Best Penny Stocks to Invest in India in 2022

When you are a new investor, then the financial market can make you overwhelmed with its innumerable options. It is wise to start with the inexpensive option of a penny stock which may trade for less than Rs 10 in the Indian Stock market.

What exactly are penny stocks? Stocks that often trade at relatively cheaper prices, have low market capitalizations, are largely illiquid, and are listed in smaller exchanges on the stock market.

But due to these qualities such as little liquidity, lack of information availability, and a small number of shareholders, these penny stocks are risky and speculative in nature.

But investment in any form is risky or naam toh bnte hi hain Risk se.

But today’s generation of millennials is smart enough to take a calculated risk. Therefore, you should consider these factors before investing in penny stocks:

  • Take the “risk” factor into consideration

It has been made clear at the beginning of the blog that investment in penny stocks is risky and speculative. They are capable of giving high gains and losses as well. It is advised that you start investing small and increase your investment gradually if you get some benefits.


  • Don’t have the approach of buy and hold

If you want to reduce the risk factor in penny stocks, then avoid the “buy and hold” approach. Instead, try to invest them for a smaller duration and wait for them to mature before reinvesting.

  • Returns are higher than average

You should have a positive outlook when you are investing in penny stocks so that you can earn more money with fewer risks involved. The returns on investments in penny stocks are higher than average when compared to investments in mutual funds and equity shares.


  • These cannot be your long-term investment strategy

Penny stocks are great for short-term investment but they should not be a long-term strategy as they are really volatile and susceptible to sudden drops in value without any significant warning. You can even find your investment worth less than what you originally invested after a few years.


After taking all these factors in mind, I am going to give you an overview of some of the best penny stocks to invest in 2022:

No. Best Penny Stocks in India 2022 Industry
1. Vodafone Idea Ltd Telecom
2. Alok Industries Ltd Textile
3. Jammu & Kashmir Bank Ltd Banking
4. Indian Overseas Bank Banking
5. Bank of Maharashtra Ltd Banking
6. Dish Tv India Ltd Satellite Television
7. Morepen Laboratories Ltd Pharmaceutical

1. Vodafone Idea Ltd – Telecom Industry

A provider of telecom services is Vodafone Idea Ltd (Vodafone Idea).

The business offers passive infrastructure services, broadband, and mobile services.

It provides high-speed broadband as well as 2G, 3G, 4G, and 5G wireless services.

Along with entertainment services like IVR-based content, sports (score updates), and WAP-based games, Vodafone Idea also provides voice and SMS-based services like voice and SMS chat, ringback tones, expert advice, star talk, subscription services, and Amazon Prime membership services.

To public sector organizations, governmental agencies, small and medium-sized businesses, and startups, the company offers enterprise services, digital services, content services, and IoT solutions.  The headquarters of Vodafone Idea is located in Mumbai,

Maharashtra, India.

2. Alok Industries Ltd- Textile Industry

Alok was incorporated as a limited company in 1986 and the first polyester texturing plant was built in 1989. In 1993, it was converted to a public limited company. Over the years it has expanded into wovens, knits, processing, home textiles, and apparel. I

t also back-integrates into cotton spinning and partially oriented yarn production by continuous polymerization route to ensure quality and cost-effectiveness. They also offer embroidered products through our partner company Grabal Alok Impex Ltd.

 3. Indian Overseas Bank – Banking sector

Indian Overseas Bank (IOB) is a central public sector company. It is owned by the Ministry of Finance of India. Headquartered in Tamil Nadu, India, it has approximately 3,214 domestic branches, approximately 4 overseas branches, and 1 representative office.

Founded in February 1937 by M. Ct. M. Specializing in foreign exchange and foreign banking, Chidambaram Chettiar has achieved various milestones in the Indian banking industry. During nationalization, IOB was one of 14 major banks acquired by the Indian government.

 4. Bank of Maharashtra Ltd- Banking sector

Maharashtra Bank is a central public sector corporation. It is owned by the Ministry of Finance of India.

This bank had 29 million customers nationwide as of March 2022. It has the largest branch network of any state-owned bank in Maharashtra. The bank’s total business exceeded Rs 315,620 crore on 31 December 2021. The bench Head is V.G.Kale and D. K. Sate, Pune, India.

The bank was founded on September 16, 1935, with an authorized capital of $1 million, and began operations on February 8, 1936.

 5. Mahalaxmi Rubtech – Textile Sector

A part of the Mahalaxmi Group of Industries, Mahalaxmi Rubtech is a textile manufacturing and marketing company. It has been actively involved in the manufacturing and exporting of textiles, dyes, pigments, auxiliaries, and synthetic rubber / PU-coated fabrics.

It also has a division dedicated to the manufacturing of rubber-coated textiles which are primarily used in printing machines. At the beginning of this year, the stocks of Mahalaxmi Rubtech traded at Rs 63 but then went on to gain a little over 77 percent, and today it stands valued at Rs 126.

 The textile industry has recently bounced back after three years of dry spell, particularly due to the schemes announced by the Indian Government recently. This PLI scheme with an outlay of Rs 106 billion is meant to significantly improve the textile manufacturing abilities of India and give this sector a revamp. Mahalaxmi Rubtech seems to be one party that is going to reap the benefits of these efforts.

6. Hemang Resources

This coal trader, who is based in Chennai, was first constituted as an NBFC. Hemang Resources has been involved in the coal and infrastructure industries since 2015, when its certificate was revoked.

The return on the Hemang share price in 2022 alone defies gravity at 1,264%. The share price of Hemang has increased by more than 930% in the last year.

Some Parting Thoughts

Penny Stocks are an attractive option for new investors as they are inexpensive and can offer some high gains. But this is not a sure option as these are highly volatile. So, take all factors into consideration before making any investment as any smart user would do.

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