When it comes to investing, the risks are always proportional to the potential returns. Returns, on the other hand, would be lower when risk is reduced. This is a good adage to remember before investing in the stock market. Get To Know About Penny Stocks In India Below 1 Rupee
Investing in shares worth less than Rs. 1 carries significant risk, but these stocks have the potential to generate massive returns. Before investing in them, you should do as much research as possible and proceed with caution.
Consider the intriguing concept of penny stocks in India, which are priced at less than a rupee.
What Exactly Is A Penny Stock?
Penny stocks are typically traded on a smaller exchange, have extremely low market capitalizations, are highly illiquid, and trade at extremely low prices. In India, penny stocks can trade for less than Rs 10 per share.
These stocks are extremely speculative due to their high risk, low liquidity, small shareholder base, wide bid-ask spreads, and limited information availability.
What Stocks Can Be Purchased For Less Than One Rupee?
Ultra penny stocks are those that trade on the stock exchange for less than one rupee. This is one of the primary reasons why these stocks are appealing to investors.
Shares priced below one rupee have the greatest potential for significant profits due to their “cheap” price; as a result, some of these shares could become multi-baggers relatively quickly.
These shares are owned by companies with extremely small market capitalizations. They have a lot of growth potential as micro-cap companies to catch up to large-cap corporations; however, this growth potential may or may not materialize and influence stock price movement.
Keep in mind, however, that Indian penny stocks priced under one rupee are typically speculative and illiquid. They are extremely risky investments due to their lack of liquidity.
Why Should You Invest In Stocks In India That Cost Less Than One Rupee?
They have the potential to be lucrative investments.
If the fundamentals are sound and the business environment is favorable, some penny stocks with a market capitalization of less than one rupee have the potential to become multi-baggers.
This means that your initial investment could pay off handsomely. As a result, investing in such stocks could significantly increase your chances of profit. You may also outperform the returns of large and mid-cap companies over the same time period.
They Are Reasonably Priced
The primary advantage of investing in penny stocks is their low cost. You can put money into them without going bankrupt.
You can also diversify your portfolio by buying a large number of penny stocks in India for less than one rupee while saving money to invest in other safe programs with lower market risks.
List of stocks with a market capitalization of less than one rupee
Here is a list of multi-bagger penny stocks under one rupee that will turn your portfolio into a money-making machine.
1. Sword-Edge Commercials Limited
The name of the company was changed from Rotam Commercials Limited to Sword-Edge Commercials Limited in 2013.
The company was founded under a different name in 1985. It trades in consumer goods and has a market capitalization of Rs 16.5 crore.
The company’s shares are traded on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) (NSE).
Sword Edge’s corporate family consists of six distinct businesses. In the most recent year, the company returned 88.35 percent, and over the previous five years, it returned 1,133.33 percent.
2. Shalimar Productions Limited
Shalimar Productions is a film, television program, and video production company based in India. Shalimar Agro Products Limited was the company’s original name when it was founded in 1985.
The company has created regional CDs and films in Rajasthani. The Viagra-Suranjana Studio is an outdoor performing arts training facility run by the company’s CEO, Kiran Kaur.
The Shalimar Academy in Bikaner’s Shalimar House educates future painters.
Shalimar Productions Limited is a Bombay Stock Exchange-listed company with over 6,000 stockholders (BSE).
In the previous year, the company returned 80% of its profits to its shareholders. Furthermore, over the last three years, the company has generated an 85.71 percent return!
3. Varun Mercantile Limited
Varun Mercantile was founded in 1985 and is involved in a variety of industries. It has a market capitalization of Rs 21 lakh and a P/E ratio of 13.07. The company’s headquarters and registered office are located in Maharashtra.
The company has no segments and only sells general merchandise. Lopamudra Dixit and Mehul Shah, both independent directors, are among the administrators of the company. The two main directors are Ambalal T. Jain and Sanjay T. More.
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4. Ramchandra Leasing And Finance Limited
Ramchandra Leasing and Finance is a BFSI company that offers financial solutions to corporate clients. The market capitalization of the company is 3.58 crore rupees, and its three-year return is 204.55 percent.
The company was formed as a private limited company under the name Ramchandra Leasing and Finance Private Limited. The company went public in 1996. The corporation’s shares were split in 2005. Mr. Pradip Jain was hired as a full-time director by the company in 2014.
5. Sikozy Realtors Limited
Sarkozy Realtors, which was established in 1992, also deals in rock phosphate. The Maharashtra-based company has a market capitalization of more than Rs 5 crore and a sectoral PE ratio of 37.47.
Pawan Kalantre, Ruchika Somani, Shital Mehta, and Bhavik Mehta are key members of the corporation’s management team.
The company’s shares are traded on both the National Stock Exchange and the Bombay Stock Exchange.
Over the previous five years, the company generated returns of 88.33 percent and 12.84 percent in the previous year.
6. Nirbhay Colors Limited
Nirbhay Colours India Limited is a company that is traded on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
The company has a market capitalization of 34 lakh rupees and a PE ratio of 1.01.
Parth Industries Limited was the company’s previous name. The company sells pens, pencils, desk supplies, geometry cases, ink pads, pencil cases, and other stationery products.
7. CES Limited
CES’s core competencies include information technology and business process management. The company provides clients with onshore and offshore services that are tailored to their specific requirements. The company has a market capitalization of 1.38 billion rupees and a PE ratio of 0.04.
The company’s headquarters are in Hyderabad, and major goods and services distribution centers are in Chennai, Hyderabad, and Visakhapatnam. CES acquired a 37.50 percent stake in the parent company’s subsidiary, CES Information Technology Private Limited, during the 2018-2019 fiscal year.
8. Sagar Soya Products Limited
Sagar Soya Products Limited, as the name suggests, specializes in soy and related products.
The company makes soy oil, soy flour, and de-oiled soy cakes. Mr. A. C. Patel, who also serves as Chairman, oversees the company’s manufacturing facilities in Bhainsa, Madhya Pradesh.
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9. Kretto Syscon Ltd
On September 19, 1994, Kretto Syscon Ltd., formerly Ideal Texbuild Ltd., was incorporated as a public limited company. The registered office of the company is in Ahmedabad, the state capital of Gujarat.
The primary industries of the company are textiles and building construction. During the 2014-2015 fiscal year, the Company’s Paid Up Share Capital increased from Rs 1816960 to Rs 101816960 due to the preferential issuance of 1,000,000,000 equity shares, each worth Rs 10.
10. Visesh Infotechnics Limited
Visesh Infotechnics Ltd. was founded in January 1989 as Ultimate Software Private Ltd. The company’s name was changed to Visesh Technologies Pvt Ltd on February 23, 1993, and it became a public corporation on May 1, 1995.
The company’s name was changed to Visesh Infosystems Ltd on July 1, 1997. Visesh Infotechnics Ltd was the new name.
VIL is a successful IT firm that has been in operation for over a decade and provides ERP solutions as well as e-commerce services. ERP and e-commerce IT consulting services are available for both on-site and off-site projects.
Frequently Asked Questions
Seven Hills Industries’ share price is less than Rs. 1.
2. Which share is less than 1 RS?
The share price of BCL Ltd is listed below 2RS.
3. Which company share is 1 RS?
Despite the fact that higher returns generally imply higher risks, investing in these shares worth less than one rupee carries the same risk profile.
Despite this, penny stocks in India have the potential to produce extremely volatile returns.
4. Which share price is below 2 RS?
Do not blindly follow hot tips. Remove bad investments from your portfolio. Avoid going overboard with your investment budget.
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