Best Penny Stocks: Penny Stocks List for Long Term (2024)

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Penny stocks are low-priced, speculative stocks of small companies that trade at a relatively low volume. These stocks are usually priced under ₹10 in India and can be highly volatile.

Penny stocks carry inherent risks and are not suitable for most investors. Some of the risks associated with penny stocks include susceptibility to pump and dump schemes, liquidity issues and stock manipulation.

That being said, penny shares have become slightly popular among investors in India, driven by their low stock prices. Many investors see buying penny shares for the long term as an opportunity to invest in small companies with high growth potential.

We think that investing in penny shares is inherently risky, and recommend investors do their due diligence and/or consult their financial advisor before investing in penny shares.

This blog will provide a comprehensive guide to Indian penny stocks 2024, including their definition, characteristics, benefits, risks, strategies & much more.

What are Penny Stocks?

Now that you know what penny stocks are, let’s understand how to trade in these low priced shares.

Penny stocks are traded on stock exchanges for less than ₹10.

In India, they must be purchased for at least ₹0.01. The NSE and the BSE are where these penny shares are traded in India. These are commonly referred to as shares of firms with a market capitalization of less than ₹10 crores in India.

Investors often doubt Penny shares, but some have transformed into Multibaggers, including well-known names today. Multibagger stocks yield returns significantly surpassing their acquisition cost. Surprisingly, several giants like these started as Penny Shares.

To identify potential Multibaggers, keen observation is crucial. If you’re new to stock investing, thorough research is imperative before considering Penny Stocks 2024. It is important to note that multibagger penny stocks for 2024 are susceptible to the same risks associated with all penny shares (if not more), including price manipulation and liquidity issues.

Features of Penny Shares

Let’s understand the various features that can help you identify the best penny shares for your portfolio:

• Low Liquidity: Penny stock is generally associated with small enterprises and moves sparingly, indicating a lack of market liquidity or buyers. As a result, because buyers are not always accessible, investors may find it challenging to sell a penny stock in an emergency.
• Limited Historical Data: Some of the firms listed as penny shares in our low price share list 2024 may be brand new, while others may be in danger of going bankrupt. These companies generally don’t have any history at all or have a very bad history.
• Highly Volatile: Penny stock often exhibits higher levels of volatility, which leads to greater potential for profit and, as a result, higher levels of risk.
• Low Cost Per Share: Penny share prices in our low price share list 2024 are inexpensive to buy as compared to other shares.
• High Risk: Penny shares are susceptible to pump and dump schemes, liquidity issues and stock price manipulation.

Top 10 Penny Stocks List 2024

As we’ve mentioned earlier, most penny shares or multibagger shares are not suitable for most investors due to their inherent risk of price manipulation, susceptibility to pump and dump schemes, and liquidity issues.

That being said, here’s a top 10 penny stocks list of the top penny stocks 2024 to watch out for:

Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.

Note: The data in the penny stocks list is from 8th December, 2024. However, for real-time updates on stock prices and market trends, visit the smallcase stocks collection today!

Types of Penny Stocks to Buy in India

Penny stocks to invest now in India can be classified into three types: turnaround, speculative, and growth stocks.

• Turnaround Stocks: Stocks of companies that have a history of poor performance but are expected to recover.
• Speculative Stocks: Stocks of companies with uncertain future prospects.
• Growth Stocks: Stocks of companies that are expected to grow rapidly in the future.

Overview of the Top Penny Stocks

Here is a brief overview for all the the best penny stocks to buy 2024 in the top 10 penny stocks list above, these stocks can be considered some of the best penny stock for long term investing in India in 2024:

Vikas Ecotech Ltd

Vikas Ecotech generated an impressive operating revenue of Rs. 298.09 Cr. in the last 12 months, reflecting a remarkable annual growth of 61%. While the debt-free company boasts a robust balance sheet, there’s room for enhancement in the pre-tax margin currently at 3% and a fair but improvable ROE of 4%. It is one of the best penny stocks to buy today in India for 2024, and as a cherry on top, it is also one of the top debt free penny stocks in India.

Comfort Intech Ltd

Comfort Intech is a NBFC engaged in providing financial services to commercial, industrial and financial clients with various financial solutions, such as trade finance and bill discounting, working capital loans, loan against property etc. It has a market cap of Comfort Intech Ltd is ₹247.6 as of 8th December 2024. It is one of the best penny stocks to buy in India.

Rajnandini Metal Ltd

In the last 12 months, Rajnandini Metal generated Rs. 1,185.92 Cr. in operating revenue. While the 1% annual revenue growth is modest, there’s room for improvement in the 2% pre-tax margin. On the bright side, the exceptional 33% return on equity (ROE) stands out. It can be considered one of the best fundamentally strong penny stocks to buy 2024 in India.

G G Engineering Ltd

G G Engineering Limited is an original equipment assemblers (OEA) for Ashok Leyland and Perkins make engine. The Company manufactures diesel generation (DG) Sets in the range of 10 to 2250 kilovolt-amps (KVA). The market cap for G.G. Engineering is ₹232.2. It can also be considered one of the best penny stocks to buy 2024 today in India 2024.

Indian Infotech and Software Ltd

Indian Infotech & Software is a non banking financial company and principle business activity of the company is finance and loan. The market cap for this company stands at ₹200.1 as of 8th December 2024. It is potentially one of the best penny stocks to buy today in India.

Genpharmasec Ltd

Genpharmasec’s trailing 12-month operating revenue stands at Rs. 26.44 Cr. However, there’s room for enhancement, given a -7% annual revenue de-growth, a 1% pre-tax margin that requires improvement, and a fair but improvable ROE of 7%, yet it makes one of the top penny stocks to buy in India from our penny stock list 2024.

Accuracy Shipping Ltd

Accuracy Shipping generated Rs. 739.89 Cr. in operating revenue over the past 12 months. While the 6% annual revenue growth is moderate, there is room for improvement in the 1% pre-tax margin and the fair but improvable 7% Return on Equity (ROE), yet it is a penny stock that is potentially one of the best stocks to invest for long term in our penny stock list 2024.

Goyal Aluminiums Ltd

Goyal Aluminiums generated Rs. 57.94 Cr. in operating revenue over the past year. While the -20% annual revenue de-growth and 4% pre-tax margin require improvement, the 12% ROE reflects a positive performance. It is one of the strong fundamental penny shares in India from our penny stock list 2024.

Prakash Steelage Ltd

Prakash Steelage generated Rs. 112.87 Cr. in operating revenue over the last 12 months. While a 13% annual revenue growth is commendable, there is room for improvement in the 3% pre-tax margin and the -8% return on equity (ROE), signaling areas that need attention. However, it still stands as one of the best penny stocks in India.

Kenvi Jewels Ltd

Kenvi Jewels generated an impressive operating revenue of Rs. 103.69 Cr. in the last 12 months, showcasing a remarkable annual growth rate of 32%. While the pre-tax margin stands at 1%, indicating an area for enhancement, the ROE at 3% is considered fair but also suggests room for improvement. However, it can be counted as one of the best penny shares for 2024, as well.

How to Invest in Penny Stocks?

Investing in the top 10 penny stocks in India can be appealing to some investors due to their low prices and potential for high volatility. However, it’s important to consider the risks involved when dealing with these types of securities.

One common way to invest in low priced stocks or highest dividend paying stocks is through traditional brokerage accounts. However, it’s crucial to exercise caution due to the liquidity issues often associated with these stocks in our top 10 penny stocks list.

Another approach is investing in over-the-counter (OTC) markets and Pink sheets stocks, where penny stocks are traded. These markets can offer opportunities, but they also lack the oversight and regulatory protections that come with more established exchanges.

For those who prefer a diversified approach, there are exchange-traded funds (ETFs) that focus on small-cap or micro-cap stocks, including energy penny stocks. These ETFs can provide exposure to this segment, but it’s important to remember that the volatility and risk associated with even the best penny stocks in india for long term can still impact such investments.

Pros and Cons of Investing in Penny Stock Shares

Let’s have a look at the advantages and disadvantages of these pump and dump stocks:

Is Penny Stock a Good Investment?

Even low priced stocks have gained popularity among investors because they have the ability to generate rapid development in a short amount of time.

A lot of respectable companies deal in penny shares. They can have established management and teams, solid financial standing and improving ratios, increasing revenue, and ground-breaking goods or services that are prepared to rule an industry.

• We are all familiar with the rush that comes with significant investing gains (and losses). Hunting, penny stocks trading, and penny stock investment are all fascinating and exciting.
• A small amount can grow into considerably more! The bulk of penny stocks 2024 trading starts out with little sums. A person may only be able to buy three or four blue-chip stocks of companies with ₹1000 to trade but they may purchase thousands off of the best penny share list for the same sum of money.
• Not all penny shares in the penny stocks list NSE see quick price changes. However, those who do frequently cause significant price changes in days as opposed to years.

Note: Due to their lack of liquidity, penny stock may be a risky investment. For instance, a list of low priced stocks are bought at a very low price and can give you the highest return. Some of these stocks fade away over time and may even be delisted, which would mean losses. Therefore, it is not necessary that investing in even the best penny stocks India would result in phenomenal returns.

Who Should Invest in Penny Stocks?

Given its inherent highly risky nature, we think that most investors should not invest in penny or multibagger stocks.

• Penny companies seldom capitalise on the market, so their stock only trades occasionally. Investors who own these shares might employ a staggered purchasing or selling strategy to increase their holdings or reduce their holdings.
• However, traders must take into account the higher risks they expose themselves to the highest return chances become available when investing in penny shares.

Common Mistakes to Avoid When Buying Penny Shares

When considering Indian penny stocks to buy today, it’s important to avoid common mistakes that can lead to losses. Here are some mistakes to avoid:

• Falling for Hype: The best penny stocks to buy today are often promoted through hype and speculation. Avoid falling for the hype and make informed investment decisions based on research and analysis.
• Overtrading: Even the top 100 Penny stocks India trading is highly volatile, so it’s important to avoid overtrading. Stick to a trading plan and avoid impulsive trades.
• Ignoring Risks: The penny shares are a highly risky investment, so it’s important to be aware of the risks and manage them effectively.

To Wrap It Up

In summary, best penny stocks for 2024 can be perceived as a lucrative investment opportunity, but for most investors, it is not the case. For most investors, sticking to reputed large-cap companies is advisable.

That being said, it is important that investors conduct thorough research, measure their risk appetite, and/or consult their financial advisor, in order to build a solid investment strategy.

As always, this article is for educational purposes only, and is not intended to be recommendatory.

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