Is it wise to buy shares of below Rs. 1?

This is a pretty good question considering the upside seen in few of the stocks that have risen from somewhere near Rs. 1 to lifetime highs

These stocks can be best called as penny stocks

As of Dec 2022, the website lists the following stocks as penny stocks with potential to rise (this is not a recommendation)

The reason for interest in penny stocks

  1. High price movement on some positive news
  2. Chances of the company being taken over by a competitor or Investor for turn around
  3. Low-cost of acquisition for bulk shares

Sharing an example below of a penny stock that has crossed the Rs.10 threshold: Alok Industries

Having said this, it is important to understand

  • Stocks below 10 need to have a roadmap to debt reduction or profitability
  • Niche market linked product or service
  • Goodwill among the investing community

If these criterias are met, then one can consider the stocks < Rs. 10

Hope this helps

You can follow my blog or Facebook page on investing for getting insight into other stocks.

Happy Investing!!


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