Welcome to our guide on the best share prices under 5rs! Investing doesn’t always require a hefty budget. Whether you’re a beginner or a seasoned investor on a tight budget, we’ll help you uncover promising stocks that can be purchased for under 5rs.
In this article, we will explore the realm of penny stocks priced under ₹5 and highlight some of the best options for potential investors. It’s crucial to remember that investing in best penny stocks under 5rs requires thorough research, careful analysis, and a diversified portfolio approach.
The stocks mentioned here are not recommendations but rather a starting point for conducting your own due diligence.
In this post, I have carefully curated a list of the finest penny shares priced below 5, offering a lower risk profile and a reasonable valuation.
Numerous penny stocks investors intending to hold them for 5 to 10 years, as they present an opportunity to generate a substantial return on investment
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What are Penny Stocks?
Penny stocks are stocks that are traded at very low prices on the stock exchange, typically below Rs. 50 in India. These stocks are often considered highly speculative due to their low liquidity and market capitalization values.
As a result, investors may not have much information about the underlying fundamentals of these stocks. Penny stocks are frequently traded by speculators who seek to take advantage of their high volatility levels, which can lead to significant gains but also pose significant risks.
Despite their risks, penny stocks have the potential to generate massive returns for investors who are willing to take on the associated risks. Penny stocks can offer high volatility and potential profits, but they also come with high risks.
Best share price under 5 Rs
1. Bhandari Hosiery Exports Ltd.
Bhandari Hosiery Exports Ltd. is a manufacturer and exporter of knitted garments based in Ludhiana, Punjab, India. The company was incorporated in 1991 and has since grown to become a leading player in the Indian garment industry.
Bhandari Hosiery Exports Ltd. specializes in the manufacture of a wide range of knitted garments such as t-shirts, polo shirts, sweatshirts, hoodies, and leggings, among others.
The company caters to both domestic and international markets, exporting its products to countries such as the USA, Canada, Europe, and the Middle East.
Market Performance:
The company’s total revenue and earnings for the year ending on March 31, 2022 were Rs 283.44 Cr and Rs 6.27 Cr, respectively, on a standalone basis.
Additionally, for the last quarter ending on December 31, 2022, Bhandari Hosiery reported an income of Rs 55.90 Cr and a profit of Rs 1.77 Cr.
The share price of Bhandari Hosiery reached a 52-week high of Rs 7.50 and a 52-week low of Rs 3.65.
Some key metrics for Bhandari Hosiery include a PE Ratio of 10.10, Earning per share of 0.47, Price/Sales ratio of 0.38, and Price to Book ratio of 0.85.
Within the Apparels sector, Bhandari Hosiery holds a market cap rank of 29 and has a market capitalization of Rs 69.60 Cr.
2. Anjani Finance Ltd
Anjani Finance Ltd is a Non-Banking Financial Company (NBFC) based in India. The company provides a range of financial services to individuals, small and medium-sized businesses, and corporate clients. Anjani Finance was incorporated in 1994 and is headquartered in Hyderabad, Telangana. The company’s services include loans, insurance, and investment solutions.
It offers loans for various purposes such as home loans, personal loans, business loans, and loans against property.
Anjani Finance also provides insurance products such as life insurance, health insurance, and motor insurance.
The company’s investment solutions include mutual funds, fixed deposits, and other investment options.
Market Performance:
Anjani Finance’s key metrics include a PE Ratio of 3.26, Earning per share of 2.32, Price/Sales ratio of 6.13, and Price to Book ratio of 0.38.
Anjani Finance has a market capitalization of Rs 7.65 Cr and holds a market cap rank of 335 within the Financial Services sector.
For the year ending on March 31, 2022, Anjani Finance’s total revenue and earnings on a consolidated basis were Rs 1.40 Cr and Rs -0.89 Cr, respectively.
However, for the last quarter ending on December 31, 2022, Anjani Finance reported an income of Rs 2.30 Cr and a profit of Rs 3.00 Cr.
3. Gyscoal Alloys Limited
Gyscoal Alloys Limited is an Indian company engaged in the manufacturing and trading of ferro alloys and stainless steel products. The company was incorporated in 1999 and is headquartered in Mumbai, India.
Gyscoal Alloys produces a range of ferro alloys, including ferro chrome, ferro manganese, and silico manganese, which are used in the production of stainless steel and other alloy steels.
The company also manufactures stainless steel products such as stainless-steel billets, hot rolled stainless steel coils, and cold rolled stainless steel coils.
Market Performance:
For the year ending on March 31, 2022, Gyscoal Alloys reported total revenue of Rs 22.92 Cr and earnings of Rs -5.63 Cr on a consolidated basis.
In the last quarter, ending on December 31, 2022, Gyscoal Alloys recorded an income of Rs 16.81 Cr and a profit of Rs 2.21 Cr.
The 52-week high of Gyscoal Alloys share is Rs 4.42, and the 52-week low is Rs 2.02.
4. National Steel & Agro Industries Ltd
National Steel & Agro Industries Ltd (NSAIL) is an Indian company engaged in the production and trading of iron and steel products, and agro-based commodities. The company was incorporated in 1984 and is headquartered in Raipur, India.
NSAIL’s iron and steel products include sponge iron, billets, TMT bars, wire rods, and pig iron, which are used in various industries such as construction, engineering, and automotive.
The company’s agro-based commodities include rice, wheat, soybean meal, and other agricultural products.
Market Performance:
As of 21 Apr, 2023, 03:40 PM IST, the National Steel share price was Rs 3.95, which represented a decline of 4.82% from the previous share price of Rs 4.
Over the past month, the National Steel share price has risen by 27.42%, while over the past three months, it has fallen by 8.14%.
Looking back over the past 12 months, National Steel’s share price has risen by 3.95%, and over the past three years, it has risen by 219.23%.
The 52-week high of National Steel share price is Rs 7.10 and the 52-week low is Rs 1.05. The total revenue and earnings for National Steel on a standalone basis for the year ending 2022-03-31 was Rs 817.39 Cr and Rs -214.89 Cr respectively.
In the last quarter, i.e., 2022-12-31, National Steel reported an income of Rs 166.00 Cr and a loss of Rs -20.51 Cr.
5. Sumeet Industries Ltd
Sumeet Industries Ltd is an Indian company engaged in the manufacturing and trading of textiles and chemicals. The company was incorporated in 1989 and is headquartered in Ahmedabad, India.
Sumeet Industries manufactures a range of textiles including yarns, fabrics, and home textiles, which are used in various industries such as apparel, home furnishings, and industrial applications.
The company also produces a variety of chemicals including dyes, intermediates, and specialty chemicals, which are used in the textile, leather, and other industries.
Market Performance:
As of 21 Apr, 2023, 03:41 PM IST, Sumeet Ind share price was Rs 3.20. It decreased by 4.48% compared to the previous share price of Rs 3.3. In the last 1 month, Sumeet Ind share price increased by 45.45%.
There is no dividend reported for Sumeet Industries.
On a consolidated basis, Sumeet Ind reported a total income of Rs 264.90 Cr and a loss of Rs -25.13 Cr for the quarter ending 2022-12-31. The total income and profit for the year ending 2022-03-31 were Rs 914.41 Cr and Rs 2.91 Cr, respectively.
Sumeet Ind share analysis :
PE ratio of -0.46
Price to Book ratio of -1.52
EPS (trailing 12 months) of Sumeet Ind share is -6.93. low
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FAQs
Que 1. What is the process of trading in penny stocks?
Ans. To trade in penny stocks, you need to open a demat account and trading account
Que 2. Can penny stocks generate good returns?
Ans. Investing in penny stocks does not guarantee phenomenal returns as these stocks generally have a low bid-ask spread and are not frequently traded, making them risky to invest in.
However, their volatility presents an opportunity for investors to experiment with stocks that have a low market capitalization and potentially make some returns.
Que 3. What are some alternatives to investing in penny stocks?
Ans. Mutual funds provide an alternative to investing in penny stocks. They are professionally managed and assist investors in creating a diversified portfolio across different asset classes, including shares, bonds, and money market instruments.
Que 4. Are penny stocks considered high-risk investments?
Ans. Penny stocks can be risky to invest in due to low liquidity, and some stocks may potentially get delisted resulting in losses.
Investors must conduct diligent research and invest their corpus in a diversified manner to hedge against potential risks.
Que 5. Which penny stocks are currently performing well in India?
Ans. The top penny stocks in India are highly volatile, and their ranking keeps changing quite erratically.
- union bank ,
- Vodafone Idea,
- Suzlon Energy, and
- Bank of Maharashtra ra
Que 6. What are some penny stocks that are considered safe to invest in?
Ans. The safest penny stocks to buy include stocks of companies that were once large-cap companies with a robust foundational parent group, willing to pay off debts and rectify issues related to the subsidiary stock. For example uco bank, union bank, vodaphone etc.
Que 7. How many penny stocks should be included in a portfolio?
Ans. Investment in any asset class, including penny stocks, should not typically exceed 5% to 10% of your financial portfolio to ensure diversified risk and offset unexpected losses by growth in another asset