Best Penny Stocks Under 10 Rupees: Investing in penny stocks below Rs 10 carries high risk as well as high return potential. These stocks at low prices offer portfolio diversification opportunities, which can be attractive to investors. Although penny stocks have low market capitalization and trading volume, it is possible to earn significant profits with proper research and strategic investment. It is very important to analyze the financial condition of the company market conditions and future growth prospects before investing. One can easily start investing in these stocks by opening a demat account which allows investors to buy stocks at low prices and benefit from market fluctuations.
Risks and Considerations of Investing in Penny Stocks
High Risk: Penny stocks are high risk because they are more likely to be delisted from exchanges and they also have a risk of bankruptcy. Sometimes these companies have unproven business models and have limited track records, which increases the risk for investors.
Low Liquidity: Penny stocks can be difficult to buy and sell quickly due to low trading activity. Because of this, it can be difficult to exit an investment when needed.
Limited Information: Reliable information about penny stocks can be difficult to obtain. Many companies are not required to file detailed financial statements with the Securities and Exchange Board of India (SEBI), which makes it difficult to analyze their financial health.
High Volatility: Penny stocks can have rapid price fluctuations, which can cause large losses for investors. This volatility makes them risky, as there is a possibility of losing significant money in a short period of time.
Investment Considerations
Management Team: It is important to evaluate the experience and qualifications of the company’s management team. A strong track record and experienced leadership can help reduce investment risk.
Financial Performance: Evaluate the company’s financial health by reviewing its balance sheet and income statement. This will give you an idea of the company’s stability and future prospects.
Industry Trends: Analyze the trends in the industry the company operates in. A growing industry can increase the potential for future growth, while investing in a declining industry can increase risk.
Investment Time Frame: Penny stocks are generally suitable for long-term investments. They are not ideal for short-term investments, as the potential for quick gains is low.
Risk Tolerance: Invest only money you can afford to lose. Penny stocks are a high-risk investment and there is a possibility of losing money completely.
Best Penny Stocks Under 10 Rupees
Stock Name | CMP (₹) | MCAP (₹ Cr.) | P/E | Net profit (₹ Cr.) |
Spright Agro Ltd | ₹ 9.95 | ₹ 1,066 | 43.5 | ₹ 24.5 |
Sarveshwar Foods | ₹ 8.42 | ₹ 824 | 40.6 | ₹ 20.3 |
Mishtann Foods | ₹ 7.39 | ₹ 796 | 2.19 | ₹ 365 |
GVK Power & Infrastructure | ₹ 4.61 | ₹ 728 | 22.0 | ₹ 596 |
Evexia Lifecare | ₹ 3.49 | ₹ 655 | 177 | ₹ 3.71 |
Davangere Sugar Company | ₹ 6.20 | ₹ 583 | 43.1 | ₹ 13.6 |
Spacenet Enterprises India | ₹ 8.49 | ₹ 479 | 42.8 | ₹ 11.5 |
1. Spright Agro
Sprite Agro Limited is a company established in 1994, which is dedicated to the development of agriculture and forestry based industries. The company cultivates and produces various agricultural crops, horticultural crops, greenhouses, net houses, medicinal and aromatic plants on its own farms and leased lands. They operate as manufacturers, importers, exporters, wholesalers and retailers.
The company currently has a market capitalization of ₹ 1,066 crore and its current share price is ₹ 9.95. The company maintains a strong financial position with 38.6% ROCE and 35.7% ROE. However, there may be some concerns among investors due to the absence of promoter holdings and the non-payment of dividends. Nevertheless, it can be a promising investment in the long term, given the growing demand for the company’s agricultural products.
2. Sarveshwar Foods
Sarveshwar Foods Limited is a company established in 2004, which specializes in processing and marketing of Basmati and non-Basmati rice. It is a part of Sarveshwar Group and is based in Jammu and Kashmir. The company supplies branded and unbranded rice to the domestic and international markets. The current market capitalization is ₹ 824 crore, and its share price is ₹ 8.42. As per the latest financial report, the company has annual sales of ₹ 981 crore and net profit of ₹ 20.3 crore. The company exhibits 11.8% ROCE and 7.95% ROE. Although the promoters’ holding is 52.4%, the company has not yet started paying dividends. This could be a potential investment given the company’s business strategy and regional advantages.
3. Mishtann Foods
Mishtanna Foods Limited is a company established in 1981, which specializes in processing and manufacturing of rice, wheat and other food products. The company offers products under various brands including Snowflake, Pristino, Jasper, and Rozana for different customer segments. It has also ventured into value-added products such as salt, rock salt, wheat, and pulses.
The current market capitalization is ₹ 796 crore and the current share price is ₹ 7.39. Mishtanna Foods Limited exhibits 88.7% ROCE and 98.7% ROE, indicating strong financial performance of the company. Annual sales are ₹ 1,393 crore and net profit is ₹ 365 crore. Although the promoters hold 43.5%, the dividend yield is only 0.01%, indicating further growth opportunities for investors. The company’s diverse brand portfolio and financial performance make it a promising investment.
4. GVK Power & Infrastructure
GVK Power & Infrastructure Limited is an Indian company that operates, maintains and consults power plants, airports and various infrastructure projects. The company is primarily engaged in power generation, airport operations and other infrastructure related businesses.
GVK Power & Infrastructure Limited currently has a market capitalization of ₹ 728 crore and a current share price of ₹ 4.61. The highest and lowest prices of the last year were ₹ 17.0 and ₹ 4.21. The stock has a P/E of 22.0 and a promoter holding of 54.2%. The annual sales are ₹ 818 crore and the net profit is ₹ 596 crore, which is an indication of the financial stability of the company.
Although the company’s book value is ₹ -2.99, which may indicate financial challenges, its 14.8% ROCE proves that it is able to generate a decent return on its assets. The dividend yield is 0.00%, which may be less attractive to investors, but the long-term plans of the company’s management and growth potential may attract investors.
5. Evexia Lifecare
Evexia Lifecare Limited, founded in 1990, is an Indian company that operates in the chemicals, agricultural products and other consumer goods business. The company manufactures petrochemical downstream products such as specialty oils, specialty chemicals, petroleum sulphates and solvents for use in various industries. Its products are useful for the rubber, leather, ink and paint industries.
Evexia Lifecare Limited currently has a market capitalization of ₹ 655 crore and a current share price of ₹ 3.49. The highest and lowest prices of the last year were ₹ 4.40 and ₹ 1.94. The stock price/book value is around ₹ 177 and ₹ 2.37. The company’s dividend yield is 0.00%, ROCE is 0.30%, and ROE is 1.26%. The promoter holding is 5.87%, which indicates a low confidence for the company’s shareholders.
The company has annual sales of ₹ 80.8 crore and a net profit of ₹ 3.71 crore. Evexia Lifecare Limited’s financial performance is at a moderate level, which can improve according to the company’s future plans and market strategy.
6. Davangere Sugar Company
Davangere Sugar Company Limited, established in 1970, is engaged in the business of sugar production from sugarcane and co-generation of power. It was established in association with Karnataka Agro Industries Corporation Limited and other partners and is currently a part of the Shamanur Group.
The company currently has a market capitalization of ₹ 583 crore, and the current price of the share is ₹ 6.20. The highest and lowest prices of the last year were ₹ 11.5 and ₹ 4.98. The stock price/book value is ₹ 43.1, and the book value is ₹ 3.64. The company has a dividend yield of 0.00%, ROCE of 6.86%, and ROE of 3.75%. The promoter holding is 54.3%, which reflects the strong confidence of the promoters in the company.
Davangere Sugar Company Limited has annual sales of ₹ 222 crore and a net profit of ₹ 13.6 crore. The company is expanding their business through sugar, ethanol, and electricity production, which indicates their financial stability and growth potential.
7. Spacenet Enterprises India
Spacenet Enterprises Limited, established in 2010, is a FinTech company that specializes in trading, trade finance, empowering traders, SME and MSME trade channels and developing software tools and platforms. The company is engaged in providing information technology related services and trading products.
Currently, Spacenet has a market capitalization of ₹ 479 crore and a current share price of ₹ 8.49. The highest and lowest price of the last year were ₹ 39.4 and ₹ 7.32. The stock P/E is 42.8, book value is ₹ 2.49 and dividend yield is 0.00%. The company has a ROCE and ROE of 13.2% both, indicating a substantial return on investment. The promoter holding is 15.7%, reflecting the confidence of the founders.
The company has achieved annual sales of ₹ 157 crore and a net profit of ₹ 11.5 crore. Their services and products in the FinTech sector have strengthened their position to meet the market demand.
Why Invest Best Penny Stocks Under 10 Rupees
The reasons to consider investing in penny stocks under Rs 10 in 2025 are significant. Firstly, penny stocks have the potential to be multi-baggers, through which early investors can earn high returns. Investors can benefit from the potential for share price appreciation due to the opportunity to buy at low prices. Investors in penny stocks under Rs 10 in the Indian market seek high growth opportunities at low prices.
However, there are some risks associated with penny stocks, such as low liquidity, which can lead to large price swings. Nevertheless, the main advantage of investing in penny stocks under Rs 10 is the potential for quick and large returns. Some penny stocks have shown significant growth in the past, making them an attractive opportunity for investors. In short, while investing in penny stocks under Rs 10 carries high risks, investors can earn large returns with the right research and strategy.
Disclaimer: This blog is posted solely for educational purposes. The securities mentioned are examples and not recommendations. It is based on various secondary sources from the internet and is subject to change. Please consult an expert before making any related decisions.