Top Penny Stocks Under ₹5 to Invest in India for 2024
Have you ever considered investing in the stock market but felt deterred by the high costs? Penny stocks under 5 Rs might be your gateway to start small while dreaming big. These low-cost shares, often called penny stocks, can offer surprising returns. However, they come with their own set of risks due to their volatility. This leads to an intriguing question: “What are the best penny stocks in India to buy in 2024 under 5 rupees?” To help you navigate this, let’s delve into the penny stocks below 5 rupees, as well as their features and benefits.
Best Penny Stocks Under 5 Rs
Here is a list of the top penny stocks under 5 based on Net Profit Margin. These shares below 5 Rs are often attractive to investors looking for affordable entry points with the potential for significant returns.
| symbol | Company | ticker | slug | Sector | Market Price | 52W High | 52W Low | Market Cap (Cr.) | PE Ratio | Industry PE | PB Ratio | Div. Yield (%) | ROE (%) | 1YReturns | 3YReturns | 5YReturns | Market Cap Label | Industry Group | Industry | Sub Industry | percentageChange |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| AMRA | Amraworld Agrico Ltd | AMRAAGRI | /stocks/amraworld-agrico-AMRA | Commodities Trading | 1.41 | 1.69 | 0.83 | 16.96 | 39.45 | 51.33 | 1.50 | 0.00 | 3.87 | 25.89 | 50.00 | 403.57 | Smallcap | Financial Services | Trading Companies & Distributors | Investment Banking & Brokerage | 0.00 |
| ASHC | Ashirwad Capital Ltd | ASHCAP | /stocks/ashirwad-capital-ASHC | Diversified Financials | 4.99 | 6.53 | 2.57 | 45.09 | 29.09 | 18.53 | 2.38 | 0.00 | 9.63 | 73.26 | 93.58 | 285.82 | Smallcap | Financial Services | Diversified Financial Services | Asset Management & Custody Banks | 0.00 |
| BRID | Bridge Securities Ltd | BRIDGESE | /stocks/bridge-securities-BRID | Investment Banking & Brokerage | 8.52 | 8.83 | 1.49 | 32.46 | 62.43 | 18.53 | 34.17 | 0.00 | 75.36 | 447.91 | 95.19 | 1,776.65 | Smallcap | Financial Services | Capital Markets | Investment Banking & Brokerage | 0.00 |
| MONO | Monotype India Ltd | MONOT | /stocks/monotype-india-MONO | Diversified Financials | 2.26 | 2.42 | 0.54 | 164.53 | 17.81 | 18.53 | -11.58 | 0.00 | 0.00 | 310.91 | 804.00 | 1,089.47 | Smallcap | Financial Services | Diversified Financial Services | Investment Banking & Brokerage | 0.00 |
| PMC | Pmc Fincorp Ltd | PMCFIN | /stocks/pmc-fincorp-PMC | Diversified Financials | 3.75 | 5.25 | 1.89 | 271.30 | 23.92 | 18.53 | 2.36 | 0.00 | 10.38 | 51.45 | 19.02 | 1,525.14 | Smallcap | Financial Services | Diversified Financial Services | Diversified Financial Services | 0.00 |
| RIDH | Ridhi Synthetics Ltd | RIDHISYN | /stocks/ridhi-synthetics-RIDH | Real Estate | 4.11 | 4.11 | 4.11 | 0.49 | 0.33 | 67.42 | 0.01 | 0.00 | 2.99 | 0.00 | 15.13 | 15.13 | Smallcap | null | Real Estate | null | 0.00 |
| RMCP | Radha Madhav Corp Ltd | RMCL | /stocks/radha-madhav-corp-RMCP | Packaging | 2.00 | 2.00 | 1.80 | 13.70 | 5.29 | 31.17 | 9.52 | 0.00 | 1,786.21 | 8.11 | -11.11 | -35.48 | Smallcap | Materials | Containers & Packaging | Paper & Plastic Packaging Products & Materials | 2.56 |
| SEV | Seven Hill Industries Ltd | SEVENHILL | /stocks/seven-hill-industries-SEV | Diversified Financials | 1.20 | 1.39 | 0.58 | 15.08 | 4.73 | 18.53 | 1.70 | 0.00 | 43.91 | 100.00 | 122.22 | 300.00 | Smallcap | Financial Services | Diversified Financial Services | Diversified Financial Services | 0.00 |
| SUNTE | Biogen Pharmachem Industries Ltd | BIOGEN | /stocks/sun-techno-overseas-SUNTE | Independent Power Producers & Energy Traders | 1.23 | 1.85 | 0.98 | 82.23 | 42.61 | 23.30 | 1.45 | 0.00 | 3.47 | 0.82 | 132.08 | 434.78 | Smallcap | Utilities | Independent Power and Renewable Electricity Producers | Independent Power Producers & Energy Traders | 0.00 |
Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.
Note: The data in this list of stocks below Rs 5 in NSE is subject to real-time updates.
🚀 Pro Tip: You can use Tickertape’s Stock Screener to research and evaluate stocks with over 200+ filters and parameters.
However, if you’re confused about which stocks to pick, you can explore smallcases:
- smallcases are readymade portfolios of stocks/ETFs, that are based on a theme idea or strategy
- They’re created and managed by SEBI-registered experts
- smallcase.com offers over 200+ stock portfolios, created by 180+ managers
- Some of the popular smallcases among new investors are as follows:
Disclosures for aforementioned smallcases
Overview of Stocks under Rs. 5
Fundamentally strong penny stocks under 5 Rs are attractive for their affordability and potential for high returns but come with significant risks due to their high volatility and lower market capitalisation. Investors often seek out debt-free penny stocks under 5 rupees for their potential stability and multibagger stocks below 5 rupees for exponential growth opportunities. These shares, with a 5Rs share price, are often the first step for new investors exploring the stock market.
Features of Penny Stocks Below 5 Rupees (India)
- Low Market Capitalisation: Below 5 Rs shares often belong to companies with a small market capitalisation. These companies might be new or less established in their industries. However, they are often seen as the best penny stocks in India for investors seeking high growth potential.
- High Volatility: Even the best penny stocks below 5 rupees, including debt-free penny stocks under 5 Rupees, can experience significant price fluctuations. This volatility may result in substantial gains or losses over a short period. It makes NSE-listed penny stocks under Rs 5 both enticing and risky.
- Limited Liquidity: The top penny stocks under 5 Rs in India often have lower trading volumes. It makes it harder to buy or sell large quantities without impacting the stock price.
- Potential for Growth: Some penny shares to buy in India below 5 rupees might belong to companies with growth potential, especially in emerging sectors or niche markets. Investors will be looking at multibagger penny stocks for 2025 under 5 rupees in these sectors, hoping to find the next big success story among the shares under 5 Rs.
- Higher Risk: The affordability and potential high returns come with increased risk. Companies issuing NSE-listed penny stocks below 5 Rs may have weaker financials, less transparency, and higher chances of business failure.
Benefits of Investing in Penny Stocks in India Below Rs. 5
Investing in penny stocks below Rs 5 offers several benefits despite the risks. Here’s a concise overview:
- Low Capital Requirement: Penny stocks on NSE require minimal investment. For investors looking for Penny shares to buy in India with limited capital, it enables portfolio diversification without large sums.
- Quick Gains: Due to their volatility, shares with 5 rs share price can experience rapid price movements, offering opportunities for quick profits. This makes them some of the top penny stocks for short-term investors.
- Access to Emerging Sectors: Penny stocks, including multibagger stocks below 5 rupees, often represent companies in growing sectors, providing exposure to potentially lucrative industries.
- Learning Experience: Investing in the best penny stocks in India under 5 Rs offers valuable lessons about market dynamics, risk management, and strategies for selecting penny stocks on NSE.
How To Choose Penny Stocks Under 5 Rs for Investing?
- Strong Fundamentals: Use the Tickertape Stocks Screener to research the best penny shares to buy with solid financials, including positive revenue, manageable debt, and profitability.
- Growth Potential: Focus on penny stocks to buy under 5 Rs that operate in emerging industries with future growth opportunities.
- Management Quality: Evaluate the company’s management team and their ability to execute business strategies effectively.
- Business Model: Assess the company’s overall business model and long-term sustainability to minimise risk for stocks with a share price under 5 Rs.
Factors to Consider Before Investing in Stocks Less Than 5 Rs
- Company Financial Health: Evaluate the financial stability, revenue, and debt levels of penny stocks in India before investing.
- Market Sentiment: Monitor market trends and investor sentiment, as these impact low-priced stocks’ price volatility.
- Management Quality: Assess the management team and their strategy, which can influence the prospects of companies on the best under 5 rupees share list.
- Sector Performance: Choose stocks in high-potential sectors. Some of the top penny stocks belong to industries with strong growth trajectories, providing more secure options.
- Diversification: Spread investments across different sectors to manage the higher risk of low-priced shares under ₹5.
To Wrap Up…
Investing in penny stocks below Rs 5 can be an exciting opportunity for those willing to explore high-risk, high-reward segments of the stock market. These stocks, while volatile, may hold the potential for significant returns if chosen carefully. The top 10 shares under 5 rs may offer a bit more stability compared to those with higher debt levels.
Frequently Asked Questions About Penny Stocks Below Rs 5
Penny stocks with a 5 Rs share price often have low valuations due to limited market participation, low trading volumes, and lack of investor interest. They can also fluctuate based on news and may not meet regulatory standards.
To start investing in the top 5 shares under 5 Rs in India, you may start by selecting a broker. You can start a Demat account with smallcase to access these stocks. Once you have chosen your stocks after conducting research, place a buy request through your broker’s platform.
Yes, margin trading can be used for shares under ₹5, but it’s highly risky. Given the volatility and low liquidity of penny stocks, using margin can amplify both gains and losses, making it a high-risk strategy.
Researching the top 100 penny stocks under 5 rupees may help you identify potential opportunities, but it’s crucial to assess the financial health and market risks of each stock.
Finding the top 5 penny stocks under 5 Rs involves careful research due to their high risk. You can explore stocks like those in the below rs 5 shares list based on 3Y Returns (as of 26th November, 2024):
– Excel Realty N Infra Ltd
– DSJ Keep Learning Ltd
– Integra Essentia Ltd
– Radaan Media Works India Ltd
– Impex Ferro Tech Ltd
Note: This list is for educational purposed and not recommendatory in nature. It is recommended to always review the share price of the best stocks under 5 rs and their financial performance before considering any investment.
While choosing any penny stock under 5, be aware that they carry high risks due to their volatility and low liquidity. Additionally, these companies often have uncertain financial health, making them more vulnerable to market downturns.
