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

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

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.


Why Tata Teleservices Share Price is Rising

Apr 24, 2024

Telecom stocks have shot up in recent trading sessions following VI's successful FPO and Bharti Hexacom's listing.

Why Captain Pipes Share Price is Falling

Apr 16, 2024

The company recently started work on its greenfield expansion in Ahmedabad, expected to complete by December 2024.

Rajnish Wellness: A Backdoor Play to Profit from India's Railway Boom

Apr 11, 2024

This pharma sector penny stock is taking a giant leap in developing medical facilities at railways stations.

Why NALCO Share Price is Rising

Apr 3, 2024

This PSU company keeps breaking several records. It recently reported the highest-ever production and sales of aluminium and bauxite.

Why Brightcom Group Share Price is Falling

Mar 28, 2024

Share price of Brightcom Group is down around 25% in 2024 so far. What next?

Why Reliance Power Share Price is Rising

Mar 20, 2024

Improving financials, debt reduction, and capital infusion - is Reliance Power ticking all the right boxes?

Market Crash? My Top Strategy for Investors in a Downturn

Mar 18, 2024

How should investors approach the current market?

Top 5 Fundamentally Strong Penny Stocks to Watch Out for in 2024

Mar 1, 2024

These penny stocks are gearing up to show their resilience and promise in 2024.

Can this Solar Penny Stock Scale New Highs?

Feb 19, 2024

How to approach this High-flying solar penny stock?

Multibagger EV Penny Stock Develops New Battery Charger

Feb 16, 2024

This penny stock has rallied over 280% in the past one year, following back-to-back order wins from the Indian railways. Now, it has eyes set on the EV battery charging space.

Top 10 Fundamentally Strong Stocks Under Rs 100

Apr 18, 2024

These penny stocks have strong growth levers in place. Take a look...

Top 3 Penny Stocks to Watch Out for in India's Booming Energy Sector

Apr 15, 2024

The increasing adoption of EVs, the expanding renewable energy market, and the development of cleaner technologies is creating a big opportunity for energy players.

This Solar Penny Stock Zooms 35% in 5 Days on ALMM Buzz. Will the Momentum Continue?

Apr 4, 2024

I spent hours reviewing this solar penny stock, so you don't have to. Read on...

6 Penny Stocks that Rallied 2,500%+ in One Year

Mar 30, 2024

How did penny stocks fare in FY24? And what's the outlook for investing in penny stocks in FY25? Continue reading to find out...

Top 5 Penny Stocks to Watch Out for in India's Booming Power Sector

Mar 26, 2024

Power stocks have found favour after a long wait. Here's what lies ahead for them and how you can invest in the best power companies.

What are SME Stocks?

Mar 19, 2024

For investors willing to embrace volatility and support the growth of small and medium enterprises, these stocks can be a valuable addition to a diversified portfolio.

5 Best Pharma Penny Stocks in India

Mar 3, 2024

India's ability to manufacture high quality and low-priced medicines presents a huge business opportunity for these pharma sector penny stocks.

Should You Invest in Solar Penny Stocks in 2024?

Feb 28, 2024

Here are two high potential solar plays to watch out this year.

5 Best Steel Penny Stocks in India

Feb 17, 2024

Given the sector's critical role in India's burgeoning economy, the potential for exponential gains makes these penny stocks worth the attention.

This 'Rooftop Solar' Penny Stock is Flying. Should We Turn Bullish?

Feb 12, 2024

This rooftop solar stock is already up 60% in the last few weeks. Is there more steam left?