Varanasi Stock：Best Penny Stocks Under Rs. 10 – Based on Fundamental Factors

Are you looking for the best penny stocks in India priced under Rs. 10? Penny stocks are often seen as high-risk, high-reward investments that can offer significant growth potential, especially when chosen carefully. In this article, we’ll explore some of the top penny stocks to buy today, especially penny stocks with good fundamentals, including debt-free options, dividend-paying stocks, and even most active shares below Rs 10, that are capturing market attention. We’ll also look the benefits and risks of investing in these low-price shares, and discover how to identify the best penny stocks for 2024 with strong fundamentals.

Note: To get the list of fundamentally strong penny stocks below 10 Rs., we used the Tickertape Stock Screener on 9th September 2024 using the below-mentioned parameters.

Close price: Set the upper limit to 10Net income: Greater than 0 – Set the lower limit to 0Debt-to-equity ratio: Set to low

🚀 Pro Tip: Utilise Tickertape’s Market Mood Index to gauge market sentiment and make informed investment decisions based on real-time market data and trends.

Invest in the Best Stocks Selected by SEBI-Registered Analysts

Did you know that you can invest in readymade electric vehicle stock portfolios managed by SEBI-registered experts?

But, before that, let’s look at what smallcase is.

What is a smallcase?

smallcases are modern investment products that help investors build low-cost, long-term & diversified portfolios with ease. A smallcase is a basket or portfolio of stocks/ETFs representing an idea – an objective, theme, or strategy. They are created and managed by SEBI-registered experts.

Among 500+ smallcases, here’s the top smallcases you can check out:

Disclosure for Mi INDIA Top 10

Disclosure for Equity & Gold

Note: The smallcases are mentioned only for educational purposes and are not meant to be recommendatory. Investors must conduct their own research and consult a financial expert before making any investment decisions.

Note: The above list of top 10 penny stocks in India with zero debt is dated 9th September 2024 and is derived using the Tickertape Stock Screener. The following parameters were used for the purpose:

Close price: Set the upper limit to 10Debt-to-equity ratio: Set the lower limit to 0

Note that the mentioned stocks in the above table have a debt-to-equity ratio of zero.

Note: The data in the above table is from 9th September 2024. The stocks are filtered using Tickertape Stock Screener using the following parameters:

Close Price: Set to 0.03 – 10Relative Volume: Sort from highest to lowest

Relative Volume: Often called RVOL, this ratio displays the average volume of the stock over the previous 10 days divided by the average volume of the stock over the previous 91 days. The ratio helps understand how in demand the stock has been in the past few days.

Suppose the 10-day average volume is 10,000 and the 90-day average volume is 4,000; then the relative volume is 10,000/4,000 = 2.5. RVOL above 2 is considered to be a signal of high demand for the stock, and when a stock is in demand, the price tends to move up very quickly.

Note: The data in the above table is from 9th September 2024. The top 10 penny stocks are filtered using Tickertape Stock Screener using the following parameters:

Close Price: Set to 0.03 – 10Dividend Yield: Sort from highest to lowest

Dividend Yield: The ratio is calculated as dividend per share (DPS) for the most recent fiscal year divided by the close price of the stock. The ratio is used to calculate the earnings on investment, considering only dividends declared. The higher the dividend yield, the better. One should always consider dividend yield when investing in a company’s stock, as it can be a significant part of the return that might be generated. High dividend yield stocks could be a good investment avenue to supplement any income needs.

Suppose DPS is Rs. 16 and the stock price is Rs. 250; the dividend yield is calculated as (16/250)*100 = 6.4%.

The term ‘penny stocks’ is quite popular in the investment world. The stocks that are traded at a very low price on the stock exchange are known as penny stocks. The liquidity of penny stocks may not be as high as that of large companies. Though a few penny stocks have the potential to yield multi-bagger returns within a few trading sessions, the returns can be due to the performance of the company. Usually, these can be ‘win or bust’ bargains for you. The risk associated with penny stocks is high.

Brightcom Group Ltd, founded in 2000, operates in the advertising sector and specializes in digital marketing, online media solutions, and advertising technology services. The company has a market capitalisation of Rs. 1,679.41 cr. with a close price of Rs. 8.73. Its PE ratio stands at 1.22, and it has a net income of Rs. 1,371.00 cr. The debt-to-equity ratio is 0.00%, indicating no debt on the balance sheet.

Elcid Investments Ltd, established in 1981, operates in the investment banking and brokerage sector, focusing on investment activities across various securities. The company has a market capitalisation of Rs. 0.07 cr. with a close price of Rs. 3.53. The PE ratio is 0.00, and the net income is Rs. 175.74 cr., with a debt-to-equity ratio of 0.00%, showing no debt.

Pressure Sensitive Systems (India) Ltd, incorporated in 1987, operates within the electrical components and equipment sector, specialising in the manufacture and distribution of various pressure-sensitive products and electrical equipment. The market capitalisation is Rs. 91.84 cr., and the close price is Rs. 6.07. The PE ratio stands at 0.65, with a net income of Rs. 141.49 cr. The debt-to-equity ratio is 0.00%, indicating no debt.

Diligent Media Corporation Ltd, founded in 2005, is a media company operating in the publishing sector, primarily focusing on print and digital media content, including newspapers, magazines, and online news platforms. The company has a market capitalisation of Rs. 67.80 cr. and a close price of Rs. 5.64. It has a PE ratio of 0.50 and a net income of Rs. 136.82 cr. The debt-to-equity ratio is 0.00%.

Taparia Tools Ltd, established in 1965, operates in the industrial machinery sector and is known for manufacturing and selling hand tools, including spanners, pliers, and wrenches. The company has a market capitalisation of Rs. 11.52 cr. with a close price of Rs. 7.96. The PE ratio is 0.12, and it has a net income of Rs. 99.77 cr. The debt-to-equity ratio is 0.10%.

CES Ltd, incorporated in 1985, operates in the IT services and consulting sector, providing a range of IT solutions including software development, consulting, and business process outsourcing services. The market capitalisation is Rs. 1.60 cr., with a close price of Rs. 0.44. The PE ratio is 0.05, and the net income is Rs. 35.58 cr. The debt-to-equity ratio stands at 7.17%.

Vikas Lifecare Ltd, founded in 1995, operates in the plastic products sector, specializing in the manufacturing and trading of plastic raw materials, compounds, and products. The company’s market capitalisation is Rs. 897.25 cr. with a close price of Rs. 4.83. It has a high PE ratio of 64.00 and a net income of Rs. 14.02 cr. The debt-to-equity ratio is 9.12%.

Speedage Commercials Ltd, incorporated in 1984, operates in the diversified chemicals sector, focusing on the trading of various chemical products and raw materials. The market capitalisation is Rs. 0.93 cr. with a close price of Rs. 9.50. The PE ratio is 0.07, and the net income is Rs. 13.17 cr. The debt-to-equity ratio is 0.00%, showing no debt.

Family Care Hospitals Ltd operates in the healthcare services sector, providing a range of medical services, including diagnostics, treatment, and patient care in its healthcare facilities. The market capitalisation is Rs. 40.30 cr. with a close price of Rs. 7.86. The PE ratio is 3.21, and the net income is Rs. 12.54 cr. The debt-to-equity ratio stands at 9.43%.

Inventure Growth & Securities Ltd, founded in 1995, operates in the investment banking and brokerage sector, offering a wide range of financial services, including brokerage, investment advisory, and wealth management. The company’s market capitalisation is Rs. 254.10 cr. with a close price of Rs. 2.40. The PE ratio is 21.16, and the net income is Rs. 12.01 cr. The debt-to-equity ratio is 15.56%.

Back yourself with ample research: Don’t just park your funds in any random penny stock you come across. Perform background research on the fundamentals and financials of the stocks on your radar. Don’t fall for unsolicited tips or stock recommendations: Don’t blindly buy any penny stock recommended by your friends, any trader you follow, or any random stock market website. Talk to your financial advisor before investing. Check for the possibility of dilution in the future: These small companies offer new shares in the quest to raise more capital. Issue of new shares would result in dilution of the ownership of existing shareholdersVaranasi Stock. A fall in share price is also accompanied. Ask yourself whether you are ready to face the inherent risks: Penny stocks can be one bad news away from hitting the lower circuit. They are considered very risky investments.

To invest in penny stocks below Rs. 10, you can easily find and filter them using a stock screener. Here’s a quick step-by-step guide to help you get started:

Step 1: Open Tickertape Stock Screener

Step 2: Set the ‘Close Price’ Filter

Set the ‘Close Price’ to below Rs. 10. This will help you filter out all stocks that are priced under Rs. 10, narrowing your list to only those low-priced shares.

Step 3: Add Additional Filters

To find the best penny stocks, add filters like market cap, P/E ratio, and net income. You can also include parameters such as low debt-to-equity ratio, high trading volumes, and positive EPS growth to identify fundamentally strong stocks.

Step 4: Analyse and Invest

Once you have your filtered list, you can analyze each stock further by checking its financial performance, sector trends, and historical returns. You can then invest directly through the platform if it matches your investment strategy.

That’s it! You have your curated list of penny stocks below Rs. 10. Explore, analyse, and invest wisely!

Low stock price: The price is the primary feature of penny stocks. You don’t have to invest a lot of money. High gains: Penny stocks can provide high gains. But remember, the risk is equally high, which can cause you to lose your investment.

High risk: Though penny stocks have the potential to give good returns, the risk is also equally high. They are highly volatile in nature. Liquidity: Though penny stocks are available at a very low price, they are illiquid. As they carry high risks, investors can be sceptical about buying them.Jaipur Stock

Being stocks of companies that have very small market capitalisation, penny stocks, including some of the best penny stocks in India, often trade at low prices, such as under Rs. 10. More often than not, there is no information available about the business prospects and foreseeable growth in revenues. This lack of transparency is common in many low price shares, including those featured on the penny stocks 2024 lists.

Therefore, most investors in penny stocks don’t have a long-term view of the investment. The scarcity of fundamental insights into penny stocks, particularly the best penny stocks to buy now, often reveals that these stocks are fundamentally weak, causing investors to pull out their stakes. Even promising shares under Rs 10, such as those on the 1 to 10 rupees share list, struggle to gain investor confidence over time.

Stock operators, too, follow penny stocks very keenly. They quickly offload their holdings stacked at lower levels when the stock price rises to a certain level, thereby bringing down the price again. This frequent trading pattern is another reason why stocks under Rs 10, including top penny stocks in India, trade cheaply and struggle to maintain a steady price level. As a result, even multibagger penny stocks and best penny stocks for long-term investment are often considered highly speculative.

Investing in penny stocks below Rs. 10 can be appealing to certain types of investors. Here’s who might consider these low-priced stocks:

New Investors: New investors with a limited budget can enter the stock market with penny stocks under Rs. 10, providing exposure without large capital. However, be mindful of volatility and research thoroughly.Risk-Tolerant Investors: Those with a high-risk appetite can consider penny stocks, as they come with potential for high returns but also significant risks. Diversification is key to managing exposure.Short-Term Traders: Short-term traders and speculators who use technical analysis can benefit from the quick price movements of penny stocks, aiming for fast gains.Experienced Investors: Seasoned investors seeking multibagger opportunities may find value in fundamentally strong penny stocks that have the potential to grow significantly over time.Long-Term Investors: Investors with a long-term view can look for promising penny stocks, focusing on those with strong fundamentals and growth potential in emerging sectors.Diversified Investors: Those with established portfolios who want to add a high-risk, high-reward segment can allocate a small portion to penny stocks to enhance potential returns.

Penny stocks can be rewarding but are inherently risky. Hence, it is always worthwhile to conduct thorough research and invest cautiously to align with your financial goals and risk tolerance.

Penny stocks are available for a low price. But these are highly volatile in nature. Hence, it is important to have a well-diversified portfolio to mitigate the risk. Understand your risk appetite and investment goals before investing.

Kolkata Stocks