Investing in best stocks under ₹1 can be an exciting opportunity for investors looking for high returns with minimal capital. Investing in stocks priced below ₹1 might seem like a dream opportunity—where else can you buy thousands of shares with just a small investment? But the real question is: Are these penny stocks a hidden gem or just a speculative gamble? While ultra-low-priced stocks can deliver massive gains if chosen wisely, they also come with high volatility, limited liquidity, and significant risks.
Many of these companies are in financial distress, but some have strong fundamentals and could turn into multi-baggers over time. In this article, we’ll dive deep into the world of sub-₹1 stocks, analyzing their growth potential, risks, and how to pick the right ones. Whether you’re a new investor exploring cheap stocks or an experienced trader looking for high-risk, high-reward opportunities, this guide will help you navigate the market smartly.
Overview of Contents
Best Stocks Under ₹1 In India
| Stock Name | Market Cap (₹ Cr) | 1-Year Return (%) |
|---|---|---|
| Excel Realty N Infra Ltd | 111.44 | +33.33 |
| Srestha Finvest Ltd | 95.12 | -0.97 |
| Alstone Textiles (India) Ltd | 389.04 | -17.11 |
| Future Consumer Ltd | 103.85 | -40 |
| MPS Infotecnics Ltd | 124.56 | -40 |
| GV Films Ltd | 110.01 | -40.66 |
| Avance Technologies Ltd | 130.81 | -59.26 |
| Standard Capital Markets Ltd | 121.1 | -75.47 |
| Sunshine Capital Ltd | 439.25 | -76.24 |
| Filatex Fashions Ltd | 408.37 | -84.67 |
Overview of the Best Penny Stocks Under ₹1
Investing in penny stocks under ₹1 can be highly rewarding but comes with significant risks. These stocks often belong to small-cap companies with volatile price movements.
1. Excel Realty N Infra Ltd
Incorporated in 2003, Excel Realty N Infra Ltd (formerly known as Excel Infoways Limited) is engaged in infrastructure development, IT-enabled BPO services, and general trading activities. The company provides customer care services and assists clients in managing their workflow. However, in FY23, no revenue was generated from its IT & BPO segment. Its revenue sources include general trading (₹5.2 Cr.) and infrastructure activities (₹1.23 Cr.). The company has also undertaken various infra projects, including collaborations with M/s Siliconn Infracon Private Limited for agriculture land development and Arshiya International Ltd for stormwater drain construction.
Despite being almost debt-free and trading at 0.66 times its book value, the company has struggled with poor sales growth (-24.6% over five years) and low return on equity (-1.10% over the last three years). It also faces concerns regarding high debtor days (758 days) and a declining promoter holding (-31.7% over the last three years).
| Metric | Value |
|---|---|
| Market Cap | ₹116 Cr. |
| Stock P/E | 41.6 |
| Book Value | ₹1.23 |
| ROCE (Return on Capital Employed) | 0.68% |
| ROE (Return on Equity) | 0.56% |
| Face Value | ₹1.00 |
| Dividend Yield | 0.00% |
CAGR
| Time Period | Stock CAGR (%) |
|---|---|
| 10 Years | 6% |
| 5 Years | 68% |
| 3 Years | 16% |
| 1 Year | 62% |
2. Srestha Finvest Ltd
Srestha Finvest Ltd, incorporated in 1985, is engaged in providing loans, finance, and investment services. It is registered as a Category B Non-Systematically Important Non-Deposit Taking NBFC – Investment and Credit Company. The company primarily lends money against securities, movable and immovable properties, and provides hire purchase and leasing services. It is also involved in trading and investing in shares.
Under its Wholesale Lending Business, Srestha Finvest offers credit solutions for various financial needs such as initial project funding, mezzanine financing, acquisition financing, project financing, bridge financing, promoter funding, and both short- and long-term working capital requirements. The company caters to both corporate and individual clients. Additionally, it has an equity market division, which involves investment and trading in stocks and shares for both strategic and trade purposes.
In FY22, an outstanding loan claim of ₹8.91 Cr (including interest) was made by a creditor, and the company is currently exploring legal options regarding this claim. On October 27, 2022, the company approved the allotment of 24.75 Cr fully convertible warrants with a face value of ₹2 each on a preferential basis.
There have also been key management changes in recent years. M/s J.V. Ramanujam & Co resigned as statutory auditors and were replaced by M/s Darpan & Associates on March 17, 2023. Additionally, on October 17, 2022, Sunil Bhandari resigned as CEO and was designated as Whole-time Director cum CFO of the company.
| Time Period | Stock CAGR (%) |
|---|---|
| 10 Years | - |
| 5 Years | -30% |
| 3 Years | -14% |
| 1 Year | 2% |