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

Last Updated on 2 weeks 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 – October 2021

COMPANY / STOCKSECTOR – INDUSTRYPriceMarket CAP
(Rs Cr.)
Vodafone IdeaTelecommunications – Service11.432,758
Indian Railway Finance Corporation Ltd.Others23.931,234
NHPCPower Generation – Hydro29.129,231
GMR InfraInfrastructure – Diversified4124,747
Trident LtdTextiles – Furnishings/
Terry Towels
29.414,982
SJVNPower Generation – Hydro28.411,161
HUDCONBFC – Housing44.658,938
NBCC  Construction & Contracting48.28,676
Tata TeleTelecommunications – Service37.17,253
TV18 BroadcastTV Broadcasting & 
Software Production
41.557,123
MMTCTrading45.16,765
Rail Vikas NigamConstruction & Contracting306,255
RattanIndia InfraMiscellaneous43.86,054
Shree Ren SugSugar285,960
Suzlon EnergyPower Generation – Wind6.55,749
Infibeam AvenuesOnline Service/Marketplace41.755,557
Hathway CableCable/DTH25.054,434
Ircon Intl.Construction & Engineering45.14,242
Dish TV IndiaCable/DTH20.23,719
Lemon Tree HotelsHotels & Resorts45.63,613
HMT LtdAuto – Tractors28.93,480
IFCITerm Lending – General13.052,665
RattanIndia Power Power Generation – Thermal4.352,336
Den NetworksCable/DTH48.452,312
GTL InfraTelecommunications 
– Allied Services
1.72,125
Bajaj Hindusthan SuSugar16.052,050
Electrostl CastCastings/Foundry37.151,608
Future Consumer FMCG Diversified7.61,510
IndiaPowerCorpPower – Integrated15.51,509
Jayaswal NecoCastings/Foundry23.551,504
Hind Const CoConstruction & Contracting9.551,445
HBL PowerIndustrial Consumable
 – Others
48.051,332
TARC Ltd.Others43.451,282
DCW LtdPetrochem – Others48.951,278
PTC FinancialTerm Lending – Power19.81,272
Centrum CapitalNBFC – Diversified30.151,254
MTNLTelecommunications – Service19.11,203
Andrew YuleTea / Coffee24.451,195
DiGiSPICE TechTelecommunications
 – Allied Services
44.61,020
Patel EngConstruction & Contracting20.05961
Texmaco RailCapital Goods – Railway36.85923
Zee Media CorpTV Broadcasting & 
Software Production
14.55910
Music BroadcastRadio Broadcasting 
& Entertainment
24.1833
Sadbhav EngInfrastructure – Roads/Tolls48824
HLV Ltd.Hotels & Resorts11.2738
Arshiya Warehousing/Supply Chain/
Road Transport
27.9732
Snowman LogisticsWarehousing/Supply Chain/
Road Transport
43.15721
Oriental HotelsHotels & Resorts38.55689
Coffee Day EntRestaurant & QSR32.2680
DB RealtyReal Estate27.8676
Nectar LifescPharma – Indian29.65665
Nagarjuna FertilizerFertilisers11658
Orient PaperPaper Manufacturer30.8654
Rico AutoAuto Ancl – Dr. Trans & Steer 
– Others
47.75646
Parsvnath Dev.Real Estate14.75642
Navkar CorpWarehousing/Supply Chain/
Road Transport
41.45624
HT MediaPrint Media26.3612
Shriram EPCProject Consultancy/Turnkey6.3612
B L KashyapConstruction & Contracting27609
Oswal Green TechFinancial Services – Misc23591
Gokul Agro ResourcesEdible Oils & Solvent Extraction43567
Sadbhav InfraInfrastructure – Diversified16.1567
Tilaknagar IndBeverages & Distilleries39.05544
Future Enterprises  (DVR)Diversified11.75535
Andhra CementsCement – South17.45512
Oricon EnterprDiversified31.8499
Madras FertFertilisers30.5491
Vascon EngineerConstruction & Contracting25.85481
Artemis Medicare Services Ltd.Others36477
Zee LearnCoaching/Study Material/Schools14.25465
HCL InfosystemsIT Networking Equipment13.8454
Marine ElectricalsElectric Equipment/
Components/Services
36.9453
Prozone Intu ProperReal Estate27.7423
ISMT LtdSteel – Rolling28.65420
Sarla PerformTextiles – Processing/
Texturising
49.35412
Future Enterprises Diversified9409
Pennar IndSteel – CR/HR Strips28.75409
Pudumjee Paper ProdPaper Manufacturer40.7386
Stampede Cap (DVR)Broking & Allied Services16.6380
MEP InfrastructureInfrastructure – Roads/Tolls20.65379
Rana SugarsSugar24.65379
MSP SteelSteel – Sponge Iron9.75376
Peninsula LandReal Estate13.25370
Trans & RectifPower – 
Transmission Equipment
26.95357
Vipul LtdReal Estate29.5354
Urja GlobalProject Consultancy/Turnkey6.25348
Orient AbrasiveAbrasives And 
Grinding Wheels
28.85345
McLeod RusselTea / Coffee32.95344
Birla TyresTyres & Tubes2476
Ashima LtdTextiles – Spinning – 
Cotton Blended
17.75340
Ugar Sugar WorkSugar30.2340
Suvidhaa Infoserve Ltd.Others15.9323
Hind Nat GlassGlass – Consumer36.05323
Vikas MulticorpMiscellaneous3.4316
PTL EnterprisesHolding – Diversified46.95311
Shyam Century FerroFerro Alloys13.95310
Lloyds SteelsSteel – Others3.35301
Commercial EnggMiscellaneous33.4299
Shree Rama NewsPaper Manufacturer19.6289
Airan Ltd.IT Enabled Services22.2278
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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