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.

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 / Stock	SECTOR – INDUSTRY	Price Rs	M CAP(Rs Cr.)
Indian Railway Finance Corporation Ltd.	Others	24.2	32,606
NHPC	Power Generation – Hydro	30.7	31,190
Vodafone Idea	Telecommunications – Service	9.55	28,592
GMR Infra	Infrastructure – Diversified	40.55	25,321
Trident Ltd	Textiles – Furnishings/ Terry Towels	37.95	20,129
SJVN	Power Generation – Hydro	28.35	11,318
MRPL	Refineries	49.15	8,754
HUDCO	NBFC – Housing	42.85	8,698
NBCC	Construction & Contracting	44.65	8,397
Rail Vikas Nigam	Construction & Contracting	35.3	7,464
TV18 Broadcast	TV Broadcasting &  Software Production	41.55	7,329
MMTC	Trading	41.95	6,495
Infibeam Avenues	Online Service/Marketplace	45.3	6,167
Suzlon Energy	Power Generation – Wind	6.75	6,231
Shree Ren Sug	Sugar	27.05	5,715
RattanIndia Infra	Miscellaneous	40.35	6,262
Ircon Intl.	Construction & Engineering	47.25	4,420
Hathway Cable	Cable/DTH	21.8	3,735
HMT Ltd	Auto – Tractors	28.7	3,347
Dish TV India	Cable/DTH	17.25	3,600
Future Retail	Supermarkets	48.1	2,679
IFCI	Term Lending – General	12.2	2,573
Subex	IT Consulting & Software	42.45	2,394
Den Networks	Cable/DTH	44.65	2,085
RattanIndia Power	Power Generation – Thermal	3.8	2,148
Jayaswal Neco	Castings/Foundry	30.8	1,852
GTL Infra	Telecommunications –  Allied Services	1.4	1,955
Bajaj Hindusthan Su	Sugar	13.45	1,763
Centrum Capital	NBFC – Diversified	39.95	1,754
IndiaPowerCorp	Power – Integrated	15.3	1,592
Electrostl Cast	Castings/Foundry	33.95	1,479
Hind Const Co	Construction & Contracting	9.4	1,437
HBL Power	Industrial Consumable – Others	49.95	1,421
Future Consumer	FMCG Diversified	6.95	1,431
TARC Ltd.	Others	43.7	1,350
PTC Financial	Term Lending – Power	19.35	1,272
DCW Ltd	Petrochem – Others	47.35	1,263
Karda Const	Real Estate	19.5	1,282
Andrew Yule	Tea / Coffee	24.1	1,186
MTNL	Telecommunications – Service	18.5	1,147
Patel Eng	Construction & Contracting	23.95	1,177
DiGiSPICE Tech	Telecommunications –  Allied Services	45.55	1,019
Southern Petro	Fertilisers	46.55	992
DB Realty	Real Estate	35.9	1,008
Music Broadcast	Radio Broadcasting &  Entertainment	24.35	845
Sadbhav Eng	Infrastructure – Roads/Tolls	47.95	828
Gayatri Project	Infrastructure – Roads/Tolls	42.95	820
Texmaco Rail	Capital Goods – Railway	32.05	771
Arshiya	Warehousing/Supply Chain/ Road Transport	29.2	796
Coffee Day Ent	Restaurant & QSR	35.8	807
Zee Media Corp	TV Broadcasting &  Software Production	11.9	757
Take Solutions	IT Consulting & Software	47.95	718
HLV Ltd.	Hotels & Resorts	10.65	702
Snowman Logistics	Warehousing/Supply Chain/ Road Transport	40.9	696
Vishwaraj Sugar	Sugar	36.25	644
Shriram EPC	Project Consultancy/Turnkey	6.9	656
Oriental Hotels	Hotels & Resorts	36.85	677
Orient Paper	Paper Manufacturer	30.65	667
3i Infotech	IT Consulting & Software	39.45	737
Navkar Corp	Warehousing/Supply Chain/ Road Transport	40.65	648
HT Media	Print Media	26.2	628
Nectar Lifesc	Pharma – Indian	26.4	602
Parsvnath Dev.	Real Estate	13.5	696
B L Kashyap	Construction & Contracting	25.8	631
Rico Auto	Auto Ancl – Dr. Trans &  Steer – Others	42.9	594
Lloyds Steels	Steel – Others	6.4	544
Vascon Engineer	Construction & Contracting	25.8	588
Nagarjuna Fertilizer	Fertilisers	9.35	565
Andhra Cements	Cement – South	18.85	525
Sadbhav Infra	Infrastructure – Diversified	15.65	557
Future Enterprises  (DVR)	Diversified	11.45	525
Oswal Green Tech	Financial Services – Misc	19.95	614
ISMT Ltd	Steel – Rolling	32.45	409
Madras Fert	Fertilisers	28.4	461
Artemis Medicare Services Ltd.	Others	34.15	453
Kellton Tech	IT Consulting & Software	46.9	469
HCL Infosystems	IT Networking Equipment	12.9	458
Zee Learn	Coaching/Study Material/ Schools	12.85	416
Oricon Enterpr	Diversified	26.2	429
Gujarat Sidhee	Cement – North	46.25	412
Prozone Intu Proper	Real Estate	26.55	414
Future Enterprises	Diversified	8.75	405
Rana Sugars	Sugar	25.65	411
Pennar Ind	Steel – CR/HR Strips	27.5	399
Pudumjee Paper Prod	Paper Manufacturer	40.95	372
MEP Infrastructure	Infrastructure – Roads/Tolls	21	422
Trans & Rectif	Power –  Transmission Equipment	28.3	378
Urja Global	Project Consultancy/Turnkey	6.7	421
Marine Electricals	Electric Equipment/ Components/Services	29.45	400
MSP Steel	Steel – Sponge Iron	9.05	353
Birla Tyres	Tyres & Tubes	24.05	350
Orient Abrasive	Abrasives And  Grinding Wheels	28.65	333
Sintex Inds.	Textiles – General	5.6	384
Vikas Multicorp	Miscellaneous	3.5	320
PTL Enterprises	Holding – Diversified	48.8	331
Ashima Ltd	Textiles – Spinning –  Cotton Blended	16.75	324
Vipul Ltd	Real Estate	26.65	328
OM Metal Infra	Diversified	31.75	322
Peninsula Land	Real Estate	10.9	334
Ugar Sugar Work	Sugar	27.05	317

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