Best Penny Stocks Under 5 Rs

Best penny stocks under ₹5 are low-priced small-cap stocks that may have high growth potential but come with higher risk.

Penny Stocks Under ₹5 List

Monday, 10 March, 2025

symbol Company ticker slug Sector Market Price 52W High 52W Low Market Cap (Cr.) PE Ratio Industry PE PB Ratio Div. Yield (%) ROE (%) 1YReturns 3YReturns 5YReturns Market Cap Label Industry Group Industry Sub Industry percentageChange
AMRA Amraworld Agrico Ltd AMRAAGRI /stocks/amraworld-agrico-AMRA Commodities Trading 1.11 1.69 0.83 13.35 31.05 40.47 1.18 0.00 3.87 9.90 -37.29 270.00 Smallcap Financial Services Trading Companies & Distributors Investment Banking & Brokerage -1.80
ASHC Ashirwad Capital Ltd ASHCAP /stocks/ashirwad-capital-ASHC Diversified Financials 4.42 6.53 3.21 39.78 25.66 16.47 2.10 0.00 9.63 18.39 31.20 288.48 Smallcap Financial Services Diversified Financial Services Asset Management & Custody Banks 2.26
MONO Monotype India Ltd MONOT /stocks/monotype-india-MONO Diversified Financials 0.76 2.42 0.54 53.44 5.78 16.47 -3.76 0.00 0.00 -8.43 130.30 300.00 Smallcap Financial Services Diversified Financial Services Investment Banking & Brokerage -1.32
PMC Pmc Fincorp Ltd PMCFIN /stocks/pmc-fincorp-PMC Diversified Financials 2.49 5.25 1.89 177.31 15.64 16.47 1.54 0.00 10.38 2.02 -48.24 835.21 Smallcap Financial Services Diversified Financial Services Diversified Financial Services -4.02
RIDH Ridhi Synthetics Ltd RIDHISYN /stocks/ridhi-synthetics-RIDH Real Estate 4.11 4.11 4.11 0.49 0.33 53.42 0.01 0.00 2.99 0.00 4.85 15.13 Smallcap null Real Estate null 0.00
SEV Seven Hill Industries Ltd SEVENHILL /stocks/seven-hill-industries-SEV Diversified Financials 0.80 1.39 0.66 10.40 3.26 16.47 1.17 0.00 43.91 1.27 40.35 166.67 Smallcap Financial Services Diversified Financial Services Diversified Financial Services -1.25
SUNTE Biogen Pharmachem Industries Ltd BIOGEN /stocks/sun-techno-overseas-SUNTE Biotechnology 1.02 1.76 0.92 66.57 34.49 47.25 1.18 0.00 3.47 -9.73 -30.61 436.84 Smallcap Utilities Biotechnology Independent Power Producers & Energy Traders 0.00

Disclaimer

Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. 

Note: The data in this list of stocks below Rs 5 in NSE is dynamic and subject to real-time changes. This data is derived from Tickertape Stock Screener and is based on Net Profit Margin.

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Best Penny Stocks Under 5 Rs

Have you ever considered investing in the penny stock market but felt deterred by the high costs? Penny stocks under 5 Rs might be your gateway to start small while dreaming big. These low cost stocks, often called penny stocks, can offer surprising returns. However, they come with their own set of risks due to their volatility. This leads to an intriguing question: “What are the best penny stocks in India in 2025 under 5 rupees?” To help you navigate this, let’s delve into the list of top penny stocks below 5 rupees, as well as their features and benefits.

What are Stocks under Rs. 5?

Fundamentally strong penny stocks under 5 Rs are attractive for their affordability and potential for high returns but come with significant risks due to their high volatility and lower market capitalisation. Investors often seek out debt free penny stocks under 5 rupees for their potential stability and multibagger stocks below 5 rupees for exponential growth opportunities. These shares, with a 5Rs share price, are often the first step for new investors exploring the stock market.

How to Invest in Penny Stocks in India?

Investing in penny stocks India is similar to purchasing any other stock on the stock exchange. Here’s how you can start:

  1. Open a demat/trading/stockbroker account. You can open a demat account with smallcase!
  2. Conduct thorough research into the top stocks under 5 Rs that are of interest to you. Investors can use tools like the Tickertape Stocks Screener to do this. The screener offers 200+ built-in filters to choose from, and investors can choose the parameters to research and generate different penny stock lists with penny stock prices to compare.
  3. Place a ‘Buy’ Order on the top penny stocks of your choosing.

Features of Penny Stocks Below 5 Rupees (India)

  • Low Market Capitalisation: Below 5 Rs shares often belong to companies with a small market capitalisation. These companies might be new or less established in their industries. However, they are often seen as the best penny stocks in India for investors seeking high growth potential.
  • High Volatility: Even the best penny stocks below 5 rupees, including debt free penny stocks under 5 Rupees, can experience significant price fluctuations. This volatility may result in substantial gains or losses over a short period. It makes new penny stocks both enticing and risky.
  • Limited Liquidity: The list of top penny stocks under 5 Rs in India often have lower trading volumes. It makes it harder to buy or sell large quantities without impacting the stock price.
  • Potential for Growth: Some penny shares in India below 5 rupees might belong to companies with growth potential, especially in emerging sectors or niche markets. Investors will be looking at multibagger penny stocks to watch for 2025 in these sectors, hoping to find the next big success story among the most promising penny stocks under 5 Rs.
  • Higher Risk: The affordability and potential high returns come with increased risk. Companies issuing NSE-listed penny stocks below 5 Rs may have weaker financials, less transparency, and higher chances of business failure.

Benefits of Investing in Penny Stocks in India Below Rs. 5

Investing in penny stocks below Rs 5 offers several benefits despite the risks. Here’s a concise overview:

  • Low Capital Requirement: Penny stocks on NSE require minimal investment. For investors looking for Penny shares in India with limited capital, it enables portfolio diversification without large sums.
  • Quick Gains: Due to their volatility, shares with 5 rs share price can experience rapid price movements, offering opportunities for quick profits. This makes them some of the top penny stocks for short-term investors.
  • Access to Emerging Sectors: Penny stocks, including agriculture penny stocks below 5 rupees, often represent companies in growing sectors, providing exposure to potentially lucrative industries. 
  • Learning Experience: Investing in the best penny stocks in India under 5 Rs offers valuable lessons about market dynamics, risk management, and strategies for selecting penny stocks on NSE.

How To Choose Penny Stock Under 5 Rupees?

  • Strong Fundamentals: Use the Tickertape Stocks Screener to research a penny stocks list with solid financials, including positive revenue, manageable debt, and profitability.
  • Growth Potential: Focus on penny stocks under 5 Rs that operate in emerging industries with future growth opportunities.
  • Management Quality: Evaluate the company’s management team and their ability to execute business strategies effectively.
  • Business Model: Assess the company’s overall business model and long-term sustainability to minimise risk for stocks with a share price under 5 Rs.

Factors to Consider Before Investing in Stocks Less Than 5 Rs

  • Company Financial Health: Evaluate the financial stability, revenue, and debt levels of penny stocks in India before investing. 
  • Market Sentiment: Monitor penny stock news, market trends and investor sentiment, as these impact low-priced stocks’ price volatility.
  • Management Quality: Assess the management team and their strategy, which can influence the prospects of companies on the best under 5 rupees share list.
  • Sector Performance: Research stocks in high-potential sectors. The list of top penny stocks belong to industries with strong growth trajectories, providing more secure options.
  • Diversification: Spread investments across different sectors to manage the higher risk of low price shares under ₹5.

To Wrap It Up…

Investing in penny stocks below Rs 5 can be an exciting opportunity for those willing to explore high-risk, high-reward segments of the stock market. The most promising penny stocks, while volatile, may hold the potential for significant returns if chosen carefully. The top 10 shares under 5 rs may offer a bit more stability compared to those with higher debt levels.

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Frequently Asked Questions About Penny Stocks Below Rs 5

Why do penny stocks under Rs 5 have low valuations?

Penny stocks with a 5 Rs share price often have low valuations due to limited market participation, low trading volumes, and lack of investor interest. They can also fluctuate based on news and may not meet regulatory standards.

How can I start investing in penny stocks under Rs 5?

To start investing in the top 5 shares under 5 Rs in India, you may start by selecting a broker. You can start a Demat account with smallcase to access these stocks. Once you have chosen your stocks after conducting research, place a buy request through your broker’s platform.

Is it possible to use margin trading for stocks priced under ₹5?

Yes, margin trading can be used for shares under ₹5, but it’s highly risky. Given the volatility and low liquidity of penny stocks, using margin can amplify both gains and losses, making it a high-risk strategy.

Which is the best share under 5 Rs? 

Researching the top 100 penny stocks under 5 rupees may help you identify potential opportunities, but it’s crucial to assess the financial health and market risks of each stock.

What are the top 5 penny stocks under 5 Rs?

Finding the top 5 penny stocks under 5 Rs involves careful research due to their high risk. You can explore stocks like those in the below rs 5 shares list based on Return on Investment (as of 28th February, 2025):

 

– Melstar Information Technologies Ltd
– Pressure Sensitive Systems (India) Ltd
– Franklin Industries Ltd
– Gujarat Toolroom Ltd
– Skil Infrastructure Ltd

 

Note: This list is for educational purposed and not recommendatory in nature. It is recommended to always review the share price of the best stocks under 5 Rs and their financial performance before considering any investment.

What are the risks associated with penny stocks under 5 Rs?

While choosing any penny stock under 5, be aware that they carry high risks due to their volatility and low liquidity. Additionally, these companies often have uncertain financial health, making them more vulnerable to market downturns.