Best Stocks to Buy below Rs 10 in India – 2022

Last Updated – July 2022

Best Stocks to Buy below Rs 10 in India

In this article, we will cover,

– What is an ultra-penny stock
– Why do they trade so cheap
– Things to keep in mind while determining the best stocks to buy below 10 rupees
– A comprehensive list of the best stocks to buy under Rs 10
– A model watchlist comprising 4 to 5 best stocks to buy below 10 rupees
– Portfolio companies

Stocks that trade at extremely low prices fall in the category of ultra-penny stocks.

In the context of the Indian stock market, stocks that trade at prices below Rs10 fall in the category of ultra-penny stocks

Stocks to Buy below Rs 10 – What is an ultra-penny stock?

These stocks are lesser-known to larger investing public as investors remain away from them because the information regarding their fundamentals and businesses is either not reliable or not available. However, they are also known for multi-bagger returns within certain trading sessions.

As these stocks are illiquid sometimes only a few orders can lead to hitting the circuit limit on the exchange. These stocks mostly give higher returns when hitting circuits for a number of days. Though this period of hitting circuit is not accompanied with trading volumes, either there is some story moving around that stock or it might be a result of manipulation by some stock operators who artificially inflate the price and volumes to bring in innocent retail investors and then later offload their own holdings when participation increases.

Why do they trade so cheap?

Ultra-penny stocks trade at such low rates for a reason because the larger investing public doesn’t even care about them and look to exit sooner or later once they have given decent returns. They are often found non-compliant with exchange regulations and are not transparent. It is only when there is some news or turnaround event that ultra-penny stocks move. The speculation leads to an increase in trading volumes and prices soar. But very few of them turn out to be true or genuinely fundamentally stronger. Any negative news causes the price to turn south.

You can learn how to invest in best penny stocks from this episode of our show The Right Choices with Oracles of Dalal Street.

Things to keep in mind while determining the best stocks to buy below 10 Rupees

People who generally trade in ultra-penny stocks are the lower class of retail investors who do not keep a portfolio approach and invest in them based on news or tip from some friends, thinking the price is already beaten down too much and they will not lose much but if that turns out to be true it will double or triple their capital. However, investors should always keep in mind that they might be investing in small amounts but still they can lose 100 percent of their capital.

The risk an ultra-penny stock will go bust is equally high. The company can suddenly shut down or there can be very less probability for its going concern. The capital that deserves to be invested in ultra-penny or penny stocks should not be more than 2 to 3 percent of a person’s portfolio value.

List of Stocks Below 10 rupees – 2022

Best stocks to buy below 10 Rupees – Summary Table for 

Sr. No Company Name BSE Scrip Code NSE Symbol CMP (20July 2022) Rating Industry
1 Vodafone Idea 532822 IDEA 8.95 0.5
Telecom Services
2 SOUTH INDIAN BANK 532218 SOUTHBANK 8 0.5 Banks
3 Suzlon Energy 532667 SUZLON 6.45 0.5
Heavy Electrical Equipment
4 RattanIndia Power 533122 RTNPOWER 4.00 0.5 Electric Utilities
5 Jaiprakash Associates 532532 JPASSOCIAT 7.45 0.5
Construction & Engineering
6 RELIANCE POWER 532939 RPOWER 11.95 0.5 Electric Utilities
7 Hindustan Construction Company 500185 HCC 12.30 0.5
Construction & Engineering
8 Jaiprakash Power Ventures Limited 532627 JPPOWER 6.45 0.5 Electric Utilities
9 RELIANCE CAPITAL 500111 RELCAPITAL 12.25 0.5
Finance (including NBFCs)
10 GTL INFRASTRUCTURE 532775 GTLINFRA 1.40 0.5
Telecom Equipment
11 SINTEX INDUSTRIES 502742 SINTEX 3.95 0.5 Textiles
12 HCL INFOSYSTEMS 500179 HCL-INSYS 16.35 #N/A
Computer Hardware
13 DISH TV INDIA 532839 DISHTV 11.35 0.5
Broadcasting & Cable TV

Investors should also never follow a buy and hold approach even if they have got good returns recently. Because over a period of time neither they are able to generate value for shareholders nor follow a transparent reporting system. Investors should also research extensively about the stock and the news going on in the public domain and not become the victim of operators’ conspiracy, who later offload their holdings after manipulating the price.Investing in ultra-penny stocks is always on speculation. First of all, investors should avoid investing in them and if they buy any it should be treated as buying a lottery. You should never become emotionally attached to them in the hope of some good news.

The transaction cost for some ultra-penny stocks is also higher and on some the brokerage is charged on a per-share basis. Similarly, when stocks trade at a very low price, the spread between the bid and ask price also turns out to be significant in terms of percentage.

The stocks mentioned in the watchlist are keeping in mind news, speculation, bullish trend in their price chart and a few fundamental factors such as debt to equity ratio and cashflows. But this information will vary on a day to day basis depending on the news flow and an investor should make some relevant background checks in his capacity before investing in these stocks.

Dish TV India

Dish TV is India’s biggest and amongst the world’s largest direct-to-home (DTH) Company with a subscriber base of more than 29 million. The Company is part of the Essel Group. Dish TV has on its platform more than 655 channels & services including 40 audio channels and 70 HD channels & services. Dish TV leverages multiple satellite platforms including NSS-6 Asiasat-5 SES-8 GSAT-15 and ST-2 and has a bandwidth capacity of 1422 MHz the largest held by any DTH player in the country.

The Company has a vast distribution network of over 4000 distributors & around 400000 dealers that span across 9450 towns in the country. Dish TV is connected with its pan-India customer base through call-centres that are spread across 22 cities and are equipped to handle customer queries in 12 different languages. The company has a good debt to equity ratio of 0.19. The stock has been moving within a range of 3.8 to 15 for the last one year.

Sintex industries

Sintex Industries, also known as The Bharat Vijay Mills Ltd, is the world’s largest producer of plastic water tanks and Asia’s largest manufacturer of corduroy fabrics. Sintex operates in Europe, America, Africa, and Asia, especially in France, Germany, and the US. It primarily works with building material solutions, textile solutions and custom molding solutions.

Sintex manufactures plastic products such as prefabricated structures, industrial custom molding products, monolithic construction and water storage tanks. The company also makes men’s shirts. The company has a debt to equity ratio of below 1 and for almost the last two years the stock is consolidating within a range of 0.55 to 5.60.

Jaiprakash Power Ventures

Jaiprakash Power Ventures Limited is engaged in the generation of power, including hydro and thermal; cement grinding; captive coal mining, and transmission of power. The Company owns and operates a 400 megawatt Jaypee Vishnuprayag Hydro Electric Plant at District Chamoli, Uttarakhand; a 1,320 MW Jaypee 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 is engaged in operating Cement Grinding Unit, which has a capacity of two metric tons per annum (MTPA) at Nigrie, Singrauli district, Madhya Pradesh, and is also engaged in Captive coal mining operations at Amelia Coal Block for supply of Coal to Jaypee Nigrie Super Thermal Power Plant. Jaiprakash Power is operating a 660 MW Thermal Power Plant through Prayagraj Power Generation Company Limited, which is a subsidiary of the company, at Bara, Allahabad District.  The company has a good debt to equity ratio of 0.55 and for the last two years stock is moving in a range of 0.35 to 4.20.

Trident Ltd

Trident Limited is a leading manufacturer of Yarn Bath Linen Bed Linen Wheat Straw-based Paper Chemicals and Captive Power. The Company has state-of-the-art manufacturing facilities in Barnala (Punjab) and Budni (Madhya Pradesh). Trident has a strong clientele in 100 countries across the globe. The Company had two subsidiaries – Trident Global Corp Limited the Indian wholly owned subsidiary and Trident Europe Limited the overseas wholly owned subsidiary.

Trident Global Corp Limited majorly serves as the Retail Arm of the Company. It is the face of the Company in the domestic markets. Further Trident Europe Limited provides the proximity to the European Markets & enhances the Brand Presence of the Company. The company’s Yarn plant which produces both cotton and acrylic yarn is located at Sanghera Punjab. Its products are used in hosiery products, textiles fabrics etc. The company has an agreement with Sagatex International, UK, for marketing and exporting its cotton production upto 50%. The company has a good dividend yield of 2.61 percent and a good debt to equity ratio of 0.28. The broader trend for the stock is up and stock has been moving within a range of 3 to 16 since the last two years.

Vodafone Idea Ltd

Vodafone Idea Limited is an Aditya Birla Group and Vodafone Group partnership. It is India’s leading telecom service provider. It is the third largest wireless operator by subscribers in India with a Revenue Market Share of approximately 15.9% of the Indian mobile telecommunications services industry. The Company provides pan India Voice and Data services across 2G, 3G and 4G platforms. Competition from peers such as Reliance Jio and Airtel is a major blow to Vodafone’s business as it is losing subscribers slowly to them. Vodafone can be on a speculator’s radar, however, it is extremely risky and volumes should be closely observed before buying this stock.

Watch our video on how to analyse and pick stocks below Rs 10 for investments

Model ultra-penny Stocks Watchlist

If one wants to bring down the list to 4 to 5 stocks for closely tracking, then the below table is suitable for a beginner.

Sr. No Company Name BSE Scrip Code NSE Symbol CMP (Rs.) 3 June , 2021
1 Sintex Industries 502742 SINTEX 3.65
2 Jaiprakash Power Ventures 532627 JPPOWER 3.9
3 TRIDENT 521064 TRIDENT 16
4 Dish TV India 532839 DISHTV 15.2
5 Vodafone Idea 532822 IDEA 8.8

Best stocks below Rs 10 to buy now in India – Detailed overview

The table below covers some of the most important factors while evaluating Best stocks below Rs 10 such as the return ratios – RoE, operating margins, sales and earnings growth, market cap, etc.

Sr. No Company Name BSE Scrip Code NSE Symbol CMP Industry PE ratio Dividend Yield ROCE ROE Debt equity ratio 5 yr CAGR revenue (Rs.crores ) 5 yr CAGR PAT (Rs. crores )
1 Vodafone Idea 532822 IDEA 8.5 Telecom Services 0 -5.44 -132
2 SOUTH INDIAN BANK 532218 SOUTHBANK ₹ 10.0 Banks 34 0 5.23% 1.13% 16.4 5,557 333
3 SUZLON ENERGY 532667 SUZLON ₹ 5.90 Heavy Electrical Equipment 0 -47.20% 583
4 RattanIndia Power 533122 RTNPOWER 3.4 Electric Utilities 0 2.19% 133% -431
5 3I INFOTECH 532628 3IINFOTECH 8.95 IT Consulting & Software 60.7 0 4.85% 3.15% 0.73 -552
6 Jaiprakash Associates 532532 JPASSOCIAT 8.8 Construction & Engineering 1.08 0 -6.99% 68.00% -2,951
7 RELIANCE POWER 532939 RPOWER 9.5 Electric Utilities 11.7 0 8.08% 1.88% 1.68 895
8 Hindustan Construction Company 500185 HCC 10.6 Construction & Engineering 0 30.20% -450
9 Jaiprakash Power Ventures Limited 532627 JPPOWER 3.85 Electric Utilities 0 2.63% -31.80% 0.55 -255
10 RELIANCE CAPITAL 500111 RELCAPITAL ₹ 16.2 Finance (including NBFCs) 0 -31.90% 1,101
11 GTL INFRASTRUCTURE 532775 GTLINFRA 1.15 Telecom Equipment 0 -6.20% -315% -605
12 SINTEX INDUSTRIES 502742 SINTEX 3.8 Textiles 0 -5.96% -33.30% 0.68 629
13 HCL INFOSYSTEMS 500179 HCL-INSYS 11.4 Computer Hardware 0 0.47% -481% -214
14 TRIDENT 521064 TRIDENT 16.1 Textiles 25 2.24% 10.20% 10.30% 0.46 242
15 DISH TV INDIA 532839 DISHTV 15.2 Broadcasting & Cable TV 4.06 0 10.20% 5.81% 0.19 692

Our Collection of Best Stocks to Buy Other links you may find useful:

How to invest in Penny Stocks

59 Stocks below Rs.50 

List of Penny Stocks in BSE India

Our Collection of Best Stocks to Buy 

The Yes Bank Story

Suzlon Energy:-Should You Hold or Not?

You can check the live prices and trade India’s best large-cap stocks at the lowest brokerage with SAMCO, India’s leading discount brokerage. Open a Free Demat and Trading Account today!

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