Penny Stocks Below Rs. 10 – Based on Fundamental Factors

Last Updated on May 17, 2024 by Anjali Chourasiya

Best Penny Stocks to Buy in India Under Rs. 10

Note: To get the list of fundamentally strong penny stocks below 10 Rs., we used the Tickertape Stock Screener on 25th April 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

🚀 Pro Tip: Utilise Tickertape’s Market Mood Index to gauge market sentiment and make informed investment decisions based on real-time market data and trends.

Invest in the Best Stocks Selected by SEBI-Registered Analysts

Did you know that you can invest in readymade electric vehicle stock portfolios managed by SEBI-registered experts?

But, before that, let’s look at what smallcase is.

What is a smallcase?

smallcases are modern investment products that help investors build low-cost, long-term & diversified portfolios with ease. A smallcase is a basket or portfolio of stocks/ETFs representing an idea – an objective, theme, or strategy. They are created and managed by SEBI-registered experts.

Among 500+ smallcases, here’s the top smallcases you can check out:

Mi INDIA Top 10 smallcase by Weekend Investing

Equity & Gold smallcase by Windmill Capital

Disclosure for Mi INDIA Top 10

Disclosure for Equity & Gold

Note: The smallcases are mentioned only for educational purposes and are not meant to be recommendatory. Investors must conduct their own research and consult a financial expert before making any investment decisions.

Debt-Free Penny Stocks Below Rs. 10

Note: The above list of penny stocks below Re. 1 is dated 25th April 2024 and is derived using the Tickertape Stock Screener. The following parameters were used for the purpose:

• Close price: Set the upper limit to 10
• 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 25th April 2024. 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 25th April 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. 

Overview of the Best Low-Priced Share Under 10 Rupees

Diligent Media Corporation Ltd
Diligent Media Corporation Ltd operates in the media sector, primarily known for publishing the daily newspaper DNA. The company focuses on providing news and analysis, targeting urban readers with comprehensive coverage across various topics.

Hindusthan Udyog Ltd
Hindusthan Udyog Ltd specialises in manufacturing and engineering services, particularly in the metal and infrastructure sectors. The company aims to deliver high-quality industrial products and solutions, catering to both domestic and international markets.

Elcid Investments Ltd
Elcid Investments Ltd is an investment company focused on long-term capital growth through investments in diversified portfolios, primarily in the stock market. It aims to maximise shareholder value through strategic asset allocations.

Taparia Tools Ltd
Taparia Tools Ltd manufactures hand tools that are renowned for their durability and precision. Catering to both professional and DIY markets, Taparia offers a wide range of products, including wrenches, screwdrivers, and pliers, emphasising quality and innovation.

Pressure Sensitive Systems (India) Ltd
Pressure Sensitive Systems (India) Ltd specialises in the production of adhesive tapes and labels used in various industries. The company focuses on delivering customised solutions that meet specific client needs, leveraging advanced adhesive technologies.

Alstone Textiles (India) Ltd
Alstone Textiles (India) Ltd engages in the textile industry, dealing with the manufacture and trade of fabrics and garments. It focuses on innovation in design while ensuring quality and sustainability in its products.

Siddha Ventures Ltd
Siddha Ventures Ltd operates in the real estate sector, focusing on developing high-quality residential and commercial properties. The company aims to create value for its customers by delivering superior design and functionality in its projects.

CES Ltd
CES Ltd offers engineering solutions that focus on innovative and sustainable infrastructure projects. With expertise in construction and environmental engineering, CES Ltd aims to contribute to building modern infrastructure while adhering to eco-friendly practices.

Debock Industries Ltd
Debock Industries Ltd is involved in the construction and development sector, focusing on infrastructure projects such as roads and buildings. The company aims to support India’s infrastructure growth with quality construction and innovative project management techniques.

IL & FS Investment Managers Ltd
IL & FS Investment Managers Ltd is one of India’s oldest private equity fund management companies, focusing on infrastructure and real estate investments. It aims to deliver strong returns through strategic investments in high-growth sectors.

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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