Best Penny Stocks in India Below 5 Rupees

Are you looking to start investing but don't have much money? Stocks under ₹5 might be perfect for you! These cheap shares let even people with small savings join the stock market. While they come with risks, these low-priced stocks can sometimes give big returns if the company grows. 

Many new investors like these stocks because they can buy many shares with a small amount of money. This blog will help you understand what these stocks are, their benefits and how to invest in them safely. Remember, even small investments can grow over time!

Top 10 Penny Stocks Under Rs 5 – A Quick Overview

Here’s a snapshot of India's top penny stocks priced under ₹5, ranked by market capitalisation:

Best Penny Stocks under ₹5

Evexia Lifecare
Evexia Lifecare was founded in 1990 and joined the stock market in 1994. Initially, it produced health and wellness products. Since 2020, it has focused on selling pharmaceutical chemicals and working with big companies in South India. 
India supplies medicines to countries around the world, and this business stays steady even when the economy faces problems. The company plans to spend ₹50 crores on research and development over the next two years. The promoters have also not pledged any of their shares, which shows they believe strongly in the company's future success. 

Navkar Urbanstructure
Navkar Urbanstructure has been building and constructing bridges since 1992. It also builds dams, canals, houses and factories. It sells ready-mix concrete and cement pipes. Its expert team finishes projects on time and works on government contracts. 
The company deserves attention among top penny stocks under ₹5 because government infrastructure projects provide steady income even during economic uncertainty. Government contracts also offer payment security that private projects cannot match, which helps maintain consistent returns. 

Harshil Agrotech Limited
Harshil Agrotech Limited helps farmers grow better crops while protecting nature. They provide organic farming methods and modern tools that make farming easier and more earth-friendly. The company offers expert advice on growing healthy food without harmful chemicals. 
The stock has a reasonable P/E ratio, which means it is priced similarly to other agricultural companies. This fair pricing suggests the stock could grow as more people want organic food. The company also has no debt, which reduces financial risks for investors and has also initiated a rights issue, showing it has plans to expand its business.

PMC Fincorp
This financial institution is an RBI-registered Non-Banking Finance Company with three decades of operational experience. Listed on the BSE since 2012, it specialises in providing working capital solutions to businesses. 
The company qualifies for the top penny stocks under ₹5 list primarily because of its attractive P/E ratio, meaning it’s trading at a discounted rate. The company also achieved 48.2% CAGR growth over five years and maintains almost no debt, reducing financial risks while demonstrating strong management performance. 

Yamini Investments
Yamini Investments Company Limited was founded in 1983. It helps businesses by providing money through investments, loans and other financial services. 
The company makes an attractive investment among penny stocks because it has maintained operations for over 40 years, demonstrating remarkable staying power in the competitive financial services industry. Companies that survive multiple economic cycles typically have experienced management teams and sound business practices.

OneSource Industries and Ventures Ltd.
OneSource Indus helps farmers grow and sell fruits, vegetables, seeds and herbs. They buy crops from farmers and sell them under their own brand. They also supply farmers with things they need, like seeds and plant medicines. 
This company represents one of the best penny stocks under ₹5 because it operates in two growing sectors simultaneously - agriculture support and renewable energy projects. The dual business model reduces risk since success in either sector can drive overall growth. 

DSJ Keep Learning
DSJ Keep Learning helps people learn new skills for better jobs. It works with universities and teachers to provide good education. The company has two main parts: KeeplearningOS, which helps schools teach online and Keeplearning Grow, which teaches workers new skills. It partners with seven different groups and plans to grow bigger.
Online learning remains popular as people want flexible skill development. The company's two-part business model serves both schools and individual learners, providing income stability. High ROCE and ROE show efficient capital use, while its 13% annual revenue growth indicates strong sales performance.

Enbee Trade and Finance Limited
Enbee Trade and Finance is a public company that started in 1985. For over 30 years, it has given loans to regular people and small businesses without asking for security. 
The lending business to small customers provides steady income because people always need money for emergencies or business needs. At just ₹0.62 per share, even small price increases can give big percentage gains.

Ishan International Ltd.
Ishan International helps businesses get what they need from other countries. For over 28 years, this Indian company has connected customers with quality products and services right at their doorstep. 
As India's economy grows, companies need more international suppliers. The company's global offices provide competitive advantages over smaller players. It shows steady profit improvements yearly; however, its 48% promoter ownership does have its pros and cons. On one hand, it can align management interests with shareholders, but it may reduce stock liquidity. 

Tuni Textile Mills
Tuni Textile Mills has been making high-quality fabrics since 1987. Using modern European machines, they produce 7.2 million meters of synthetic shirting fabric annually. 
With almost 30 years of experience, the company shows it can adapt well to changing market conditions. Its lower market cap makes it a small-cap stock, and high net sales indicate substantial growth potential, though this comes with higher investment risk..

What are Stocks under ₹5?

Penny stocks under ₹5 are shares of small companies/businesses that trade at very low prices, below five rupees per share. These companies are usually new or small. Unlike big companies like Reliance or TCS, these small businesses aren't well-known yet. They might be just starting out or working in new areas of business.

The main thing about these stocks is that they're very cheap to buy. With just ₹1,000, you could buy hundreds of shares! This makes them popular among people who don't have lots of money to invest. They trade on stock exchanges like NSE & BSE, just like expensive stocks.
But remember, they're called "penny" stocks because they're worth very little, like pennies. Their prices can change very quickly and by large amounts, making them exciting but risky.

How to Invest in Penny Stocks in India?

Want to start investing in top penny stocks under ₹5? You'll need a demat and trading account first. 5paisa makes this process simple and affordable with our easy-to-use platform. Here's how to begin:

1. Open a demat account with 5paisa online - it takes just 10 minutes with your Aadhaar and PAN card
2. You can also download the 5paisa app on your phone to track stocks anywhere
3. Add money to your account using Credit or Debit Card, UPI, net banking or other payment methods
4. Search for penny stocks using the stock screener tool, which helps find good companies
5. Place your first order with their simple buy/sell buttons - even beginners can do it!

5paisa offers low brokerage fees, free research tools and helpful customer support, perfect for new investors. Visit our website to open your account today and start your investment journey.

Benefits & Features of Investing in Penny Stocks Under Rs 5  

Low Investment Amount Needed
Penny stocks under ₹5 are perfect for beginners with lower investment amounts. You can buy many shares with just a few hundred rupees, making the stock market open to everyone regardless of their savings.

Chance for Big Percentage Gains
When a stock priced at ₹2 goes up by just ₹1, that's a 50% profit. Higher-priced stocks need to move much more to give the same percentage return on your investment.

Portfolio Diversification Option
Penny stocks under ₹5 in NSE allow you to spread your money across many different companies and business types, reducing your risk if one company performs poorly.

Access to Growing Companies
Some small companies eventually become big ones. Buying their cheap shares early might let you be part of their growth story from the beginning stages.

Learning Experience
Best penny stocks under ₹5 offer new investors a practical way to learn about the stock market without risking huge amounts of money while gaining real experience.

Less Money Lost if Things Go Wrong
If a penny stock fails, you lose less money than with expensive shares. This lets you make mistakes while learning without losing your hard-earned savings.

Factors to Consider Before Investing in Top Penny Stocks under Rs 5

Company's Financial Health
Fundamentally strong penny stocks under ₹5 usually have decent financial situations despite their low price. Check if the company makes a profit, has growing sales and doesn't have too much debt. A company with good finances has better chances of growing and raising its share price.

Business Model and Growth Plans
Look at what the company actually does to make money. Is their business idea good? Do people want their products? Companies with clear plans about how they will grow in the future often perform better than those just trying to survive.

Liquidity and Trading Volume
Check how many shares are bought and sold daily. Low-priced stocks with very little trading activity can be hard to sell when you want to. You might get stuck with shares or have to sell at much lower prices.

Economic Downturn Impact
Small companies often suffer more during bad economic times. They usually save less money and have fewer customers than big companies. During recessions or market crashes, these stocks might fall more sharply than others.

Government Policy Effects
New government rules or support programs can greatly help or hurt penny stocks. Special funding for small businesses, tax benefits or industry-specific help can help some penny stocks grow fast. Stay updated on policies related to the company's business area.

Tips for Penny Stock Investors

Penny stocks under ₹5 might look tempting because they're cheap and could give big gains. But they also come with big risks you should know about:

Screen for Penny Stocks
Look for stocks trading under ₹5 with good daily volume. Use simple stock screeners to find penny stocks that many people are buying and selling regularly.

Analyse Financial Health
Check if the company is making money or losing it. Look at their income and spending. Companies that earn more than they spend are usually stronger.

Leverage Technical Indicators
Watch price patterns and trends on stock charts. Moving averages and volume changes can help spot stocks that might be ready to move up or down.

Check Ratios and Metrics
Look at numbers like P/E ratio and debt levels. Lower debt and reasonable price compared to earnings often mean a healthier company behind the stock.

Monitor News and Announcements
Keep an eye on company news and updates. New partnerships, products, or good earnings reports can make the prices of penny stocks under ₹5 change quickly.

Do Your Research First
Always look into the company's business, who runs it and their financial situation before buying. Some top penny stocks under ₹5 might have good things about their business, even though their price is low.

Look at Company Debt
Debt-free penny stocks under ₹5 are usually safer choices. Companies without loans have a better chance of using their profits for growth instead of paying interest.

Conclusion

Investing in cheap stocks can be exciting, but it comes with risks. Penny stocks under ₹5 give people with small savings a chance to join the stock market. While these shares might seem attractive, remember that careful research is key. 
Look for companies with honest leaders, good business plans and not too much debt. With smart choices and realistic expectations, penny stock investing can be both a learning experience and a possible path to growth.