10 Best Penny Stocks below 1 Rupee in India in 2023

This guide is all about the best penny stocks below 1 rupee. When making investments, the risks are always higher when there is a higher chance of getting a higher return. 

On the other hand, when the risk is low, so are the returns. This is a good rule of thumb before putting money into the stock market.

Buying stocks for less than Rs. 1 is an investment. Even though the risk is high, you may be able to make a huge sum of money from these stocks. But you should be careful and research as much as possible before putting money into them. 

Let's learn more about the exciting idea of penny stocks in India that are worth less than 1 rupee.

What are penny stocks below 1 rupee?

Penny stocks are traded on the stock exchange for low prices. Some people think that shares that cost less than Rs. 50 can be called "penny stocks." Penny stocks are usually hard to sell and have small market capitalizations.

Since investors usually don't know much about the fundamentals of a penny stock, traders may choose to speculate on penny stocks. This can cause them to be very volatile. 

But even though there are more risks with penny stocks, investors could make a lot of money from them.

List of 10 best penny stocks in India below 1 rupee

1. Shalimar Productions Limited 

The media production house known as Shalimar Productions is responsible for creating films, television shows, and videos. It has its headquarters in India. 

It was established in 1985, and the company was known by its previous name, Shalimar Agro Products Limited. The company has produced Albums and films entirely in the Rajasthani language. 

Kiran Kaur is the Chief Executive Officer of the organization. She is the proprietor of an outdoor studio known as the Viagra-Suranjana Studio, where students can receive training in performing arts.

The Shalimar Academy is located in the Shalimar House in Bikaner and is responsible for future generations' artistic education. 

Shalimar Productions Limited is a corporation that has more than 6,000 stockholders, according to its listing on the Bombay Stock Exchange (BSE). The corporation distributed an 80% return to its owners during the previous year. 

In addition, the company has generated a return of 85.71% during the previous three years.

2. Sword–Edge Commercials Limited

Sword-Edge Commercials Limited was once known as Rotam Commercials Limited until the name changed in 2013. This resulted in the adoption of the latter moniker. 

In 1985, when it was first established, it had a different name. The business deals in products considered to be consumer staples and now has a market capitalization of 16.5 cr.

The company is listed on the stock markets of the Bombay Stock Exchange (BSE) as well as the National Stock Exchange (NSE) (NSE). The Sword Edge corporate family comprises six distinct companies operating in their respective industries. 

The corporation's return for the previous year was 88.35%, providing 1,133.33% for the last five years.

3. Sarkozy Realtors Limited

Sarkozy Realtors has been in operation since 1992 and specializes in selling rock phosphate in addition to residential properties. 

The company's market capitalization is more significant than Rs 5 cr, and its sector's PE ratio is 37.47. The company's headquarters are located in Maharashtra.

Pawan Kalantre, Ruchika Somani, Shital Mehta, and Bhavik Mehta are all the company's management team members, each with significant responsibilities within the organization. 

The company's shares are available for purchase on the Bombay Stock Exchange and the National Stock Exchange. The return on investment for the company during the previous five years was 88.33%, and over the last year, it was 12.84%.

4. Ramchandra Leasing and Finance Limited

Ramchandra Leasing and Finance is a company that works in the BFSI market and provides financial assistance to businesses. 

The company now has a market value of Rs. 3.58 cr and has seen a growth of 204.55% over the previous three years. The business was initially established as a limited liability corporation known by its original name, Ramchandra Leasing and Finance Private Limited. 

The company began trading publicly in 1996, allowing investors to purchase and sell company shares for the first time. In 2005, the company's shares were divided into two separate entities.

In 2014, the company decided to make Mr. Pradip Jain its new full-time director and appointed him for the position.

5. CES Limited

CES is in the business of managing information technology and business processes as its primary activities. 

The organization can provide customers with onshore and offshore services that are individualized to meet their requirements in both settings. The price-to-earnings ratio for the company is 0.04, while its market capitalization is 1.38 crore.

The company's headquarters is in Hyderabad. And its delivery centers are located in the information technology hubs of Chennai, Hyderabad, and Vishakhapatnam, respectively. 

The corporation's CES Information Technology Private Limited division is one of its subsidiaries. CES acquired 37.50 percent of the branch during the 2018-2019 fiscal year.

6. Varun Mercantile Limited

The Varun Mercantile was established in 1985 and offered a diverse selection of products for sale. It has a price-to-earnings ratio of 13.07 and a market worth of 21 lakh rupees. 

The state of Maharashtra is home to the organization's main office, which is located in Mumbai. The business sells various items but does not categorize them into separate categories for sale. 

The corporation is managed by independent directors Lopamudra Dixit and Mehul Shah, who both serve in that capacity. Ambalal T. Jain is in charge of directing the movie, and Sanjay T. More is also a director.

7. Nirbhay Colours India Limited

Both the Bombay Stock Exchange (BSE) and the National Stock Exchange have approved Nirbhay Colours India Limited for listing on their respective exchanges (NSE). 

It operates in a variety of industries. The company has a market capitalization of 34 thousand rupees, and its price-to-earnings ratio is -1.01.

The corporation was once known by its previous name, Parth Industries Limited. The company distributes pens, pencils, desk accessories, geometry cases, ink pads, pencil cases, and other similar items under the product category known as "stationary."

8. Sagar Soya Products Limited

According to its name, Sagar Soya Products Limited is in the business of selling soya as well as other products that are associated with it. 

The business produces soyabean oil, soya flour, and de-oiled soybean cakes, among other soy-based products. 

Mr. A. C. Patel, who serves as Chairman, is in charge of running the company's plants in Bhainsa, which are located in Madhya Pradesh.

9. Negotium International Trade Ltd

Kuber Jewels was established on October 31, 1994, as a limited liability private company. On May 9, 1995, the firm changed its status to that of a public limited liability corporation. 

Prabhat Kant Gupta was the one responsible for promoting the company. At the Noida Export Processing Zone NEPZ, the company has established a 100-employee unit (EOU) to produce gold jewelry. 

The unit has 400 kg of gold jewelry installed per annum. The business decided to hold a public offering of 1.75 crore rupees to raise money for the abovementioned project. 

Gold Crest UK and the company have agreed for the corporation to purchase back 100 shares.

10. Visesh Infotecnics Ltd

In January 1989, Ultimate Software Private Ltd. was established. However, it is currently operating under the name Visesh Infotechnics Ltd. 

Later, in February 1993, the company adopted the name Visesh Technologies Pvt Ltd, and beginning in May 1995, it was opened to the public. 

In July of 1997, the organization went through a name change and is now popular as Visesh Infosystems Ltd. ERP Solutions and Ecommerce Services are VIL's primary revenue generators. 

It includes IT consulting, education services, and onsite and offshore project work, including ERP, e-commerce, and other related areas of expertise. At the start, the company produced various products using the COBOL programming language. 

Features of penny stocks in India below 1 rupee

1. High returns: 

Compared to stocks with higher prices, penny stocks that cost less than 1 rupee can give you a chance to make a lot of money. They have a lot of growth potential but are vulnerable to market changes and very stable.

2. Not easy to sell: 

These stocks are hard to sell because the companies that make them aren't very popular. This becomes a problem when the shares are sold. Penny stocks are usually bought by people willing to take on many risks.

3. Low cost: 

These stocks are very cheap and fit in your pocket. If the price goes up, it can be perfect for one person.

4. Unstable Prices: 

The prices of these penny stocks don't go up or down a lot. The capital gains are minimal if it is not sold in large amounts.

Why invest in Indian penny stocks in India below 1 rupee?

1. They could become multibagger

Some stocks that trade for less than Rs. 1 can become "multi-baggers"! But this is possible if they have solid fundamentals and a good business environment. This means you can get back more than what you put in.

So, putting your money in these shares could increase your chances of making much more. You may also be able to make more money than you would with large-cap or mid-cap stocks in the same amount of time.

But you should carefully look at the shares before deciding if they are "multi-baggers"! And you should only put a small part of your portfolio into high-risk investments.

2. They don't cost much.

Investing in ultra-penny stocks is a good idea because they are cheap. You can put money into them without breaking the bank. 

Also, you can buy many penny stocks in India for less than Rs. 1 and still have money left to put into other safe schemes with less market risk to diversify your investment portfolio.

Factors to consider before investing in penny stocks below 1 rupee

Things you should know about before investing in penny stocks in India below 1 rupee are:

1. A lack of knowledge

Stocks worth less than Rupee 1 are usually from companies that aren't well-known or very popular. 

Many companies don't feel they have to tell the public about their finances or how they run the business. This makes it hard to get information about the company to value it. 

In the same way, there aren't many investors interested in investing. There isn't much information about these small companies because many brokerages or research firms follow them.

2. Price manipulation

Because ultra-penny stocks don't trade very often, prices for supplies have been seen in the past under Re. One is often manipulated. 

Traders, con artists, or even people who work for a company that owns many of these cheap stocks may try to raise or lower the stock price to make money for themselves. Pump-and-dump schemes can also happen with these stocks.

3. Uncertainty in prices

But remember that Indian penny stocks that cost less than one rupee are usually unstable and risky. Because they are hard to sell, they are hazardous investments. 

Penny stocks in India with a price of less than Rs. 1 don't usually change much during the trading session. 

They are much more likely to hit their upper or lower circuits quickly, and unless you sell a lot of them, you won't make much money from them.

4. Illiquidity

Penny stocks in India that cost less than one rupee are often hard to sell because the companies that issue them aren't very popular. If a seller wanted to sell their position, this lack of liquidity could be a big problem. 

It's hard to find a buyer willing to pay the price asked. People who are willing to take on a lot of risks often think about buying ultra-penny stocks.

Benefits of investing in penny stocks in a portfolio 

There are advantages to having ultra-low-priced stocks in a portfolio.

1. High profits

Since they are micro-cap companies, they have a lot of room to grow and catch up to large-cap companies. If they have a strong base and a good business environment!

This means you might get back more than you initially put in. So, buying these shares could make your chances of making a profit much higher.

2. Less expensive

Because they trade for less than Rs. 1, these stocks are cheap and have good value. You can buy many penny stocks for less than one rupee; if the price increases, you might make money from them.

Tips for investing in a penny below 1 rupee

• Find out as much related to the stocks you want to buy before buying them. Carefully look at the stocks' finances and fundamentals before making a choice.

• Find out as much as possible about how stable the company's finances are and how it plans to grow. Analyze all the information you have so you can make an intelligent choice.

• You might want to hire a professional financial advisor. A lot of the time, friends or traders try to get us to buy ultra-penny stocks. Before investing in penny stocks in India that cost less than 1 rupee, ensure the source is reliable and that the advice is good.

• Evaluate your risk appetite. Before you invest in penny stocks worth less than Rs. 1, you should know that even the slightest change in the stock's counters can cause significant changes in the share price. People think of penny stocks as risky investments because they often end up on the lower circuit.

Related questions: FAQs

1. Do penny stocks yield dividends?

Most of the time, these penny stocks are for small companies, and it's rare for such companies to pay big dividends. When investing in these stocks, most people try to make their money grow.

2. How to invest in penny stocks?

You can buy penny stocks the same way you buy any other stock. They are also traded on well-known stock markets like the BSE and the NSE, and it is easy to buy them.

3. Can penny stocks help you make money?

Penny stocks can be used to make money. Still, you can technically make money with any stock. Successful investors usually pick stocks based on how likely they are to rise in value over time, no matter how much they cost.

4. Is it risky to invest in penny stocks?

Penny stocks are risky, and most over-the-counter stocks don't have much information about them. There's no reason to think penny stocks are a great investment when there are so many other ways to invest that allow people to start with as little as $5 and still get good returns in the past.

5. Do beginners do well with penny stocks?

New traders use Penny stocks to learn how to trade because they are cheap. Because these stocks are affordable, trying your luck with them is almost risk-free. Penny stocks are popular with small investors because they can give them a chance to make a huge sum of money.

Conclusion

Ultra-penny stocks, or stocks that cost less than Rs. 1, can turn into multi-baggers and give you huge returns, but they are also hazardous investments. 

These stocks are from companies with low market capitalization, and investors should be wary of price manipulation and "pump and dump" schemes. Talk to your financial advisor before buying shares worth less than 1 rupee.