Investing in the stock market can be an exciting journey, especially when exploring shares under Rs. 20. These low-priced stocks, often called penny stocks, offer unique opportunities and challenges for investors. Let’s delve into the world of shares under Rs.20, understand what are penny stocks, and consider the potential of small-cap stocks in your investment portfolio.
What Are Penny Stocks?
Penny stocks are typically shares of small companies that trade at low prices, often below ₹20. These stocks are usually characterized by low market capitalization and limited liquidity. Due to their low price, they can appeal to investors looking to invest a small amount of capital with the hope of significant returns.
Investing in penny or small-cap stocks can be beneficial because these companies often have the potential for growth and expansion. Since they are less established than large-cap companies, they may offer higher growth prospects, leading to substantial returns for investors.
Here is a list of stocks under Rs.20 that have recorded good revenue growth in the December 2024 quarter.
- Yes Bank
- PC Jeweller Ltd.
- Easy Trip Planners Ltd.
- Hathway Cable & Datacom Ltd.
- Jaiprakash Power Ventures Ltd.
- SEPC Ltd.
Yes Bank
Yes Bank, headquartered in Mumbai, is a private-sector bank offering various financial products and services to retail, MSME, and corporate clients across India. With over 1,000 branches and ATMs, the bank has undergone a significant turnaround in recent years.
However, Yes Bank’s journey has been marked by financial challenges. The Bank’s risky loans, especially for struggling infrastructure projects, caused a spike in bad loans. Combined with poor management and hiding the true extent of these bad loans, the bank ran out of cash and struggled to find investors. This led to a crisis and major changes. Despite these hurdles, Yes Bank is now focused on sustainable growth and digital innovation, aiming to regain its position as a leading player in the Indian banking sector.
| Market Cap in crore (as of 11-2-25) | CMP | High | PE Ratio | ROCE % | ROE % | 3 Yr Return % |
| ₹56,811 | ₹18.11 | ₹29.8 | 26.2 | 5.81 | 3.11 | 9 |
The bank’s total income for the quarter ending December 2024 was Rs. 7,833 crore, marking a 12% increase from Rs. 6,989 crore in the same quarter last year. The quarterly profit stood at Rs. 619 crore, reflecting a substantial 154% surge compared to Rs. 243 crore recorded in the corresponding period of the previous year.
PC Jeweller Ltd.
PC Jeweller Ltd. is an Indian jewelry retailer with a strong presence across the country. Founded in 2005, it offers a wide range of gold, diamond, and silver jewelry. The company focuses on large format stores and aims to provide high-quality, hallmarked products. PC Jeweller has expanded to over 80 showrooms in India.
Despite offering a diverse range of high-quality gold, diamond, and silver jewelry, PC Jeweller has faced significant hurdles. Profitability issues, high debt, and the impact of volatile gold prices and evolving consumer preferences have hampered consistent growth and profitability in the competitive jewelry market. However, the company has overcome these challenges and recently announced a substantial revenue increase.
| Market Cap in crore (as of 11-2-25) | CMP | High | PE Ratio | ROCE % | ROE % | 3 Yr Return % |
| ₹7329 | ₹13.6 | ₹19.6 | ₹20.3 | -1.74 | -19 | 75 |
For the quarter ending December 2024, the company recorded a revenue of Rs. 639 crore, representing a staggering 1,497% surge from Rs. 40 crore in the same quarter last year. The quarterly profit reached Rs. 148 crore, a significant turnaround from the Rs. 198 crore loss reported in the corresponding period of the previous year.
Easy Trip Planners Ltd.
Easy Trip Planners Ltd., operating as EaseMyTrip, is a leading online travel company offering flight tickets, hotel bookings, and holiday packages. Established in 2008, it gained popularity with its zero convenience fee model, attracting budget-conscious travelers.
However, the company has faced challenges such as intense competition from global travel giants, fluctuating travel demand, and operational disruptions due to the COVID-19 pandemic.
To overcome these hurdles, EaseMyTrip diversified its services, expanded into international markets, strengthened its digital infrastructure, and adopted cost-effective strategies. Its agile approach, strong customer focus, and strategic partnerships have helped it sustain growth and thrive in the competitive travel industry.
| Market Cap in crore (as of 11-2-25) | CMP | High | PE Ratio | ROCE % | ROE % | 3 Yr Return % |
| ₹4317 | ₹12.2 | ₹25.9 | ₹24.5 | 43.4 | 31.9 | -13 |
For the year ending March 2024, the company recorded a revenue of Rs. 482 crore, reflecting a 12% rise from Rs. 430 crore in March 2023. However, year-on-year profit declined by 19%, with FY24 profit at Rs. 119 crore compared to Rs. 147 crore in FY23.
Hathway Cable and Datacom Ltd.
Hathway Cable and Datacom Ltd. is a leading Indian cable television and broadband service provider. It was the first company to offer internet over cable in India. Hathway provides cable TV services and high-speed broadband to homes and businesses. It is a subsidiary of Reliance Industries.
The company faced challenges such as intense competition, declining cable TV subscriptions due to OTT platforms, regulatory changes, and high infrastructure costs. To counter these issues, it expanded its broadband services, upgraded its network for faster speeds, and leveraged Reliance Industries’ backing to enhance financial stability.
Strategic partnerships, cost optimizations, and a focus on fiber-based internet services have helped Hathway maintain its market presence and adapt to the evolving digital landscape.
| Market Cap in crore (as of 11-2-25) | CMP | High | PE Ratio | ROCE % | ROE % | 3 Yr Return % |
| ₹2588 | ₹14.6 | ₹25.8 | ₹27.8 | 2.29 | 1.58 | -12 |
For the quarter ending December 2024, the company reported a revenue of Rs. 511 crore, registering a modest 1.2% increase from Rs. 505 crore in the same quarter of the previous year. However, profit declined by 36%, standing at Rs. 14 crore for the recent quarter compared to Rs. 22 crore in the same quarter the previous year.
Jaiprakash Power Ventures Ltd.
Jaiprakash Power Ventures Limited (JP Power) is a power generation company that is part of the Jaypee Group. It’s involved in developing, operating, and maintaining power projects, primarily hydroelectric and thermal power plants. JP Power has a significant presence in India’s power sector.
Despite its strong presence in the power sector, JP Power has faced challenges such as high debt, regulatory hurdles, and fluctuating coal supply. Economic downturns and project delays also impacted its financial stability. However, the company overcame these obstacles through strategic debt restructuring, operational efficiency improvements, and asset monetization. JP Power continues to strengthen its position in India’s power sector by optimizing resources and focusing on sustainable energy solutions.
| Market Cap in crore (as of 12-2-25) | CMP | High | PE Ratio | ROCE % | ROE % | 3 Yr Return % |
| ₹9533 | ₹13.9 | ₹23.8 | ₹6.18 | 14.0 | 12.8 | 19 |
In the quarter ending December 2024, the company reported a revenue of Rs. 1,140 crore, reflecting a 48% decline from Rs. 2,190 crore in the same period the previous year. Profit also dropped by 26%, reaching Rs. 127 crore compared to Rs. 173 crore in the corresponding quarter last year.
SEPC Ltd.
SEPC Ltd. (formerly Shriram EPC) is a construction and engineering company. It undertakes projects in various sectors, including water, infrastructure, and energy. SEPC provides engineering, procurement, and construction services.
Despite its expertise, the company has faced financial struggles, including mounting debt, liquidity constraints, and delays in project execution. These challenges affected its growth and operational efficiency.
To overcome them, SEPC implemented a comprehensive restructuring plan, renegotiated debt terms, streamlined operations, and secured new project contracts. By focusing on financial discipline and operational improvements, the company has worked towards stabilizing its finances and sustaining growth in a competitive market.
| Market Cap in crore (as of 12-2-25) | CMP | High | PE Ratio | ROCE % | ROE % | 3 Yr Return % |
| ₹2425 | ₹15.5 | ₹33.5 | ₹107 | 4.71 | 1.98 | 20 |
For FY24, the company recorded a revenue of Rs. 561 crore, marking a significant 48% increase from Rs. 379 crore in the previous year. Profit also rose to Rs. 23 crore, reflecting a turnaround from the Rs. 5 crore loss reported in FY23.
Risks Associated with Low-Priced Shares
While the potential rewards can be enticing, it’s crucial to recognize the risks involved in investing in low-priced shares:
- Volatility: Penny stocks can be highly volatile, with prices subject to rapid fluctuations.
- Liquidity Issues: Limited trading volumes can make buying or selling shares challenging without impacting the stock price.
- Lack of Information: Smaller companies may not provide the same level of financial disclosure as larger firms, making it harder to assess their actual value.
Tips for Investing in Shares Under ₹20
If you’re considering investing in low-priced shares, here are some tips to keep in mind:
- Conduct Thorough Research: Investigate the company’s financial health, business model, and industry position.
- Diversify Your Portfolio: Avoid putting all your funds into a single penny stock; instead, spread your investments across multiple opportunities to mitigate risk.
- Consult a Stock Investment Advisor: Seeking advice from a professional can provide valuable insights and help you make informed decisions.
- Be Prepared for Volatility: Understand that price swings are common with penny stocks, and be ready to hold your investments through turbulent periods.
- Set Realistic Expectations: While the prospect of returns from multibagger penny stocks can be tempting, it’s crucial to maintain realistic expectations, as not all will generate substantial gains.
Conclusion
Investing in shares under ₹20 might offer good opportunities, especially when exploring small-cap stocks with the potential to become multibaggers. However, it’s essential to approach these investments with caution.
Conduct thorough research and consider consulting a stock investment advisor to navigate the complexities of the market. By understanding the risks and implementing sound investment strategies, you can make informed decisions that align with your financial goals.
FAQs
What are penny stocks?
Penny stocks are shares of small companies that trade at very low prices, often below ₹20. They are highly speculative and volatile, offering the potential for high returns and carrying significant risks.
Why invest in stocks under ₹20?
These stocks can attract investors with a high-risk tolerance seeking substantial returns with a small investment. They can offer diversification and the potential for multi-bagger gains if the company performs well.
What are the risks of investing in penny stocks?
Penny stocks are highly volatile, meaning their prices can fluctuate dramatically. Many small companies are financially unstable, and a lack of liquidity can make buying or selling shares difficult.
How do I choose good stocks under ₹20?
Thorough research is crucial. Look into the company’s financials, business model, and prospects. Consider industry trends and consult financial advisors before investing. Don’t rely solely on tips.
Where can I find information about these companies?
Company websites, financial news platforms, and regulatory filings (like those with the Securities and Exchange Board of India – SEBI) are good starting points. However, information on smaller companies can be limited.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
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I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
love to write on equity investing, retirement, managing money, and more.
