Best Penny Stocks for 2024: List of Top Penny Shares Under 10 (2024)

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Penny stocks are low-priced, speculative stocks of small companies that trade at a relatively low volume. These stocks are usually priced under ₹10 in India and can be highly volatile.

Penny stocks carry inherent risks and are not suitable for most investors. Some of the risks associated with these stocks include susceptibility to pump-and-dump schemes, liquidity issues and stock manipulation.

That being said, penny shares have become slightly popular among investors in India, driven by their low stock prices. Many investors see buying penny shares for the long term as an opportunity to invest in small companies with high growth potential.

We think that investing in penny shares is inherently risky, and recommend investors do their due diligence and/or consult their financial advisor before investing in penny shares.

This blog will provide a comprehensive guide to Indian penny stocks 2024, including their definition, characteristics, benefits, risks, strategies & much more.

Top 10 Penny Stocks List 2024

As we mentioned earlier, most penny shares or multibagger shares are not suitable for most investors due to their inherent risk of price manipulation, susceptibility to pump-and-dump schemes, and liquidity issues.

Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.

Note: The data in the list of best penny stocks is from 30th May, 2024. This data is derived from Tickertape Stock Screener.

🚀 Pro Tip: You can use Tickertape’s Stock Screener to research and evaluate stocks with over 200+ filters and parameters.

Overview of the Top Penny Stocks

Speedage Commercials Ltd

Speedage Commercials Ltd became a public limited company on November 9, 1984, as per the Certificate of Incorporation from the Registrar of Companies, Maharashtra, Mumbai. It received its Certificate for Commencement of Business on December 6, 1984, and has been listed on the Bombay Stock Exchange since January 23, 1986. The company offers commercial services, including the buying and selling construction materials, electronics, and related engineering goods. Additionally, it provides rental and leasing services for homes and financial loans for home buyers in India. It is one of the top penny stocks in India on our penny stock list.

Utique Enterprises Ltd

Unique Enterprises Limited, originally Apple Finance Limited, was founded in October 1985 by Atul Nishar. The company focused on computer education and financial services. It also had a wholly-owned subsidiary, Apple Asset Management Limited (AAML), which managed the Apple Mutual Fund schemes: Apple Midas Fund – The Gold Share and Apple Platinum Share. On December 27, 1999, Birla Mutual Fund took over both schemes and since then, AAML has ceased its business operations. It is one of the top penny stocks India on our penny stocks share price list.

Standard Capital Markets Ltd

Standard Capital Markets Limited, incorporated in February 1987, was listed on March 29, 1995, and registered as an NBFC with the Reserve Bank of India on March 21, 2003. The company is founded by CA Narender K. Arora, Manohar Lal Vij, and Vijay Chaudhry and operates as a non-deposit-accepting NBFC. Managed by professionals skilled in finance and administration, it offers financial services such as lending to individuals and SMEs, both secured and unsecured, dealing in securities, and investing in stock markets. The company provides a variety of personal loans with competitive rates and flexible repayment options. It is one of the best penny stocks on our penny stocks list India.

Growington Ventures India Ltd

Growington Ventures India Ltd (formerly VMV Holidays Limited) was established on August 3, 2010, under the Companies Act 1956. The company specialises in tours and travel services, including air ticketing, hotel bookings, car rentals, and tour packages. Although it serves clients worldwide, its primary customer base is in India, where it offers both domestic and outbound travel packages. Over time, Growington Ventures has expanded its business to explore new markets and broaden its reach.

Croissance Ltd

Croissance Limited, initially known as Swagruha Infrastructure Limited, was established in April 1994 as a private company and converted to a public company in November 1994. It is currently promoted by Sravan Veledandiprabhakar and Reshma Narain. The company operates primarily in the realty sector. In Ranga Reddy district, Andhra Pradesh, the company established a unit to manufacture 2000 litres per annum of enbucrilate tissue adhesive, a sterile adhesive for surgical wound closure. Croissance Limited launched a public issue in March 1996 to partially finance this project. By 2000, the company had made its laboratory and pilot plant in Hyderabad operational and commenced commercial operations.

Vivanta Industries Ltd

Vivanta Industries Ltd focuses on commercialising and providing consultancy for various projects, including pharmaceuticals, agro projects, and prefabricated factories. The company specialises in the entire process from conceptualisation to commissioning for pharmaceutical, nutraceutical, ayurvedic, and medical device manufacturing plants. They also handle research and development laboratories, agro-based fertiliser, surgical, and solar projects. Additionally, Vivanta Industries Ltd provides services for prefabricated housing, offices, schools, primary healthcare facilities, and industrial parks.

Superior Finlease Ltd

Superior Finlease Limited, an India-based non-banking financial company (NBFC), provides loans and advances to corporations, companies, and firms. It finances industrial enterprises and other entities through lending and advances. The company also engages in leasing operations for various plants, machinery, and equipment. Additionally, it offers loans against shares (LAS) and other business loans. Its business loan products include loans against shares, bonds, securities, mutual funds, and secured loans for small business owners.

Visagar Financial Services Ltd

Visagar Financial Services Limited is an India-based non-banking financial company (NBFC). It primarily invests in securities of both listed and unlisted companies, with a diversified portfolio across sectors like financial services, education, and real estate. The company’s main activities include providing loans and investment securities. Additionally, it offers financial and corporate advisory services, including debt and equity funding, restructuring, mergers and acquisitions, joint ventures, and real estate advisory.

Debock Industries Ltd

Debock Industries Limited, based in Malaysia, offers a range of services and products in sales and marketing, agriculture, and hospitality. The Eagle Sales division manufactures agricultural equipment and spare parts at its Deoli Tonk in Rajasthan. Additionally, the company operates hotels and resorts in Rajasthan, including Hotel Debock Inn, providing hospitality services. Debock’s agricultural equipment line features products such as the Eagle Medium Duty Cultivator, Eagle Trailed Type Disc Harrow, Eagle M.B. Plough, Eagle Heavy Duty Land Levellers, Eagle Double Spring Cultivator, Eagle Medium Duty (Rakab Type) Cultivator, Eagle Reversible Land Levellers, Eagle Paddy Harrow, and Eagle Shrub Master.

IEL Ltd

Indiabulls Enterprises Limited operates in infrastructure, construction equipment leasing, LED lighting, pharmaceuticals, financial services, and management. Its offerings encompass equipment renting, management, and maintenance, including a wide range of construction, infrastructure, manufacturing, and mineral handling equipment. The company’s segments comprise Equipment Renting Services and Management and Maintenance Services. Key equipment in its rental fleet includes tower cranes, passenger hoists, piling rigs, excavators, dozers, motor graders, and more. Indiabulls Enterprises Limited emphasises seamless customer service delivered by a dedicated team.

What are Penny Stocks?

Now that you know what penny stocks NSE are, let’s understand how to trade in these low priced shares.

These stocks are traded on stock exchanges for less than ₹10.

In India, penny shares must be purchased for at least ₹0.01. They are traded on the NSE and the BSE. Penny shares are commonly referred to as shares of firms with a market capitalization of less than ₹10 crores.

Investors often doubt Penny shares, but some have become Multibaggers, including well-known names today. Multibagger stocks in India yield returns significantly surpassing their acquisition cost. Surprisingly, several giants like these started as Penny Shares.

Keen observation is crucial to identifying potential multibaggers. If you’re new to stock investing, thorough research is imperative before considering Penny Stocks in 2024. It is important to note that multibagger penny stocks for 2024 are susceptible to the same risks associated with all low-price shares (if not more), including penny stock share price manipulation and liquidity issues.

Features of Penny Shares

Let’s understand the various features that can help you identify the best penny shares for your portfolio:

• Low Liquidity: Penny stock is generally associated with small enterprises and moves sparingly, indicating a lack of market liquidity or buyers. As a result, because buyers are not always accessible, investors may find it challenging to sell a penny stock in an emergency.
• Limited Historical Data: Some of the firms listed as penny shares in our low price share list 2024 may be brand new, while others may be in danger of going bankrupt. These companies generally don’t have any history at all or have a very bad history.
• Highly Volatile: Penny stock often exhibits higher levels of volatility, which leads to greater potential for profit and, as a result, higher levels of risk.
• Low Cost Per Share: Penny share prices in our low price share list 2024 are inexpensive to buy as compared to other shares.
• High Risk: Penny shares are susceptible to pump-and-dump schemes, liquidity issues and stock price manipulation.

Types of Penny Stocks to Buy in India

Penny stocks to invest now in India can be classified into three types: turnaround, speculative, and growth stocks.

• Turnaround Stocks: Stocks of companies that have a history of poor performance but are expected to recover.
• Speculative Stocks: Stocks of companies with uncertain future prospects.
• Growth Stocks: Stocks of companies that are expected to grow rapidly in the future.

How to Invest in Penny Stocks?

Investing in the top 10 penny stocks in India can be appealing to some investors due to their low prices and potential for high volatility. However, it’s important to consider the risks involved when dealing with these types of securities.

One common way to invest in low priced stocks or highest dividend paying stocks is through traditional brokerage accounts. However, it’s crucial to exercise caution due to the liquidity issues often associated with these stocks in our top 10 low price stocks list.

Another approach is investing in these stocks in over-the-counter (OTC) markets and Pink sheets stocks, where these stocks are traded. These markets can offer opportunities, but they also lack the oversight and regulatory protections that come with more established exchanges.

For those who prefer a diversified approach, there are exchange-traded funds (ETFs) that focus on small-cap or micro-cap stocks, including energy shares. These ETFs can provide exposure to this segment, but it’s important to remember that the volatility and risk associated with even the best penny stocks in india for long term can still impact such investments.

How do Penny Stocks Work?

Penny stocks, which are shares of small companies publicly traded for less than ten cents each, operate differently from more established stocks. They often experience sudden market volatility, which can lead to significant gains for investors. However, due to limited liquidity and their small size, investing in these stocks carries inherent risk.

Multibagger Penny Stocks

Multibagger penny stocks are otherwise completely similar to penny stocks, except for the fact that these stocks may appreciate in value after one invests in them. Here is a list of the top five multibagger low priced stocks:

Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.

Note: The data in the list of best penny stocks is from 30th May, 2024. This data is derived from Tickertape Stock Screener.

Pros and Cons of Investing in Penny Stock Shares

Let’s have a look at the advantages and disadvantages of these pump and dump stocks:

Is Penny Stock a Good Investment?

Even low priced stocks have gained popularity among investors because they have the ability to generate rapid development in a short amount of time.

A lot of respectable companies deal in penny shares. They can have established management and teams, solid financial standing and improving ratios, increasing revenue, and ground-breaking goods or services that are prepared to rule an industry.

• We are all familiar with the rush that comes with significant investing gains (and losses). Hunting, penny stocks trading, and fundamentally good penny stocks to buy are all fascinating and exciting.
• A small amount can grow into considerably more! The bulk of penny stocks 2024 trading starts out with little sums. A person may only be able to buy three or four blue-chip stocks of companies with ₹1000 to trade but they may purchase thousands off of the best penny share list for the same sum of money.
• Not all penny shares in the penny stocks list NSE see quick price changes. However, those who do frequently cause significant price changes in days as opposed to years.

Note: Due to their lack of liquidity, penny stock may be a risky investment. For instance, a list of low priced stocks are bought at a very low price and can give you the highest return. Some of these stocks fade away over time and may even be delisted, which would mean losses. Therefore, it is not necessary that investing in even the best penny stocks India would result in phenomenal returns.

How to Choose the Best Penny Stocks for Investments?

When seeking strong fundamental penny stocks, prioritise examining the company’s financial health and trading activity. Profitability and a strong balance sheet signal potential investment value. Assess trading volume to gauge market interest; low activity may indicate limited investor engagement.

Conduct thorough research by reviewing financial statements, recent press releases, and public information. Explore the company’s website and social media presence for insights. Understanding market volatility is crucial; utilise charting tools to track price fluctuations and identify optimal buying levels.

Set stop orders based on trading range analysis to mitigate losses. Beware of penny stocks with low trading volume, as they pose challenges for exiting positions swiftly. Ensure sufficient liquidity to avoid potential losses during sell-offs.

Who Should Invest in Penny Stocks?

Given their inherent highly risky nature, we think most investors should avoid investing in penny stocks.

• Penny companies seldom capitalise on the market, so their stock only trades occasionally. Investors who own these shares might employ a staggered purchasing or selling strategy to increase their holdings or reduce their holdings.
• However, traders must take into account the higher risks they expose themselves to the highest return chances become available when investing in penny shares.

Common Mistakes to Avoid When Buying Penny Shares

When considering Indian penny stocks to buy today, it’s important to avoid common mistakes that can lead to losses. Here are some mistakes to avoid:

• Falling for Hype: The best penny stocks with strong fundamentals in India in the penny stock market are often promoted through hype and speculation. Avoid falling for the hype and make informed investment decisions based on research and analysis.
• Overtrading: Even the top 100 Penny stocks India trading is highly volatile, so it’s important to avoid overtrading. Stick to a trading plan and avoid impulsive trades.
• Ignoring Risks: The penny shares are a highly risky investment, so it’s important to be aware of the risks and manage them effectively.

Tips for Investors Considering Penny Stocks

Before diving into penny stock investments, investors may consider the following practices to ensure a smoother investment experience:

1. Conduct comprehensive research to pinpoint promising companies with strong fundamentals and growth potential.
2. Prioritise diversification to mitigate risk across your portfolio and employ stop-loss orders as a safeguard against substantial losses.
3. Stay cautious of hype and rumours, common in low priced stock markets, and invest only in disposable income.
4. Patience, coupled with a clear investment strategy, is paramount, as is readiness to glean insights from each trade.
5. Remember that penny stocks’ volatility renders them unsuitable for all investors; hence, assess your risk tolerance diligently.

To Wrap It Up…

In summary, best penny stocks for 2024 can be perceived as a lucrative investment opportunity, but for most investors, it is not the case. For most investors, sticking to reputed large-cap companies is advisable.

That being said, it is important that investors conduct thorough research, measure their risk appetite, and/or consult their financial advisor, in order to build a solid investment strategy.

As always, this article is for educational purposes only, and is not intended to be recommendatory.

Frequently Asked Questions about Penny Stocks (FAQs)