Given its volatile market, stock investing can be equally thrilling and challenging at the same time. Due to its volatile nature, it is impossible to predict what turn it will ideally take in the next movement. Hence, penny stocks are the best option for those who want to play the market safely and stick to a specific budget or time frame.
What are penny stocks? Penny stocks are stocks with low market prices, usually trading at less than Rs. 50. Typically, these stocks belong to companies with low market capitalization, such as small-cap or micro-cap stocks. When compared to mid-cap or large-cap stocks, these stocks might be highly volatile and can be riskier investments.
Therefore, it is always better to proceed with caution. We at the top stock broker in India have thoroughly analyzed the ten stocks below to make investing more accessible. Investors use various parameters, such as profit margin, return on equity, and dividend-paying, to evaluate stocks.
- Suzlon Energy Ltd
The increase in interest in renewable energy and related companies has made this stock a guaranteed winner. The stock was trading below Rs. 10 six months ago, but demand forced it to break the Rs. 50 barriers soon. Hence, considering these parameters and the increasing demand, this stock must be on your watchlist.
- UCO Bank
Since the banking industry is the economy’s foundation and the company operates under state ownership, this stock is a secure choice for long-term investments. The government’s emphasis on ‘Make in India’ and ‘Digital India’ aligns with the company’s focus on retail loans and SMEs.
Furthermore, with a strategic push on positive momentum, we enhance operational efficiency, streamline the branch network, and infuse capital. The profit potential is apparent.
- Punjab & Sind Bank
The bank has been an excellent investment recently, with almost 100% return in one year. Some reasons to include this bank in your portfolio are past performance, price trends, and a market capitalization of ₹331.77 billion.
Additionally, the bank offers services such as banking, remittance, collection, and distribution of third-party goods such as mutual funds and life and non-life insurance policies.
- Infibeam Avenues Ltd
Infibeam Avenues Ltd is a leading home-grown digital payments and e-commerce solutions company. The stock, which has a market capitalization of ₹96.54 billion, offers numerous growth potentials given India’s expanding digital landscape.
- Central Bank of India Ltd
The bank was founded in 1911 and has a rich history and future growth potential. Additionally, the bank offers services such as banking, remittance, collection, and distribution of third-party goods such as mutual funds and life and non-life insurance policies. The market also has a market capitalization of ₹ 489.43 billion.
- Indian Overseas Bank (IOB)
IOB makes numbers speak with a market capitalization of ₹ 915.82 billion, a good capital ratio, and a steady stock growth rate of 78.74% per year. The bank has a long history has significantly contributed to the Indian economy by offering various personal and business banking products and services.
- Trident Ltd
A diversified company with a growing portfolio of companies, particularly in the textile and hospitality sector, Trident Ltd is another stock under Rs. 50 that you should consider.
Since the directors are always looking for strategic partnerships and acquisitions, the company strongly focuses on sustainable practices and an ever-expanding diverse portfolio to navigate constant market fluctuations.
- Alok Industries Ltd
An Indian-based textile company primarily focused on 360 degrees of manufacturing. The company has received significant investment from Ambani’s Reliance Industries, which may indicate a positive outlook towards the company’s growth potential.
- SAL Steel Ltd
SAL Steel Ltd is a leading manufacturer of sponge iron, ferroalloys, MS & SS Angle, and power from Gujarat, India. Given the government’s ambitious plans for extensive infrastructure development, this stock, closely tied to such projects, is poised for significant growth.
- IRB Infrastructure Developers Ltd
The government will debut the 2024 budget on the 1st of February 2024. Furthermore, the government will again emphasize the development of India’s infrastructure landscape and the sustainable route to highway building. One company that can gain immensely from it is IRB Infrastructure Developers Limited.
The Final Word
If you’re looking for growth opportunities in the stock market but working within a budget constraint, investing in stocks priced under Rs 50 could be a good option. But please remember that the market can be pretty volatile, so it’s important to approach such investments cautiously.
According to research conducted by the best trading app in India to reduce your risks, it’s a good idea to maintain a diversified portfolio and conduct thorough research before deciding which investment to make. Further, don’t forget to establish an apparent financial risk tolerance to mitigate losses.
In short, incorporating a mix of listed stocks into your well-balanced portfolio is always a wise move.