Penny stocks are always the point of attraction for many investors to put in their money. Penny stocks are the dark horses of the stock market because they carry a lot of potential for growth. A lot of new investors are always eager to learn about penny stocks and the potential of returns in penny stock investment.
Penny stocks are stocks of those companies which belong to nano-cap or micro-cap, usually, these companies have a market cap of fewer than 500 crores rupees.
Most of these companies are newly registered companies in the stock market and these companies have a lot of potential for progress if the company has good fundamentals.
Why investing in penny stocks?
High growth
Stocks of small and micro caps are usually highly volatile which makes them the perfect option for short term or intraday trading where these stocks can provide high returns.
Since these companies are newly registered to the stock market so there are high chances for new investments in these stocks which can uplift the stock price further.
Since these stocks are highly volatile so chances of loss are also high so it is also recommended to pick penny stock after detailed analysis or after a professional recommendation.
Low cost
Investing in share market requires a good amount of money especially when you are investing in large or mid-cap stocks but you need a very little amount of money to begin your investment in penny stocks.
They are much cheaper in comparison with large and mid-cap stocks.
Price of most penny stocks remains under 50 rupees and some penny stocks are even available under 10 rupees.
When you are buying a stock which is less than 10 rupees in that case you don’t require a large sum of money to begin your investment.
Penny stocks under Rs. 10
Birla precision technologies
| Sector | Market cap (Rs. Cr.) | Volume | Face value | 1 Year Return % |
| Machine tools | 49 | 80,546 | 2 | 29 |
Birla precision technologies is an engineering company and it was established in 1937. The company manufactures and supplies high-quality steel cutting tools to domestic as well as global market.
The high-quality products made the company a recognizable name in the sector of machine tools manufacturing.
Over a period of time, the company has grown significantly and its share price gained a lot of momentum.
Sumeet industries
| Sector | Market cap (Rs. Cr.) | Volume | Face value | 1 Year Return % |
| Textile | 35 | 255,847 | 10 | 80 |
Sumeet industries is an Indian textile company which produce high-quality textile products. The company has made significant progress in Indian polyester industry and emerges as a key player in the supply of eco-friendly high-quality synthetic yarn and polyester fabrics.
Company’s stock has gained more than 80% in the last fiscal year because of the company’s excellent progress.
Surat textile mills ltd.
| Sector | Market cap (Rs. Cr.) | Volume | Face value | 1 Year Return % |
| Textile & cotton blended | 92 | 466,842 | 1 | 96 |
Surat textile mills is an Indian textile company and it was originally established in 1945. Company is dedicated in manufacturing and selling of high-quality polyester filament yarn, polyester chips and spun yarn.
The company has multi-location yarn manufacturing facilities and the company is equipped with state of art Japanese spinning machinery. In last one-year company’s share has gained very positive momentum.
3i infotech ltd.
| Sector | Market cap (Rs. Cr.) | Volume | Face value | 1 Year Return % |
| Computer & software | 1,018 | 9,796,479 | 10 | 140 |
3i infotech company was established in 1993, now the company has more than 5500 employees in its 31 offices.
Company’s business has spread across 12 countries, 3i infotech provides IP based software solutions and other IT services.
Company is making positive progress over the period of time, in the last one-year company’s stock has seen skyrocket progress.
Also Read: Top 10 Multi-beggar Penny Stocks Of 2020
RattanIndia power ltd
| Sector | Market cap (Rs. Cr.) | Volume | Face value | 1 Year Return % |
| Power – generation & distribution | 1,432 | 11,634,211 | 10 | 150 |
RattanIndia power limited company generates power and companies operations are spread across the Indian state of Maharashtra.
The company has possessed 3235 acres of land for its power generation projects and the company has the capacity to generate power up to 5400 MW.
Lloyds steel industries ltd
| Sector | Market cap (Rs. Cr.) | Volume | Face value | 1 Year Return % |
| Steel – medium & small | 89 | 1,031,493 | 10 | 90 |
Lloyds steel industries company was established in 1974 at Andheri, Mumbai. The company design and manufactures heavy equipment and systems for the hydrocarbon sector, steel plants, power plants and nuclear plant boilers.
Company has a positive reputation in the domestic and global market. Company’s share has risen sharply in the last year due to the progress of the company.
Tovam industries
| Sector | Market cap (Rs. Cr.) | Volume | Face value | 1 Year Return % |
| Finance | 85 | 719,495 | 1 | 95 |
Toyam industries were established in the year 1985 and over the period of time the company has shown promising growth.
In 2017 board meeting it was finalized to expand the business further in all kinds of activities related to fashion, fitness, sports and entertainment.
Toyam is the only listed country in BSE Sensex in the category of sports marketing and management.
MIC electronics limited
| Sector | Market cap (Rs. Cr.) | Volume | Face value | 1 Year Return % |
| Telecommunication – equipment | 20 | 12,330 | 2 | 110 |
MIC electronics company was established in 1988, the company is a global leader in the development and manufacturing of LED video displays and telecommunication equipment.
Today company manufacture LED video displays for indoor and outdoor use, these high-quality displays are commonly used in stadiums, digital theatres and advertisement purposes.
Syncom formulations ltd
| Sector | Market cap (Rs. Cr.) | Volume | Face value | 1 Year Return % |
| Pharmaceuticals | 251 | 478,929 | 1 | 180 |
Syncom formulation India is a trustable name in the Indian pharmaceutical industry. The company is a fine example of consistency and commitment to professionalism.
The company was established in the year 1995 and Syncom operates WHO-GMP certified plant and maintains a high standard of manufacturing. Company’s stock has gained a lot of positive momentum in the last one year.
Cranes software international
| Sector | Market cap (Rs. Cr.) | Volume | Face value | 1 Year Return % |
| Computers – software | 15 | 61,403 | 2 | 120 |
Cranes software international limited provide statistical analytics and simulation software solutions across the globe. The company provides IT solutions and focus on R&D in future technologies.
Today, the company has a presence in 39 countries across the globe and has 350,000 robust global user base. Company is expanding its operations further and its stock is doing promising progress.
