Top Stocks Under Rs 10: A few decades ago, very few people would invest in the stock market. When they did, they would receive share certificates as a symbol of ownership. Demat accounts weren’t in existence and they would lose track of their investments. Years later their children or grandchildren find these certificates.
They find that the shares that their grandparents had bought at throwaway prices years ago are worth a lot currently. So much, so that their lifestyles can change drastically. Such is the power of forgetting!
In this article, we shall look at top stocks under Rs 10. Further, we shall know what penny stocks are, how they can give us multi-bagger returns, and things that we should keep in mind while buying them.
What are penny stocks?
Penny stocks are stocks that trade at meager prices. They are stocks that trade below Rs 10, in the Indian context. Most investors stay away from them because the information regarding their fundamentals isn’t readily available, or is unreliable. However, these stocks tend to generate multi-bagger returns in certain time frames.
These stocks are highly speculative in nature. They are risky because of their lack of liquidity, a smaller number of shareholders, large bid-ask spreads, and limited disclosure of information.
In fact, they are prone to pump-and-dump schemes. However, they have the potential to generate multi-bagger returns when they are spotted at the right time.
Top Stocks under Rs 10
Let’s take a look at the top stocks under Rs 10. We shall sort them on the basis of their market capitalization.
| Sl. No | Company | CMP (Rs) | Market Capitalization (Rs Cr) |
|---|---|---|---|
| 1 | Vodafone Idea | 7.33 | 23,500 |
| 2 | Suzlon Energy | 9.97 | 12,500 |
| 3 | JP Power Ven. | 7.24 | 5,000 |
| 4 | JP Associates | 9.88 | 2,500 |
| 5 | Rattanindia Pow. | 3.86 | 2,000 |
| 6 | GTL Infra. | 1.18 | 1,500 |
| 7 | Sh. Global Trad. | 6.37 | 1,100 |
| 8 | Mishtann Foods | 8.9 | 900 |
| 9 | Syncom Formulations (India) | 8.41 | 790 |
| 10 | Vikas Lifecare | 4.53 | 650 |
Below we will talk in detail about the five top stocks under Rs 10 as per their market capitalisation.
Top Stocks Under Rs 10 #1 – Vodafone Idea Limited
Vodafone Idea Limited is one of India’s leading telecom service providers. It is a partnership between the Aditya Birla Group and the Vodafone Group. The company has a revenue market share of approximately 15.9% and is the third largest wireless operator by subscribers in India.
It provides pan-India voice and data services across 2G, 3G, and 4G platforms. It took part in the recent 5G spectrum auctions. However, it is losing subscribers to Reliance Jio as well as Bharti Airtel.
The company has a large spectrum portfolio and is developing infrastructure to introduce newer and smarter technologies.
This will enable it to make both retail and enterprise customers future ready with innovative offerings, conveniently accessible through an ecosystem of digital channels as well as an extensive on-ground presence.
Top stocks under Rs 10 #2 – Suzlon Energy
Suzlon energy manufactures wind turbine generators (WTGs) and related components of various capacities. It is the pioneer and market leader of wind energy in India.
It focuses on the manufacturing & OMS (operations and maintenance services) of wind turbine generators. The company has installed over 19.3 GW of wind energy in 17 countries across six continents.
The renewable energy solution provider’s major plants in India are located at Daman, Vadodara, Chakan, Chopadava, Coimbatore & Jaisalmer. Its diverse client portfolio includes power utilities and electricity producers in both the private and public sectors.
Top stocks under Rs 10 #3 – Jaiprakash Power Ventures Ltd
Jaiprakash Power Ventures Ltd generates hydropower and thermal power. Further, it is engaged in cement grinding; captive coal mining, and transmission of power. It owns and operates a 400MW Vishnuprayag Hydro Electric Plant in District Chamoli, Uttarakhand.
In addition, it operates the Nigrie Super Thermal Power Plant at Nigrie, Singrauli district, Madhya Pradesh, and a 500 MW Jaypee Bina Thermal Power Plant at Sirchopt village, Sagar district, Madhya Pradesh.
The company’s cement grinding unit in Madhya Pradesh has a capacity of two metric tonnes per annum (MTPA). Further, it has a 660 MW Thermal Power Plant through Prayagraj Power Generation Company Limited, which is a subsidiary of the company, at Bara, Allahabad District.
Top Stocks under Rs 10 #4 – IFCI Limited
IFCI Ltd is a non-banking finance company in the public sector. It was established as a statutory corporation in 1998. Currently, it has six subsidiaries and one associate under its fold. IFCI provides financial support for the diversified growth of industries across the spectrum.
They include airports, roads, telecom, power, real estate, manufacturing, services sector, and other allied industries.
Adani Mundra Ports, GMR Goa International Airport, Salasar Highways, NRSS Transmission, and Raichur Power Corporation, are a few projects that were set up with IFCI’s financial assistance.
It has played a pivotal role in setting up various market intermediaries of repute in several niche areas like stock exchanges, entrepreneurship development organizations, consultancy organizations, and educational and skill development institutes across India.
Top stocks under Rs 10 #5 – RattanIndia Power Ltd
RattanIndia Power Limited is one of India’s largest private power generation companies. It has an installed capacity of 2,700 MW thermal power plants at Amravati and Nashik (1,350 MW at each location) in Maharashtra, India. It was a part of the Indiabulls group and was carved out in 2014.
The company has a total investment of ₹ 18615 crores. Its installed capacity can produce 23.6 billion units of electricity per annum.
The company has been servicing its debt successfully over the past five years. It has paid ₹ 1,219 crores(including principal and interest) from January 2020 till March 2021, including a pre-payment of 200 Crores.
Top Stocks under Rs 10 #6 – Mishtann Foods
Founded in 1981, Mishtann Foods was initially engaged in the business of manufacturing cement. However, the company saw ownership and business change over the years. As of today, it is a small company involved in the production and trading of rice, wheat, salt, and other FMCG products.
It primarily earns its revenues from the sale of packaged premium basmati rice. The company is headquartered in Ahmedabad, Gujarat, and owns an automated processing rice plant with a capacity of 45 metric tonnes per hour.
The HORECA segment (hotels, restaurants, and cafes) bright 80-85% of the total income.
As part of its diversification efforts, the company is foraying into the production of grain-based ethanol with an estimated project cost of Rs 2,250 crore.
Key Metrics
| Company | Vodafone Idea | Suzlon Energy | Jaiprakash Power Ventures | Mishtann Foods | RattanIndia Power |
|---|---|---|---|---|---|
| Face Value (₹) | 10 | 2 | 7.27 | 10 | 10 |
| EPS (₹) | -9.20 | 1.91 | 0.62 | 0.43 | -2.99 |
| RoE (%) | - | - | 1.64 | 36.7 | - |
| Debt to Equity | -3.08 | - | 0.45 | 0.33 | -4.32 |
| Current Ratio | 0.24 | 1.31 | 1.35 | 2.81 | 0.17 |
| Market Cap (Cr) | 23,500 | 12,000 | 5,00 | 900 | 2,100 |
| Promoter’s Holdings (%) | 75 | 14.5 | 3.10 | 49.8 | 44.1 |
| Dividend Yield (%) | - | - | - | 0.04 | - |
| Stock P/E (TTM) | - | - | 11.8 | 21 | - |
| Net Profit Margin (%) | -73.33 | -0.9 | 2.32 | 6.30 | -47.4 |
Things to keep in mind before buying stocks under Rs 10
Investors should be very careful while evaluating whether they want to invest in these stocks or not. New investors who do not have a portfolio approach think that they are getting to buy stocks at a beaten-down price.
They think that they will not lose too much if the share price drops further, and make multi-bagger returns when the share price goes up. However, it is possible that they might lose 100 per cent of their capital while investing in these stocks.
Though these stocks can be highly rewarding, they involve a very high amount of risk. Experts say that investors can use about 2% to 3% of their portfolio’s value to invest in such stocks.
In Closing
In this article, we’ve mentioned the top stocks under Rs 10 on the basis of market capitalization, but that is just the beginning. It is important to check the key metrics and the future prospects of companies before investing in them. We hope that this article helped you. Happy Investing until next time.
Stocks under Rs 10 might help new investors to make investments, however, they should be bought after going through the fundamentals of a company thoroughly.
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