Best Penny Stocks Below 1 Rupee – Based on Fundamental Factors (2024)

Last Updated on May 17, 2024 by Anjali Chourasiya

Ever heard about penny stocks priced under 1 rupee? These little-known gems in the stock market can be pretty interesting. Let’s break it down in simple terms. Penny stocks are like the underdogs of the stock world, and those under 1 rupee are the real bargain deals. They are stocks of companies with low prices, often flying under the radar.

Now, why should you care? Well, these stocks can be a playground for potential profits. Imagine buying something for less than a cup of chai and watching it grow! But hold on, it’s not all sunshine and rainbows. There are risks, too. So, before you dive in, it’s crucial to know the ins and outs.

In this article, we’re going to spill the beans on penny stocks below 1 rupee. We’ll talk about the potential rewards, the risks you need to be aware of, and some smart moves to make. Let’s get started with the lists of top penny stocks in India based on various fundamental factors.

Top 10 Penny Stocks in India Below 1 Rupee

Note: The above list of penny stocks below Re. 1 is dated 25th April 2024 and is derived using the Tickertape Stock Screener. The following parameters were used for the purpose:

• Close price: Set the upper limit to 0.99
• Net income: Greater than 0 – Set the lower limit to 0
• Debt-to-equity ratio: Set to low

🚀 Pro Tip: You can use Tickertape’s Stock Screener to research and evaluate stocks with over 200+ filters and parameters.

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Disclosure for Mi EverGreen

Note: The smallcases are mentioned only for educational purposes and are not meant to be recommendatory. Investors must conduct their own research and consult a financial expert before making any investment decisions.

Overview of the Penny Stocks with Good Fundamentals

CES Ltd

CES Ltd specializes in engineering solutions and services, focusing on innovative infrastructure and technology projects. It leverages expertise in construction and engineering to support sustainable development across various sectors.

The company, as of 25th April 2024, had a market capitalisation of Rs. 1.6016 cr. and a stock price of Rs. 0.44. CES Ltd’s Earnings Per Share (EPS) for the latest quarter is Rs. 40.71, and the total assets for the same quarter is Rs. 59.73 cr.

Shalimar Productions Ltd

Shalimar Productions Ltd operates in the entertainment industry, primarily involved in film production and distribution. The company focuses on creating diverse content catering to a broad audience base.

The company, as of 25th April 2024, had a market capitalisation of Rs. 49.21 cr. and a stock price of Rs. 0.5. Shalimar Productions Ltd’s Earnings Per Share (EPS) for the latest quarter is Rs. 23.05, and the total assets for the same quarter is Rs. 45.88 cr.

RGF Capital Markets Ltd

RGF Capital Markets Ltd provides a range of financial services including asset management, brokerage, and investment banking, focusing on delivering tailored solutions to enhance client investment portfolios.

As of 25th April 2024, the company’s market capitalisation is Rs. 9.45 cr. and a stock price of Rs. 0.63. RGF Capital Markets Ltd’s Earnings Per Share (EPS) for the latest quarter is Rs. 16.08, and the total assets for the same quarter is Rs. 40.49 cr.

Alstone Textiles (India) Ltd

Alstone Textiles (India) Ltd is engaged in the textile industry, dealing with manufacturing and trading of fabrics and garments. It aims to innovate in design while ensuring quality and sustainability in its products.

As of 25th April 2024, the company’s market capitalisation is 90.51 cr. and a stock price of Rs. 0.71. Alstone Textiles (India) Ltd’s Earnings Per Share (EPS) for the latest quarter is Rs. 14.99, and the total assets for the same quarter is Rs. 36.23 cr.

NCL Research and Financial Services Ltd

NCL Research and Financial Services Ltd offers diversified financial services, including securities trading and investment advisory, focusing on research-driven solutions to meet clients’ financial goals.

The company, as of 25th April 2024, had a market capitalisation of Rs. 77.06 cr. and a stock price of Rs. 0.72. NCL Research and Financial Services Ltd’s Earnings Per Share (EPS) for the latest quarter is Rs. 10.28, and the total assets for the same quarter is Rs. 32.44 cr.

Sharp Investments Ltd

Sharp Investments Ltd is involved in investment and trading activities. The company focuses on capital growth by investing in a diversified portfolio of securities and financial instruments. The company, as of 25th April 2024, had a stock price of Rs. 0.77. Sharp Investments Ltd’s Earnings Per Share (EPS) for the latest quarter is Rs. 44.27, and the total assets for the same quarter is Rs. 29.17 cr.

Kretto Syscon Ltd

Kretto Syscon Ltd is engaged in the IT sector, providing system integration and software development services. It aims to offer cutting-edge technology solutions to improve business efficiency and productivity. On 25th April 2024, the company’s market capitalisation was Rs. 12.38 cr. and a stock price of Rs. 0.78. Kretto Syscon Ltd’s Earnings Per Share (EPS) for the latest quarter is Rs. 21.70, and the total assets for the same quarter is Rs. 27.15 cr.

Yamini Investments Company Ltd

Yamini Investments Company Ltd focuses on long-term investments in a diverse range of sectors, including real estate and financial markets, aiming to generate sustainable returns through strategic asset allocation.

On 25th April 2024, the company’s market capitalisation was Rs. 47.31 cr. and a stock price of Rs. 0.9. Yamini Investments Company Ltd’s Earnings Per Share (EPS) for the latest quarter is Rs. 14.14, and the total assets for the same quarter is Rs. 26.37 cr.

Virtual Global Education Ltd

Virtual Global Education Ltd operates in the education sector, offering digital learning solutions and educational content to institutions and students, aiming to enhance accessibility and quality of education.

The company, as of 25th April 2024, had a market capitalisation of Rs. 38.97 cr. and a stock price of Rs. 0.91. Virtual Global Education Ltd’s Earnings Per Share (EPS) for the latest quarter is Rs. 14.43, and the total assets for the same quarter is Rs. 24.04 cr.

Jackson Investments Ltd

Jackson Investments Ltd specializes in financial investment services, primarily focusing on portfolio management and equity trading, aiming to maximize return on investments through strategic market engagements.

The company, as of 25th April 2024, had a market capitalisation of Rs. 26.45 cr. and a stock price of Rs. 0.92. Jackson Investments Ltd’s Earnings Per Share (EPS) for the latest quarter is Rs. 22.02, and the total assets for the same quarter is Rs. 24.03 cr.

Debt-Free Penny Stocks Below 1 Rupee

Note: The above list of debt free penny stocks under 1 rs is dated 25th April 2024 and is derived using the Tickertape Stock Screener. The following parameters were used for the purpose:

• Close price: Set the upper limit to 0.99
• Debt-to-equity ratio: Set it to Low

Note that the mentioned stocks in the above table have a debt-to-equity ratio of zero.

Profitable Penny Stocks in India

Note: The above list of penny stocks below Re. 1 is dated 25th April 2024 and is derived using the Tickertape Stock Screener. The following parameters were used for the purpose:

• Close price: Set the upper limit to 0.99
• Net Profit Margin: Set the lower limit to 0 – Sort from highest to lowest
• 5Y CAGR: Set the lower limit to 0

Shares Below 1 Rupee with the Largest Volume

Note: The above list of penny stocks below Re. 1 is dated 25th April 2024 and is derived using the Tickertape Stock Screener. The following parameters were used:

• Close price: Set the upper limit to 0.99
• Daily Volume: Set the high-sort from the highest to lowest.

If you want to know more about fundamentally strong penny stocks, read this article.

Now, let’s look at the features of penny stocks, factors to consider before investing, and tips for investing in penny stocks.

Features of Penny Stocks Below 1 Rupee

• High returns: As compared to higher-priced equity shares, penny stocks below 1 Rupee give more opportunities to earn higher returns if the price increases exponentially.
• Illiquid: Stocks below Re. 1 are illiquid as the issuing companies are mostly unpopular. Therefore, selling these shares may be more challenging because of a lack/scarcity of buyers.
• High risk: Although these stocks have a potential for growth, they are highly vulnerable to market fluctuations. Therefore, they can be highly risky. Investors with high-risk tolerance can consider stocks below 1 Rupee.
• Low cost: These stocks are easy on pockets. But it doesn’t mean they are undervalued.

Factors to Consider Before Applying for Penny Stocks in India Below 1 Rupee

• Dearth of information: Shares below Re. 1 generally belong to unpopular companies. Many such companies fail to make important information about financials or corporate governance public. This makes it difficult to value the stock and evaluate the company.
• Price manipulation: Given the low liquidity in such penny stocks, it has been observed historically that prices of stocks below Re. 1 are prone to price manipulations. Traders or even promoters holding high stakes in such companies may artificially inflate or deflate the stock price for personal profits.

Advantages and Risks of Investing in Stocks Under 1 Rs

Benefits of Investing in Penny Stocks

Investing in penny stocks priced under 1 rupee offers several potential advantages:

• Low Entry Cost: Penny stocks under 1 rs are appealing due to their low price, allowing investors to buy a significant number of shares with a small amount of capital.
• High Return Potential: These stocks can provide substantial returns if the company experiences growth or recovery, as even small price increases can lead to high percentage gains relative to the investment. This includes the potential to find multibagger stocks below 1 rs that can multiply in value.
• Speculative Opportunities: For those who enjoy speculative investments, penny stocks with good fundamentals or debt-free penny stocks under 1 rs can provide exciting opportunities to capitalize on market trends and company developments that may not be fully recognized by the market yet.
• Portfolio Diversification: Adding penny stocks to a diversified investment portfolio can offer unique exposure to emerging sectors or industries without a significant financial commitment. This includes the opportunity to invest in top 100 penny stocks below 1 rupee or explore currently listed penny stocks under Rs 1 on the NSE, providing a diverse array of options for both speculative and strategic investment strategies.

However, it’s crucial to note that investing in penny stocks carries various risks. Let’s have a look at them.

Risks of Investing in Penny Stocks

The risks associated with investing in penny stocks, particularly those under 1 rupee, are substantial and warrant careful consideration:

• Extreme Volatility: Penny stocks under 1 rupee are typically very volatile. Their prices can experience wide fluctuations based on market sentiment or speculative trading, making them a high-risk investment.
• Limited Liquidity: Stocks under 1 rupee often suffer from low liquidity, making it difficult for investors to buy or sell large quantities without affecting the stock price significantly. This can be particularly challenging when trying to exit positions during market downturns.
• Lack of Information: Finding reliable financial data on penny stocks can be challenging. Many companies represented in the penny stock list are not required to file with regulatory bodies, leading to less transparency about their operations and financial health.
• Market Manipulation: Due to their low prices and thin trading volumes, penny stocks, including those under 1 rupee, are susceptible to price manipulation. This can mislead investors about the true value of the stock.
• Quality and Fundamentals: While there are penny stocks with good fundamentals, many companies priced below 1 rupee on the NSE today lack a robust business model or the financial stability to ensure long-term growth. Investing in debt-free penny stocks under 1 rupee can mitigate some risk but doesn’t eliminate it.
• Speculative Nature: Shares below Rs 1 are often driven more by speculation than by company fundamentals. Investors looking for multibagger stocks below 1 rupee should be wary of the basis for such expectations, as not all low-priced stocks have the potential to yield high returns.
• Dilution Risk: Companies with stocks priced so low are often in dire financial straits and may issue more shares to raise capital, leading to dilution of existing shareholders’ interests.

Despite the potential for high returns, investing in top 100 penny stocks below 1 rupee involves navigating a landscape filled with financial pitfalls and operational uncertainties. Investors must perform diligent research, set realistic expectations, and be prepared for the possibility of losing their entire investment.

Tips for Investing in Penny Stocks

• Conduct a thorough background check on stocks below Re. 1 before investing in them. Study the financials and fundamentals of the stocks carefully to make an informed decision.
• Collect as much information as possible on the financial stability and future growth prospects of the company.
• Hire an expert financial advisor and seek their thoughts and analysis of such stocks.
• Stay from friendly advice and recommendations to buy specific penny stocks. Before acting, verify the authenticity of the source and do due diligence before considering investing in penny stocks in India below 1 rupee.
• Evaluate your risk appetite, as these stocks are highly volatile and prone to market fluctuations.
• If a penny stock is underperforming without an apparent reason, it may be time to sell it and protect your portfolio from declining further. Fundamentally strong stocks are known to rise after falling. But there is no guarantee that a penny stock will do the same. Be very practical about investing in penny stocks, and don’t let emotions influence you.

How to Invest in Penny Stocks?

Why jump platforms to evaluate the stock and then buy it on another when you can do both on Tickerape? Study the stock fundamentals using Tickertape Stock Pages and add them to the ‘Basket’ to place buy orders. Further, with our fully-equipped asset pages, you can dive deeper into any stock and mutual fund.

On asset pages, you get penny stocks’ share prices, their quantitative analysis via Scorecard, forecasts, financial information, peer comparison, company updates, and more. With this information handy, you can analyse any stock within a few clicks. The Scorecard, particularly, helps you analyse the stock based on quantitative factors such as profitability, performance, entry and exit points, valuation, and growth and provides a sneak peek into the potential red flags in the stock.

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Conclusion

Penny stocks below Re. 1 have the potential to turn into multi-baggers and give bumper returns but remember that they are highly risky investments. Such stocks belong to low market-cap companies and are prone to price manipulation. Consult your financial advisor before investing in shares below 1 Rupee.

Frequently Asked Questions (FAQs)

What are penny stocks?

Stocks trading at a low value and having a small market capitalisation are called penny stocks. These usually trade lower than Rs. 10. Therefore, even a sizable spike can trigger upper and lower circuits.

Is investing in penny stocks safe?

Investing in penny stocks is risky. On the upside, penny stocks have the potential to yield multibagger returns. But on the downside, they can cause a serious dent in your investment portfolio.

How can I buy penny stocks?

Investing in penny stocks is no different than buying any other stock. One of the easiest and most time-efficient ways to buy penny stocks is through Tickertape. You can discover penny stocks using the Stock Screener, analyse them individually using the respective Stock Pages, and place buy orders by adding them to the basket. Yes, you can buy shares of more than just one company in a single transaction on Tickertape!

How to get a list of penny stocks listed on the NSE?

Simply head to Tickertape Stock Screener and set the closing price of stocks to less than your desired price (less than Rs. 30). Add in other filters based on your preference. There you go, you will have the list of penny stocks listed on the NSE.

How to get a list of penny stocks below 1 Rupee?

Launch the Tickertape Stock Screener and set the closing price of stocks to less than Re. 1. Apply other filters as per your preference. You will get the list of penny stocks under 1 Re.

Are there any multibagger stocks below 1 Rs in India?

Identifying multibagger stocks priced below 1 Rs in India is highly speculative and risky. Such stocks are often volatile and require extensive research and careful consideration of market trends, company fundamentals, and external economic factors to assess potential for substantial long-term gains.

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