Penny Stocks Below Rs. 10 – Based on Fundamental Factors

Last Updated on Sep 3, 2023 by Anjali Chourasiya

Best penny stocks to buy in India under Rs. 10

Note: To get the list of penny stocks below Rs. 10, we used the Tickertape Stock Screener on 3rd September 2023 using the below-mentioned parameters.

• Close price: Set the upper limit to 10
• Net income: Greater than 0 – Set the lower limit to 0
• Debt-to-equity ratio: Set to low

Debt-free penny stocks below Rs. 10

Note: The above list of penny stocks below Rs. 10 is dated 3rd September 2023 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.

Most active stocks under Rs. 10

Note: The data in the above table is from 3rd September 2023. The stocks are filtered using Tickertape Stock Screener using the following parameters:

• Close Price: Set to 0.03 – 10
• Relative Volume: Sort from highest to lowest

Detail on the filter used to sort the most active stocks under Rs. 10

Relative Volume: Often called RVOL, this ratio displays the average volume of the stock over the previous 10 days divided by the average volume of the stock over the previous 91 days. The ratio helps understand how in demand the stock has been in the past few days.

Suppose the 10-day average volume is 10,000 and the 90-day average volume is 4,000; then the relative volume is 10,000/4,000 = 2.5. RVOL above 2 is considered to be a signal of high demand for the stock, and when a stock is in demand, the price tends to move up very quickly.

Dividend-paying stocks under Rs. 10

Note: The data in the above table is from 3rd September 2023. The stocks are filtered using Tickertape Stock Screener using the following parameters:

• Close Price: Set to 0.03 – 10
• Dividend Yield: Sort from highest to lowest

Detail on the filter used to sort the highest dividend yield stocks under Rs. 10

Dividend Yield: The ratio is calculated as dividend per share (DPS) for the most recent fiscal year divided by the close price of the stock. The ratio is used to calculate the earnings on investment, considering only dividends declared. The higher the dividend yield, the better. One should always consider dividend yield when investing in a company’s stock, as it can be a significant part of the return that might be generated. High dividend yield stocks could be a good investment avenue to supplement any income needs.

Suppose DPS is Rs. 16 and the stock price is Rs. 250; the dividend yield is calculated as (16/250)*100 = 6.4%.

The term ‘penny stocks’ is quite popular in the investment world. The stocks that are traded at a very low price on the stock exchange are known as penny stocks. The liquidity of penny stocks may not be as high as that of large companies. Though a few penny stocks have the potential to yield multi-bagger returns within a few trading sessions, the returns can be due to the performance of the company. Usually, these can be ‘win or bust’ bargains for you. The risk associated with penny stocks is high. 

How to pick the best ultra-penny stocks under Rs. 10?

• Back yourself with ample research: Don’t just park your funds in any random penny stock you come across. Perform background research on the fundamentals and financials of the stocks on your radar. 
• Don’t fall for unsolicited tips or stock recommendations: Don’t blindly buy any penny stock recommended by your friends, any trader you follow, or any random stock market website. Talk to your financial advisor before investing. 
• Check for the possibility of dilution in the future: These small companies offer new shares in the quest to raise more capital. Issue of new shares would result in dilution of the ownership of existing shareholders. A fall in share price is also accompanied. 
• Ask yourself whether you are ready to face the inherent risks: Penny stocks can be one bad news away from hitting the lower circuit. They are considered very risky investments.

Benefits of investing in penny stocks

• Low stock price: The price is the primary feature of penny stocks. You don’t have to invest a lot of money. 
• High gains: Penny stocks can provide high gains. But remember, the risk is equally high, which can cause you to lose your investment. 

Risks of investing in penny stocks 

• High risk: Though penny stocks have the potential to give good returns, the risk is also equally high. They are highly volatile in nature. 
• Liquidity: Though penny stocks are available at a very low price, they are illiquid. As they carry high risks, investors can be sceptical about buying them.   

Why do penny stocks trade so cheaply?

Being stocks of companies that have very small market capitalisation, more often than not, there is no information available about the business prospects and foreseeable growth in revenues.

Therefore, most investors in penny stocks don’t have a long-term view of the investment. Moreover, fundamental insights into penny stocks are scarce, and most of them are fundamentally weak, causing investors to pull out their stakes.

Stock operators, too, follow penny stocks very keenly. They quickly offload their holdings stacked at lower levels when the stock price rises to a certain level, thereby bringing down the price again. This is another factor why penny stocks trade cheaply. 

Conclusion

Penny stocks are available for a low price. But these are highly volatile in nature. Hence, it is important to have a well-diversified portfolio to mitigate the risk. Understand your risk appetite and investment goals before investing.

FAQs

What are penny stocks?

The stocks that are traded for a low price on the stock exchanges are penny stocks.

Where to get the list of the best penny stocks in India below Re. 1? 

You can get the list of the best penny stocks in India below Re. 1 on Tickertape.

• Log in to Tickertape
• Go to the Stock Screener
• Set the maximum ‘Close Price’ to Re. 1
• Set the ‘Net Income’ from 0 to high
• Sort the stocks based on a parameter you prefer; it can be the market cap, returns, etc.

How to get the list of penny stocks in NSE in India?

Follow the steps below to get the list of the best penny stocks in the NSE:

• Log in to Tickertape
• Go to the Stock Screener
• Set the ‘Net Income’ from 0 to high
• Set the maximum ‘Close Price’ to Rs. 50 or as per your preference
• Sort the stocks based on a parameter you prefer; it can be the market cap, returns, etc.

What are the top 100 penny stocks in India?

You can get the top 100 penny stocks in India by following the simple steps below

• Log in to Tickertape
• Go to the Stock Screener
• Set the maximum ‘Close Price’ to Rs. 50 or as per your preference
• Sort the stocks based on a parameter you prefer; it can be the market cap, returns, etc.

How to get the list of pharma penny stocks in India? 

You can get the list of pharma penny stocks in India by following the simple steps below

• Log in to Tickertape
• Go to the Stock Screener
• Under ‘Sector’, select ‘Pharma’
• Set the ‘Net Income’ from 0 to high
• Set the maximum ‘Close Price’ to Rs. 50 or as per your preference
• Sort the stocks based on a parameter you prefer; it can be the market cap, returns, etc.

How to get the list of best chemical penny stocks in India? 

You can get the list of the best chemical penny stocks in India by following the simple steps below:

• Log in to Tickertape
• Go to the Stock Screener
• Select ‘Chemicals’ under ‘Sector’
• Set the ‘Net Income’ from 0 to high
• Set the maximum ‘Close Price’ to Rs. 50 or as per your preference
• Sort the stocks based on a parameter you prefer; it can be the market cap, returns, etc.

How to get the list of IT sector penny stocks in India? 

Get the list of the best chemical penny stocks in India by following the simple steps below

• Log in to Tickertape
• Go to the Stock Screener
• Select ‘Information Technology’ under ‘Sector’
• Set the ‘Net Income’ from 0 to high
• Set the maximum ‘Close Price’ to Rs. 50 or as per your preference
• Sort the stocks based on a parameter you prefer; it can be the market cap, returns, etc.

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Anjali Chourasiya

I am a finance enthusiast who loves exploring the world of money through my lens. I’ve been dedicated to building systems that work and curating content that helps people learn.

As an insatiable reader and learner, I’ve spent the last two years exploring the world of finance. With my creative mind and curious spirit, I love making complex finance topics easy and fun for everyone to understand. Join me on my journey as we navigate the world of finance together!

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