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 Name||Stock Price|
|1||Vodafone Idea Limited||7.85|
|2||South Indian Bank Limited||7.45|
|3||Suzlon Energy limited||7.10|
|4||Shree Global Tradefin Limited||7.02|
|5||Syncom Formulations (India) Limited||6.44|
|6||IL & FS Investment Managers Limited||5.75|
|7||Jaiprakash Power Ventures Limited||5.45|
|8||Prismx Global Ventures Limited||5.00|
|9||Mangalam Industrial Finance Limited||3.93|
#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.
Latest Share Price: Vodafone Idea LimitedSource: 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.
Latest Share Price: South Indian Bank LimitedSource: 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.
Latest Share Price: Suzlon Energy LimitedSource: 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.
Latest Share Price: Shree Global Tradefin LimitedSource: 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.
Latest Share Price: Syncom Formulations (India) LimitedSource: 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.
Latest Share Price: IL & FS Investment Managers LimitedSource: 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.
Latest Share Price: Jaiprakash Power Ventures LimitedSource: 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.
Latest Share Price: Prismx Global Ventures LimitedSource: 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.
Latest Share Price: Mangalam Industrial Finance LimitedSource: 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.
Latest Share Price: JCT LimitedSource: 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:-
- There is no information available about the business prospectus of the company and there is no foreseeable growth in the revenue.
- Many companies don’t provide the estimates.
- Most of these stocks don’t bear a long-term investment view.
- Bullish or long-term traders won’t add such stocks to their list as they yield short-term returns.
- Stock operators will quickly offload their holdings of such stocks after having a reasonable profit and then again bring the price down.
- 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.
We hope that the above list provides you with the best investment in such stocks and happy investments.
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