Penny stocks are shares of listed companies with low market capitalisation. These stocks usually have low share prices, typically less than Rs 100 and often less than Rs 50.
Well-chosen fundamentally strong penny stocks have the potential to deliver profits greater than 1,000% within 1-3 years. This is almost impossible in the case of largecaps.
This is the main reason for their popularity.
On the flipside, there is a high risk attached. It’s common to see penny stocks plunge 80-90% when things turn sour.
Even if you have a high risk profile, we recommend not more than 5% of the portfolio be invested in penny stocks.
You can start you’re search with Equitymaster’s stock screener to find the best multibagger penny stocks. The screener allows you to screen stocks based on your own criteria.
Look for these qualities...
Avoid companies with promoter pledging. Equitymaster’s stock screener has you covered - Stocks with high promoter pledging.
This framework will not only enable you to zero in on the right penny stock at the right price but also help you avoid the big losers.
Nov 4, 2024
A high book value suggests that the company's assets are valued favourably compared to its stock price, which might indicate a bargain.
May 14, 2024
The NSE-only listed stock has rallied around 40% in 2024 so far.
Mar 30, 2024
How did penny stocks fare in FY24? And what's the outlook for investing in penny stocks in FY25? Continue reading to find out...
Jan 9, 2024
Only a week into the new year 2024, and we've seen many penny stocks shoot up to 80%!
Dec 19, 2023
These penny stocks could keep charging ahead. Here's why.
Nov 29, 2023
Some penny stocks have a better growth opportunities than large companies.
Oct 19, 2023
These days, there are a lot of announcements and hype around stocks bought and sold by FIIs.
Sep 26, 2023
A checklist to narrow down the best penny stocks to buy in the stock market.
Jul 24, 2023
These five penny stocks gave up to 17% yields in FY23. Take a look...
Apr 11, 2023
Breakout penny stocks are famous for generating extremely fast returns. This makes them popular among investors who seek high-risk, high-reward investment opportunities.
Jun 1, 2024
The monthly update on penny stocks and what to expect from this segment post elections.
Apr 30, 2024
Debt-free companies are less susceptible to economic downturns. Here are five that should be on your radar.
Mar 1, 2024
These penny stocks are gearing up to show their resilience and promise in 2024.
Dec 26, 2023
With over 74% of the total equity with promoter group, these penny stocks are among the high promoter holding companies in India.
Dec 12, 2023
How to find the top penny stocks? Read on...
Oct 27, 2023
The current rally is attributed to NCLT dismissing a petition. But there are several factors that could keep the stock in good stead going forward.
Oct 3, 2023
A look at the top performing penny stocks of 2023 and how they are stacked for 2024.
Sep 25, 2023
A 5-point checklist to avoid bad penny stocks.
May 18, 2023
Investors must keep a watchful eye on stocks trading at their 52-week lows. If chosen carefully, they could potentially generate faster returns.
Mar 10, 2023
Penny stocks which have a decent balance sheet, low or zero debt and a track record for paying consistent dividend fare much better against their peers.