Investing in penny stocks in India can be both exciting and heartbreaking. These low-priced stocks offer the potential for significant returns, but they also come with higher risks. With numerous options available, choosing the best penny stocks requires thorough research, careful analysis, and a deep understanding of the market dynamics. This article explores the 15 Best Penny Stocks to Buy in India for 2024, providing a comprehensive overview, investment strategies, risk management tips & tax implications to help you make informed decisions.
Penny stocks, also known as micro-cap stocks, are shares of small companies with low market capitalisation, typically trading at relatively low prices, often below ₹ 20 or even a few rupees. These companies are usually in their early stages of growth, operating in emerging sectors or niche markets. Penny stocks are characterised by high volatility, limited liquidity, and a speculative nature, making them attractive to risk-tolerant investors seeking high potential returns. The features of penny stocks include their high volatility, rapid price changes, low price, accessibility to investors with limited capital, limited information, and lack of regulatory oversight, which results in less transparency.
Here is the list of the 15 Top Penny Stocks To Buy. Click respectively to know more about them:
| List of 15 Best Penny Stocks ( Buy Today ) | CMP |
|---|---|
| 1. Salasar Techno Engineering Limited | ₹ 22.73 |
| 2. SBC Exports | ₹ 23.01 |
| 3. Jaiprakash Associates Limited | ₹ 19.65 |
| 4. Rama Steel Tubes Ltd | ₹ 14.00 |
| 5. Shriram EPC Limited | ₹ 21.05 |
| 6. Syncom Formulation Limited | ₹ 13.59 |
| 7. Parsvnath Developers Limited | ₹ 15.52 |
| 8. Music Broadcast Limited | ₹ 18.43 |
| 9. Jyoti Structures Limited | ₹ 24.58 |
| 10. Steel Exchange India | ₹ 14.75 |
| 11. Sakuma Exports Ltd | ₹ 27.25 |
| 12. Dish TV India Limited | ₹ 18.93 |
| 13. HCL Infosystems Limited | ₹ 19.77 |
| 14. MIRC Electronics Limited | ₹ 21.62 |
| 15. Hathway Cable and Datacom Limited | ₹ 22.12 |
Here is a complete overview of the Top Penny Stocks To Buy in India and their Volume, Market Cap, Closing Price.
Salasar Techno Engineering Limited is India's leading provider of infrastructure solutions and structural steel fabrication. SALASAR specialises in designing, manufacturing, installing steel structures for various sectors. They are renowned for their engineering knowledge, excellent craftsmanship, and prompt project completion.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 182.22 | 457.91 | 992.86 |
SBC Initially traded handmade carpets, cushion covers, cotton quilts, bedspreads, etc., in Mirzapur (Company's Registered office). Over four years, the company became a well-known brand in Uttar Pradesh.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 88.98 | 1567.07 | 3029.55 |
Jaiprakash Associates Limited (JAL) is an Indian infrastructure company with a wide portfolio, making it one of the Best Penny Stocks To Buy. Engineering and construction, power, cement, real estate, hospitality, motorways, sports, and education are the seven industries in which JAL is involved.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 181.43% | 175.52% | 242.61% |
Rama Steel Tubes Ltd is a certified organisation that manufactures, supplies, exports steel pipes, tubes, fittings, and Rigid PVC & GI Pipes in India.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 44.35% | 1401.07% | 809.78% |
Shriram EPC Limited is a Leading engineering, procurement, construction firm that provides complete infrastructure development solutions. Shriram EPC Limited is an innovative and quality-driven company that specialises in turnkey solutions in various industries, including industrial infrastructure, renewable energy, water management.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 88.27 | 423.07 | 155.59 |
Syncom Formulations Ltd. operates in the pharmaceutical industry and specialises in producing various goods in different dosage forms. These goods are sold in many different nations throughout the world.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 111.89 | 331.68 | 1141.07 |
Parsvnath Developers Limited is a Renowned Indian real estate developer well-known for its skill in building integrated townships, apartment buildings, commercial spaces, and more.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 115.17 | 70.17 | 132.29 |
Music Broadcast Limited is One of India's top radio broadcasting firms, which operates under Radio City. Music Broadcast Limited, which is present in several locations around the country, provides a wide variety of radio stations that appeal to all tastes.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 55.98 | - | - |
Jyoti Structures Limited is one of the best Penny Stocks to buy. It is a renowned engineering, procurement, and construction firm that specialises in the planning, building, and upkeep of transmission lines and substations.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 287.10 | 293.44 | 910.42 |
Steel Exchange India trades in various steel products, including structural steel, long products, special steels, semis, raw materials, and M.S. binding gauge wires. They also produce steel ingots.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 5.87% | 120.90% | 813.31% |
Sakuma Exports Ltd trades commodities and merchandise from India. The company exports various commodities such as red split lentils, onions, peanuts, peanuts in shells, brass items.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 142.56% | 448.59% | - |
Dish TV India Limited is one of India's largest direct-to-home (DTH) television service providers, offering various digital entertainment channels and services. With a focus on delivering high-quality content, superior technology.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 18.83 | 84.41 | - |
HCL Infosystems Limited is India's leading information technology and hardware solutions provider, offering a comprehensive range of products and services to meet the diverse needs of businesses.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 48.72 | 110.91 | - |
MIRC Electronics Limited is a renowned consumer electronics company known for its flagship brand, Onida. Specialising in manufacturing a wide range of home appliances and electronic products.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 66.94 | 50.95 | - |
Hathway Cable and Datacom Limited is one of India's leading cable television and broadband service providers, offering high-speed internet, digital TV services, and value-added services to residential.
Returns:
| 1Y Return (%) | 3Y Returnax (%) | 5Y Return (%) |
|---|---|---|
| 59.81 | - | - |
Here are some of the Top Penny Stocks to Buy in India for the long term. These companies show potential for growth over the long run, but it's essential to conduct thorough research and consider the risks before investing.
| Top Penny Stocks to Buy ( long-term ) | 5Y Return (%) |
|---|---|
| 1. SBC Exports | 3029.55 |
| 2. Syncom Formulation Limited | 1141.07 |
| 3. Salasar Techno Engineering Limited | 992.86 |
| 4. Jyoti Structures Limited | 910.56 |
| 5. Steel Exchange India | 813.31% |
The performance of penny stocks can vary significantly from month to month, influenced by market sentiment, company-specific news, and macroeconomic factors. Here are some of the multi-bagger penny stocks to consider buying in May 2024:
| Multibagger Penny Stocks for May 2024 | 1Y Return (%) |
|---|---|
| 1. Jyoti Structures Limited | 287.10 |
| 2. Salasar Techno Engineering Limited | 182.22 |
| 3. Jaiprakash Associates Limited | 181.43% |
| 4. Sakuma Exports Ltd | 142.56% |
| 5. Parsvnath Developers Limited | 115.17 |
Before deciding to invest in penny stocks, it's crucial to conduct thorough research and risk assessment due to their volatile nature and the high risks involved, including the potential for significant losses. These Key factors investors should consider before investing in penny stocks:
There are 3 types of Penny Stocks to buy in India: Turnaround Stocks, Speculative Stocks, and Growth Stocks.
In addition to these primary categories, penny stocks may include sectors such as biotech, mining, technology, and natural resources, each with a unique risk-return profile. By diversifying across different types of penny stocks and conducting thorough due diligence, investors can build a well-rounded portfolio that balances risk.
a. Value Investing: Identify undervalued penny stocks with strong fundamentals and long-term growth potential. Conduct thorough fundamental analysis to uncover hidden gems trading at a discount to their intrinsic value, employing a value investing approach.
b. Growth Investing: Seek out penny stocks with significant growth opportunities, focusing on companies with disruptive technologies, expanding market presence, and robust revenue growth. Emphasise long-term potential over short-term fluctuations.
c. Speculative Trading: Capitalise on short-term price movements in penny stocks using technical analysis and market sentiment. Leverage short-term events such as news announcements or earnings reports, but exercise caution due to higher volatility and risks associated with speculative trading
Investing in penny stocks offers several compelling reasons that attract both seasoned investors and newcomers to the stock market.
We have selected some of the Best Penny Stocks to consider investing in 2024. However, remember they are inherently risky and require thorough research before investing. This list is a starting point to help you with your research, not financial advice.
By following these guidelines and leveraging our curated list of Multibagger Penny Stocks for April 2024 as a starting point, you can potentially enhance your chances of success in this high-risk, high-reward investment sector.
While penny stocks carry higher risks, they also offer several advantages for investors willing to take the plunge:
To help you get started, we've analyzed the market and compiled a list of some of the Best Penny Stocks for you to consider in 2024.
Investing in penny stocks requires careful research, due diligence, and risk management. Here's a step-by-step guide to investing in it:
1. Open a Demat account with a reputed stockbroker like lakshmishree, who supports penny stocks
2. Conduct in-depth research before purchasing the best penny stocks in 2024.
3. Select one penny stock that seems promising and buy it.
4. Use buy orders to carry out the penny stock acquisitions you have in mind.
While they offer the potential for high returns, they also come with higher risks and challenges:
While they carry inherent risks, we've compiled a list of some Best Penny Stocks trading at low prices that could offer high returns. This is not a recommendation to buy any specific stock, and we strongly encourage you to conduct thorough research before investing in any penny stock.
Investing in these stocks may be thrilling and profitable, but it requires discipline, risk management, and thorough study. Investors can successfully navigate the Best Penny Stocks To Buy in India 2024 and possibly reach their financial objectives by being aware of the opportunities and risks associated with the practice and investing according to the guidelines provided in this article.
The best penny stock To Buy Today depends on individual investment objectives, risk tolerance, and market conditions. Conduct thorough research and analysis before making investment decisions. However, you can also check the List of 15 Top Penny Stocks To Buy Today.
Multibagger penny stock for April 2024 #1. Jyoti Structures Limited
Multibagger penny stock for April 2024 #2. Salasar Techno
Multibagger penny stock for April 2024 #3. Jaiprakash Associates Limited
Multibagger penny stock for April 2024 #4. Sakuma Exports Ltd
Multibagger penny stock for April 2024 #5. Parsvnath Developers Limited
Risks associated with investing in penny stocks include high volatility, limited liquidity, speculative nature, lack of transparency, and susceptibility to manipulation.
For investors, investing in penny stocks might provide explosive growth. They are traded by numerous reputable companies with creative goods and capable management teams. While not every penny stock sees sharp price swings, some can result in significant gains quickly. Investing in these stocks requires thorough study, assessment of risk tolerance, and comprehension of personal investing objectives.
Disclaimer: The information presented here is for educational purposes only and should not be considered a recommendation to buy any specific stock.
