Best Penny Stocks for Long Term

Penny stocks in India often attract attention because of their low prices and potential for growth. Many investors explore these stocks to diversify their portfolios or gain exposure to emerging companies. This article highlights some of the best penny stocks for long term based on factors like net income, return on equity, debt-to-equity ratio and more!

Best Penny Stocks for Long Term

Sunday, 21 September, 2025

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
BIS Bisil Plast Ltd BISIL /stocks/bisil-plast-BIS Plastic Products 2.04 2.04 0.08 110.22 787.31 28.39 93.41 0.00 12.61 110.08 1,296.42 1,296.42 Smallcap Materials Chemicals Metal, Glass & Plastic Containers 4.62
CRES Cressanda Railway Solutions Ltd CRSL /stocks/cressanda-solutions-CRES IT Services & Consulting 4.44 14.24 3.25 187.88 469.69 27.80 1.14 0.00 10.50 -68.56 -87.77 1,518.21 Smallcap Software & Services Software IT Consulting & Other Services 0.00
FRAN Franklin Industries Ltd FRANKLININD /stocks/franklin-industries-FRAN Investment Banking & Brokerage 0.90 2.30 0.82 69.41 6.22 17.16 1.08 0.00 28.21 -33.30 206.93 343.38 Smallcap null Capital Markets null -4.26
GUJTL Gujarat Toolroom Ltd GUJTLRM /stocks/gujarat-toolroom-GUJTL Construction & Engineering 0.98 3.32 0.96 136.45 2.61 40.51 0.42 0.00 26.00 -50.08 296.95 1,446.67 Smallcap Real Estate Management & Development Construction & Engineering Real Estate Development 0.00
INDX IEL Ltd INDXTRA /stocks/iel-INDX Commodities Trading 6.65 7.10 3.36 86.71 192.69 40.51 1.90 0.00 1.88 51.08 7.49 1,494.16 Smallcap Capital Goods Trading Companies & Distributors Trading Companies & Distributors -0.75
KANS Spright Agro Ltd SPRIGHT /stocks/kansal-fibres-KANS Agro Products 1.26 16.79 1.26 135.01 6.89 38.32 1.04 0.00 19.96 -89.05 309.77 623.46 Smallcap null Food Products null -4.55
NAR Dhatre Udyog Ltd DHATRE /stocks/narayani-steels-NAR Precious Metals, Jewellery & Watches 6.91 13.98 5.95 75.29 44.81 42.30 1.15 0.00 2.47 -47.17 323.67 171.51 Smallcap Materials Textiles, Apparel & Luxury Goods Steel -1.99
PADA Padam Cotton Yarns Ltd PADAMCO /stocks/padam-cotton-yarns-PADA Textiles 5.06 12.76 2.92 65.32 6.17 42.30 9.32 1.98 27.45 73.15 1,031.99 2,265.59 Smallcap null Textiles, Apparel & Luxury Goods null -4.89
SACE Spacenet Enterprises India Ltd SPCENET /stocks/spacenet-enterprises-india-SACE Online Services 7.17 26.50 4.78 405.90 34.17 118.06 3.70 0.00 12.71 -71.35 -68.13 551.82 Smallcap Financial Services Interactive Media & Services Investment Banking & Brokerage -2.58
VKA Vantage Knowledge Academy Ltd VKAL /stocks/vantage-knowledge-academy-VKA Publishing 3.08 90.23 3.08 105.17 140.23 118.06 7.37 0.00 14.96 -89.78 592.13 592.13 Smallcap Consumer Services Media Education Services -4.94

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 on this list of the best penny stocks for long term is dynamic in nature and subject to real-time changes. This data is derived from Tickertape Stock Screener.

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What are the Best Penny Stocks for Long Term?

Best penny stocks for long term refer to low-priced shares trading below ₹10 that belong to companies showing positive fundamentals such as steady net income, higher return on equity, and low debt levels. These stocks are identified based on financial metrics rather than predictions of future performance. While they may present potential opportunities, they also involve higher risks due to factors like limited liquidity and smaller market capitalisation.

About the Best Penny Stocks for Long Term

How to Invest in Best Penny Stocks for Long Term?

Here is how one can invest in the best penny stocks for long term in India:

  1. Open a demat/trading/stockbroker account. You can open a demat account with smallcase!
  2. Conduct thorough research into the best penny stocks for long term that are of interest to you. Investors can use tools like the Tickertape Stock Screener to do this. The screener offers over 200 built-in filters to choose from, allowing investors to select parameters to research the best penny stocks for long term.
  3. Place a ‘Buy’ Order on the best penny stocks for long term of your choosing.

How to Identify the Best Penny Stocks for Long Term?

  • Financial Stability: The best long term penny stocks with positive net income and manageable debt levels generally reflect stronger financial health.
  • Return on Equity (ROE): A higher ROE in the best long term penny stocks often indicates better efficiency in generating returns for shareholders.
  • Liquidity Levels: Trading volumes of the best long term penny stocks can help assess how easily shares can be bought or sold without significantly impacting prices.
  • Business Model and Sector Outlook: Understanding the company’s core operations and the sector’s growth prospects provides insights into potential scalability.
  • Promoter Confidence: Promoter shareholding patterns can highlight the level of commitment and trust in the company’s long-term plans.

Benefits of Investing in Best Penny Stocks for Long Term

  • Lower Investment Requirement: Penny stocks often trade below ₹10, allowing investors to gain market exposure with relatively small capital.
  • Potential for Capital Appreciation: The best long term penny stocks with improving fundamentals and sectoral tailwinds can witness significant price growth over time.
  • Early Access to Emerging Businesses: Some penny stocks belong to companies in expanding industries like renewable energy, digital services, or banking, offering early entry opportunities.
  • Portfolio Diversification: Adding good long term penny stocks to a portfolio can help spread risk across sectors and company sizes.
  • Exposure to Growth Sectors: Many of the top penny stocks for long term operate in high-growth segments such as powertelecom, fintech, and infrastructure, providing access to evolving markets.

Risks of Investing in Best Penny Stocks for Long Term

  • High Price Volatility: The top penny stocks for long term frequently exhibit sharp price fluctuations due to limited market liquidity and low trading volumes.
  • Limited Financial Transparency: Even the best penny share for long term may lack detailed disclosures or analyst coverage, making it more challenging to assess their actual performance accurately.
  • Business Uncertainty: Even good penny stocks for long term may face operational challenges, weaker cash flows, and difficulties in sustaining growth.
  • Lower Liquidity: The limited number of buyers and sellers can make it difficult to exit positions quickly without affecting stock prices.
  • Regulatory and Compliance Risks: Some long term penny stock investments may face compliance issues or be flagged on regulatory watchlists, such as those maintained by Additional Surveillance Measure (ASM) or Graded Surveillance Measure (GSM), which increases investor risk.

Factors to Consider When Investing in Best Penny Stocks for Long Term Investments

  • Market Position: A company’s standing within its sector and its competitive edge can influence its long-term potential.
  • Earnings Consistency: Stability in revenue and profits over time often in a penny share for long term reflects sustainable business operations.
  • Management Quality: Leadership decisions, governance standards, and the promoter’s track record can significantly impact a company’s performance.
  • Sectoral Dependence: Some penny stocks operate in industries that are sensitive to regulatory changes or economic cycles, which can impact their growth prospects.
  • Corporate Actions: Events such as mergers, rights issues, or debt restructuring can significantly impact the financial outlook and investor perception.

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To Wrap It Up…

Penny stocks under ₹10 can provide exposure to emerging businesses and growing sectors. While the growth potential exists, risks like volatility, limited information, and business uncertainty remain significant. Using tools like Tickertape Stock Screener helps shortlist companies based on data-driven metrics, but independent research and due diligence remain essential.

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Frequently Asked Questions About Best Penny Stocks for Long Term

1. Are penny stocks under ₹10 suitable for all investors?

Not necessarily. Penny stocks carry higher risks compared to large-cap or mid-cap stocks. Investors with a high risk tolerance, a long-term horizon, and the ability to handle market fluctuations may consider them as part of a diversified portfolio, after thorough research.

2. How does ASM or GSM classification affect penny stocks?

Stocks placed under ASM (Additional Surveillance Measure) or GSM (Graded Surveillance Measure) are subject to stricter regulatory monitoring due to abnormal price movements or weak fundamentals. This can result in restrictions, such as higher margin requirements or trade-to-trade settlements, which may impact liquidity and trading ease.

3. Do penny stocks always generate high returns over the long term?

No. While some penny stocks can deliver significant gains if the company grows, many remain stagnant or even decline due to financial instability, management issues, or sectoral headwinds. Returns depend on a company’s fundamentals and broader market conditions, not just its low price.

4. Are there specific sectors where penny stocks show better long-term potential?

While penny stocks can often be found in sectors like power, renewable energybanking, telecom, and infrastructure, their long-term potential depends on sector growth trends, government policies, and the company’s ability to capitalise on industry opportunities.

5. How can investors research penny stocks effectively?

Investors can use platforms like Tickertape Stock Screener to analyse metrics such as earnings consistency, debt levels, ROE, and market capitalisation. Additionally, reviewing annual reports, sector trends, and regulatory filings can help inform decisions.

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If you are looking for stocks under a particular price range, here’s the collection of stocks under a specifc budget:

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