What is Penny stock? – List of top 100 best penny stocks to buy India in 2021

Last Updated on 4 days ago by Raj Kumar

What is 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 stock to buy in India

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

COMPANY / StockSECTOR – INDUSTRYPriceMarket CAP(Rs Cr.)
Indian Railway Finance Corporation Ltd.Others2330,058
NHPCPower Generation – Hydro26.2526,368
Vodafone IdeaTelecommunications – Service8.2523,707
GMR InfraInfrastructure – Diversified28.417,142
SJVNPower Generation – Hydro27.2510,709
Trident LtdTextiles – Furnishings/
Terry Towels
20.6510,523
HUDCONBFC – Housing45.259,059
MRPLRefineries44.77,834
Tata TeleTelecommunications – Service37.957,419
Shree Ren SugSugar34.257,290
TV18 BroadcastTV Broadcasting & 
Software Production
39.056,695
Rail Vikas NigamConstruction & Contracting29.66,172
Infibeam AvenuesOnline Service/Marketplace44.055,863
Suzlon EnergyPower Generation – Wind6.35,572
Network18 MediaMedia & Entertainment – Holding505,235
Hathway CableCable/DTH26.054,611
GTL InfraTelecommunications 
– Allied Services
3.454,312
HMT LtdAuto – Tractors34.44,142
Ircon Intl.Construction & Engineering43.954,134
RattanIndia Power Power Generation – Thermal6.53,491
Lemon Tree HotelsHotels & Resorts41.23,264
IFCITerm Lending – General14.42,940
Brightcom GroupIT Consulting & Software 45.552,737
Dish TV IndiaCable/DTH14.052,587
Bajaj Hindusthan SuSugar18.92,414
Centrum CapitalNBFC – Diversified49.552,061
Hind Const CoConstruction & Contracting11.651,763
Electrostl CastCastings/Foundry38.351,660
Future Consumer FMCG Diversified8.251,639
IndiaPowerCorpPower – Integrated16.251,582
Jayaswal NecoCastings/Foundry24.61,571
3i InfotechIT Consulting & Software 9.31,503
MTNLTelecommunications – Service21.21,336
PTC FinancialTerm Lending – Power20.451,313
TARC Ltd.Others41.251,217
DCW LtdPetrochem – Others40.751,064
Nagarjuna FertilizerFertilisers171,017
Sadbhav InfraInfrastructure – Diversified28.2993
Andhra CementsCement – South32.25947
Texmaco RailCapital Goods – Railway35.65892
Music BroadcastRadio Broadcasting & Entertainment24.75856
Coffee Day EntRestaurant & QSR40.5856
Gayatri ProjectInfrastructure – Roads/Tolls43.9822
Nectar LifescPharma – Indian35.2789
Arshiya Warehousing/Supply Chain/
Road Transport
28.9758
Navkar CorpWarehousing/Supply Chain/
Road Transport
49.45744
Oswal Green TechFinancial Services – Misc28.7737
Patel EngConstruction & Contracting15719
HT MediaPrint Media30.75716
Parsvnath Dev.Real Estate15.85690
Orient PaperPaper Manufacturer31.55669
Oriental HotelsHotels & Resorts37.4668
HLV Ltd.Hotels & Resorts10.1637
DB RealtyReal Estate25.65624
Future Enterprises  (DVR)Diversified13.4610
Pennar IndSteel – CR/HR Strips40.95582
B L KashyapConstruction & Contracting25.25569
Zee Media CorpTV Broadcasting & 
Software Production
11.85558
Tilaknagar IndBeverages & Distilleries39.75554
Gokul Agro ResourcesEdible Oils & Solvent Extraction41541
Madras FertFertilisers32.6525
Prozone Intu ProperReal Estate34.4525
HCL InfosystemsIT Networking Equipment15.65515
Oricon EnterprDiversified32.7514
Zee LearnCoaching/Study Material/
Schools
15.4502
Shriram EPCProject Consultancy/
Turnkey
5.05491
Suvidhaa Infoserve Ltd.Others24.1490
Rana SugarsSugar30.85474
Future Enterprises Diversified10.35471
MSP SteelSteel – Sponge Iron11.85457
Vipul LtdReal Estate37.65452
Trans & RectifPower – 
Transmission Equipment
33.85449
Pudumjee Paper ProdPaper Manufacturer45.3430
MEP InfrastructureInfrastructure – Roads/Tolls23.1424
Peninsula LandReal Estate14.95417
Orient AbrasiveAbrasives And 
Grinding Wheels
34.55413
Birla TyresTyres & Tubes28.9412
Hind Nat GlassGlass – Consumer45.6408
ISMT LtdSteel – Rolling27.3400
Vikas MulticorpMiscellaneous4.3399
Vascon EngineerConstruction & Contracting21.7395
Ashima LtdTextiles – Spinning 
– Cotton Blended
19.75379
Ugar Sugar WorkSugar33.55377
FCS SoftwareIT Consulting & Software 2.2376
Shree Rama NewsPaper Manufacturer24.7364
McLeod RusselTea / Coffee33.9354
Urja GlobalProject Consultancy/Turnkey6.35354
Shyam Century FerroFerro Alloys15.85352
GTL LtdMiscellaneous21.85344
Paramount CommCables – Power/Others17.65343
Sarla PerformTextiles – Processing/
Texturising
40.95342
Commercial EnggMiscellaneous37331
OM Metal InfraDiversified33.3321
Kothari SugarsSugar38.4318
Airan Ltd.IT Enabled Services25.3316
Lloyds SteelsSteel – Others3.4306
Genus Paper BoardsPaper Manufacturer11.85305
Gokul RefoilsEdible Oils & 
Solvent Extraction
30.55302
Ginni FilamentsTextiles – Spinning 
– Cotton Blended
37.85300
Inventure GrwthFinancial Services – Misc3.55298
Full list top 100 best penny stocks to buy in India – NSE / BSE

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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