In This Article we read 50 Debt Free Penny Stock Below 20 Rs
Penny stocks are equities of tiny publicly traded firms that are listed on stock exchanges for less than INR 100 a share. They are not commonly traded equities, and their prospective gains are typically determined by abrupt episodes of market volatility.
Because of their lack of liquidity, penny stocks may be highly dangerous to buy in. For example, you may purchase a penny stock at a low price but then be unable to sell it. Some penny stocks die out over time and may be delisted, resulting in losses. As a result, it is not necessary that you will generate amazing profits while investing in penny stocks.
While investing in penny companies, investors should keep in mind that they must be attentive in their research and diversify their whole portfolio to buffer against any dangers associated with the greater return prospects of penny stocks.
Forbes Advisor India examined the top 50 penny stocks listed on the Bombay Stock Exchange and the National Stock Exchange and selected the best penny stocks that might potentially assist investors in building wealth. For this investigation, stocks having a yearly trading range of around INR 30 were evaluated.
Penny Stocks Defined
Because of their cheap price, penny stocks are utilized to gain trading expertise for inexperienced traders. Because these stocks are so cheap, it’s nearly risk-free to try your hand at penny stock investing. Penny stocks are popular among small investors due to their high potential for profit. Gains of 300% to 500%, or even more, are possible. Even with a tiny investment of Rs 100/-, you may get up to Rs 500/- profit.
Penny Stocks with Multibagger Potential
Multibagger Penny Stocks are the same as penny stocks; the only difference is that their price climbs from the time you buy. If an investor buys a stock at Rs. 10 and it increases to Rs. 20, the stock is known as a two-bagger. Similarly, if the price reaches Rs. 30, the item is known as a three-bagger, and so on. When the price reaches Rs. 20, the profit is 100%, and when it reaches Rs. 30, the profit is 200% and continues to climb. This is referred to as Multibagger Penny Stocks. There is no universal definition of multibagger stocks; nonetheless, a stock is considered a multibagger if it can give 100% or more returns in a short period of time, i.e. when it reaches 2X or 3X its initial value.
Debt Free Penny Stocks
Debt Free Penny Stocks are debt-free penny stocks. Debt-free penny stocks are critical for portfolio diversification in a tumultuous market. In the long run, they have the potential to be profitable.
| S.No. | Name | CMP Rs. | Mar Cap Rs.Cr. | NP Qtr Rs.Cr. | Qtr Profit Var % | Debt Rs.Cr. | 3mth return % | ROE % | Prom. Hold. % | Pledged % | Debt / Eq |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 1. | Mercury EV-Tech | 19.39 | 323.57 | 0.31 | 16.00 | 7.64 | 18.55 | 62.56 | 0.00 | 0.33 | |
| 2. | Octal Credit Cap | 19.14 | 9.57 | 0.19 | -86.13 | 0.00 | -23.05 | 19.25 | 26.84 | 0.00 | 0.00 |
| 3. | Decipher Labs | 18.98 | 19.17 | -7.75 | -175.69 | 3.44 | -9.79 | 60.12 | 16.43 | 0.00 | 0.10 |
| 4. | Shyam Century | 18.55 | 393.56 | 5.80 | -61.67 | 6.76 | -0.53 | 38.82 | 51.70 | 0.00 | 0.04 |
| 5. | 21st Cent. Mgmt. | 18.25 | 19.17 | -4.06 | 75.30 | 14.05 | -1.33 | 54.37 | 61.69 | 0.00 | 0.47 |
| 6. | Stratmont Indus. | 18.02 | 6.30 | 0.03 | -62.50 | 1.12 | 29.86 | 27.25 | 64.54 | 0.00 | 0.47 |
| 7. | Guj. Toolroom | 17.46 | 97.00 | 0.73 | 911.11 | 0.94 | 66.44 | 43.03 | 1.24 | 0.00 | 0.15 |
| 8. | RRIL | 16.78 | 203.42 | 5.16 | 21.70 | 11.17 | 26.17 | 16.06 | 69.91 | 0.00 | 0.12 |
| 9. | Chandni Machines | 16.70 | 5.39 | -0.20 | -157.14 | 0.11 | 5.00 | 26.28 | 46.50 | 0.00 | 0.02 |
| 10. | Brightcom Group | 16.60 | 3349.75 | 543.93 | 46.43 | 0.00 | -38.70 | 21.33 | 18.46 | 4.63 | 0.00 |
| 11. | Debock Industrie | 16.55 | 126.50 | 10.61 | 543.03 | 8.33 | -14.06 | 17.62 | 36.66 | 0.00 | 0.10 |
| 12. | Modern Steels | 16.50 | 22.71 | 2.48 | -96.83 | 0.00 | 2.04 | 338.23 | 65.53 | 100.00 | 0.00 |
| 13. | California Soft. | 15.56 | 24.05 | 0.00 | -100.00 | 4.43 | -5.67 | 35.87 | 35.73 | 0.00 | 0.37 |
| 14. | Dish TV India | 15.27 | 2811.66 | -1720.62 | -69.41 | 72.64 | 7.14 | 304.24 | 4.04 | 11.68 | 0.40 |
| 15. | Banas Finance | 15.25 | 73.27 | -6.42 | -112.10 | 6.66 | 9.33 | 54.58 | 17.59 | 0.00 | 0.05 |
| 16. | Maximus Interna. | 15.23 | 191.50 | 1.78 | 97.78 | 7.54 | 5.85 | 17.60 | 63.63 | 0.00 | 0.25 |
| 17. | Sellwin Traders | 14.79 | 12.12 | 0.16 | -78.08 | 0.00 | -25.97 | 20.81 | 0.00 | 0.00 | 0.00 |
| 18. | Sh. Ganesh Elas. | 12.50 | 6.88 | -0.32 | -200.00 | 0.15 | -33.51 | 37.95 | 13.46 | 0.00 | 0.03 |
| 19. | Libas Consumer | 12.25 | 32.39 | 0.95 | -74.60 | 18.34 | -17.51 | 20.86 | 30.70 | 0.00 | 0.35 |
| 20. | Family Care | 11.20 | 60.47 | 1.19 | -12.50 | 4.45 | -5.17 | 44.70 | 18.54 | 44.05 | 0.26 |
| 21. | Naturo Indiabull | 11.15 | 11.37 | 0.21 | 0.87 | 22.07 | 27.12 | 0.00 | 0.02 | ||
| 22. | Nexus Surgical | 10.13 | 5.53 | 0.14 | -62.16 | 0.00 | -2.93 | 828.57 | 18.73 | 0.00 | 0.00 |
| 23. | Tirupati Forge | 10.10 | 98.98 | 2.14 | 8.63 | 10.10 | -29.17 | 29.91 | 57.58 | 48.00 | 0.28 |
| 24. | Kabsons Industri | 9.53 | 16.64 | 0.50 | 28.21 | 0.45 | -11.65 | 16.80 | 68.03 | 0.00 | 0.05 |
| 25. | Veeram Securit. | 8.90 | 67.32 | 0.33 | -70.00 | 0.00 | -22.54 | 24.36 | 53.77 | 0.00 | 0.00 |
| 26. | SVS Ventures | 8.50 | 18.15 | 0.14 | 2.67 | -23.85 | 105.78 | 66.66 | 0.00 | 0.13 | |
| 27. | Smart Finsec | 7.84 | 23.52 | 0.86 | -14.00 | 2.60 | 10.75 | 38.51 | 72.13 | 0.00 | 0.24 |
| 28. | White Organic | 7.60 | 26.62 | -3.58 | -248.55 | 0.10 | -22.26 | 17.67 | 25.50 | 0.00 | 0.00 |
| 29. | Mishtann Foods | 7.23 | 723.00 | 13.70 | 70.19 | 41.07 | -15.02 | 36.71 | 49.77 | 0.00 | 0.33 |
| 30. | Fraser & Company | 5.94 | 4.85 | -0.03 | -117.65 | 0.33 | -39.64 | 16.40 | 1.68 | 0.00 | |
| Utique Enterp. | 5.45 | 30.37 | 0.87 | -76.23 | 0.00 | 2.82 | 31.18 | 24.70 | 0.00 | 0.00 | |
| 32. | Galactico Corpo. | 5.27 | 78.54 | 7.33 | 6.36 | -62.92 | 37.35 | 66.12 | 0.00 | 0.22 | |
| 33. | Welcure Drugs | 3.92 | 5.29 | 0.00 | 100.00 | 0.00 | -16.99 | 25.00 | 0.00 | 0.00 | 0.00 |
| 34. | Smiths & Founder | 3.41 | 34.79 | 0.07 | -87.50 | 2.67 | -9.82 | 34.04 | 28.69 | 0.00 | 0.15 |
| 35. | Seacoast Ship. | 3.18 | 107.06 | 2.77 | 220.43 | 28.37 | -5.57 | 36.12 | 44.55 | 0.00 | 0.46 |
| 36. | Frontier Capital | 3.09 | 5.19 | 0.04 | 140.00 | 0.35 | -20.00 | 51.22 | 74.53 | 0.00 | 0.18 |
| 37. | Vikas Lifecare | 3.06 | 439.69 | 8.02 | 178.47 | 13.29 | -25.61 | 21.05 | 11.36 | 12.62 | 0.04 |
| 38. | Radhe Develop. | 2.96 | 149.05 | 3.90 | -73.12 | 16.91 | -63.37 | 60.33 | 44.45 | 0.00 | 0.30 |
| 39. | Mukta Agricultur | 2.80 | 6.07 | -0.72 | 1723.40 | 1.08 | -25.62 | 26.97 | 5.27 | 0.00 | 0.05 |
| 40. | Swasti Vin. Art | 2.52 | 22.68 | 0.27 | -61.97 | 7.30 | -3.02 | 15.94 | 51.00 | 0.00 | 0.37 |
| 41. | CNI Research | 2.44 | 28.07 | 0.56 | 33.33 | 0.00 | -3.95 | 16.78 | 37.11 | 0.00 | 0.00 |
| 42. | BCL Enterprises | 1.30 | 15.17 | 0.11 | 113.58 | 0.00 | -5.76 | 73.21 | 3.15 | 0.00 | 0.00 |
| 43. | G G Engineering | 1.03 | 39.21 | 5.37 | 2337.50 | 1.73 | 0.00 | 17.83 | 1.93 | 0.00 | 0.02 |
| 44 | Median Co. | 10.13 | 28.07 | 0.32 | -61.67 | 2.6 | -5.76 | 29.91 | 35.73 | 0.0 | 0.1 |
Characteristics of Penny Stocks
Penny stocks have minimal liquidity, limited historical information, the potential to become a multi-bagger stock, and comparatively modest valuations. Let us examine these:
1. Lack of liquidity: Penny stocks are often associated with tiny firms and move infrequently, indicating a market lack of liquidity or accessible buyers. As a result, investors may struggle to sell a penny stock in an emergency since buyers are not always readily accessible.
2. Limited history information: Many penny stock firms may be freshly created, and some may be on the edge of bankruptcy. These firms often have a poor track record or none at all. A paucity of historical data, as one might imagine, makes judging a stock’s potential difficult.
3. High Return Potential: Penny stocks have a higher degree of volatility, which results in a greater potential for reward and, as a result, a larger level of inherent risk.
4. Low cost: Due to their reduced price, penny stocks offer the potential for significant share gain.
The Advantages of Investing in Penny Stocks
Penny stocks are extremely volatile, yet they have the potential to produce extraordinary gains. They have the potential to deliver rapid development in a short period of time, making them a popular choice among investors. With a tiny amount of money invested, you may make significant profits.
1. Today’s Winners: Many solid companies trade for pennies. They may have established management and teams, solid financial situations and improving ratios, increasing revenue, and new goods or services prepared to dominate a sector.
2. It’s Exciting to Look for the Perfect Penny Stock: We’ve all experienced the rush that comes with substantial gains (or losses) in an investment. Penny stock hunting, trading, and investing are all interesting and intriguing activities.
3. A tiny payment can grow into a much larger total: The bulk of penny stock traders start with little sums. An person with Rs.10000 to trade may only be able to acquire three or four shares of a blue-chip company. They might buy thousands of penny stock shares for the same amount of money.
4. quick Price Movement: Not all penny stocks experience quick price movement. Those that do, on the other hand, tend to cause huge price changes in days rather than years.
The Dangers of Investing in Penny Stocks
Due to a lack of liquidity, holders find it difficult to cash out. Penny stocks are frequently traded in low volumes. Artificially increasing share prices may result in misleading representations about the company’s position, a sort of fraud in microcap stocks known as the “pump and dump” approach.
Where Can I Find Penny Stocks?
Investors should undertake considerable due research before investing in a penny stock. Conduct thorough research on the firm. Try paper trading – A paper trade is a trading simulation approach that allows investors to practice buying and selling stocks without spending real money. Regularly monitor your investment. Choose equities from the over-the-counter (OTC) market. Avoid equities on the Pink Sheets, which are susceptible to manipulation. Stay away from pump and dump stocks. Avoid penny stocks that have little liquidity. Know when to sell your penny stock to maximize your profits. Only invest in penny stocks with money you can afford to lose.
Frequently Asked Questions
How can I trade penny stocks?
A demat account is required to trade in penny stocks. An investor may easily start trading in penny stocks by using any of the solutions listed under top trading apps.
Do penny stocks contribute to high returns?
When investing in penny stocks, you do not have to expect to generate huge profits. Such equities often have a tiny bid-ask spread, are rarely traded, and may even be totally wiped out. The volatility of these stocks provides a chance for investors to experiment with stocks with little market capitalization and make some money.
What alternatives exist to investing in penny stocks?
Mutual fund investments, which are professionally managed and assist investors develop a diversified portfolio across asset classes such as shares, bonds, and money market instruments, are the greatest alternative to investing in penny stocks.
Is it too dangerous to invest in penny stocks?
Penny stocks may be dangerous to invest in due to their lack of liquidity. For example, you may purchase a penny stock at a low price but then be unable to sell it. Some penny stocks die out over time and may be delisted, resulting in losses. When investing in penny companies, one must be attentive in their research and diversify their whole portfolio to buffer against any dangers associated with the greater return prospects of penny stocks.
What are India’s top penny stocks?
Penny stocks are quite volatile, and the list of the greatest penny stocks changes rather frequently. According to Forbes Advisor India’s most recent study, Vodafone Idea, Suzlon Energy, and Bank of Maharashtra are now among the top penny stocks in India.
What are the most secure penny stocks to invest in?
Stocks of firms that were formerly large cap corporations with a strong fundamental parent group eager to pay off debts and correct difficulties with the subsidiary shares are the safest penny stocks to buy.
Vodafone India is a perfect example of a safe penny stock in India because of its debt commitments, but it also enjoys the backing of the Government of India and billionaire promoters such as KM Birla. So, while investing in Vodafone Idea is hazardous, it might be viewed as a prudent risk.
How many penny stocks should I invest in?
Typically, investments in any asset class should not exceed 5% to 10% of your financial portfolio. This is done to guarantee that your risk is spread among investments and that you may balance any unexpected losses with growth in another asset type.
