Best Penny Stocks Below 1 Rupee – Based on Fundamental Factors – Blog by Tickertape

Last Updated on Apr 19, 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 2nd 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

Debt-free penny stocks below 1 Rupee

Note: The above list of penny stocks below Re. 1 is dated 2nd 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 the lower limit to 0

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 2nd 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

Name Sub-Sector Market Cap (Rs. in cr.) Close Price (Rs.) PE Ratio (%) Net Profit Margin (%)
Alstone Textiles (India) Ltd Textiles 76.49 0.60 3.12 29,962,507.00
Shree Ganesh BioTech India Ltd Agro Products 36.27 0.91 17.96 8,711,270.00
Godha Cabcon & Insulation Ltd Cables 43.31 0.65 -30.71 7,081,948.00
Sharp Investments Ltd 0.69 6,680,824.00
NCL Research and Financial Services Ltd Diversified Financials 54.59 0.51 90.98 4,422,355.00
Visagar Financial Services Ltd Diversified Financials 44.38 0.76 34.67 3,923,445.00
Future Consumer Ltd FMCG – Foods 158.92 0.80 -0.47 2,973,995.00
Siti Networks Ltd Cable & D2H 69.76 0.80 -0.25 2,947,583.00
Johnson Pharmacare Ltd 30.25 0.55 -23.63 2,572,187.00
Excel Realty N Infra Ltd Construction & Engineering 49.37 0.35 -145.22 2,545,258.00

Note: The above list of penny stocks below Re. 1 is dated 2nd 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

  1. 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.
  2. 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.
  3. 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.
  4. 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

  1. 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.
  1. 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.

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. 

Research, analyse, and invest quicker than before, because #TickertapeHaiNa! Become a Pro Member now!

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.

Anjali Chourasiya
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