock has the potential to return multiple times the initial investment, or “bag” the investment several times over.

Penny stocks are stocks that trade for very low prices. They are usually highly speculative and carry a high level of risk, as they are often issued by small, unknown companies with limited financial resources.

When a penny stock is referred to as a “multi-bagger,” it means that the stock has the potential to generate extremely high returns, potentially several times the initial investment. However, it is important to note that investing in penny stocks, especially those that are marketed as “multi-baggers” carries a high level of risk and can result in significant losses.

Are Penny Stocks Cheap?

Stocks under the price of Rs 50 are referred to as Penny stocks and Penny stock is not always the cheapest.

The stock price of a stock doesn’t really reflect whether a stock is cheap or expensive. You need to examine whether the price you are paying for the stock is justified or not.

You need to evaluate the below things to find out whether the stock is cheap or expensive
What is the price-to-earnings ratio what is the book value of the stock what is the growth figure of the stock(in terms of sales, profit, margins, etc)

What is the debt on the book of the stock how is the management team of the stock what is the business potential of the stock?

FAQ on Penny Stocks List in India