Profit Sheets

Top Penny Stocks Below 1 Rupee in India 2022

January 3, 2022 01:25 PM

Top Penny Stocks Below 1 Rupee in India 2022
note that penny stocks in India below 1 rupee are mostly illiquid and speculative in nature. This lack of liquidity makes them highly risky investments.

Top Penny Stocks :

With investments, when there is a greater probability to get higher returns, there are always higher risks involved. Conversely, when the risk is lower, the returns would also be lower. This is a useful rule of thumb to acquaint yourself with before investing in the stock market.

Investing in shares below Rs 1 is an investment, where despite the high risk, these stocks may have the potential to generate exorbitant returns for you. However, you need to be prudently watchful and research as much as possible before investing in them. Let’s navigate through the interesting concept of penny stocks in India below 1 rupee.

What are penny stocks below 1 rupee?

Stocks below Rs 1, also known as ultra-penny stocks, are stocks that trade at a very low price in the stock market. This is one of the main reasons why these stocks are attractive for investors.

By virtue of this ‘cheap’ price, shares below 1 rupee have the greatest potential to fetch enormous returns, some even becoming multibagger within short durations. These stocks belong to companies with very low market capitalisation. Being micro-cap companies, there is much growth potential to catch up with the large-cap companies, that may or may not materialize and translate into stock price movement.

However, note that penny stocks in India below 1 rupee are mostly illiquid and speculative in nature. This lack of liquidity makes them highly risky investments.

List of penny stocks below 1 rupee:

Note: The parameters used to filter the following list of penny stocks are:

Closing price of stocks is up to Rs 1

Profit-making companies

Name Ticker Sub-Sector Market Cap Close Price Net Income
Shalimar Productions Ltd SHALPRO Media 48.23208734 0.49 0.07
MFL India Ltd MFLINDIA Transportation and Logistics 28.102776 0.81 3.11
Gold Line International Finvest Ltd GOLDLINE Investment Advisory 17.191845 0.34 0.06
Antarctica Ltd ANTGRAPHIC Packaging 14.725912 1 0.02
Maharashtra Corp Ltd MAHACORP Investment 10.14999975 0.78 0.01
Devhari Exports (India) Ltd DEVHARI Steel Trading 5.868386783 0.82 0.01
Khoobsurat Ltd KHOOBSURAT Finance and Investing 4.25103168 0.33 0.01
Cox & Kings Financial Service Ltd CKFSL Diversified Financials 2.54990589 0.35 3.34
Hit Kit Global Solutions Ltd HITKITGLO Sell Fresh veggies 2.442 0.66 0.01
CES Ltd CESL IT 1.092 0.3 25.66
Parth Industries Ltd PARTIND Yarn sales and fabrication 1 0.07
Sagar Soya Products Ltd SAGRSOY-B Exports 0.61 0.21

 

A glimpse into the above-mentioned companies:

Shalimar Productions Ltd:

It is a media and media products company based in India. The company creates regional albums, short films, and feature films. Shalimar Productions Limited is based in Mumbai, India, and was founded in 1985.

MFL India LTD:

This company is an Indian transportation and logistics firm. The company owns a fleet of high-capacity trucks and trailers, as well as a fleet of combined high-volume/heavy-weight cargo carriers. It also offers ocean, air, and land transportation services, as well as logistics services like freight management, cargo brokerage, and intermodal services. The firm was founded in 1981 and is headquartered in Delhi, India.

Also Read : Risks & Rewards involved in penny stocks, Are penny stocks is a good investment?

Gold Line International Finvest Ltd:

It is an investment advisory firm that works with clients in India and around the world. Money market operations and treasury management are also performed by the organization, as well as acting as an administrator for several investment trusts.

It also buys, sells, and holds shares, debentures, bonds, stock, and units; and offers a variety of financial services, such as margin funding, corporate and personal loans, stock and securities trading, trade finance, and bills discounting solutions, among others.

In November 1995, the company changed its name from Good-Enough Securities Limited to Gold Line International Finvest Limited. Gold Line International Finvest Limited is situated in Delhi, India, and was founded in 1992.

Antarctica Ltd:

This is an Indian company that produces and sells paper-based packaging and publishing products. It sells folding cartons with an inner liner for powder, granular materials, liquids lock bottoms, reverse tuck-in boxes, hard tag double, chambered tea bags (with or without outer envelopes) and printed hard tags for teabag manufacture.

In addition, the company offers printed and PE-coated paper cups, as well as books, pamphlets, labels, and posters. Its packaging materials are largely used in the tea, pharmaceutical, and spice industries. It also sells to Sri Lanka, the Middle East, the United Arab Emirates, Russia, Kazakhstan, Nepal, and other countries throughout the world. Antarctica Limited is based in Kolkata, India, and was founded in 1991.

Maharashtra Corp Ltd:

In India and worldwide, this firm invests, trades, and distributes textile and agricultural commodities items. It sells viscose and printed fabrics, dyed and semi-synthetic fabrics, speciality jacquards, and other textile items, as well as raw cashew nuts and other agricultural products. The firm was founded in 1982 and is headquartered in Mumbai, India.

Devhari Exports (India) Ltd:

It is a steel trading company based in India. In November 1999, the company changed its name from Kutchh Gujarat Securities Limited to Devhari Exports (India) Limited. Devhari Exports (India) Limited is based in Jamnagar, India, and was formed in 1994.

Khoobsurat Ltd:

It is involved in the finance and investing industry. It invests in stocks, bonds, commodities, and other capital market-related activities. Khoobsurat Limited is based in Kolkata, India, and was founded in 1982.

Cox & Kings Financial Service Ltd:

This firm provides forex services to financial institutions, corporates and individuals in India. It buys and sells foreign currency notes as well as internationally accepted multi-currency travel cards, and it also provides demand drafts/travellers’ checks, outbound remittances, and tour remittances. The firm was founded in 2016 and is headquartered in Mumbai, India.

Hit Kit Global Solutions Ltd:

It is an Indian company that is engaged in the retail vegetable business. The firm was founded in 1988 and is headquartered in Mumbai, India.

CES Ltd:

It specializes in information technology (IT)-enabled services such as business process outsourcing and knowledge process outsourcing. IT Services and IT Enabled Services are the company’s two segments (ITES).

Parth Industries Ltd:

It is in the business of commissioned yarn sales and fabrication.

Sagar Soya Products Ltd:

It was established as a private limited corporation on September 27, 1982. SSPL has established manufacturing facilities for soya oil, de-oiled cakes, and soya flour in Bhainsa, MP. The company exports soybean meal/extractions, which brought in Rs 5.75 crore in 1994-95. With the requisite tie-ups with significant export houses in the country, it is forecasting a higher export turnover.

Features of penny stocks in India below 1 rupee:

High returns:

Penny stocks in India below Rs. 1 offer an opportunity for greater returns compared with higher-priced equity. Furthermore, they have an immense growth potential as they are mostly issued by small and micro-cap companies. However, they are highly unstable and vulnerable to market fluctuations.

Illiquid:

Penny stocks in India below 1 rupee are illiquid as the issuing companies are usually unpopular. This illiquidity may especially be a cause for concern should a seller want to sell their holding. Finding a buyer to accept the selling price is tough. Usually, investors with very high-risk tolerance consider investment in ultra-penny stocks.

Low-cost:

As these stocks trade below Rs. 1, it becomes extremely affordable and pocket-friendly. You get the opportunity to buy a substantial amount of penny stocks below 1 rupee from which you may benefit should the price move up well.

Unstable pricing:

Typically, penny stocks in India below Rs. 1 do not achieve substantial pricing differences during the trading session. They are more likely to hit their upper or lower circuits quickly, and the capital gains are generally minuscule unless you sell a very large quantity.

Why invest in penny stocks in India below 1 rupee?

They may evolve as multibagger

Some penny stocks trading below Rs. 1 may turn into multibaggers stocks, should they have strong fundamentals and a suitable business environment. This means you can yield multiple times the investment amount. As a result, putting your money in such shares could substantially grow your returns prospects. You may also stand a chance to earn more than the returns that large-cap and mid-cap stocks offer within the same duration.

However, you must study the shares judiciously before weighing them as multibaggers and invest only a part of your portfolio in such high-risk investment avenues.

They are inexpensive

The primary advantage of investing in ultra-penny stocks is the cheap price point. You can invest in them without putting a hole in your pocket. Furthermore, you can purchase a significant amount of penny stocks in India below Rs. 1 and still save money to invest in other secure schemes with lesser associated market risks for the diversification of your investment portfolio.

Factors to consider before applying for penny stocks in India below 1 rupee

Dearth of information

Shares below Re. 1 generally belong to companies that are not very well known or are unpopular. Many such companies do not feel compelled to release information about the financials or corporate governance to the public, which makes access to information about the company for valuation purposes very difficult. Inline, the number of investors eliciting interest in investing is also low. There are barely any brokerages or research firms covering these microcap companies which adds to the dearth of information.

Price manipulation

Given the very low liquidity in ultra-penny stocks, it has been observed historically that stocks below Re. 1 often become subject to price manipulations. Traders, scamsters or even promoters of the firm who have large holdings of such cheaply-priced stocks may artificially inflate or deflate the stock price for personal profits. These stocks are also prone to pump and dump schemes.

Tips for investing in penny stocks below 1 rupee

Perform thorough background research on the stocks you intend to invest in. 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. Analyse all information in order to help you make a calculated decision.

You may want to enlist an expert financial advisor’s services. Many times, we are lured into buying ultra-penny stocks through the advice of friends or traders. Verify the authenticity of the source and ensure sound and trustworthy advice before considering investment in penny stocks in India below 1 rupee.

Evaluate your risk appetite. Before investing in penny stocks below Rs. 1, know that even the slightest movement in the counters of such stocks may cause drastic changes to the share price, and Ultra penny stocks often hit the lower circuit and are considered to be risky investments.

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