Tiny Stocks, Mighty Gains: Top 8 Penny Stocks

With low prices and high volatility, penny stocks present you with high-risk yet high-reward opportunities. They enable you to purchase a large amount of shares due to low rates, but they are considered risky in nature.
In this blog, we have curated the list of 8 penny stocks in India that have the potential for attractive returns to investors.

Disclaimer alert: Don’t forget to do your research before investing!!

8 Penny Stocks to Keep an Eye On In India

Now, let's have a look at the buzzing penny stocks in today’s time -

1. Yes Bank

While Yes Bank went through turbulent times after facing a major financial crisis in 2020, it has undergone significant restructuring.

The digital banking expansion of Yes Bank and strategic partnerships has shown promising growth in its retail customer base. Although the Yes Bank share price has been volatile, its turnaround story and potential to re-establish itself makes it a penny stock to watch. The company has witnessed a 21.54% and 74.39% growth in its revenue and net profit in FY2024.

2. Reliance Power

Over the years, Reliance Power has experienced ups and downs, facing debt and operational challenges. However, it has been focusing on debt restructuring and expanding its renewable energy portfolio in recent years.

Its policies correspond to the increasing demand for green energy solutions in India. The company is also exploring the potential to expand in the solar and wind energy sectors. In the last year, the stock has increased by 97%.

3. Vodafone Idea

The $1 billion (₹8,400 crore) cloud and AI partnership between Vodafone and Google has transformed its infrastructure. Besides, the company is planning to roll out 5G commercial services across all 17 priority circles in India by March 2025.

Along with these factors, the support for the telecom sector from the Indian government has provided Vodafone Idea with some breathing space to tackle its debt. Its share price has increased by 100%+ in the last 5 years.

4. UCO Bank

This public sector bank has shown resilience in recent years, strengthening its digital offerings and improving its financial position. As the government pushes for financial inclusion and support for the banking sector, UCO Bank is attracting investors as a low-cost stock. It has delivered a return of around 217% in the last 3 years and 230%+ in the last 5 years.

UCO Bank has proactively reduced its NPAs (Non-Performing Assets) and expanded its loan portfolio to cater to rural and underserved markets. Its strategic position as a PSU bank and continuous efforts in digital expansion position it as a valuable penny stock.

5. Infibeam Avenues

Infibeam Avenues operates in the digital payments and eCommerce infrastructure sector. It offers prominent payment platforms like CCAvenue. The company has been significantly investing in fintech solutions, a sector that has been revolutionising India’s digital economy.

The company has also signed a MoU with the Gujarat government for a proposed investment of ₹2,000 crore in its AI hub at Gift City by 2030. Its stock has increased by 39% in the last year.

6. RTN Power

RTN Power, aka RattanIndia Power Ltd., is a lesser-known player in the renewable energy sector. It focuses on wind energy and other green projects. With a massive growth of more than 750% in the last five years, this penny stock holds potential for investors.

The government's push for renewable energy sources and green initiatives can further strengthen the company's growth trajectory.

7. Alok Industries

Now a part of Reliance Industries, which holds a 40.01% stake, Alok Industries is involved in textiles. Although the company was facing financial hardships, the backing from RIL has enabled it to scale its textile production in line with the ‘Make in India’ initiative.

Alok Industries has taken advantage of government policies supporting domestic manufacturing and export promotion. Over the last three years, its stock has risen by 1,000%+.

8. Shree Renuka Sugars

Currently, Shree Renuka Sugars is one of the largest sugar refiners and a key player in the production of ethanol. It is one of the popular penny stocks in India. Now that the government is backing the policy to blend ethanol in fuel, the growth potential of this penny stock is something to keep an eye on.

Shree Renuka has invested in expanding its ethanol production as the demand for biofuels keeps increasing. It has also witnessed a revenue growth of 26.28% in FY2023-24.

Conclusion

While penny stocks may seem like small players, their growth potential and small entry price make them lucrative investment opportunities to capitalise on. As an investor, assess your risk tolerance before you include these stocks in your portfolio.

*Disclaimer: The stocks, companies, and policies discussed above aren't recommendations from Finology Insider but guest content and shall not be construed as a replacement for professional advice. Consult a professional or conduct the necessary research before making investment decisions.