What exactly is penny stock?
The phrase “penny stock” comes from the western world. A penny stock is a stock issued by a tiny company that trades for less than $5 a share. Penny stocks used to be defined as stocks that traded for less than $1 a share, but the Securities and Exchange Commission (SEC) has amended the definition to cover shares up to $5.
Penny Stocks Have a Long History
According to NASDAQ, in the pre-digital age, anyone buying or selling a stock paid as much as a quarter-point ($0.25) fee regardless of the stock price, whether it was a $1 stock or a $100 stock.
To avoid the high commissions, mutual funds avoided buying penny stocks at the time. To save money on commissions, it became popular to avoid penny stocks.
In India, what is a penny stock?
Although there is no universally accepted definition of penny stock in India, any stock that trades for less than Rs 50 is termed a penny stock in India. Penny stocks are typically volatile in terms of stock price, illiquid, and involving stock market operators.
Are you looking for some investment ideas? Consider checking out our list of book suggestions.
Although many retail investors choose to participate in blue chip stocks in India and hunt for primarily zero-debt companies to locate safe havens, it has lately been observed that there is a willingness to take risks and invest in penny stocks in India. Only stocks with a market capitalization more than Rs 1 will be considered.
Top 100 penny stocks to purchase in India (NSE/BSE) for May 2021
| COMPANY / Stock | SECTOR – INDUSTRY | Price | Market CAP(Rs Cr.) |
| Indian Railway Finance Corporation Ltd. | Others | 23.9 | 31,234 |
| NHPC | Power Generation – Hydro | 25.6 | 25,715 |
| Vodafone Idea | Telecommunications – Service | 8.6 | 24,425 |
| GMR Infra | Infrastructure – Diversified | 27.45 | 16,176 |
| SJVN | Power Generation – Hydro | 27 | 10,591 |
| HUDCO | NBFC – Housing | 48.55 | 9,719 |
| NBCC | Construction & Contracting | 49.35 | 8,712 |
| Trident Ltd | Textiles – Furnishings/Terry Towels | 16.7 | 8,485 |
| TV18 Broadcast | TV Broadcasting & Software Production | 41.4 | 7,097 |
| Rail Vikas Nigam | Construction & Contracting | 30.15 | 6,276 |
| Infibeam Avenues | Services – eCom/Internet | 41.3 | 5,471 |
| Suzlon Energy | Power Generation – Wind | 5.4 | 4,763 |
| Hathway Cable | Cable/DTH | 26.1 | 4,629 |
| Network18 Media | Media & Entertainment | 40.2 | 4,188 |
| Shree Ren Sug | Sugar | 16.8 | 3,576 |
| Lemon Tree Hotels | Hotels & Resorts | 42.05 | 3,339 |
| HMT Ltd | Auto – Tractors | 27.15 | 3,269 |
| Dish TV India | Cable/DTH | 16.75 | 3,075 |
| Tata Tele | Telecommunications | 13.55 | 2,649 |
| Future Retail | Supermarkets | 45.9 | 2,484 |
| IFCI | Term Lending – General | 11.8 | 2,420 |
| RattanIndia Infra | Miscellaneous | 17.05 | 2,357 |
| Den Networks | Cable/DTH | 48.65 | 2,317 |
| Ircon Intl. | Construction & Engineering | 49.1 | 2,311 |
| RattanIndia Power | Power Generation – Thermal | 3.4 | 1,826 |
| Centrum Capital | NBFC – Diversified | 38.4 | 1,600 |
| Hind Const Co | Construction & Contracting | 10.15 | 1,453 |
| 3i Infotech | IT Consulting & Software | 9.05 | 1,471 |
| Electrostl Cast | Castings/Foundry | 33.5 | 1,440 |
| Future Consumer | FMCG Diversified | 6.95 | 1,381 |
| Bajaj Hindusthan Su | Sugar | 11.6 | 1,321 |
| IndiaPowerCorp | Power – Integrated | 13.1 | 1,276 |
| Sanghi Ind | Cement – North | 50 | 1,256 |
| PTC Financial | Term Lending – Power | 19.2 | 1,227 |
| MTNL | Telecommunications – Service | 18.5 | 1,181 |
| Jayaswal Neco | Castings/Foundry | 17.75 | 1,134 |
| HBL Power | Industrial Consumable – Others | 40.65 | 1,131 |
| Man Infracons | Construction & Contracting | 42.5 | 1,047 |
| DCW Ltd | Petrochem – Others | 39.55 | 1,027 |
| Southern Petro | Fertilisers | 46.5 | 949 |
| DiGiSPICE Tech | Telecommunications – Allied Services | 38.65 | 883 |
| Anant Raj Global Ltd. | Others | 29.45 | 871 |
| Music Broadcast | Radio Broadcasting & Entertainment | 23.8 | 823 |
| Sadbhav Infra | Infrastructure – Diversified | 22.8 | 793 |
| Sutlej Textiles | Textiles – General | 48.95 | 806 |
| Arshiya | Warehousing/Supply Chain/Road Transport | 28.6 | 757 |
| Coffee Day Ent | Restaurant & QSR | 34.9 | 737 |
| Texmaco Rail | Capital Goods – Railway | 29.1 | 731 |
| Gayatri Project | Infrastructure – Roads/Tolls | 36.95 | 690 |
| Patel Eng | Construction & Contracting | 14.6 | 680 |
| Oriental Hotels | Hotels & Resorts | 38 | 657 |
| HT Media | Print Media | 29.05 | 675 |
| Oswal Green Tech | Financial Services – Misc | 26.25 | 674 |
| Nectar Lifesc | Pharma – Indian | 29.1 | 649 |
| Rico Auto | Auto Ancl – Dr. Trans & Steer | 48.05 | 652 |
| Navkar Corp | Warehousing/Supply Chain/Road Transport | 43.15 | 658 |
| Tilaknagar Ind | Beverages & Distilleries | 42.4 | 591 |
| Future Enterprises (DVR) | Diversified | 12.95 | 596 |
| Cerebra Integrat | IT Networking Equipment | 49.4 | 583 |
| Orient Paper | Paper Manufacturer | 26.95 | 570 |
| Nagarjuna Fertilizer | Fertilisers | 9.3 | 559 |
| DB Realty | Real Estate | 21.8 | 530 |
| Jai Balaji Inds | Steel – Sponge Iron | 45.95 | 508 |
| Madras Fert | Fertilisers | 29.8 | 481 |
| MEP Infrastructure | Infrastructure – Roads/Tolls | 26.1 | 483 |
| Zee Media Corp | TV Broadcasting & Software Production | 10.15 | 480 |
| Shriram EPC | Project Consultancy/Turnkey | 4.85 | 471 |
| HLV Ltd. | Hotels & Resorts | 7.4 | 463 |
| Suvidhaa Infoserve Ltd. | Others | 22.2 | 455 |
| Zee Learn | Coaching/Study Material/Schools | 13.25 | 429 |
| MSP Steel | Steel – Sponge Iron | 11.15 | 424 |
| B L Kashyap | Construction & Contracting | 19.05 | 428 |
| Future Enterprises | Diversified | 9.2 | 419 |
| Brightcom Group | IT Consulting & Software – Small Cap | 8.2 | 416 |
| Parsvnath Dev. | Real Estate | 9.35 | 409 |
| Oricon Enterpr | Diversified | 25.75 | 408 |
| Birla Tyres | Tyres & Tubes | 28.3 | 405 |
| Urja Global | Project Consultancy/Turnkey | 6.9 | 384 |
| Vipul Ltd | Real Estate | 30.55 | 371 |
| Gokul Agro Resources | Edible Oils & Solvent Extraction | 27.55 | 357 |
| Trans & Rectif | Power – Transmission Equipment | 27.4 | 361 |
| Vardhman Acryl | Textiles – Manmade Fibre – Acrylic Fibre | 44.9 | 360 |
| Ashima Ltd | Textiles – Spinning – Cotton Blended | 18.75 | 355 |
| Gujarat Sidhee | Cement – North | 40.15 | 354 |
| Ugar Sugar Work | Sugar | 30.25 | 341 |
| Vascon Engineer | Construction & Contracting | 18.55 | 340 |
| Hind Nat Glass | Glass – Consumer | 36.3 | 329 |
| Som Distill | Beverages & Distilleries | 49.95 | 325 |
| Kothari Sugars | Sugar | 39 | 325 |
| Khaitan Chem | Fertilisers | 32.3 | 314 |
| HCL Infosystems | IT Networking Equipment | 9.45 | 309 |
| Sarla Perform | Textiles – Processing/Texturising | 37 | 310 |
| Setco Automotive | Auto Ancl – Dr. Trans & Steer – Clutch | 23.05 | 305 |
| McLeod Russel | Tea / Coffee | 29.4 | 308 |
| Prozone Intu Proper | Real Estate | 19.95 | 304 |
| Eros Media | Film/TV Production & Distribution | 31.7 | 306 |
| Vishal Fabrics | Textiles – Processing/Texturising | 45.5 | 1,519 |
| Pennar Ind | Steel – CR/HR Strips | 20.7 | 294 |
| ISMT Ltd | Steel – Rolling | 19.85 | 291 |
| Orient Abrasive | Abrasives And Grinding Wheels | 24.25 | 290 |
| Shivam Autotech | Auto Ancl – Others | 28.65 | 287 |
| Pil Italica Lifesty | Plastic Intermediaries/Products | 11.95 | 280 |
| PTL Enterprises | Holding – Diversified | 42.35 | 280 |
| Inventure Grwth | Financial Services – Misc | 33.35 | 280 |
| AdityaBirlaMoney | Broking & Allied Services | 47.95 | 268 |
| Vivimed Labs | Pharma – Indian | 32 | 242 |
| Airan Ltd. | IT Enabled Services | 21.2 | 267 |
| Alankit | Financial Services – Misc | 18.45 | 254 |
| MBL Infra | Construction & Contracting | 25 | 262 |
| Pudumjee Paper Prod | Paper Manufacturer | 26.65 | 248 |
| Shree Rama News | Paper Manufacturer | 16.9 | 248 |
| Gokul Refoils | Edible Oils & Solvent Extraction | 25.1 | 245 |
| KCP Sugar | Sugar | 21.65 | 246 |
| Rana Sugars | Sugar | 15.65 | 241 |
| Bharat Road Net | Infrastructure – Roads/Tolls | 28.6 | 241 |
| Windsor Machine | Capital Goods – Others | 36.75 | 241 |
| Kothari Petro | Petrochem – Polymers | 40.4 | 237 |
| Genus Paper Boards | Paper Manufacturer | 8.95 | 233 |
| Nandan Denim | Textiles – Denim | 46.1 | 229 |
| OM Metal Infra | Diversified | 22.6 | 219 |
| Raj Television | TV Broadcasting & Software Production | 41.7 | 215 |
| Bombay Rayon | Textiles – General | 6.8 | 219 |
| Sintex Inds. | Textiles – General | 3.55 | 210 |
| Paramount Comm | Cables – Power/Others | 10.95 | 214 |
| Ginni Filaments | Textiles – Spinning – Cotton Blended | 30 | 212 |
| Astron Paper & Board | Paper Manufacturer | 44.4 | 204 |
| Aban Offshore | Oil Drilling And Exploration Services | 34.95 | 205 |
| Peninsula Land | Real Estate | 7.25 | 228 |
| Nila Infra | Construction & Contracting | 5.1 | 201 |
| JBF Industries | Textiles – Manmade Fibre – PFY/PSF | 24.45 | 200 |
| Vikas Multicorp | Miscellaneous | 3 | 199 |
| Andhra Cements | Cement – South | 6.75 | 198 |
| Donear Ind | Textiles – Weaving | 38.05 | 198 |
| IL&FS Invest | Broking & Allied Services | 6 | 184 |
| Essar Shipping | Shipping | 9.05 | 188 |
| Shyam Century Ferro | Ferro Alloys | 8.35 | 188 |
| Generic Engg | Construction & Contracting | 43.75 | 184 |
| Elgi Rubber Co | Rubber Processing/Rubber Products | 36.75 | 184 |
| Niraj Cement | Construction & Contracting | 45.1 | 179 |
| FCS Software | IT Consulting & Software – Micro Cap | 1.05 | 180 |
| Inspirisys Solutions | IT Consulting & Software – Small Cap | 45 | 178 |
| BPL Ltd | Electronics/Electricals | 36.3 | 178 |
| Simplex Infra | Construction & Contracting | 31 | 177 |
| Commercial Engg | Miscellaneous | 19.7 | 176 |
| Oswal Agro Mill | Holding – Diversified | 13.1 | 168 |
| KM Sugar Mills | Sugar | 19.1 | 176 |
| Lloyds Steels | Steel – Others | 1.9 | 171 |
| McNally Bharat | Engineering – Others | 8 | 162 |
| Manaksia Steels | Steel – Integrated | 25.8 | 170 |
| Shrenik | Trading | 2.7 | 165 |
| Hindustan Motor | Auto – Cars & UV | 7.9 | 162 |
| Nitco | Ceramics/Tiles/Sanitaryware | 22.8 | 162 |
| Ruchi Infra | Miscellaneous | 7.9 | 162 |
| Maral Overseas | Textiles – Spinning – Cotton Blended | 38.2 | 159 |
| Sakuma Exports | Trading | 6.75 | 157 |
| Manaksia Aluminium | Aluminium | 21.9 | 144 |
| Sakthi Sugars | Sugar | 12.05 | 144 |
| Compuage Infocom | Computers – Accessories/Peripherals | 22 | 142 |
| Ballarpur Inds. | Paper Manufacturer | 1.1 | 149 |
| Indian Terrain | Branded Apparels | 33.7 | 138 |
| Hubtown Ltd | Real Estate | 19 | 136 |
| GPT Infraproj | Construction & Contracting | 46.75 | 135 |
| Deep Industries | Oil Drilling And Exploration Services | 42.3 | 136 |
| Adhunik Industries | Steel – Integrated | 28.65 | 127 |
| JHS Svendgaard | Personal Care | 20.8 | 131 |
| JMT Auto | Auto Ancl – Gears & Drive | 2.65 | 134 |
| SPL Industries | Branded Apparels | 46 | 133 |
| Signet Ind | Petrochem – Polymers | 45.3 | 136 |
| Opto Circuits | Medical Equipment & Accessories | 4.4 | 132 |
| Ravinder Heights Ltd. | Others | 21.55 | 132 |
| Gammon Infra | Infrastructure – Roads/Tolls | 1.4 | 132 |
| Kirloskar Elec | Electric Equipment/Components/Services | 19.65 | 133 |
| VIP Clothing | Branded Hosiery/Knitwear | 15.45 | 128 |
| Murudeshwar Cera | Ceramics/Tiles/Sanitaryware | 24.15 | 127 |
| Prime Sec | Broking & Allied Services | 47.5 | 126 |
| GTL Ltd | Miscellaneous | 8 | 127 |
| Ducon Infra | IT Networking Equipment | 7.1 | 125 |
| AMJ Land Holdings | Real Estate | 29.05 | 118 |
| Aksh Optifibre | Cables – Optical Fiber | 7.3 | 119 |
| Autoline Ind | Auto Ancl – Others | 38.35 | 120 |
| Vikas WSP | Miscellaneous | 5.8 | 119 |
| Mangalam Global Ent | Agro – Others | 47.1 | 105 |
| Cineline India | Miscellaneous | 41.8 | 116 |
| Noida Toll Brid | Infrastructure – Roads/Tolls | 6.25 | 116 |
| Vikas Proppant & Gr | Miscellaneous | 2.2 | 141 |
| Praxis Home Retail | Retail – Speciality | 37.25 | 113 |
| Kamat Hotels | Hotels & Resorts | 46.7 | 110 |
| LGB Forge | Auto Ancl – Others | 4.6 | 110 |
| Uttam Galva Stl | Steel – GP/GC Sheets | 7.7 | 109 |
| Shree Rama Multi | Packaging – Metallic/Plastics/Others | 17.25 | 110 |
| Coral India Finance | NBFC – Housing | 26.9 | 108 |
| Visa Steel Ltd | Steel – Integrated | 9.25 | 108 |
| Jullundur Motor | Auto Ancl – Engine Parts | 46.65 | 107 |
| Omax Autos | Auto Ancl – Others | 49.75 | 107 |
| Standard Ind | Chemicals – Inorganic – Caustic Soda/Soda Ash | 16.5 | 109 |
| SITI Networks | Cable/DTH | 1.2 | 105 |
| South West Pinnacle | Oil Drilling And Exploration Services | 37 | 105 |
| Lotus Eye Hosp | Hospital | 47.85 | 100 |
| TheBykeHospitality | Hotels & Resorts | 24.55 | 98 |
| Manaksia Coated | Aluminium – Sheets/Coils/Wires | 14.9 | 98 |
Is it a smart idea to invest in Indian penny stocks?
Penny stocks are volatile, illiquid, and mostly driven by operators. However, not all penny stocks are created equal. There are several high-quality stocks that trade for less than 50 rupees and are worthwhile investments.
Before making any investment decisions, you should learn everything there is to know about the stock. While their stock prices are under Rs 50, there are many good companies with outstanding growth prospects.
Are penny stocks inexpensive?
Stocks under Rs 50, also known as penny stocks, are not always the cheapest! A stock’s pricing does not necessarily reflect whether it is cheap or costly. You must determine whether or not the price you are paying for the stock is reasonable.
To determine if a stock is cheap or costly, you must consider the following factors.
- What is the profit-to-price ratio?
- What is the stock’s book value?
- What is the stock’s rate of growth? (in terms of sales, profit, margins etc)
- What is the stock’s debt on the books?
- How is the stock’s management team doing?
- What is the stock’s business potential?
Which Indian penny stock has a large market capitalization?
The companies listed below have a penny stock share price but a large 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
What are some of India’s most well-known penny stocks?
The following are some of the penny stocks that have received a lot of attention in recent years:
- Suzlon Energy
- Reliance Capital
- Reliance Communications
- Yes Bank
- Vodafone Idea
- DHFL
- Unitech
- HDIL
- IFCI
Many of these businesses are massive wealth destroyers. So please do your homework before investing in these businesses.
What makes penny stocks so popular with individual investors?
Many ordinary investors are attracted to a stock’s lower price. They believe that a stock’s lower price indicates that it is inexpensive and will provide multibagger returns. Unfortunately, they become entrapped in an investment that, in the vast majority of cases, proves to be a loss-making proposition.
Which penny stocks are offered at a price of less than a rupee?
The following is a list of penny stocks that are offered for less than one 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