Going Penny Wise? Penny Stocks under Rs10 on NSE/BSE
Srinagar, Apr 06: Despite low investment participation in the share market in Jammu and Kashmir, primarily due to limited awareness and knowledge, penny stocks present promising opportunities for potential local investors. Compared to metropolitan cities, the number of demat account holders facilitating stock trading remains notably low in J&K.
Today, we will explore the realm of penny stocks. While there's no precise definition of penny stocks in the Indian context, they typically refer to inexpensive stocks with share prices around Rs 10-20 or even lower.
Penny stocks can be highly speculative plays given their low liquidity and market capitalization, but they sometimes deliver multi-bagger returns for risk-tolerant investors getting in early on the right companies. With thorough research on the underlying businesses, penny stocks could generate interest from J&K investors looking for high-risk/high-reward equity opportunities.
Some penny stocks currently trading on Indian exchanges include:
- Mishtann Foods share is priced at Rs 20.53
- FCS Software Solutions share is priced at Rs 4.50
- Rattan India Power stock is at Rs 9.30
- Jammu & Kashmir-based Sarveshwar Foods at Rs 9.50
- Other penny plays include Gemstone Investment at Rs 1.91
- Ontic Finserve at just Rs 0.68
- GV Films at Rs 0.90 apiece with a market cap of Rs 82 crore
- GGPL at Rs 3.55
One penny stock that has been a multi-bagger in recent years is Sunshine Capital. Its share price has skyrocketed from around Rs 0.17 two years ago to currently trade near Rs 3.80 - an incredible 1926% return for investors who bought early into the company.
While penny stocks can be highly speculative, the meteoric rise of companies like Sunshine Capital demonstrates the lucrative potential returns they can offer for risk-tolerant investors who pick winners. Doing thorough research on the underlying businesses is critical before investing in any penny stock.
Disclaimer: The opinions and investment advice provided by writers on GreaterKashmir.com represent their personal views, not the official stance of the website or its management team. We recommend users consult certified financial experts before making any investment decisions based on the content found on the site.
