Many new investors are drawn to the idea of buying penny stocks to buy — small companies trading at low prices, but with big dreams of multibagger returns.
But I learned the hard way that speculation without research leads to losses. Over 10 years, I lost over ₹52 lakh in Futures & Options trading — mostly due to chasing tips and trends without understanding fundamentals and technicals.
That’s why today, I focus on learning before leaping.
This article is not financial advice — it’s an educational guide on how to find promising penny stocks using simple filters and tools.
If you’re new to investing, this will help you understand what to look for — so you don’t repeat my mistakes.
How We Shortlisted Penny Stocks to Buy
We used data-driven filters to screen for companies showing early signs of momentum and reasonable fundamentals.
Here’s how we did it:
Criteria Used:
| Filter | Reason |
|---|---|
| Market Cap between ₹500–1,000 crore | To ensure they’re small but not too risky |
| P/E Ratio between 10–20 | Indicates fair valuation compared to earnings |
| Price Growth: Doubled Twice in 3 Years | Shows demand and interest from investors |
| Daily SMA 200 > SMA 300 | Technical sign of long-term positive movement |
These filters help eliminate noise and focus on companies with better-than-average potential.
Tool Used: ChartInk.com
All screening was done using the free screener tool at ChartInk.com — a powerful platform for DIY investors.
You can replicate our process by applying the same filters under their “Screening” section.
This helps you stay objective and avoid emotional decisions — something I lacked when I invested in F&O trading.
Which Is the Best Penny Stock to Buy?
One of the most searched queries related to penny stocks is:
Which is the best penny stock to buy?
The idea of “best” varies from person to person — there’s no one-size-fits-all answer.
However, based on our criteria:
- Chembond Chemicals (CHEMBOND) and Wanbury Limited (WANBURY) emerged as notable performers.
- Both have shown consistent price appreciation and decent P/E ratios.
- They also meet the technical condition of SMA 200 > SMA 300
If you’re looking for a starting point, these two may be worth deeper study.
But remember: Past stock performance doesn’t guarantee future gains. Always review quarterly results and grasp the company’s fundamentals before investing.
Are There Any ₹1 Shares Worth Buying?
Another popular question is:
Which 1 RS share is best?
While some shares trade below ₹10, many of them are either:
- In poor financial health
- Facing regulatory issues
- Lacking consistent revenue
- At risk of delisting
So yes — there are low-priced stocks, but very few are worth buying without careful research.
Instead of focusing on price alone, look for:
- Companies with improving balance sheets
- Rising revenues
- Strong promoters
- Consistent margins
Even better — start with ETFs or index funds if you’re just beginning your investment journey.
Which Penny Stock will Boom in 2025?
This is a common query among readers and There’s no guaranteed answer.
Still, based on our screening, here are three names that could show continued strength:
- CP Capital Limited (CPCAP)
- Mindteck (MINDTECK)
- Aditya Birla Money (BIRLAMONEY)
These companies have:
- Market cap within our range
- P/E ratio indicating fair pricing
- Price history showing past momentum
Whether they grow in 2025 depends on:
- Macroeconomic conditions
- Company-specific results
- Promoter activity
- Sector demand
Again — not a recommendation, just a heads-up on what’s currently visible through public data.
Top 10 Penny Stocks India
Here is a carefully selected list of stocks that align with our criteria as of April 2025.
| Sr. | Stock Name | Symbol | Current Price (₹) |
|---|---|---|---|
| 1 | Chembond Chemicals Ltd | CHEMBOND | 553.65 |
| 2 | Wanbury Limited | WANBURY | 240.61 |
| 3 | CP Capital Limited | CPCAP | 399.10 |
| 4 | Donear Industries Limited | DONEAR | 107.00 |
| 5 | 20 Microns Limited | 20MICRONS | 215.11 |
| 6 | Mindteck (India) Limited | MINDTECK | 201.52 |
| 7 | Prakash Pipes Ltd | PPL | 395.05 |
| 8 | Kothari Petrochemicals Limited | KOTHARIPET | 155.36 |
| 9 | Aditya Birla Money Limited | BIRLAMONEY | 145.37 |
| 10 | MMP Industries Ltd | MMP | 235.76 |
Note: This is not investment advice. Always do your own research or consult a certified advisor before making decisions.
Don’t just buy one stock — treat this list as a diversified group, like a single unit, to spread risk and support long-term growth through the power of compounding.
Understanding What Makes a Penny Stock Valuable
Let’s go deeper into what makes these stocks stand out.
Market Cap: Why It Matters
A market cap between ₹500–1,000 crore means the company isn’t too tiny to be volatile, nor too large to be overlooked.
It gives room for growth while still being under the radar.
P/E Ratio: Valuation Clarity
A P/E (price-to-earnings) ratio between 10–20 indicates a balanced valuation — not too cheap, not too expensive.
It shows the market hasn’t overly discounted or inflated the stock.
Price Movement: Momentum Counts
A stock that has doubled more than once in 3 years shows strong investor interest — even if temporarily.
It shows the stock is breaking free from a consistent downtrend.
Technical Indicators: SMA 200 vs SMA 300
Traders often interpret the 200-day moving average crossing above the 300-day average as a strong bullish signal, indicating potential upward momentum in a stock or market trend.
It suggests the trend is turning upward — though it’s not a guarantee.
What Could Have Been — The Cost of My Mistakes
Between 2009 and 2019, I lost over ₹52 lakh in speculative trading — roughly ₹43,000 every month. Add to that ₹8 lakh in interest from bank loans and a ₹15 lakh property fraud, and the total damage runs deep.
What I wish I’d known then: The power of patience, research, and compounding.
For example, if I had invested that ₹43,000/month in mutual funds at 16% CAGR, it would now be worth over ₹2.94 Crore.
If I had invested the ₹15 lakh in MF in 2012 instead of land, it would be worth ₹93.7 lakh today.
Instead of growing money, I lost it. Now, I write Paisagyaan.com to help others avoid repeating my costly errors. That’s because investing in yourself—and gaining knowledge before diving in—is the smartest move you can make.
Final Thoughts
Penny stocks can be tempting — especially when you hear stories of people doubling or tripling their money overnight. A low price doesn’t always mean it’s a smart buy. Yes, one thing can be done combining the Bluechip 45%, Midcap 35% and Smallcap 20% of total portfolio value for a better & safe returns.
The smartest investment you can make is in knowledge, not risky guesses.
FAQs
Q: Which is the best penny stock to buy now?
A: Based on current metrics, Chembond Chemicals (CHEMBOND) and Wanbury (WANBURY) appear stronger than others — but always check recent performance.
Q: Are there any ₹1 shares worth buying?
A: Very few. Most ultra-low priced shares lack liquidity or business clarity. Focus on quality, not price alone.
Q: Which penny stock will boom in 2025?
A: No one can predict the future. But companies like CP Capital (CPCAP) and Mindteck (MINDTECK) show signs of technical strength.
Q: Where can I find more penny stocks to buy?
A: Try platforms like MoneyControl Screener, Groww, or ChartInk.com to build your own list.
Q: Should beginners invest in penny stocks?
A: Beginners should proceed with caution. Start with broad-based index funds or ETFs before diving into individual stocks.
About the Author
I’m Om Prakash — founder of Paisagyaan.com, a blog focused on making financial knowledge simple, relatable, and useful for everyday Indians. My journey includes over 10 years of navigating the Indian stock market, learning the hard way about investments, debts and real estate.
Read About the Author in detail, who lost 75 lakh rupees during 2009 to 2019 which would be 4.5 crore now in 2025.
But here’s what those losses taught me: Financial knowledge matters — deeply, so you don’t repeat my mistakes. If you’re just starting out or have already faced setbacks, this blog is for you.
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