Best Stocks to buy below RS 10 in India 2022: Stocks that are below RS 10 are known as “Ultra Penny Stocks”.

What are Ultra Penny Stocks?

  • Stocks whose value is between RS. 1 and RS. 10 are known as ultra-penny stocks.
  • Generally, stocks trading at a very low value and having a very small market capitalization are called ultra-penny stocks.
  • These stocks are more popular among retail investors.
  • These stocks are often categorized as “win or bust” bargains for you.
  • Ultra-penny stocks can help you generate high returns in a very short span of time.
  • When these stocks are going down, they can cause a huge effect on your invested value, but the maximum loss that you can bear is the stock price falling to RS. 0.
  • In ultra-penny stocks, a nominal price movement can cause a circuit on both the lower as well as upper sides.

Best Stocks to Buy below RS 10:-

There is a whole list of Best stocks to buy below RS 10.

The following is the list of such stocks:-

Sr. No.Stock NameStock Price
1Vodafone Idea Limited7.85
2South Indian Bank Limited7.45
3Suzlon Energy limited7.10
4Shree Global Tradefin Limited7.02
5Syncom Formulations (India) Limited6.44
6IL & FS Investment Managers Limited5.75
7Jaiprakash Power Ventures Limited5.45
8Prismx Global Ventures Limited5.00
9Mangalam Industrial Finance Limited3.93
10JCT Limited3.01

#1. Vodafone Idea Limited:-

  • Vodafone Idea Limited, or VI, is an Indian telecom operator.
  • The company has its headquarters in Mumbai and Gandhinagar.
  • The company offers GSM operator facilities pan-India with 2G, 3G, 4G, 4G+, VoWiFi, and VoLte.
  • On August 31st, 2018, Vodafone India merged with Idea Cellular to form a new entity named Vodafone Idea Limited.
  • Here, Vodafone holds a 28.5% stake in the entity and Idea holds a 17.80% stake.
  • On September 7, 2020, Vodafone Idea launched its new brand identity “Vi” which involves the integration of the company’s brands “Vodafone” and “Idea” into one brand.
Revenue38,318.20
Net Profit(28,237.20)
Basic EPS(9.82)

Latest Share Price: Vodafone Idea Limited

Source: www.google.com

#2. South Indian Bank Limited:-

  • The bank is a very reputed name in the banking sector.
  • It offers both commercial and personal banking solutions to its customers.
  • It is also offering project finance solutions to its customers.
  • The bank is the first Kerala-based bank to provide core banking solutions to its customers.
  • The bank already has 923 branches across the country.
Revenue7620.24
Net Profit44.98
Basic EPS0.21

Latest Share Price: South Indian Bank Limited

Source: www.google.com

#3. Suzlon Energy Limited:-

  • The company is engaged in the production of wind and solar energy solutions across the country.
  • The company is into manufacturing customized turbines suitable for all types of climates.
  • The company has its headquarters in Pune and has also received Platinum LEED certification as well as a GRIHA 5-star rated campus.
  • The company has also expanded and is now present in Asia, Europe, North America, South America, Australia, and Africa.
Revenue4103.06
Net Profit(912.66)
Basic EPS(1.02)

Latest Share Price: Suzlon Energy Limited

Source: www.google.com

#4. Shree Global Tradefin Limited:-

  • The company was established in 1986 under the name Benson Steels Limited.
  • In 1996, it was renamed Shree Global Tradefin Limited.
  • The company is completely engaged in the business of steel production.
  • The company mainly manufactures hot and cold rolled sheets and trade coils.
  • Gradually, the company started trading in iron and steel.
  • The company also has a subsidiary named Llyods Steels Industries Limited.
Revenue151.99
Net Profit149.21
Basic EPS1.17

Latest Share Price: Shree Global Tradefin Limited

Source: www.google.com

#5. Syncom Formulations (India) Limited:-

  • The company is completely engaged in the pharmaceutical sector.
  • The company was established in the year 1995 and is already ISO 9001-2008 certified.
  • The company mainly manufactures vials, capsules, tablets, orals, eye drops, ear drops, ampoules, dry powders, creams, etc.
  • The company distributes in India and abroad as well.
  • It has also met the WHO-GMP standards.
Revenue231.66
Net Profit19.79
Basic EPS0.26

Latest Share Price: Syncom Formulations (India) Limited

Source: www.google.com

#6. IL & FS Investment Managers Limited:-

  • The company was established in 1986.
  • The company is a subsidiary of Infrastructure Leasing and Financial Services (IL & FS).
  • The company is one of the largest and oldest private equity fund management companies.
Revenue24.34
Net Profit12.50
Basic EPS0.40

Latest Share Price: IL & FS Investment Managers Limited

Source: www.google.com

#7. Jaiprakash Power Ventures Limited:-

  • The company was established in 1994.
  • The company, operating in the power sector, is a part of the prestigious Jaypee group.
  • The company manufactures cement, fly ash, electrical energy, etc.
  • The company has around a 74% stake in Jaypee Powergrid Limited and also has another subsidiary called Jaypee Arunachal Power Limited.
Revenue4859.42
Net Profit108.49
Basic EPS0.10

Latest Share Price: Jaiprakash Power Ventures Limited

Source: www.google.com

#8. Prismx Global Ventures Limited:-

  • The company was previously known as Kamalakshi Finance Corporation Limited.
  • This institution offers financing activities.
  • The company has both private as well as corporate clients and offers them financial as well as strategic advisory services.
Revenue4.39
Net Profit(0.85)
Basic EPS(0.03)

Latest Share Price: Prismx Global Ventures Limited

Source: www.google.com

#9. Mangalam Industrial Finance Limited:-

  • The company was established in the year 1983 and has its headquarters in Kolkata.
  • This is a non-banking financial company (NBFC) and offers industrial finance to companies.
  • Initially, the company lent money to industries in order for them to purchase fixed assets.
  • Later, the company expanded and started offering housing finance facilities.
Revenue1.17
Net Profit1.34
Basic EPS0.01

Latest Share Price: Mangalam Industrial Finance Limited

Source: www.google.com

#10. JCT Limited:-

  • JCT Limited is one of the main flagship companies of the Thapar Group.
  • It is operating in the textile segment.
  • The company has already received ISO 9001 certificate.
  • The main product offerings of the company are cotton textiles, synthetic and blended textiles, nylon filament yarn, etc.
Revenue848.93
Net Profit9.63
Basic EPS0.11

Latest Share Price: JCT Limited

Source: www.google.com

Why are these Ultra-Penny stocks so cheap?

There are many reasons for the ultra-pennies’ stocks to be cheap.

The following are the main reasons:-

  1. There is no information available about the business prospectus of the company and there is no foreseeable growth in the revenue.
  2. Many companies don’t provide the estimates.
  3. Most of these stocks don’t bear a long-term investment view.
  4. Bullish or long-term traders won’t add such stocks to their list as they yield short-term returns.
  5. Stock operators will quickly offload their holdings of such stocks after having a reasonable profit and then again bring the price down.
  6. These stocks are highly illiquid.

How do pick up the best stocks to buy below RS 10?

The following are considered to be the main factors for stock picking:-

1. Don’t fall for stock recommendations:-

Don’t blindly buy when it’s simply recommended by your friends, any trader you follow, or any random stock market website. Without any trustworthy information, don’t just invest.

2. Back yourself up with extensive research:

Don’t invest in any ultra-penny stocks. Please do enough background research on the fundamentals as well as the financials of the stocks you wish to invest in.

3. Check for possible future dilution:-

To raise more capital, these companies will offer new shares, and the new shares would result in the dilution of the ownership of the existing shareholders. This will also result in a fall in the share price.

4. Prepare yourself to face the inherent risk:-

Ultra-penny stocks tend to catch lower circuits very easily and are also considered very risky. Please prepare yourself for the worst before investing.

Conclusion:

We hope that the above list provides you with the best investment in such stocks and happy investments.

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Author

Prashant Raut is a successful professional stock market trader. He is an expert in understanding and analyzing technical charts. With his 8 years of experience and expertise, he delivers webinars on stock market concepts. He also bags the ‘Golden Book of World Record’ for having the highest number of people attending his webinar on share trading.