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.
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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:-
Mohnish Pabrai Stocks Portfolio
Ashish Kacholia stocks 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.
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 / STOCK | SECTOR – INDUSTRY | PRICE | Market CAP(Rs Cr.) |
| NHPC | Power Generation – Hydro | 33.75 | 33,902 |
| Vodafone Idea | Telecommunications – Service | 9.05 | 29,068 |
| Indian Railway Finance Corporation Ltd. | Term Lending – Railways | 21.7 | 28,359 |
| GMR Infra | Infrastructure – Diversified | 35.15 | 21,216 |
| SJVN | Power Generation – Hydro | 28.4 | 11,161 |
| Suzlon Energy | Power Generation – Wind | 9.75 | 8,987 |
| TV18 Broadcast | TV Broadcasting & Software Production | 44.95 | 7,706 |
| HUDCO | NBFC – Housing | 33.9 | 6,786 |
| Rail Vikas Nigam | Construction & Contracting | 32.4 | 6,755 |
| MMTC | Trading | 42.6 | 6,390 |
| NBCC | Construction & Contracting | 35.15 | 6,327 |
| RattanIndia Infra | Miscellaneous | 40.85 | 5,647 |
| Infibeam Avenues | Online Service/Marketplace | 15.95 | 4,269 |
| Ircon Intl. | Construction & Engineering | 40.05 | 3,767 |
| Hathway Cable | Cable/DTH | 19.45 | 3,443 |
| HMT Ltd | Auto – Tractors | 25.65 | 3,089 |
| Dhani Ibull Ventures | NBFC – Consumer | 47.9 | 2,922 |
| Dish TV India | Cable/DTH | 14.95 | 2,753 |
| RattanIndia Power | Power Generation – Thermal | 4.8 | 2,578 |
| IFCI | Term Lending – General | 10.85 | 2,282 |
| Jayaswal Neco | Castings/Foundry | 23.25 | 2,258 |
| Electrostl Cast | Castings/Foundry | 37.7 | 2,242 |
| Hind Const Co | Construction & Contracting | 14.6 | 2,209 |
| Marksans Pharma | Pharma – Indian | 49.9 | 2,042 |
| Bajaj Hindusthan Su | Sugar | 15.9 | 2,031 |
| Morepen Labs | Pharma – Indian | 41.4 | 1,978 |
| Subex | IT Consulting & Software | 33.3 | 1,871 |
| Den Networks | Cable/DTH | 38.1 | 1,818 |
| GTL Infra | Telecommunications – Allied Services | 1.4 | 1,767 |
| GMR Power And Urban Infra Ltd. | Others | 28.05 | 1,693 |
| MTNL | Telecommunications – Service | 22.95 | 1,446 |
| Texmaco Rail | Capital Goods – Railway | 44.2 | 1,423 |
| IndiaPowerCorp | Power – Integrated | 13.7 | 1,334 |
| TARC Ltd. | Others | 44 | 1,298 |
| Lloyds Steels | Steel – Others | 14.3 | 1,285 |
| Andrew Yule | Tea / Coffee | 24.65 | 1,205 |
| Zee Media Corp | TV Broadcasting & Software Production | 18.45 | 1,154 |
| DCW Ltd | Petrochem – Others | 44 | 1,149 |
| Patel Eng | Construction & Contracting | 23.65 | 1,133 |
| Sanghi Ind | Cement – North | 44.55 | 1,118 |
| PTC Financial | Term Lending – Power | 16.35 | 1,050 |
| Centrum Capital | NBFC – Diversified | 25.05 | 1,042 |
| Future Retail | Supermarkets | 18.7 | 1,014 |
| Coffee Day Ent | Restaurant & QSR | 47 | 993 |
| Udaipur Cement Work | Cement – North | 31.65 | 986 |
| Shriram EPC | Project Consultancy/Turnkey | 9 | 874 |
| Music Broadcast | Radio Broadcasting & Entertainment | 24.75 | 856 |
| Urja Global | Project Consultancy/Turnkey | 15.35 | 855 |
| Madras Fert | Fertilisers | 47.9 | 772 |
| Nagarjuna Fertilizer | Fertilisers | 12.9 | 772 |
| DiGiSPICE Tech | Telecommunications – Allied Services | 31.05 | 717 |
| Nandan Denim | Textiles – Denim | 46.25 | 667 |
| Arshiya | Warehousing/Supply Chain/ Road Transport | 25.2 | 661 |
| Vishal Fabrics | Textiles – Processing/ Texturising | 32.7 | 1,519 |
| HT Media | Print Media | 27.65 | 644 |
| Parsvnath Dev. | Real Estate | 14.7 | 640 |
| Orient Paper | Paper Manufacturer | 29.95 | 636 |
| Ducon Infra | IT Networking Equipment | 24.15 | 628 |
| Oswal Green Tech | Financial Services – Misc | 24.3 | 624 |
| HLV Ltd. | Hotels & Resorts | 9.35 | 616 |
| Shyam Century Ferro | Ferro Alloys | 27.35 | 608 |
| Nectar Lifesc | Pharma – Indian | 26.8 | 601 |
| FCS Software | IT Consulting & Software | 3.45 | 590 |
| Snowman Logistics | Warehousing/Supply Chain/ Road Transport | 35 | 585 |
| Artemis Medicare Services Ltd. | Others | 42.6 | 564 |
| HCL Infosystems | IT Networking Equipment | 16.95 | 558 |
| Pennar Ind | Steel – CR/HR Strips | 39.1 | 556 |
| Vikas Multicorp | Miscellaneous | 4.9 | 535 |
| Vascon Engineer | Construction & Contracting | 24.45 | 531 |
| Future Consumer | FMCG Diversified | 2.65 | 529 |
| Rana Sugars | Sugar | 33.85 | 520 |
| B L Kashyap | Construction & Contracting | 23.05 | 520 |
| Sadbhav Eng | Infrastructure – Roads/Tolls | 29.9 | 513 |
| Rico Auto | Auto Ancl – Dr. Trans & Steer – Others | 35.95 | 486 |
| Genus Paper Boards | Paper Manufacturer | 18.9 | 486 |
| Oricon Enterpr | Diversified | 30.9 | 485 |
| MSP Steel | Steel – Sponge Iron | 12.4 | 478 |
| MEP Infrastructure | Infrastructure – Roads/Tolls | 25.55 | 469 |
| Vikas Ecotech | Chemicals – Speciality – Others | 4.9 | 458 |
| Trans & Rectif | Power – Transmission Equipment | 32.75 | 434 |
| Sakuma Exports | Trading | 18.25 | 428 |
| PTL Enterprises | Holding – Diversified | 32.1 | 425 |
| Munjal Auto Ind | Auto Ancl – Others | 42.45 | 425 |
| Take Solutions | IT Consulting & Software | 27.95 | 413 |
| Future Enterprises (DVR) | Diversified | 9.05 | 412 |
| Gokul Refoils | Edible Oils & Solvent Extraction | 41.3 | 409 |
| Godha Cabcon & Insul | Electric Equipment/Components/ Services | 18.4 | 409 |
| Karda Const | Real Estate | 6.55 | 403 |
| Ginni Filaments | Textiles – Spinning – Cotton Blended | 46.65 | 400 |
| Shivam Autotech | Auto Ancl – Others | 31.65 | 387 |
| Oswal Agro Mill | Holding – Diversified | 28.35 | 381 |
| Vishwaraj Sugar | Sugar | 20 | 376 |
| Gayatri Project | Infrastructure – Roads/Tolls | 19.95 | 373 |
| Prozone Intu Proper | Real Estate | 24.35 | 372 |
| Pudumjee Paper Prod | Paper Manufacturer | 38.9 | 369 |
| OM Metal Infra | Diversified | 37.95 | 365 |
| Orient Abrasive | Abrasives And Grinding Wheels | 30.35 | 363 |
| Gujarat Sidhee | Cement – North | 40.65 | 363 |
| Indiabulls Intgrtd | Insurance – Non Life | 39.85 | 356 |
| Sadbhav Infra | Infrastructure – Diversified | 10.1 | 356 |
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 stockWhich 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 TeleWhich 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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