Penny stocks offer the potential of providing huge returns in a short time. This is the reason for their popularity.
But they are also very volatile in nature. They could either lift up your portfolio or create an irreparable dent in it. In fact, most penny stocks end up as wealth destroyers rather than wealth creators.
Despite their poor reputation, there are select few penny stocks that are diamonds in the rough.
They can become future multibaggers. These are the fundamentally strong penny stocks and they have a decent track record. By that we mean they have good profit and revenue growth and have a strong credit profile.
You need to buy such stocks when they are undervalued. If you do so, you will end up with a portfolio of the best penny stocks in India.
Finally, never ignore the risks of investing in penny stocks.
Check out Equitymaster's Ultimate Guide on Penny Stock Investing.
You can also checkout our playlist on Penny Stocks on Equitymaster's YouTube channel.
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...
Feb 5, 2024
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Jan 25, 2024
This company implements the PLI schemes of the Indian government. Is there a big-bang PLI announcement on the cards this union budget?
Dec 19, 2023
These penny stocks could keep charging ahead. Here's why.
Nov 29, 2023
Some penny stocks have a better growth opportunities than large companies.
Oct 19, 2023
These days, there are a lot of announcements and hype around stocks bought and sold by FIIs.
Sep 26, 2023
A checklist to narrow down the best penny stocks to buy in the stock market.
Jul 21, 2023
Keeping track of the rising promoter holding could be a starting point to discover some gems among penny stocks.
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.
Mar 2, 2023
These penny stocks have a history of making regular payouts and they also have decent financials.
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.
Feb 2, 2024
We're only a month into 2024 and few of these modestly priced stocks have quietly outperformed their flashier counterparts.
Jan 9, 2024
Only a week into the new year 2024, and we've seen many penny stocks shoot up to 80%!
Dec 2, 2023
Looking for multibagger penny stocks? Here are the top five that dominated the market in November 2023.
Nov 11, 2023
If you're able to do adequate research and also have the stomach to experience some extreme swings, penny stocks could be the perfect investments for you.
Oct 3, 2023
A look at the top performing penny stocks of 2023 and how they are stacked for 2024.
Jul 24, 2023
These five penny stocks gave up to 17% yields in FY23. 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.
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.
Feb 21, 2023
These five penny stocks are enjoying multiple tailwinds and are set to grow exponentially in 2023.
As per Equitymaster's Stock Screener, here is a list of high quality penny stocks in India right now...
Penny stocks are usually issued by new or very small companies. These companies often don't have a proven track record, which is why their shares are sold for so little.
Larger, more established companies may also have stocks trading under Rs 100 when they are facing financial trouble or approaching bankruptcy.
Since they carry a high amount of risk, one must have a proper strategy in place.
Check out our framework for investing in penny stocks. This strategy is the easiest one to make money from penny stocks.
Penny stocks are not suitable for investors who have a low-risk appetite.
However, even if you have a high-risk appetite, we believe one should not invest more than 2-3% of one's stock portfolio in penny stocks.