Last Updated on Nov 16, 2022 by Aradhana Gotur

News about the best penny stocks below 1 Rupee giving multibagger returns may have tempted you to invest in them. But with a greater probability of earning higher returns on investment come higher risks. This is a useful rule of thumb you should know before investing in the stock market. That said, in this article, let’s discuss the top 10 penny stocks in India 2022 below 1 Rupee.

Penny stocks in India below 1 Rupee

NameMarket Cap (Rs. in cr.)Close Price (Rs.)Debt to EquityNet Income (Rs. in cr.)
Biogen Pharmachem Industries Ltd60.690.8904.44
NCL Research and Financial Services Ltd59.930.561.581.05
Shalimar Productions Ltd52.160.530.000.06
Gold Line International Finvest Ltd47.400.910.600.17
Yamini Investments Company Ltd44.680.8500.20
Johnson Pharmacare Ltd39.60.721.040.08
Virtual Global Education Ltd38.120.94.920.39
Antarctica Ltd12.400.817.340.02
Kretto Syscon Ltd11.130.6900.18
CES Ltd1.600.445.1035.58

Note: The above list of penny stocks below Re. 1 is dated 16th November 2022 and is derived using Tickertape Stock Screener. The following parameters were used for the purpose:

  • Closing price – less than 0.99
  • Net income – greater than 0
  • Debt-to-equity ratio – set to low

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.
  2. 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.

Conclusion

Penny stocks below Re. 1 have the potential to turn into multibaggers and give bumper returns but do not forget 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 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 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 NSE.

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

Launch 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.

Aradhana Gotur
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