What is Penny stock? – Top 100 best penny stocks list to buy in India

Top 100 Penny stocks list in India | Dividend paying penny stocks list | Debt free penny stock list | Penny stocks list under 1 rupee

This post was most recently updated on November 17th, 2022

Penny stocks are one of the most volatile and risky investments that an individual can make. A penny stock is defined as a stock that trades for less than $5 per share. While penny stocks may seem like a bargain, they are often very speculative and risky. In this article, let’s look at the top 100 Penny stocks list in India.

Penny stocks are often times not well-known companies with little to no earnings and are often times not listed on a major exchange. This lack of information and liquidity can make it very difficult to trade penny stocks.

Penny stocks are also subject to manipulation by large investors, who can easily move the price of the stock up or down. This volatility can make it very difficult for an investor to make money in penny stocks. Overall, penny stocks are a very speculative and risky investment, and should only be considered by investors who are willing to lose their entire investment.

What is a Penny stock?

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

The term ‘Penny stocks’ 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 that traded below $1 per share but SEC (Securities and Exchange Commission) has changed the definition to include shares up to $5 to 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 it’s 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 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 Blue chip stocks in India for their investment preference and look for mainly zero debt companies to find safe havens 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 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.

Top penny stocks to buy in India
Penny stocks to buy in India

Top 100 best penny stocks list to buy today in India – NSE / BSE – 2022

Here is the best Penny stocks list to buy in India

COMPANYSECTORINDUSTRYPrice RsMarket CAP(Rs Cr.)
NHPCPower Generation – Hydro37.9538,573
Vodafone IdeaTelecommunications – Service928,907
Indian Railway Finance Corporation Ltd.Term Lending – Railways21.427,901
GMR InfraInfrastructure – Diversified35.8521,518
Trident LtdTextiles – Furnishings/Terry Towels37.3518,702
SJVNPower Generation – Hydro32.8513,008
Suzlon EnergyPower Generation – Wind7.657,958
Rail Vikas NigamConstruction & Contracting36.37,475
Brightcom GroupIT Consulting & Software – Small Cap36.97,466
HUDCONBFC – Housing36.27,227
RattanIndia InfraMiscellaneous49.86,628
TV18 BroadcastTV Broadcasting & Software Production39.056,566
NBCC  Construction & Contracting32.15,688
MMTCTrading35.25,138
Infibeam AvenuesOnline Service/Marketplace14.954,042
Ircon Intl.Construction & Engineering41.93,814
HMT LtdAuto – Tractors28.653,287
Dish TV IndiaCable/DTH17.63,268
Dhani Ibull VenturesNBFC – Consumer48.32,916
Hathway CableCable/DTH16.552,868
Jayaswal NecoCastings/Foundry27.252,631
SpicejetAirlines41.82,314
RattanIndia Power Power Generation – Thermal4.42,309
Hind Const CoConstruction & Contracting14.72,020
Electrostl CastCastings/Foundry36.42,161
IFCITerm Lending – General9.92,040
Marksans PharmaPharma – Indian46.91,911
SubexIT Consulting & Software – Small Cap32.951,804
GTL InfraTelecommunications – Allied Services1.41,767
GMR Power And Urban Infra Ltd.Others27.251,651
Den NetworksCable/DTH33.051,570
ISMT LtdSteel – Rolling491,469
Bajaj Hindusthan SuSugar10.91,322
MTNLTelecommunications – Service22.051,373
Morepen LabsPharma – Indian26.751,385
Lloyds SteelsSteel – Others13.31,305
IndiaPowerCorpPower – Integrated13.41,290
TARC Ltd.Others43.851,309
Patel EngConstruction & Contracting23.451,160
Geojit FinancialNBFC – Diversified49.651,149
Steel ExchangeSteel – Integrated131,163
Zee Media CorpTV Broadcasting & Software Production17.451,041
Shriram EPCProject Consultancy/Turnkey8.51,077
Udaipur Cement WorkCement – North32.951,020
Centrum CapitalNBFC – Diversified24.651,009
Spacenet EnterpriseMiscellaneous – Others19.151,032
Raj RayonTextiles – Processing/Texturising18.05976
Andrew YuleTea / Coffee20.35980
PTC FinancialTerm Lending – Power14.75938
Salasar Techno EnggIndustrial Consumable – Others29.8857
Music BroadcastRadio Broadcasting & Entertainment24.5842
3i InfotechIT Consulting & Software – Small Cap44736
Orient PaperPaper Manufacturer32.25663
Oswal Green TechFinancial Services – Misc26.15665
HLV Ltd.Hotels & Resorts9.7636
Urja GlobalProject Consultancy/Turnkey11.35630
Pennar IndSteel – CR/HR Strips46.55596
DiGiSPICE TechTelecommunications – Allied Services27.1625
Snowman LogisticsWarehousing/Supply Chain/Road Transport36.7602
Vascon EngineerConstruction & Contracting27.85606
Vikas MulticorpMiscellaneous4.85609
B L KashyapConstruction & Contracting25.55559
Oswal Agro MillHolding – Diversified41.85566
HCL InfosystemsIT Networking Equipment16.4535
HT MediaPrint Media22.55492
Shyam Century FerroFerro Alloys23.3512
Jai Balaji IndsSteel – Sponge Iron42.55493
Nagarjuna FertilizerFertilisers8.45517
GVK Power InfraInfrastructure – Diversified3.2482
FCS SoftwareIT Consulting & Software – Micro Cap2.95487
Oricon EnterprDiversified31.35474
Nectar LifescPharma – Indian21.75486
Cerebra IntegratIT Networking Equipment39.6451
Shivam AutotechAuto Ancl – Others38.75464
Vishal FabricsTextiles – Processing/Texturising23.751,519
Mangalam Global EntAgro – Others33.85474
Nandan Denim Textiles – Denim28.95429
Marine ElectricalsElectric Equipment/Components/Services34408
Sarla PerformTextiles – Processing/Texturising48.9394
PTL EnterprisesHolding – Diversified30.6407
Genus Paper BoardsPaper Manufacturer15.65399
Proseed India Seeds/Tissue Culture/Bio Technology38.85421
Eros MediaFilm/TV Production & Distribution40.05399
SVP GlobalMiscellaneous30.05381
Pudumjee Paper ProdPaper Manufacturer39.6371
Rana SugarsSugar24.4365
Indiabulls IntgrtdInsurance – Non Life37.3368
MSP SteelSteel – Sponge Iron9.7355
Take SolutionsIT Consulting & Software – Small Cap25.25355
Dangee DumsFMCG Dairy Products23.9374
Gujarat SidheeCement – North40.95364
Orient AbrasiveAbrasives And Grinding Wheels30.55358
Arshiya Warehousing/Supply Chain/Road Transport13.85375
Peninsula LandReal Estate13363
Kothari SugarsSugar43.75354
Future Consumer FMCG Diversified1.8369
Hindustan MotorAuto – Cars & UV16.8357
OM Metal InfraDiversified36.2337
Future Enterprises  (DVR)Diversified7.65343
Sakuma ExportsTrading14.75345
Top 100 best penny stocks list 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 a higher market cap.

Debt Free Penny Stocks List

Here are some penny stocks which are low in price and debt-free.

Stock NamePrice
3P Land Holdings Ltd16.80
Blue Chip India Ltd0.40
BSEL Infrastructure Realty Ltd3.75
Cinevista Ltd13.35
Diligent Media Corporation Ltd3.90
GI Engineering Solutions Ltd5.05
Hathway Cable and Datacom Ltd16.20
Hotel Rugby Ltd4.80
Indbank Merchant Banking Services Ltd23.35
IL & FS Investment Managers Ltd8.25
Debt-free Penny stocks list

Penny Stocks list that Pay Highest Dividends

Here is the list of penny stocks that are low in price and pay good dividends.

Stock NamePriceDividend Per Share (₹)
Taparia Tools Ltd12.14173
Standard Industries Ltd22.103
Coromandel Agro Products and Oils Ltd2.583
Indian Railway Finance Corp Ltd21.351
Shilpi Cable Technologies Ltd1.151
Gothi Plascon India Ltd20.801
Swastik Safe Deposit and Investments Ltd5.081
Bank of Maharashtra Ltd18.001
Vishal Fabrics Ltd23.751
WeP Solutions Ltd22.850.50
Penny Stocks list that Pays the Highest Dividends

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 in India

  1. 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 that 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.

  2. Which penny stock in India has a high market cap?

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

    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

  3. 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.

  4. Why are Penny stocks famous among retail 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 multi-bagger returns. Unfortunately, they get trapped in an investment that most of the time turns out to be loss-making.

  5. Which Penny stocks are available below 1 Rupee?

    Below is the list of stocks that 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

  6. Why are penny stocks considered risky to invest in?

    Penny stocks are considered risky to invest in because they are highly volatile and can lose a lot of value very quickly. They are also often subject to pump-and-dump schemes, where investors buy up a lot of shares and then sell them all at once to drive up the price before it crashes.

Newsletter Updates

Enter your email address below to subscribe to our newsletter

One comment

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

Leave a Reply

Your email address will not be published. Required fields are marked *

error: Content is protected !!

Join our mailing list to receive latest updates and newsletters!

You have successfully subscribed to our blog!

There was an error while trying to send your request. Please try again.

We Invest Smart will use the information you provide on this form to be in touch with you and to provide updates and marketing.