What is Penny stock? – List of top 100 best penny stocks to buy in India

Last Updated on 3 months ago by Raj Kumar

What is a Penny stock

Penny is often referred to something which is very cheap to afford. So the stocks which are very low in stock price are know as Penny stocks.

The term ‘Penny stocks’ has originated from the west. A penny stock refers to a small company’s stock that typically trades for less than $5 per share. In the grand old days, Penny stocks were the stocks which traded below $1 per share but SEC (Securities and Exchange Commission) has changed the definition to include shares up to $5 to be called a Penny stock.

History of Penny Stocks

As per NASDAQ ; In the non-digital era, persons buying a stock were paying up as much as a quarter-point ($0.25) commission to buy or sell a share of stock regardless of the stock price whether its a $1 stock or a $100 stock.

So the Mutual funds at that time avoided buying Penny stocks to avoid the huge commission. This became a widespread notion to avoid the types of stocks to save on the commission.

Have a look at India’s famous investor’s portfolios here:-

Rakesh Jhunjhunwala Portfolio

Radhakishan Damani Portfolio

Porinju Veliyath portfolio

Vijay Kedia stocks portfolio

Nemish Shah stocks portfolio

Mohnish Pabrai Stocks Portfolio

Ashish Kacholia stocks portfolio

Dolly Khanna portfolio

What is penny stocks in India?

Although there is no definition of penny stock in India as a general consensus in Indian stock markets, any stock that trades below Rs 50 is considered as 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 Blue chip stocks India for their investment preference and look for mainly zero debt companies to find safe heavens but recently its 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 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.

Penny stock
Penny stocks to buy in India

Full list top 100 best penny stocks to buy in India – NSE / BSE – November 2021

Here are the top 100 best penny stocks in India –

COMPANY / StockSECTOR – INDUSTRYPrice RsM CAP(Rs Cr.)
Indian Railway Finance Corporation Ltd.Others24.232,606
NHPCPower Generation – Hydro30.731,190
Vodafone IdeaTelecommunications – Service9.5528,592
GMR InfraInfrastructure – Diversified40.5525,321
Trident LtdTextiles – Furnishings/
Terry Towels
37.9520,129
SJVNPower Generation – Hydro28.3511,318
MRPLRefineries49.158,754
HUDCONBFC – Housing42.858,698
NBCC  Construction & Contracting44.658,397
Rail Vikas NigamConstruction & Contracting35.37,464
TV18 BroadcastTV Broadcasting & 
Software Production
41.557,329
MMTCTrading41.956,495
Infibeam AvenuesOnline Service/Marketplace45.36,167
Suzlon EnergyPower Generation – Wind6.756,231
Shree Ren SugSugar27.055,715
RattanIndia InfraMiscellaneous40.356,262
Ircon Intl.Construction & Engineering47.254,420
Hathway CableCable/DTH21.83,735
HMT LtdAuto – Tractors28.73,347
Dish TV IndiaCable/DTH17.253,600
Future RetailSupermarkets48.12,679
IFCITerm Lending – General12.22,573
SubexIT Consulting & Software 42.452,394
Den NetworksCable/DTH44.652,085
RattanIndia Power Power Generation – Thermal3.82,148
Jayaswal NecoCastings/Foundry30.81,852
GTL InfraTelecommunications – 
Allied Services
1.41,955
Bajaj Hindusthan SuSugar13.451,763
Centrum CapitalNBFC – Diversified39.951,754
IndiaPowerCorpPower – Integrated15.31,592
Electrostl CastCastings/Foundry33.951,479
Hind Const CoConstruction & Contracting9.41,437
HBL PowerIndustrial Consumable – Others49.951,421
Future Consumer FMCG Diversified6.951,431
TARC Ltd.Others43.71,350
PTC FinancialTerm Lending – Power19.351,272
DCW LtdPetrochem – Others47.351,263
Karda ConstReal Estate19.51,282
Andrew YuleTea / Coffee24.11,186
MTNLTelecommunications – Service18.51,147
Patel EngConstruction & Contracting23.951,177
DiGiSPICE TechTelecommunications – 
Allied Services
45.551,019
Southern PetroFertilisers46.55992
DB RealtyReal Estate35.91,008
Music BroadcastRadio Broadcasting &
 Entertainment
24.35845
Sadbhav EngInfrastructure – Roads/Tolls47.95828
Gayatri ProjectInfrastructure – Roads/Tolls42.95820
Texmaco RailCapital Goods – Railway32.05771
Arshiya Warehousing/Supply Chain/
Road Transport
29.2796
Coffee Day EntRestaurant & QSR35.8807
Zee Media CorpTV Broadcasting & 
Software Production
11.9757
Take SolutionsIT Consulting & Software 47.95718
HLV Ltd.Hotels & Resorts10.65702
Snowman LogisticsWarehousing/Supply Chain/
Road Transport
40.9696
Vishwaraj SugarSugar36.25644
Shriram EPCProject Consultancy/Turnkey6.9656
Oriental HotelsHotels & Resorts36.85677
Orient PaperPaper Manufacturer30.65667
3i InfotechIT Consulting & Software 39.45737
Navkar CorpWarehousing/Supply Chain/
Road Transport
40.65648
HT MediaPrint Media26.2628
Nectar LifescPharma – Indian26.4602
Parsvnath Dev.Real Estate13.5696
B L KashyapConstruction & Contracting25.8631
Rico AutoAuto Ancl – Dr. Trans & 
Steer – Others
42.9594
Lloyds SteelsSteel – Others6.4544
Vascon EngineerConstruction & Contracting25.8588
Nagarjuna FertilizerFertilisers9.35565
Andhra CementsCement – South18.85525
Sadbhav InfraInfrastructure – Diversified15.65557
Future Enterprises  (DVR)Diversified11.45525
Oswal Green TechFinancial Services – Misc19.95614
ISMT LtdSteel – Rolling32.45409
Madras FertFertilisers28.4461
Artemis Medicare Services Ltd.Others34.15453
Kellton TechIT Consulting & Software 46.9469
HCL InfosystemsIT Networking Equipment12.9458
Zee LearnCoaching/Study Material/
Schools
12.85416
Oricon EnterprDiversified26.2429
Gujarat SidheeCement – North46.25412
Prozone Intu ProperReal Estate26.55414
Future Enterprises Diversified8.75405
Rana SugarsSugar25.65411
Pennar IndSteel – CR/HR Strips27.5399
Pudumjee Paper ProdPaper Manufacturer40.95372
MEP InfrastructureInfrastructure – Roads/Tolls21422
Trans & RectifPower – 
Transmission Equipment
28.3378
Urja GlobalProject Consultancy/Turnkey6.7421
Marine ElectricalsElectric Equipment/
Components/Services
29.45400
MSP SteelSteel – Sponge Iron9.05353
Birla TyresTyres & Tubes24.05350
Orient AbrasiveAbrasives And 
Grinding Wheels
28.65333
Sintex Inds.Textiles – General5.6384
Vikas MulticorpMiscellaneous3.5320
PTL EnterprisesHolding – Diversified48.8331
Ashima LtdTextiles – Spinning – 
Cotton Blended
16.75324
Vipul LtdReal Estate26.65328
OM Metal InfraDiversified31.75322
Peninsula LandReal Estate10.9334
Ugar Sugar WorkSugar27.05317
Full list top 100 best penny stocks to buy in India

The above list is not the complete list of Penny stocks; there are 500+ companies in NSE / BSE with stock prices less than Rs 50. We only picked stocks having higher market cap.

FAQ on Penny stocks in India

Is it good to invest in Penny stocks in India?

In general Penny stocks are volatile, illiquid, and mainly operator driven. But not all stocks are the same. There are some good quality stocks which trade under 50 rupees stock price and are good companies to invest in.

You need to find out the details of the stock before you make any investment decisions. There are many good companies that offer excellent growth potential while their stock prices are under Rs 50.

Are Penny stocks cheap?

Stocks under the prices of Rs 50 referred to as 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 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 are 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

Which penny stock in India have a high market cap?

Below are some companies whose share price are of Penny stock type but they have high market capitalisation.

Indian Railway Finance Corporation Ltd.
NHPC
Vodafone Idea
GMR Infra
SJVN
HUDCO
NBCC  
Trident Ltd
TV18 Broadcast
Rail Vikas Nigam
Infibeam Avenues
Suzlon Energy
Hathway Cable
Network18 Media
Shree Ren Sug
Lemon Tree Hotels
HMT Ltd
Dish TV India
Tata Tele

Which are some famous Penny stocks in India?

Some of the stocks which have got a lot of limelight in recent years are:-

Suzlon Energy
Reliance Capital
Reliance Communications
Yes Bank
Vodafone Idea
DHFL
Unitech
HDIL
IFCI

Many of these companies are huge wealth destructive. So please do a careful analysis before investing in these companies.

Why are Penny stocks famous among retails investors?

The lower price of a stock price attracts many retail investors. They think that the lower price of a stock means the stock is cheap and give multibagger returns. Unfortunately, they get trapped into an investment which most of the time turns out to be loss-making.

Which Penny stocks are available below 1 Rupee?

Below are the list of stocks which are available below 1 rupee.

GTL Infra
Sanwaria Consumer 
Nitin Fire Prot
Diamond Power
Consol Const.
Gayatri Highways
CLC Industries
Raj Rayon
DSJ Comm
Splendid Metal Pdts
JIK Industries
Ramsarup Ind

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One comment

  1. Provide also Addition software select options clients self as like options as per Cretiria , telegram , whatsapp , email .

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