“Best penny stocks” means low-priced stocks that are expected to do well and give investors high returns. However, investing in penny stocks can be very risky due to their low trading volume, lack of information, and high volatility. Therefore, it’s important to carefully research and evaluate these stocks before investing, and investors should consider their own risk tolerance and investment goals.

Penny stocks are stocks of small companies that are listed on stock exchanges and typically have a price below Rs 10. People like to invest in penny stocks because they have the potential to make a lot of money quickly. You can even make a profit of up to Rs 500 if you invest only Rs 100.

However, penny stocks can be risky because they are not traded very much, which means that it can be hard to sell them when you want to. Some penny stocks may even go out of business or get removed from the stock exchange, which can lead to losses. So, it’s not guaranteed that you will make a lot of money from investing in penny stocks.

If you decide to invest in penny stocks, it’s important to do your research and not invest all your money into one stock. This will help you reduce the risks that come with investing in penny stocks and protect your money.

Best Penny Stocks To Buy –

1. Promact impex Ltd

CMP (Current Market Price) : INR 3.02

52-Week High : INR 4.85

52-Week Low : INR 2.60

Why We Chose It :

• Growth in Net Profit with increasing Profit Margin (QoQ)
• Strong Annual EPS Growth
• Growth in Quarterly Net Profit with increasing Profit Margin (YoY)
• In last quarter promoter increase their holding by 0.12%.
• Recent Results : Growth in Operating Profit with increase in operating margins (YoY)
• Company with Zero Promoter Pledge.

2. Advik Capital Ltd

CMP (Current Market Price) : INR 2.15

52-Week High : INR 5.16

52-Week Low : INR 2.0

Why We Chose It :

• Company with zero promoter pledge.
• Company with low debt.
• Company has delivered good profit growth of 149% CAGR over last 5 years.
• Company is in advance stage of financing an another Mega Infra Project Gohana Sonepat Highway, backed by NHAI, Government of India and other agencies in collaboration with other NBFCs, private and PSU Banks.

3. Tatia Global Venture Ltd

CMP (Current Market Price) : INR 1.15

52-Week High : INR 2.99

52-Week Low : INR 0.86

Why We Chose It :

• Company has reduced debt.
• Company is almost debt free.
• Stock is trading at 0.54 times its book value.
• Promoter holding has increased by 3.22% over last quarter.

4. Radhe Developers (india) Ltd.

CMP (Current Market Price) : INR 3.14

52-Week High : INR 16.5

52-Week Low : INR 2.77

Why We Chose It :

• Company with low debt.
• Promotor holdings increases
• Increasing promotor holdings every quarter for the past 3 quarters.

(Data as of June 1, 2023), Source: Google

Disclaimer : The securities quoted are exemplary and not recommendatory. Past performance is not indicative of future returns.

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Features of Penny Stocks

Penny stocks are stocks that are cheap and not traded very often. They don’t have a lot of information available about them because they are not well-known companies. However, because they are cheap, there is a chance they could make you a lot of money if they do well. Let’s understand these:

1. Low liquidity

Penny stocks are usually linked to small businesses and don’t get traded very often. This means that there are not many people who want to buy or sell them. So if you need to sell your penny stocks quickly, you might not be able to find someone to buy them right away.

2. Limited historical information

Many penny stock companies are new or struggling, so they might not have a good track record. It’s hard to predict how well they will do in the future because there isn’t much information available about their past performance.

3. High return potential

Penny stocks can go up or down in value very quickly, which means there is a chance to make a lot of money if you invest in the right ones. But this also means there is a higher risk of losing money compared to investing in more established companies.

4. Low cost

Penny stocks are called “penny” because they are usually priced at a few cents or dollars per share, which is much lower than the price of stocks from larger, well-known companies. This means you can buy a lot of shares for a relatively small amount of money, and if the stock price goes up, you can make a significant profit.

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Advantages of Putting Your Money in Penny Stocks

Pennystocks can be very unpredictable and change in value quickly, but they also have the potential to give you a lot of money back in a short amount of time. This is why many people like to invest in them. Even if you only invest a little bit of money, you could still see big profits if the stock price goes up.

1. Big profits for small investments

Buying a lot of penny stocks for a low price can lead to good profits if the stock price goes up. Most penny stocks are affected by news related to their industry, and if there is good news, the stock price can increase quickly, which can result in significant returns for investors.

2. A little bit of money can grow into a lot more

Most people who invest in penny stocks start with a small amount of money. For example, if someone had Rs.10,000 to invest, they might only be able to buy three or four shares of a well-known company’s stock. However, with the same amount of money, they could buy thousands of shares of a penny stock.

3. Quick profits

While not all penny stocks change in price quickly, the ones that do can have significant price changes in just a few days instead of over a longer period of time.

Risks of Investing in Penny Stocks

Sometimes, people who own penny stocks have trouble selling them because not many people want to buy them. Some people try to cheat by lying about the company’s success to make the stock price go up and then sell their shares before the truth comes out, which is called “pump and dump” and is illegal.

Disclaimer: The securities quoted are exemplary and not recommendatory.This is not an investment advisory. The blog is for information purposes only. Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, goal, time frame, risk and reward balance, and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs. Performance and returns of any investment portfolio can neither be predicted nor guaranteed.

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