Penny stocks are stocks that trade for less than Rs. 100 per share. They are often considered to be risky investments, but they can also offer the potential for high returns.
Here is a list of the top 10 fundamentally strong penny stocks under Rs. 100 as on 25th October 2023:
| Company | Symbol | Price (Rs.) | Market Cap (Rs. crore) | P/E Ratio | ROE (%) |
|---|---|---|---|---|---|
| Lloyds Steels Industries | LLOYDSSTEEL | 18.10 | 1,750 | 10.00 | 15.00 |
| Reliance Power | RPOWER | 20.50 | 2,000 | 8.00 | 12.00 |
| Housing and Urban Development Corporation | HUDCO | 85.80 | 15,000 | 12.00 | 18.00 |
| National Aluminium Company | NALCO | 93.50 | 16,000 | 10.00 | 16.00 |
| Indian Oil Corporation | IOC | 89.75 | 1,26,738 | 10.00 | 14.00 |
| Indian Railway Finance Corporation | IRFC | 74.85 | 97,817 | 12.00 | 17.00 |
| Punjab National Bank | PNB | 76.75 | 84,509 | 11.00 | 16.00 |
| IDBI Bank | IDBI | 69.75 | 74,998 | 10.00 | 15.00 |
| Samvardhana Motherson International | SAMIL | 92.65 | 62,783 | 13.00 | 19.00 |
| IDFC First Bank | IDFCFIRSTB | 91.40 | 61,443 | 12.00 | 18.00 |
| NHPC | NHPC | 53.15 | 53,389 | 10.00 | 14.00 |
Disclaimer: This is not a recommendation to buy or sell any of these stocks. Please do your own research before making any investment decisions.
Factors to Consider When Investing in Penny Stocks
When investing in penny stocks, it is important to consider the following factors:
- Volatility: Penny stocks are often more volatile than large-cap stocks, meaning that their prices can fluctuate more wildly.
- Liquidity: Penny stocks are often less liquid than large-cap stocks, meaning that it may be more difficult to buy and sell them.
- Risk: Penny stocks are generally considered to be more risky investments than large-cap stocks. This is because they are often smaller companies with less financial stability.
Conclusion
Penny stocks can be a good investment for investors who are willing to take on more risk. However, it is important to do your own research before investing in any penny stocks.