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

Last Updated on 2 months ago by Raj Kumar

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’ 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 that 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 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 stock 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 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 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.

Penny stock
Penny stocks to buy in India

Full list of top 100 best penny stocks to buy in India – NSE / BSE – 2022

Here are the full list of Penny stocks to buy in India-

COMPANY / STOCKSECTOR – INDUSTRYPRICEMarket CAP(Rs Cr.)
NHPCPower Generation – Hydro33.7533,902
Vodafone IdeaTelecommunications – Service9.0529,068
Indian Railway Finance Corporation Ltd.Term Lending – Railways21.728,359
GMR InfraInfrastructure – Diversified35.1521,216
SJVNPower Generation – Hydro28.411,161
Suzlon EnergyPower Generation – Wind9.758,987
TV18 BroadcastTV Broadcasting & 
Software Production
44.957,706
HUDCONBFC – Housing33.96,786
Rail Vikas NigamConstruction & Contracting32.46,755
MMTCTrading42.66,390
NBCC  Construction & Contracting35.156,327
RattanIndia InfraMiscellaneous40.855,647
Infibeam AvenuesOnline Service/Marketplace15.954,269
Ircon Intl.Construction & Engineering40.053,767
Hathway CableCable/DTH19.453,443
HMT LtdAuto – Tractors25.653,089
Dhani Ibull VenturesNBFC – Consumer47.92,922
Dish TV IndiaCable/DTH14.952,753
RattanIndia Power Power Generation – Thermal4.82,578
IFCITerm Lending – General10.852,282
Jayaswal NecoCastings/Foundry23.252,258
Electrostl CastCastings/Foundry37.72,242
Hind Const CoConstruction & Contracting14.62,209
Marksans PharmaPharma – Indian49.92,042
Bajaj Hindusthan SuSugar15.92,031
Morepen LabsPharma – Indian41.41,978
SubexIT Consulting & Software 33.31,871
Den NetworksCable/DTH38.11,818
GTL InfraTelecommunications 
– Allied Services
1.41,767
GMR Power And Urban Infra Ltd.Others28.051,693
MTNLTelecommunications – Service22.951,446
Texmaco RailCapital Goods – Railway44.21,423
IndiaPowerCorpPower – Integrated13.71,334
TARC Ltd.Others441,298
Lloyds SteelsSteel – Others14.31,285
Andrew YuleTea / Coffee24.651,205
Zee Media CorpTV Broadcasting & 
Software Production
18.451,154
DCW LtdPetrochem – Others441,149
Patel EngConstruction & Contracting23.651,133
Sanghi IndCement – North44.551,118
PTC FinancialTerm Lending – Power16.351,050
Centrum CapitalNBFC – Diversified25.051,042
Future RetailSupermarkets18.71,014
Coffee Day EntRestaurant & QSR47993
Udaipur Cement WorkCement – North31.65986
Shriram EPCProject Consultancy/Turnkey9874
Music BroadcastRadio Broadcasting &
 Entertainment
24.75856
Urja GlobalProject Consultancy/Turnkey15.35855
Madras FertFertilisers47.9772
Nagarjuna FertilizerFertilisers12.9772
DiGiSPICE TechTelecommunications 
– Allied Services
31.05717
Nandan Denim Textiles – Denim46.25667
Arshiya Warehousing/Supply Chain/
Road Transport
25.2661
Vishal FabricsTextiles – Processing/
Texturising
32.71,519
HT MediaPrint Media27.65644
Parsvnath Dev.Real Estate14.7640
Orient PaperPaper Manufacturer29.95636
Ducon InfraIT Networking Equipment24.15628
Oswal Green TechFinancial Services – Misc24.3624
HLV Ltd.Hotels & Resorts9.35616
Shyam Century FerroFerro Alloys27.35608
Nectar LifescPharma – Indian26.8601
FCS SoftwareIT Consulting & Software 3.45590
Snowman LogisticsWarehousing/Supply Chain/
Road Transport
35585
Artemis Medicare Services Ltd.Others42.6564
HCL InfosystemsIT Networking Equipment16.95558
Pennar IndSteel – CR/HR Strips39.1556
Vikas MulticorpMiscellaneous4.9535
Vascon EngineerConstruction & Contracting24.45531
Future Consumer FMCG Diversified2.65529
Rana SugarsSugar33.85520
B L KashyapConstruction & Contracting23.05520
Sadbhav EngInfrastructure – Roads/Tolls29.9513
Rico AutoAuto Ancl – Dr. Trans & 
Steer – Others
35.95486
Genus Paper BoardsPaper Manufacturer18.9486
Oricon EnterprDiversified30.9485
MSP SteelSteel – Sponge Iron12.4478
MEP InfrastructureInfrastructure – Roads/Tolls25.55469
Vikas Ecotech Chemicals – Speciality – Others4.9458
Trans & RectifPower – Transmission Equipment32.75434
Sakuma ExportsTrading18.25428
PTL EnterprisesHolding – Diversified32.1425
Munjal Auto IndAuto Ancl – Others42.45425
Take SolutionsIT Consulting & Software27.95413
Future Enterprises  (DVR)Diversified9.05412
Gokul RefoilsEdible Oils & Solvent Extraction41.3409
Godha Cabcon & InsulElectric Equipment/Components/
Services
18.4409
Karda ConstReal Estate6.55403
Ginni FilamentsTextiles – Spinning – 
Cotton Blended
46.65400
Shivam AutotechAuto Ancl – Others31.65387
Oswal Agro MillHolding – Diversified28.35381
Vishwaraj SugarSugar20376
Gayatri ProjectInfrastructure – Roads/Tolls19.95373
Prozone Intu ProperReal Estate24.35372
Pudumjee Paper ProdPaper Manufacturer38.9369
OM Metal InfraDiversified37.95365
Orient AbrasiveAbrasives And Grinding Wheels30.35363
Gujarat SidheeCement – North40.65363
Indiabulls IntgrtdInsurance – Non Life39.85356
Sadbhav InfraInfrastructure – Diversified10.1356
Full list of top 100 best penny stocks to buy in India

Here are the top 100 best penny stocks 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.

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 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.

  • 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

  • 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 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 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.

  • 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

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

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