Best Penny Stocks Under ₹1

The table below shows India's top penny stocks under ₹1, ranked by market capitalisation.

Filatex Fashions Ltd

Filatex Fashions Ltd. is an Indian socks maker that started in 1993 and became a company in 1995. They make high-quality cotton, wool and silk socks using advanced machines in their factory in Hyderabad. Filatex can make about 70 lakh pairs of socks each year. 

The company maintains strategic partnerships with global brands including Adidas and FILA, while operating an automated facility capable of producing 7 million sock pairs annually. Investors benefit from the company's strong brand partnerships and consistent export revenue streams in the growing global hosiery market.

Sunshine Capital Ltd

Sunshine Capital Limited started in 1994 as a financial company that helps other businesses with funds. The company works like a bank but follows different rules set by the Reserve Bank of India. 

The company maintains dual revenue streams through corporate lending operations and proprietary trading activities in equity markets. The company's regulatory compliance and experienced management team position it favourably for investors seeking exposure to India's expanding NBFC sector with an established market presence.

Monotype India Ltd

Monotype India represents a legacy Mumbai-based investment holding company established in 1974 following the acquisition of UK-based Monotype's Indian operations. 

The company has evolved into a pure-play investment vehicle with diversified holdings across equity securities, fixed-income instruments and strategic investments. Their capital allocation strategy focuses on long-term value creation through selective portfolio management and advisory services. 

NHC Foods Ltd

NHC Foods has operated as an integrated spice processing and export company, using seasonal commodity procurement strategies since 1992. The company maintains global supply chains across Canada, Russia and Singapore, specialising in value-added products, which can provide revenue stability and growth opportunities for investors.

The company's stock-and-sale mechanism — where it buys in bulk at low prices during peak season and sells during off-seasons — indicates better operational efficiency, enhancing its profit margins.

Quasar India Ltd

Quasar India functions as a diversified trading house specialising in metals, minerals and textiles since 1979. The company maintains trading operations across ferrous and non-ferrous metals, including precious metals like gold and silver, while expanding into securities trading. 

The company's multi-decade operational history and diversified commodity exposure provide investors with a hedge against single-sector volatility while capturing commodity cycle opportunities.

Pradhin Ltd

Pradhin Limited is a company that started in 1982 with the name Bhagwandas Metals Ltd. While they once sold metal products like steel rods and pipes, they now mainly trade food items. 
Investors benefit from the company's pivot into defensive consumer staples sectors, offering stable cash flows and potential market share expansion in India's growing FMCG distribution landscape.

Sawaca Enterprises

Sawaca Enterprises Limited is an Indian company that started in 1994 in Ahmedabad. It trades in many different chemical products and scrap materials. Their operations serve textile mills, chemical manufacturers, and food processing industries. 

The company's niche positioning in speciality chemicals and scrap trading offers investors exposure to industrial recycling and speciality chemical sectors with established supplier relationships.

Suncare Traders Ltd

Suncare Traders Limited is an Indian company that began in 1997 in Ahmedabad, Gujarat. The company's distribution network spans major Indian cities including Jaipur, Mumbai, Chennai and Hyderabad, offering various surface finishes from gloss to suede textures. 

Investors gain exposure to India's construction and interior design sectors through an established distribution platform with exclusive brand partnerships. However, the company faces declining revenue and operational inefficiencies, creating potential risks for investors. Despite these challenges, its PE and PB ratios suggest possible undervaluation, which could benefit growth investors looking for opportunities.

Adcon Capital Services Ltd

Adcon Capital Services Limited is a financial company that started in 1994. It is registered with the RBI as a Non-Banking Financial Company. The company maintains operational bases in Indore and Mumbai, emphasising technology-driven cost optimisation and operational efficiency improvements. 

The improving market conditions and technology integration initiatives position the company favourably for investors seeking exposure to India's expanding financial services sector. However, despite being nearly debt-free with strong cash flow management, declining revenue, falling share price and low ROE present mixed signals requiring careful risk tolerance assessment.

GACM Technologies Ltd

GACM Technologies Limited started in April 1995 as Brilliant Securities Limited. The company changed its name twice—first to Stampede Capital Limited in July 2011 and then to GACM Technologies Limited in April 2023. 
Investors benefit from exposure to financial technology innovation and algorithmic trading capabilities, positioning the company within

India's growing fintech ecosystem with systematic trading advantages. 
The company demonstrates promising short-term revenue growth and enhanced operational efficiency, resulting in improved profit margins. However, its weak long-term financial performance and high debt levels deserve careful evaluation before investing.

What Are Penny Stocks Under ₹1?

Penny stocks under ₹1 are company shares that trade at very low prices, specifically below one rupee per share. These companies usually have small market values, less trading activity and might be newer businesses. Many of these companies are in early growth stages or might be facing financial problems.

Unlike well-known companies, penny stocks under ₹1 are usually ignored by large institutional investors. However, for retail investors looking for high-risk, high-reward opportunities, these stocks can prove to be rewarding in the long term.

The appeal of these stocks is simple: With just ₹1,000, you could buy thousands of shares. If the price goes up even a little, like to ₹1.5, your money could grow by 50%.

How to Invest in Penny Stocks in India Below ₹1?

Penny stocks under ₹1 are very cheap shares that you can buy with a small investment. Here's how to start investing:

1. Open a trading account with 5paisa. This will allow you to buy/sell stocks through your phone or computer.
2. Learn about the company before buying. Check if they're profitable and have a good business plan.
3. Start with a small amount. Penny stocks can be risky, as their prices can change dramatically in one day.
4. Diversify your investment by buying different penny stocks instead of putting all your money in one company.
5. Be patient with your investment. Good companies need time to grow. Don't sell in a hurry just because the price drops a little.

Open your trading account with 5paisa today and begin your penny stock journey!

Factors to Consider Before Investing in Penny Stocks under ₹1

• Company Background- Always check the company's history, what they do and who runs it. Many penny stocks under ₹1 have unclear business models or little public information, making them risky choices for your money.
• Financial Health- Look at money problems like profit, debt and cash flow. High book value penny stocks below ₹1 might look good on paper, but you still need to carefully check all financial numbers before investing.
• Market Demand- Check if there's a real need for the company's products or services. Green energy penny stocks in India below ₹1 might seem promising due to the growing clean energy trend, but they need actual market demand to succeed.
• Business Model- Understand how the company makes money. Debt-free penny stocks below ₹1 might seem safer, but you still need to make sure they have a working business plan that can bring steady income.
• Management Team-Research the people running the company. Penny stocks in India below ₹1 often have less experienced teams, which can affect how well the company handles challenges and grows over time.
• Regulatory Compliance-Check if the company follows rules and has proper paperwork. Best penny stocks under ₹1 should have clear, up-to-date filings with market watchdogs, showing they're running their business properly.

Benefits of buying Penny Stocks

• Low Entry Cost- Penny stocks are very cheap, usually under ₹10 per share. This means you can start with just a small amount of money, like ₹1000-5000. Even students or people with little savings can buy many shares.
• Potential for High Returns- Since penny stocks cost so little, even a small price increase can mean big profits. If a ₹1 stock goes up to just ₹3, you've already tripled your money! This makes penny stocks under ₹1 very attractive to some investors.
• Portfolio Diversification- Adding different types of stocks to your collection helps spread out risk. By putting a small part of your money into penny stocks, you might improve your overall returns while keeping most of your money in safer investments.
• Early Investment Opportunity- Many penny stocks come from new companies with new ideas. Buying these stocks is like getting in early before a company becomes big. For example, some small pharma penny stocks under ₹1 might one day discover important medicines.
• Accessibility for Beginners- The low price of penny stocks makes them easy for new investors to understand. You can understand the stock market by watching how these cheap shares move up and down without risking lots of money.
• Volume Advantage- With penny stocks, your money buys more shares. Buying 5000 shares of a ₹1 stock costs the same as 5 shares of a ₹1000 stock. Some investors enjoy having thousands of shares of penny stocks.

Risks Associated with Investing in ₹1 Shares

• Company Failure Risk- Many penny stock companies are small and new. They often fail completely, making their shares worthless. When this happens, you can lose all the money you put in, unlike with bigger companies.
• High Price Swings- Penny stocks under ₹1 can change price very quickly. A stock worth ₹1 today might drop to 20 paise tomorrow, causing you to lose 80% of your money in just one day without much warning.
• Liquidity Problems- When you want to sell penny stocks, you might not find anyone willing to buy them. This means you could get stuck with shares you don't want or have to sell them for much less than you hoped.
• Scam Potential- Penny stocks are often used in scams called "pump and dump." People spread fake news to drive up prices, sell their shares at high prices, then disappear while other investors lose money.
• Limited Information -Companies with cheap shares often don't share much information about how they're doing. Without good information, it's hard to know if the company is healthy or about to fail.
• Regulatory Concerns - Many penny stocks trade in markets with fewer rules. This means less protection for you as an investor. The lack of strong rules makes it easier for dishonest people to take advantage of investors.

How to Choose Penny Stocks Under ₹1?

• Company Research: Look at what the company actually does. Check if they make real products or provide real services. Visit their website and read about their business. Avoid companies with unclear business activities.
• Financial Health Check: Examine if the company is making money or losing it. Look for companies with less debt and some profits. Many trading websites show this information in simple charts and numbers.
• Trading Volume Analysis: Check how many shares are bought and sold each day. Higher numbers mean more people are interested in the stock. Low volume stocks can be harder to sell when you want to.
• News and Announcements: Follow company news and announcements about new products or partnerships. Good news might mean the stock price will go up. Bad news might be a warning sign to stay away.
• Price Movement Patterns: Look at how the stock price has changed over time. Draw lines connecting the lowest prices and the highest prices. These patterns sometimes give clues about future price movements.
• Management Team Review: Find out who runs the company. Experienced leaders with good track records are better than unknown managers. Look for this information on the company website or in their reports

Should I Invest in Shares Below ₹1?

It depends on how much risk you can take. These cheap shares can give big profits if prices rise, but they're also very risky. Think of penny stocks under ₹1 like finding hidden treasure. Some stocks like Monotype India show good numbers, but many cheap companies struggle or fail completely.

Success requires homework. Check company profits, business plans and management teams. Watch out for price swings and selling difficulties. Smart investors only use a small portion of their money for penny stocks — maybe 5-10% of their total investments. Start with small amounts while learning.

If you decide to try these budget shares, use 5paisa, we provide detailed information and fair trading prices.