Helping You Build Wealth With Honest Research
Since 1996. Try Now


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Investment in securities market are subject to market risks. Read all the related documents carefully before investing

Our Latest Research Report is Out Now
2 Stocks to Ride India's EV Megatrend

**Important: We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
**By submitting your email address, you also sign up for Profit Hunter, a daily newsletter from Equitymaster
covering exciting investing ideas and opportunities in India.


Penny Stocks Below Rs 5

Penny stocks never go out of style.

Even when share market are falling hard, don't be surprised to see if penny stocks deliver multibagger returns.

Let there be recession concerns or let there be a bear market, these stocks will find a way to surprise investors by rising.

But this is only true for carefully selected and fundamentally strong penny stocks.

On the flip side, if you invest in a penny stock without doing due diligence, you might as well just flush your money down the drain.

We've seen instances where certain penny stocks have eroded 80-90% of wealth in a couple of months.

Penny stocks are usually priced between Rs 1 to Rs 100. Here again, there are certain bifurcations made by retail investors. Penny stocks below Rs 50, penny stocks below Rs 10 and penny stocks below Rs 5.

As these stocks have such a low value, investors think that investing in a low priced stock will multiply their wealth faster as midcap and bluechip stocks will take years to double.

Penny stocks below Rs 5 on the other hand will just take three to four circuits of 20% to double investors wealth.

Mind you, investing in penny stocks below Rs 5 has quite a lot of red flags. Promoter holding may be zero, and these stocks will have no track record of revenues or profits because they are relatively lesser-known stocks.

They might not have as good as dividend paying track record compared to their larger counterparts and investing in these stocks is often considered risky.

Risky because there's no information available on these stocks. They might have a lot of debt on their books, who knows.

But on the other side, the benefit of investing in penny stocks below Rs 5 is that if you invest such a low priced stock which has a face value higher that its current market price, it could work wonders. The market may factor it as undervalued.

Suzlon Energy Share Price: Technical Breakout Suggests Bullish Trend

Jun 8, 2023

Does the recent technical breakout in Suzlon suggest this could be a new beginning for the wind energy player? Read on...

Rekha Jhunjhunwala Trims Stake in this Auto Ancillary Penny Stock

May 4, 2023

Find out why Rakesh Jhunjhunwala & Associates trimmed stake in this auto ancillary company for the third consecutive quarter.

6 Penny Stocks that Rallied 1,000%+ in One Year

Mar 28, 2023

These penny stocks shed their penny status by surging 1,000% or more in the last one year.

6 Penny Stocks with Solid Growth and Zero Debt

Mar 10, 2023

Penny stocks which have a decent balance sheet, low or zero debt and a track record for paying consistent dividend fare much better against their peers.

5 Penny Stocks That Could Announce Big Dividends This Year

Mar 2, 2023

These penny stocks have a history of making regular payouts and they also have decent financials.

5 Penny Stocks Set to Grow Dramatically in 2023. Add them to Your Watchlist

Feb 21, 2023

These five penny stocks are enjoying multiple tailwinds and are set to grow exponentially in 2023.

Sunil Singhania's Abakkus Picks Stake in this Penny Stock. Key Details Inside...

Jan 27, 2023

This SaaS-based platform company has stood out the tech-stocks selloff and is the latest pick of Sunil Singhania's Abakkus fund.

Why Adani Green Energy Share is Falling

Jan 25, 2023

The star performer of the Adani conglomerate has seen a downtrend in recent months. Find out why.

Why Adani Transmission Share Price is Falling

Jan 25, 2023

Power stocks have underperformed recently and are losing steam. Adani Transmission shares are down 30% in just two months.

4 Multibagger Penny Stocks to Watch Out for in 2023

Jan 20, 2023

Is this the right time to bet on these multibagger penny stocks? Find out...

Undervalued Gems: 3 Penny Stocks Hitting 52-Week Lows. Time to Take a Look?

May 18, 2023

Investors must keep a watchful eye on stocks trading at their 52-week lows. If chosen carefully, they could potentially generate faster returns.

Top 5 Breakout Penny Stocks to Add to Your Watchlist

Apr 11, 2023

Breakout penny stocks are famous for generating extremely fast returns. This makes them popular among investors who seek high-risk, high-reward investment opportunities.

Top 5 High Quality Penny Stocks to Add to Your Watchlist

Mar 21, 2023

With so many options out there, it can be challenging to find high-quality penny stocks that are worth adding to your portfolio.

Why Cipla Share Price is Falling

Mar 2, 2023

One of the best pharma stocks in India, Cipla is starting to show signs of downtrend after a decent rally in early 2023. What next?

These 2 Tata Group Stocks Have Started 2023 with a Bang. Will the Rally Continue?

Feb 22, 2023

While Adani-Hindenburg story is keeping the markets busy, these two Tata group stocks have had their best start in years. Will their dream run continue?

5 Best Performing Penny Stocks of 2023 so far. Will their Dream Run Continue?

Feb 10, 2023

Select penny stocks have rallied up to 300% already in 2023. But what does the future hold for them?

Stocks Under Rs 100 to Add to Your Watchlist

Jan 26, 2023

These stocks are looking good on charts. Could they breakout ahead of Budget 2023?

Why Adani Enterprises Share Price is Falling

Jan 25, 2023

This is how Adani Enterprises' Rs 200 bn mega FPO has affected its stock price in recent days.

5 High Dividend Yield Stocks to Add to Your Watchlist

Jan 21, 2023

Add these low-priced stocks to your watchlist which have a history of paying dividends and have decent financials.

Tata Technologies: The Next TCS?

Jan 19, 2023

Tata Motors' subsidiary Tata Technologies may soon come out with its initial public offer. Could this be the next multi-bagger from the Tata group? Here is a detailed report.