Best Penny Stocks to Buy in India 2023

12 January 2023
6 min read

As a new investor, you may be overwhelmed by all the choices. But if you're looking for an inexpensive option, investing in penny stocks might be just what you need to get started. 

Penny stocks are so small (and reasonable) that they have minimal trading volume and are illiquid.

In India, penny stocks are a popular form of investment. These are stocks that trade at relatively inexpensive prices. While they do not have the same liquidity as larger companies, they can be traded on the stock market and yield profits if sold at a higher price.

Penny stocks are often highly speculative, but traders can also use them to make investments that will bring them good returns. However, you should be aware that these types of investments generally have limited liquidity and may not be suitable for all investors.

Best Penny Stocks to Buy In India

Here are some of the best penny stocks to invest now-

S.No.

Best Penny Stocks in India 2023

Industry

1.

Vodafone Idea Ltd

Telecom

2.

Alok Industries Ltd

Textile

3.

Jammu & Kashmir Bank Ltd

Banking

4.

Indian Overseas Bank

Banking

5.

Bank of Maharashtra Ltd

Banking

6.

Dish Tv India Ltd

Satellite Television

7.

Morepen Laboratories Ltd

Pharmaceutical

8.

Yes Bank Ltd

Banking

Factors To Consider Before Investing in Penny Stocks India

Investing in penny stocks can be very profitable because of their high volatility. However, a penny stock investor needs to be careful about such investments by following some factors before investing in these products-

  • High Risk

Penny stocks in India have the highest risk of all investments. This is because they are speculative and can offer higher returns and losses. Therefore, if you are interested in penny stocks, it is advisable to start small and gradually increase your investment as you go along.

  • Avoid the Buy and Hold Approach

It is advised that you avoid the buy-and-hold approach for penny stocks. Instead, try to invest in them for short periods and let them mature before reinvesting. This will reduce your risk levels significantly.

  • Above Average Returns

Penny stocks in India provide above-average returns on investment compared to other investments like mutual funds or equity shares. However, it is advised that you invest in them only with a positive outlook on their future performance so that you can earn more money with less risk involved.

While investing in penny stocks is a good idea for short-term gains, it should not be your long-term strategy. Penny stocks tend to be volatile, and you may find your investment worth less than what you initially invested in them after a few months or years.

In addition, they are prone to sudden drops in value with little warning due to market conditions or new developments within the companies involved.

Top Penny Stocks To Buy In India: Overview

Here is a performance overview of the penny stocks list mentioned above-

1) Vodafone Idea Ltd

Vodafone Idea Limited is an India-based telecom service provider. The Company is engaged in the business of mobility and long-distance services. It provides pan-India voice and data services across second-generation (2G), third-generation (3G), and fourth-generation (4G) platforms.

Its Vodafone Idea business services provide communication solutions to global and Indian corporations, public sector and government bodies, small and medium enterprises, and start-ups. In addition, it offers voice services, broadband services, and content and digital offerings.

It is often considered one of the best penny stocks in India. However, the share price of any stock is volatile and keeps changing throughout the day owing to different factors. 

2) Alok Industries Ltd

Alok Industries Limited is an India-based textile company engaged in the cotton and polyester business. In addition, the Company is involved in manufacturing textiles, including mending and packing activities, leather, and other apparel products.

The Company's divisions include Spinning Division, Polyester Division, Home Textiles Division, and Apparel & Fabric, Division. The Company’s products include accessories, apparel fabric, corrugated pallets, cotton & blended yarn, embroidery, garments woven and knitted, home textiles, and polyesters. 

3) Jammu & Kashmir Bank Ltd

Jammu and Kashmir Bank Limited (the Bank) is engaged in the banking business. The Bank offers a range of products and services, such as loans, personal accounts, term deposits, insurance, cards, business accounts, agriculture loans, mutual funds, and non-resident banking.

Its business segments include Treasury, Corporate/wholesale banking, Retail banking, and other banking operations. In addition, it provides loans, such as housing loans, consumer loans, educational finance, commercial vehicle finance, and agricultural term loan. 

The share price of any stock is volatile and keeps changing throughout the day owing to different factors.

4) Indian Overseas Bank

Indian Overseas Bank (the Bank) is engaged in banking. The Bank's segments include Treasury, Corporate/Wholesale Banking, Retail Banking, and Other Banking Operations.

Its operations consist of domestic deposits; domestic advances; foreign exchange operations; investments; micro, small and medium enterprises, including MUDRA Loan Scheme; retail banking, including Arogya Mahila Savings Bank Accounts; Mid Corporate department; agricultural credit portfolio; loans to small and marginal farmers; loans to non-corporate farmers, and microfinance.

In addition, its banking services include saving banks, current accounts, term deposits, retail loans, mortgages, and depository services. 

5) Bank of Maharashtra Ltd

The Bank of Maharashtra Limited is engaged in providing banking services. The Bank's segments include Treasury, Corporate/Wholesale Banking, Retail Banking, and other banking operations.

The Treasury segment includes investment, balances with banks outside India, interest accrued on assets, and related income. The Corporate/Wholesale Banking Segment consists of all advances to trusts, partnership firms, companies, and statutory bodies. The Retail Banking Segment includes exposure to a person/persons or a small business.

You may also want to read 7 Penny Stocks that Became Multibagger Stocks in India.

Conclusion

Penny stocks in India are a long-term investment that aims to provide the lowest risk and highest return for any investor. Penny stocks are reasonable, inexpensive shares issued by companies. Because their prices are less volatile, penny stocks tend to be more attractive to many investors.

Another thing that makes penny stocks attractive is that companies that issue them will frequently use the stock to buy back shares from their public shareholders either directly or by issuing new shares. However, investors should consider the abovementioned factors, risk appetite, and investment horizon before trading due to their volatile nature.

You May Also Be Interested to Know-

1.

Best Long Term Stocks to Buy in India 2023

2.

5 Best Stocks to Invest in 2023

3.

5 Best Stocks for Beginners

4.

Best Large Cap Stocks to Invest in India 2023

5.

Best Small Cap Stocks to Buy in India 2023

Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.

To read the RA disclaimer, please click here
Research Analyst - Bavadharini KS

Disclaimer

The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. NBT do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
Do you like this edition?
LEAVE A FEEDBACK
ⓒ 2016-2023 Groww. All rights reserved, Built with in India
MOST POPULAR ON GROWWVERSION - 3.7.0
STOCK MARKET INDICES:  S&P BSE SENSEX |  S&P BSE 100 |  NIFTY 100 |  NIFTY 50 |  NIFTY MIDCAP 100 |  NIFTY BANK |  NIFTY NEXT 50
MUTUAL FUNDS COMPANIES:  ICICI PRUDENTIAL |  HDFC |  NIPPON INDIA |  ADITYA BIRLA SUN LIFE |  SBI |  UTI |  FRANKLIN TEMPLETON |  KOTAK MAHINDRA |  IDFC |  DSP |  AXIS |  TATA |  L&T |  SUNDARAM |  PGIM |  INVESCO |  LIC |  JM FINANCIAL |  BARODA PIONEER |  CANARA ROBECO |  HSBC |  IDBI |  INDIABULLS |  MOTILAL OSWAL |  BNP PARIBAS |  MIRAE ASSET |  PRINCIPAL |  BOI AXA |  UNION KBC |  TAURUS |  EDELWEISS |  NAVI |  MAHINDRA |  QUANTUM |  PPFAS |  IIFL |  Quant |  SHRIRAM |  SAHARA |  ITI