1. Are stocks under ₹20 good investments?

These stocks can offer high growth potential but come with increased risk. Investors should assess their risk tolerance and conduct due diligence before investing.

2. How can I find stocks under ₹20?

Use stock screener platforms like Tickertape that allow filtering stocks by price. By setting the stock price limit to ₹20, you can generate the list of stocks trading under ₹20.

3. What factors should I consider before investing in low-priced stocks?

Evaluate the company's financial health, market position, growth prospects, and management quality. Also, consider market trends and industry performance.

4. What are the risks associated with investing in shares under ₹20?

Risks include high volatility, low liquidity, limited information availability, and potential for fraud. It's crucial to be cautious and well-informed.

5. Can I make quick profits with stocks under ₹20?

While possible, quick profits are not guaranteed. These stocks can be highly volatile, and prices may not move as anticipated.

Best Shares Under Rs. 20 in India

Explore the best shares under Rs. 20 on NSE using Tickertape’s Stock Screener for smart investing.

Best Shares Under Rs. 20 in India

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Overview of the Top Shares Under Rs. 20 in India

Vodafone Idea Ltd

A leading telecommunications company in India, Vodafone Idea Ltd offers mobile voice and data services across the country. Known for its extensive network, it provides innovative solutions for individual and enterprise customers, including 4G, IoT, and enterprise connectivity services.

Jaiprakash Power Ventures Ltd

This company operates in the power generation sector, focusing on hydroelectric and thermal power projects. Jaiprakash Power Ventures is part of the Jaypee Group, contributing significantly to India's energy infrastructure with a strong emphasis on renewable and sustainable solutions.

PC Jeweller Ltd

A prominent player in the Indian jewelry industry, PC Jeweller specialises in designing and retailing gold, diamond, and silver ornaments. The company is renowned for its craftsmanship, offering a mix of traditional and contemporary designs to cater to diverse customer preferences.

RattanIndia Power Ltd

Operating in the thermal power generation domain, RattanIndia Power Ltd develops and manages large-scale power plants. The company plays a vital role in meeting India’s growing electricity demands by contributing to the country’s energy sector.

Easy Trip Planners Ltd

One of India’s leading online travel agencies, Easy Trip Planners Ltd provides comprehensive travel solutions, including flight bookings, hotel reservations, holiday packages, and travel insurance. Known for its user-friendly platform, the company simplifies travel planning for domestic and international trips.

Advantages of Investing in Shares Under Rs. 20 in India

Low Initial Investment

These shares are affordable, allowing investors to enter the stock market with minimal capital, making them accessible to a broader audience.

High Return Potential

Due to their low prices, even a small appreciation can lead to significant percentage gains, offering the possibility of substantial returns.

Opportunity to Invest in Emerging Companies

These shares often belong to small or emerging companies, providing investors the chance to support and benefit from the growth of potentially successful businesses.

Potential for Multibagger Returns

Some penny stocks have the potential to become multibaggers, delivering returns multiple times the initial investment if the underlying companies perform exceptionally well.

Higher Volatility Offers Trading Opportunities

The higher volatility of these stocks can present opportunities for traders to capitalise on short-term price movements, potentially leading to quick profits.

Access to Niche Markets

Investing in low-priced shares can provide exposure to niche sectors or innovative industries that may not be represented by larger, more established companies.

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Factors to Consider Before Investing in Shares Under Rs. 20

Company Fundamentals

Assess the company's financial health, including profitability, debt levels, and cash flow. Strong fundamentals indicate stability and growth potential.

Market Liquidity

Evaluate the stock's trading volume to ensure sufficient liquidity. Low liquidity can lead to difficulties in buying or selling shares without affecting the market price.

Industry Position

Understand the company's position within its industry, including competitive advantages and market share. A strong position can enhance resilience against market fluctuations.

Regulatory Compliance

Ensure the company adheres to regulatory standards and maintains transparency in its operations. Non-compliance can lead to legal issues and impact stock performance.

Price Volatility

Be prepared for significant price swings, as penny stocks are often more volatile than larger, established companies. This volatility can lead to rapid gains or losses.

Investment Horizon and Risk Tolerance

Align your investment with your financial goals and risk appetite. Penny stocks can offer high returns but also come with increased risk, making them more suitable for investors with a higher risk tolerance.

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Frequently Asked Questions on Shares Under Rs. 20

1. Are stocks under ₹20 good investments?
These stocks can offer high growth potential but come with increased risk. Investors should assess their risk tolerance and conduct due diligence before investing.
2. How can I find stocks under ₹20?
Use stock screener platforms like Tickertape that allow filtering stocks by price. By setting the stock price limit to ₹20, you can generate the list of stocks trading under ₹20.
3. What factors should I consider before investing in low-priced stocks?
Evaluate the company's financial health, market position, growth prospects, and management quality. Also, consider market trends and industry performance.
4. What are the risks associated with investing in shares under ₹20?
Risks include high volatility, low liquidity, limited information availability, and potential for fraud. It's crucial to be cautious and well-informed.
5. Can I make quick profits with stocks under ₹20?
While possible, quick profits are not guaranteed. These stocks can be highly volatile, and prices may not move as anticipated.