Penny Stocks: List of Best Penny Shares in India (2024)

Penny stocks are shares of companies that are priced low, often at Rs. 10 or below. This makes them highly affordable and is one of the reasons why many investors tend to invest in them. Although these stocks have the potential to deliver substantial returns, they also come with significant risks.

But despite their risky nature, including penny stocks in a well-diversified portfolio could be a way to enhance overall returns, especially in the long run. But with so many good penny stocks in India, which one do you choose to invest in? To help you decide, we have come up with a list of five of the best penny shares in India you can consider adding to your portfolio. 

List of the Best Penny Stocks in India in 2024

The following five stocks have delivered stellar returns in three-year and five-year timeframes. Here is what you need to know about their businesses and some of their key financial metrics.

1. Filatex Fashions Limited

Founded in 1993, Filatex Fashions Limited is in the business of manufacturing socks in a wide range of fabrics, such as cotton, wool, and silk. The company markets its products under two brands: Tuscany and Smartman, both of which are also exported and sold in foreign countries. The company supplies its products to major global brands like Adidas, Marks & Spencer, FILA, and Walt Disney, among others.    

Here are some of the key fundamental metrics of the company for the previous two financial years.

2. Sarveshwar Foods Limited

Sarveshwar Foods Limited is one of the leading producers of basmati rice in India and has over 100 years of experience in traditional farming methods. Along with basmati rice, the company also produces and markets various grades of non-basmati rice grains. The rice is processed and packed at a fully automated plant to ensure maximum quality. The company has a history of performing consistently, making it one of the best penny stocks to buy in India. 

Now that you are aware of the company and its business, here are some crucial fundamental metrics of Sarveshwar Foods for the previous two years.

3. GTL Infrastructure Limited

GTL Infrastructure Limited is India’s largest independent shared telecom infrastructure provider. The company is in the business of building and managing telecommunication towers, which are leased out to multiple telecom service providers. Currently, GTL Infrastructure Limited has a total of 26,000 towers located in all of the 22 telecom circles in India.   

Let us now look at some of the key financial metrics of GTL Infrastructure Limited for the previous two financial years. 

Note: Figures in parentheses represent negative values.  

4. Vikas Lifecare Limited

Vikas Lifecare Limited is one of the best penny shares in India in the speciality chemicals sector. In addition to providing speciality chemicals to different clients across India and the world, the company is also actively involved in the research and development of self-healing corrosion protection coatings and materials for preventing electromagnetic interference. Recently, the company acquired Genesis Gas Solutions Private Limited, a company involved in developing smart gas metres.         

Here is a quick overview of the fundamental metrics of the company for the previous two financial years. 

Note: Figures in parentheses represent negative values.  

5. Super Tannery Limited

Established in 1953, Super Tannery Limited is the oldest tannery in North India. The company is in the business of producing a wide range of Buffalo leather products. From automotive and furniture upholstery to footwear and bags, Super Tannery Limited’s products meet high quality standards and are preferred by clients all over the world. In fact, the company exports its products to over 40 countries.   

The table below outlines some of the fundamentals of Super Tannery Limited for the past two financial years. 

Conclusion

Investing in some of the best penny stocks in India could potentially deliver substantial returns over the long run. However, as an investor, you must also recognise the risks that come with it. Some of the risks involved with these investment options include susceptibility to high volatility and even market manipulation. Therefore, it is advisable to carefully consider your risk tolerance, financial goals, and investment horizon before allocating your capital to penny stocks.

Furthermore, when analysing penny stocks, it is important to look beyond the low share prices. You must ensure that you also factor in the company's financial health, management quality, growth prospects, and industry trends. 

The Research 360 platform of Motilal Oswal can help you in this regard. You can find financial and fundamental information on all penny stocks listed in the Indian stock market on the platform. Additionally, you can also gain key insights into the sector and industry that the stocks feature in as well. Go ahead and sign up for the Research 360 platform today and become a better investor.