Penny stocks offer the potential of providing huge returns in a short time. This is the reason for their popularity.
But they are also very volatile in nature. They could either lift up your portfolio or create an irreparable dent in it. In fact, most penny stocks end up as wealth destroyers rather than wealth creators.
Despite their poor reputation, there are select few penny stocks that are diamonds in the rough.
They can become future multibaggers. These are the fundamentally strong penny stocks and they have a decent track record. By that we mean they have good profit and revenue growth and have a strong credit profile.
You need to buy such stocks when they are undervalued. If you do so, you will end up with a portfolio of the best penny stocks in India.
Finally, never ignore the risks of investing in penny stocks.
Check out Equitymaster's Ultimate Guide on Penny Stock Investing.
You can also checkout our playlist on Penny Stocks on Equitymaster's YouTube channel.
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.
Aug 4, 2024
The underlying fundamentals of these companies are still strong, making them prime candidates for a rebound.
Jun 21, 2024
These penny stocks demonstrate strong potential to rebound to the Rs 100 mark.
May 20, 2024
While penny stocks in power sector may not promise the stability of bluechips, they offer an entry point into a sector on the cusp of transformation.
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...
Feb 5, 2024
While most investors are looking at L&T, and other established names, the bigger opportunity could possibly come from penny stocks within this sector.
Jan 25, 2024
This company implements the PLI schemes of the Indian government. Is there a big-bang PLI announcement on the cards this union budget?
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.
Aug 25, 2024
These are the top performing penny stocks of 2024 so far.
Jul 26, 2024
Looking for multibagger penny stocks? Here are the top four that dominated the market in past year.
Jun 1, 2024
The monthly update on penny stocks and what to expect from this segment post elections.
May 14, 2024
The NSE-only listed stock has rallied around 40% in 2024 so far.
Mar 3, 2024
India's ability to manufacture high quality and low-priced medicines presents a huge business opportunity for these pharma sector penny stocks.
Feb 2, 2024
We're only a month into 2024 and few of these modestly priced stocks have quietly outperformed their flashier counterparts.
Jan 9, 2024
Only a week into the new year 2024, and we've seen many penny stocks shoot up to 80%!
Dec 2, 2023
Looking for multibagger penny stocks? Here are the top five that dominated the market in November 2023.
Nov 11, 2023
If you're able to do adequate research and also have the stomach to experience some extreme swings, penny stocks could be the perfect investments for you.
Oct 3, 2023
A look at the top performing penny stocks of 2023 and how they are stacked for 2024.
As per Equitymaster's Stock Screener, here is a list of high quality penny stocks in India right now...
Penny stocks are usually issued by new or very small companies. These companies often don't have a proven track record, which is why their shares are sold for so little.
Larger, more established companies may also have stocks trading under Rs 100 when they are facing financial trouble or approaching bankruptcy.
Since they carry a high amount of risk, one must have a proper strategy in place.
Check out our framework for investing in penny stocks. This strategy is the easiest one to make money from penny stocks.
Penny stocks are not suitable for investors who have a low-risk appetite.
However, even if you have a high-risk appetite, we believe one should not invest more than 2-3% of one's stock portfolio in penny stocks.