10 Best Penny Stocks To Buy In India

There are 1,000s of stocks listed on the stock exchanges, and finding the best one may not be easy. If you’re on a budget, you can explore penny stocks. 

Penny stocks are the stocks that trade below ₹10. Though the price of these stocks is less, they are considered high-risk. Therefore, they come with limited liquidity compared to larger stocks. In this article, check the 10 best penny stocks in India in 2024. 

10 Best Penny Stocks To Consider In India – 2024

Note: The stocks listed here are as of December 3, 2024, and are selected according to their 5-year CAGR. 

Overview of the best penny stocks in 2024

• Global Capital Markets Ltd

Incorporated in 1989, Global Capital Markets is a Non-Banking Financial Company (NBFC) that is involved in the business of investment in shares and securities. They also offer finance on a long-term and short-term basis. The net profit margin of the company is -0.92%. 

• Comfort Intech Ltd

Comfort Intech Ltd was incorporated in 1994. They are involved in the trade of various goods, such as fans, fabrics, water heaters, and monoblock pumps, through e-commerce marketplace platforms and directly source their products from the immediate suppliers affiliated with these platforms. The net profit margin of the company is 4.94%. 

• Standard Capital Markets Ltd

Incorporated in 1987, Standard Capital Markets is a Non-Banking Financial Company (NBFC) that offers a spectrum of financial services. The company is involved in lending money to individuals and Small and Medium-Sized Enterprises (SMEs), both secured and unsecured. Additionally, it is involved in trading securities/shares of companies, bonds, and units and makes investments in stock markets. The net profit margin of the company is 19.77%. 

• Mid India Industries Ltd

Mid India Industries was incorporated in 1991. They are involved in processing cotton and other fibres into yarn. The net profit margin of the company is 3.13%. 

• Danube Industries Ltd

Danube Industries is involved in the business of manufacturing pulp, and paper products. The net profit margin of the company is 1.10%. 

• FCS Software Solutions Ltd

FCS Software Solutions offers IT and IT-enabled services. They have more than 25 years of experience in technology. The net profit margin of the company is 3.87%. 

• KBS India Ltd

Started in 1981, KBS India provides stock and shares broking services. The net profit margin of the company is 8.57%. 

• Kenvi Jewels Ltd

Kenvi Jewels Ltd was established in 2002. The company provides its customers with a comprehensive range of Indo-western, traditional and modern jewellery. The net profit margin of the company is 0.61%. 

• Vivanta Industries Ltd

Founded in 2013, Vivanta Industries offers comprehensive services covering conceptualisation, design, installation, and commissioning. Their expertise spans various sectors, including establishing Pharmaceutical Manufacturing plants adhering to WHO and EU (GMP) standards, Primary Healthcare units, Industrial Parks, Solar Projects and more. The net profit margin of the company is 5.24%. 

• BLS Infotech Ltd

Incorporated in 1985, BLS Infotech offers information technology (IT) and IT-enabled services. The net profit margin of the company is 4.35%. 

Pros of Investing in Penny Stocks

• • Affordability: Penny stocks are usually low-priced, making them affordable for investors with limited capital to enter the stock market.

• Opportunity for Early Investment: Investors may have the chance to identify and invest in promising companies at an early stage before they become more widely recognised.

Cons of Investing in Penny Stocks

• High Risk: Penny stocks are highly volatile and carry a substantial risk. The same factors that can lead to high returns also increase the risk of significant financial setbacks.
• Lack of Information: Many penny stocks are not well-covered by analysts or mainstream financial media, leading to a lack of reliable information for investors to make informed decisions.
• Liquidity Challenges: Penny stocks often have low trading volumes, which can result in liquidity challenges. It may be difficult to buy or sell shares at desired prices.

Conclusion

Penny stocks come with advantages and disadvantages as well. Therefore, understand the company well before investing in it. Also, consider your investment objective, risk appetite and investment horizon before making a decision. 

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.