Top Penny Stocks in India Top Penny Stocks in India

Top 10 Penny Stocks in India for 2023

The top penny stocks in India are often discussed in depth for various reasons. Some want to know why these shares have become penny stocks while others want to evaluate future prospects.  

Either way, if you’ve landed on this blog then you are curious to learn more about penny stocks in practice. We’ve compiled just the list for you. 

Fun Fact: The term “Penny” comes from the US currency denomination whose value is 1 cent or roughly $0.01. There was a time years ago when US shares were available for less than a dollar.

1. Indian Overseas Bank

Indian Overseas Bank was established 86 years ago. The public sector bank specializes in retail banking and operates more than 3000 branches across the country. 

Recently, IOB posted a profit of ₹650 crores in the last quarter of FY 22-23, up by 18% over the same period last year. The profits were driven primarily by interest income. 

  • Indian Overseas Bank share price: ₹23.80
  • Indian Overseas Bank market cap: ₹45,290 Cr
  • P/E ratio: 21.59
  • Dividend Yield: None

Banks are often evaluated by their Non-Performing Assets (NPAs) and IOB was able to reduce its NPAs from over 9% to 7.44%. NPAs are the bank being unable to recover loans and other debt.  

The interesting bit is the shareholding pattern. Promoters own the lion’s share in IOB. In fact, promoters’ shareholding stands at over 96% while DIIs & FIIs have less ownership than retail investors.  

2. Yes Bank

From its equity shares trading at a peak of close to ₹400, Yes Bank is now classified as a penny stock that trades at ₹15.55. Yes Bank began its operations in 2004 and became one of India’s leading banks in 2008.

  • Yes Bank share price: ₹15.55
  • Yes Bank market cap: ₹44,801 Cr
  • P/E ratio: 62.32
  • Dividend Yield: None

If you’re wondering why Yes Bank failed, it’s because of multiple factors like improper management, growing NPAs (primarily centered around bad loans to companies), and others. 

In the last quarter of FY22-23, Yes Bank posted a loss of ₹202.43 crores – down by 45% year on year but up by more than 4x from Q3 FY22-23. NPAs decreased to 2.17% from 13.93% year on year. 

3. Indian Railway Finance Corp

Indian Railway Finance Corporation or IRFC is a government-controlled financial institution. The Indian Railways needs financing for various needs. IRFC makes it possible.

The institution does so by borrowing money from the capital market. IRFC’s been active for 37 years and decided to go public in 2021 through its IPO.

  • Indian Railway Finance Corp share price: ₹33.85
  • Indian Railway Finance Corp market cap: ₹43,557 Cr
  • P/E ratio: 6.69
  • Dividend Yield: 4.20%

What makes this one of the best penny stocks is the fact that IRFC is a Public Sector Undertaking (PSU). Furthermore, the company posted a net profit of ₹1,633 crores in Q3 FY22-23.  

4. Vodafone Idea

Vodafone and Idea were separate entities until 2018 when the companies decided to merge. The combined stock traded close to ₹60 at one point in 2019 but has since fallen below ₹10.    

  • Vodafone Idea share price: ₹6.95
  • Vodafone Idea market cap: ₹33,978 Cr
  • P/E ratio: –
  • Dividend Yield: None

Vodafone Idea became a penny stock due to many reasons, including legal issues and dwindling profits. However, its market cap is still larger than the likes of Bank of India and Jubilant Foodworks. 

In Q3 FY22-23, Vodafone Idea posted a loss of ₹7,990 crores while losing more than 6 million subscribers, a key metric for telecom, during the same quarter. The company is expected to announce Q4 soon. 

5. Central Bank of India

The Central Bank of India is going to turn 112 years old in 2023. Although the word “central” appears in its name, the bank isn’t India’s central bank (it’s RBI). But it is a public sector bank. 

If you were to show this entry to someone from 2010, they wouldn’t believe you because the Central Bank of India wasn’t one of the best penny stocks back then. In fact, it wasn’t a penny stock at all.

  • Central Bank of India share price: ₹26.30
  • Central Bank of India market cap: ₹23,022 Cr
  • P/E Ratio: 14.39
  • Dividend Yield: None

Back in 2010, CENTRALBK was trading at over ₹185. However, inconsistent deposits, bad debt, dwindling interest rates, and regulatory hassle led to a drop in the price of CENTRALBK shares.

Not all’s doom and gloom though. The public bank recently announced its earnings for Q4 FY22-23. Net profit grew by 84% to ₹571 crores while net NPAs fell to 1.77%. 

6. Suzlon

Suzlon is a wind and solar energy company that was established in 1995. When speaking about Suzlon, it’s important to understand the journey of the company. 

The year is 2008. The iPhone 2 was released. India launched 10 satellites into orbit in a single launch. Suzlon was trading at over ₹400. How did Suzlon become a top penny stock in India then?

The 2008 financial crisis happened. Suzlon was building business in Europe and North America, both markets which collapsed as a result of the fall of Lehmann Brothers. 

This, coupled with other factors, led to ballooning debt and a loss of confidence in the stock. 

  • Suzlon share price: ₹10.10
  • Suzlon market cap: ₹11,417 Cr
  • P/E Ratio: –
  • Dividend Yield: None

A couple of restructuring exercises later, the company has bagged a large order for its wind turbines from Torrent Power. Suzlon’s consolidated net profit for Q3 FY22-23 grew ₹78.28 crores. 

7. Alok Industries 

Founded in 1986, Alok Industries manufactures textiles (cotton & polyester). The company went public in its earlier form in 1993 followed by a few integrations with its other businesses. 

  • Alok Industries share price: ₹12.90
  • Alok Industries market cap: ₹6,430 Cr

Alok Industries has lately traded as a top penny stock, with its price ranging from ₹10 to ₹50. In Q4 FY22-23, the company’s total revenue dropped to ₹1,569.72 crores while the loss stood at ₹297.55 crores.  

8. J & K Bank

Jammu & Kashmir Bank or J&K Bank was established in 1938. The financial institution has a diverse business ranging from corporate banking to loans & insurance. 

  • J & K Bank share price: ₹55.40
  • J & K Bank market cap: ₹5,335 Cr
  • P/E Ratio: 4.42
  • Dividend Yield: None

Much like most other top penny stocks in India, J&K Bank once traded in the ₹100s. The bank recently recorded a net profit of ₹1,197 crores in FY22-23 and an NPA of 6.04% (8-year low).

9. Reliance Power

Founded in 1995, the company engages in power generation and distribution. The Rpower story is quite famous. While filing its IPO in 2007, the company ran into several roadblocks. 

The IPO went ahead after a few rulings and Reliance Power became one of the biggest IPOs in India. Each Rpower share was issued at ₹405 to ₹450 and the IPO was oversubscribed. 

The initial troubles would be ominous for the future, especially if you consider the debut year of the stock – 2008. While the Lehmann Brothers hadn’t tanked yet, the markets were quite volatile. 

The crisis slowly began to unfurl in the US, its effect being felt around the globe. 

That combined with the fact that there were not enough retail participants in Rpower’s IPO, the stock tanked by close to 20% on its debut. Fast forward to 2023 and Rpower is a top penny stock.

  • Reliance Power share price: ₹12.40
  • Reliance Power market cap: ₹4,631 Cr
  • P/E Ratio: –
  • Dividend Yield: None

10. Infibeam Avenues

Infibeam Avenues was founded in 2007 and provides financial services from the realm of payments processing and others. The fintech company went public in 2016 and traded at ~₹228 in 2018.

  • Infibeam share price: ₹14.45
  • Infibeam market cap: ₹3,872 Cr
  • P/E Ratio: 30.00
  • Dividend Yield: 0.35%

But Infibeam Avenues’ share price crashed by 70% in a single day in 2018. Fast forward to 2023 and the company’s Q3 FY22-23 resulted in a net profit of 35.81 crores for the quarter, up by 4.45% YoY.


There you have it – the list of top penny stocks in India for 2023! Some of these penny stocks were once valued much higher but due to a string of economic and business factors, there’s been change. 

Bear in mind that penny stocks are often defined by a lack of liquidity, which means buyers may not find sellers and vice versa. Other than that, growth prospects may also be dim.

Thus, it’s best to analyze your risk profile, strategy, and goals before deciding what to do in the realm of penny stocks. Like this blog? Then you’ll love:

If you’re interested in evaluating top penny stocks, bonus stocks, and others, you must know how to read financial statements. Watch the following video to learn more!

Disclaimer: The stocks mentioned above are examples, not recommendations. Investing in the securities market carries risks. Please do your own due diligence before investing in any stock.