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covering exciting investing ideas and opportunities in India.


IT Sector Penny Stocks

The IT sector has been one of the sectors that has driven the stock market rally in the past decade. Both the BSE IT Index and NIFTY IT Index have given multibagger returns.

As revenue for the IT sector is mainly export oriented, it is largely impacted by the depreciation of the rupee versus the US dollar. A depreciating rupee is beneficial for the sector and vice versa and IT companies have various hedging policies that help them benefit from it.

Alongside the well-known IT giants like TCS and Infosys, there are IT businesses that are classified as IT sector penny stocks.

Penny stocks have low market capitalisation. These stocks typically trade at a share price less than Rs 100 and often less than Rs 50.

Investors should be careful while investing in penny stocks as it is a risky endeavour and may entail higher trading costs.

So, it is important to do your research. Understand the sector and analyse the company before you invest in it.

List of IT Sector Penny Stocks

Company Market-cap as on July 2022 (Rs m)
3I Infotech 7,123
HCL Infosys 5,267
Megasoft 2,612
Rolta India 693
Data Source: Equitymaster

Debt ridden Rolta India is a classic example of a fundamentally weak stock.

As an investor even while investing in penny stocks, you should look out for fundamentally strong penny stocks.

Alternatively, you can browse through the Equitymaster stock screener to access an exhaustive list of IT sector stocks using a variety of filters like low debt to equity, high growth, high ROE, low PE ratio.

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