Best Penny Stock to Buy
The stock market offers a wide range of options for your money to increase in value. There are numerous instruments available that you can trade with and profit from. Experts typically advise planning for long-term profits and making appropriate investments. You can invest in high-quality stocks and other types of investment vehicles to create a strong portfolio and, over time, a healthy corpus. Additionally, you might try to play with those parts of the market that can quickly multiply your returns. Penny stocks are one such area of investment. This article will teach you all you need to know about penny stocks in India, including what they are and which ones are the best penny stock to buy or purchase in 2022.
What are Penny Stocks?
As the name implies, penny stocks are shares that are traded on the stock exchange for extremely cheap prices. Although there isn’t a set standard for how cheap a stock must be to qualify as a penny stock, it can be anything from 0 to Rs 10, or even Rs 20, or 30. They may typically be purchased in large quantities for a reasonable price and with very little cash. The best penny stocks to buy—often referred to as multibagger penny stocks—are those that may provide you with multi-bagger returns.
Best Penny Stock to Buy- Things to consider when purchasing penny stocks
There are a number of things you should think about before investing in penny stocks.
- Make that the business is listed on a reliable exchange (e.g., NYSE or Nasdaq).
- Verify the company’s existence for at least three years and that it generates adequate revenues and profits.
- Ensure the balance sheet of the organisation is robust enough; current assets should exceed current liabilities + total debt.
Best Penny Stock to Buy- What justifies investing in penny stocks?
It’s likely the query that investors have the most frequently. The solution is straightforward: lower risk and possibly bigger return.
Because penny stocks are significantly simpler to acquire, sell, and trade than other equities, they are less risky than other stocks. They are also liquid, allowing you to easily enter and exit the market as needed. Due to these two qualities, they are less dangerous than investing in other sorts of assets like mutual funds or real estate, which can be challenging for someone with little to no experience in stock trading or investing.
Top Best Penny Stock to Buy In India- List
Here are the best penny stocks to buy in India-
1. Shree Global Tradefin Ltd
When Benson Steels Limited was founded in 1986, it was operating as Shree Global Tradefin. After that, it changed its name to Shree Global Tradefin Limited in 1996. The business manufactures trade coils and cold-rolled steel sheets.
The business also deals in steel and iron. Mild steel channels, hot-rolled coils, MS beam, MS angle, and hot-rolled plates are some of the company’s further goods. The corporation generated a return of 155.48% over the previous year and 191.29% over the previous five years. Additionally, the business has a division called Lloyds Steels Industries Limited.
2. Hindusthan Udyog Ltd
Incorporated as Hindusthan Sheet & Metal Company Limited on September 3, 1947, HINDUSTAN UDYOG LIMITED changed its name to Hindusthan Sheet Metal Limited on October 7, 1987. The company was established to continue the business of fabricating steel, producing, and marketing Material Handling Equipment, mainly Conveyor Systems, Idler & rollers, and other similar items.
The stock’s current market value is 3.16. 3.16 is its all-time high, while 3.10 is its all-time low.
3. Indian Overseas Bank (IOB)
IOB, a nationalised bank run by the Ministry of Finance and headquartered in Tamil Nadu, was established in 1937. Over 96% of the shares of IOB are owned by the government. Additionally, it has locations abroad in Bangkok, Colombo, Singapore, and Hong Kong.
The IOB share price surged over 9% in the previous month and increased to 14% over the previous three months. The stock has in fact performed consistently over the past three years, returning approximately 91%.
4. TV18 Broadcast Limited
The largest firm in India by market capitalization, Reliance, has supported TV18 Broadcast Ltd. After Covid, the media and entertainment industry has clearly grown. To increase its market share, TV18 has been aggressively implementing new strategies. The likelihood of the company succeeding in an oligopoly market is very high. Additionally, BodhiTree just made an investment in the company to drive expansion.
The stock has been rising and is currently range-bound with a range of Rs. 30 to 70. As a result, the company appears to be a solid option for penny stock trading given its strong fundamentals and appealing technical profile.
5. Investment Managers IL & FS Ltd.
IL & FS Investment Managers Limited, a well-known name in the financial services industry, was founded in 1986. The Infrastructure Leasing and Financial Services subsidiary owns it (IL & FS). The company generated returns of 58.89% over the previous year, and 27.68% over the previous three years.
The business is also acknowledged as one of the biggest and most established private equity fund management firms. It has raised and managed more than 3.5 billion USD in funds. The business is traded on both the Bombay Stock Exchange and the National Stock Exchange.
6. Jaiprakash Power Ventures Ltd.
Jaiprakash Electricity Ventures is a business in the power industry that was founded in 1994. It belongs to the esteemed Jaypee Group. The company’s several divisions include cement, fly ash and electrical energy.
The company generated returns that exceeded triple digits in the most recent year: 160.71% over a single year and 210.64% over the previous three. In addition to having a subsidiary called Jaypee Arunachal Power Limited, the business also owns a 74% share in Jaypee Powergrid Limited.
7. Suzlon Energy
Suzlon Energy is a multinational Indian manufacturer of wind turbines with its headquarters in Pune. Since 1995, Suzlon Energy has provided its clients with a comprehensive portfolio of solutions that covers every type of wind energy project.
The 52-week high and low share prices for the Suzlon share, which is now trading below Rs. 10, are Rs. 13.10 and Rs. 5.90, respectively. The stock, which is very speculative, has gained 21% during the last month. The price of Suzlon shares has increased by more than 40% in the last year. Over the past three years, Suzlon has generated returns of almost 190%.
Bhudevi Infra Projects Ltd.
Founded on August 29, 2019, Bhudevi Infrastructure India Private Limited is a private firm. It is a non-government organisation that has filed paperwork with Bangalore’s Registrar of Companies. Its authorised share capital is Rs. 1,000,000 and its paid-up capital is Rs. 100,000. Civil engineering is concerned with building entire structures or portions of them.
The stock’s current market value is 1.66. It’s all-time high and low were respectively 1.66 and 0.01.
Best Penny Stock to Buy in India- FAQs
- Is RattanIndia Power Ltd a reputable business?
Answer-RattanIndia Power Ltd is a firm of mediocre quality, according to Moneyworks4me’s examination of its financial performance during the previous 10 years.
- In what penny stock will 2022 see a boom?
Answer-Alliance Integrated Metaliks Ltd., Gallops Enterprises Ltd., Hemang Resources Ltd., and Kaiser Corporation Ltd. will grow.
- Small-Value Stock: What Is It?
Answer-A class of shares with similar market capitalizations and valuation methodologies are referred to as small-value stocks or small-cap value stocks. Specifically, they fall under the value stock category and are small-cap companies.
- What penny stock is growing the quickest?
Answer-RTCL, Tranway Technologies, Triveni Glass, Orosil Smiths India, Citizen Infoline, Swiss Military Consumer Goods, IL&FS Engineering and Construction, and Tine Agro are a few of the penny stocks with the fastest growth rates.
- How should I pick penny stocks?
Answer-Researching the firm is one of the greatest strategies to select penny stocks that have the potential to offer profitable investments.
One can quickly discover firms that are trading below a certain price, discover known businesses, if any, and then research these organisations to purchase a stock.