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Best Penny Stocks to Buy 2023 in India

Expert investors like Warren Buffet are widely recognized for generating returns of 30% on average, but what sets them apart is that they have done so for more than 50 years.

However, some stocks have also produced multiple returns in a short amount of time. Consider IKAB Securities and Investments, whose stock rose from Rs39 to Rs930 and provided returns of up to 2460% when it reached its peak.

One fantasizes about adding stocks like these to his or her portfolio. However, a segment of the stock market known as penny stocks is dedicated to only these securities where such fantastic returns are occasionally possible.

What are the Best Penny Stocks in India?

Penny stocks are those that are traded on the stock market at meager prices. Some speculate that stocks with a price below Rs50 can be categorized as penny stocks. Penny stocks have low market capitalization values and are largely illiquid.

Since traders often choose to prognosticate in penny stocks due to investors’ lack of knowledge about a penny stock’s fundamentals, this can result in high volatility levels. Penny stocks, however, have the potential to produce enormous returns for their investors despite the increased risks.

1. Vodafone Idea (Vi)

At around Rs9.75, Vi’s ongoing trade price is the lowest at Rs7.75. Without considering the name of this company the list of best penny stocks to buy for 2023 in India would be incomplete. Its price increased by 12% last month and has generated an 80% return in the last 3 years.

Although the Vodafone share price has seen negative returns due to concerns about the potential rise in losses, it is anticipated that the best stocks to buy for beginners’ prospects will improve if the government approves the transformation of Vi’s AGR-related amount due to shares.

2. Suzlon Energy

The second member of the list of best penny stocks to buy for 2023 in India is Suzlon Energy. Suzlon Energy has provided its clients with a comprehensive package of solutions for various projects related to wind energy.

The 52-week high and low share prices are below Rs5.90. This stock has gained 21% over the last month. The price of Suzlon shares has increased by more than 40% in the last year. Over the past three years, Suzlon has generated returns of about 190%.

3. Alok Industries

The Third member of the list of best penny stocks to buy for 2023 in India is Alok industries. India’s largest completely integrated textile company is another penny stock to purchase. Cotton and polyester are their areas of expertise.

At the moment, Alok Industries costs Rs20.30. The share price of Alok Industries reached a 52-week high of INR. 35.80. This multi-bagger stock has produced an outstanding return of much more than 745% over the last three years. In the previous month, the share price of Alok Industries increased by almost 4%.

4. Indian Overseas Bank

The fourth member of the list of best penny stocks to buy for 2023 in India. More than 96% of shares of IOB are under the Government of India. The stock price of IOB increased more than 9% last month and over 14 % in the last 3 months.

5. Hemang Resources

The Fifth member of the list of best penny stocks to buy for 2023 in India is Hemang Resources.  This coal trader, who is based in Chennai, was initially incorporated as an NBFC.

Hemang Resources has indeed been involved in the coal and infrastructure industries since 2015 when its certificate was revoked. Hemang Stock Price return of 2023 alone defeated the gravity at 1,264%. The share price of Hemang has increased by more than 930% in the last year.

Factors to Consider while Finding Penny Stocks to Buy in India in 2023

Many penny stocks can provide you with a higher return but it comes along with greater risk. To avoid such high risk, you must consider a few points before investing.

1. Penny Stocks to Buy in India in 2023  should be Diversified

Almost all the penny stocks are inconsistent and meager. Therefore, you should think about the diversification of penny stocks. Or you can say, start deciding your investment amount that will be invested toward the highest risky penny stocks.

2. Cheap Prices

Based on their pricing and fundamentals, eliminate penny stocks. To reduce losses and increase your chances of making a capital gain, you should invest in penny stocks valued in their lower ranges.

Conclusion

The list of the top penny stocks to purchase in India provided above is illustrative and by no means complete. Your portfolio shouldn’t be centered on penny stock investments. Rather, you shouldn’t devote more than 2 to 3 percent of your holdings to such risky stocks.

Read More: Strategy for Currency Trading

Best Penny Stocks to Buy 2023 in India – FAQs

What are penny stocks?

Ans. Penny stocks are those stocks that are traded in the stock market at the lowest prices. They possess low market capitalization value.

What are the top penny stocks in India?

Ans. Top Penney stocks in India are Indian Overseas Bank, Alok industries, and  VI.

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