For a stock to be categorised as a penny stock, it needs to be dirt cheap. In India, the price of penny stocks in India ranges mostly between Rs 10 and Rs 25. Penny stocks as low as Re 1 are also available for trades
Investing in penny stocks is risky. So, it is important to gather complete information of the company they are investing in and also keep a close eye on the information relating to the company’s growth projections
South Indian Bank is a solid candidate in the penny stocks space as it reduced its net NPAs to 2.51% as on September, 2022. It posted a consolidated profit of 223.28 crore versus a loss of 187.09 crore (YoY). In the last one year, South Indian Bank shares have zoomed 80%
Bank of Maharashtra has strong fundamentals, solid credit and deposits growth and the assurance that comes with sovereign guarantee. The bank’s QoQ NPAs have been sliding as well. The stock price has rallied around 50% in the last one year
Shares of Indian Railway Finance Corporation (IRFC) have rallied more than 20% in the last six months. IRFC dividend yield is around 4%. It has paid dividends on four occasions since its listing, amounting to Rs 3.25 per share
UCO Bank shares have doubled shareholders' money in the last six months. Total business of the bank had touched Rs 4 lakh crore, and its NIMs are improving due to the high interest rate regime
One of the benefits of investing in penny stocks is that one can buy a large number of shares at a very low price and make decent returns whenever the stock clocks gains
Stocks that seem dormant or dead today may turn into multibaggers in the near future. Early investment in penny stocks that show future potential may set the investor’s path to be invested in stocks that exhibit robust growth trajectory. Investors' lakhs can turn into crores in a short period
The low pricing makes penny stocks easy to invest in. Anyone who wishes to invest a small corpus in the stock market is able to buy a considerable number of shares and hence penny stocks are available for all to trade in
An important feature of penny stocks is the low liquidity that they offer. This means traders may not be able to buy or sell the penny stock of their choice at all given times. Hence, investing in penny stocks is riskier due to their illiquidity
Wild fluctuations in share prices led by market participants is a common problem with penny stocks. Inaccurate information on the stocks performance and future prospects can wreck investors' portfolio gains
The content in the story is for information purposes only. Investors or market participants should consult their financial advisors before taking any position