Overview of popular stocks under Rs. 20 in India 2025
Here’s a list of the trending shares under Rs. 20 that you can consider adding to your investment portfolio.
Vodafone Idea Ltd
Vodafone Idea is a joint venture between the Vodafone Group and the Aditya Birla Group. The company provides voice and data services to retail consumers and also offers enterprise solutions in areas such as mobility, connectivity, security, Internet of Things, and cloud services for businesses and government organisations.
RattanIndia Power Ltd
RattanIndia Power Ltd operates in the power generation space with a focus on sustainable energy solutions. The company is involved in generating electricity through renewable sources and aims to support clean energy adoption while contributing to India’s long-term power requirements.
Hathway Cable and Datacom Ltd
Hathway Cable and Datacom delivers broadband internet and cable television services to residential and commercial customers. The company focuses on providing reliable connectivity and a wide range of digital entertainment services to enhance the overall customer experience.
Salasar Techno Engineering Ltd
Salasar Techno Engineering Ltd provides engineering and infrastructure solutions, primarily for the power sector. Its services include design, fabrication, construction, and maintenance of structures used in power transmission and distribution networks.
Unitech Ltd
Unitech Ltd is a diversified company with operations in real estate development and infrastructure projects. The company has been involved in residential, commercial, and township developments, contributing to urban growth and infrastructure expansion.
GTL Infrastructure Ltd
GTL Infrastructure Ltd is a telecom infrastructure provider offering tower and fibre solutions to mobile network operators. Its focus on network expansion and optimisation supports improved connectivity and coverage across urban and rural regions.
Dish TV India Ltd
Dish TV India Ltd is a direct-to-home television service provider offering a wide selection of entertainment, news, and regional channels. The company focuses on delivering accessible and innovative television services to households across India.
Orient Green Power Company Ltd
Orient Green Power Company Ltd operates in the renewable energy sector with a focus on wind and solar power generation. The company supports sustainable energy development and contributes to reducing dependence on conventional power sources.
Rama Steel Tubes Ltd
Rama Steel Tubes Ltd manufactures steel tubes and pipes used across industries such as construction, agriculture, and infrastructure. The company emphasises quality, consistency, and product innovation to meet diverse industrial requirements.
Jaiprakash Power Ventures Ltd
Jaiprakash Power Ventures Ltd is engaged in power generation, primarily through thermal and hydroelectric plants. The company focuses on providing reliable electricity to support industrial growth and rising energy demand in India.
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Why invest in stocks under Rs. 20 in India?
- Accessible entry point: Investing in stocks priced below Rs. 20 offers investors with limited capital an opportunity to build a diversified portfolio.
- Growth potential: While characterised as small-cap or micro-cap, these equities may exhibit substantial growth prospects driven by market conditions and company-specific factors.
- Portfolio diversification: Incorporating low-priced stocks into a broader investment strategy can serve as a risk mitigation tool while providing exposure to diverse sectors.
- Long-term perspective: Investors with a long-term horizon and a tolerance for risk may benefit from the potential for compounded returns within this asset class.
Advantages of investing in shares under Rs. 20
Let us discover the advantages of investing in stocks under Rs. 20:
- Growth potential: There is no denying that such stocks are notoriously inconsistent. Regardless, companies that project signs of success can land you lucrative returns. Even a slight jump in the stock price can lead to substantial gains on your investment.
- Affordability: Penny stocks are economical. If investments in medium or big-cap shares are not possible due to budgetary restrictions, then penny stocks can be a feasible option to bolster your portfolio.
- Market fluctuations: Changes in the seasons, market cycles, or trends can favourably impact the performance of penny stocks that are undervalued. Therefore, buying these stocks at cheap prices can be a good idea, especially if you are predicting a positive shift in market conditions.
- Diversification: Because penny stocks are affordable, you can use them to diversify your portfolio. It gives you an opportunity to invest in firms across domains, thereby mitigating the general risk level of your portfolio.
- Trading volume: Certain shares under Rs. 20 could exhibit high trading volumes, making them easier to sell. A demand for high trading volumes may also denote a stock’s improving performance and potential growth.
What are the disadvantages of investing in stocks under Rs. 20?
Let us explore the disadvantages of investing in stocks under Rs. 20:
Volatility
Penny stocks are often highly volatile compared to higher-priced shares. This factor is a double-edged sword, fostering opportunities and risks for you.
Low liquidity
Stocks with low-priced brackets often suffer from poor liquidity. This translates to low trading volumes, which makes them harder to sell. There is a high possibility of incurring losses if you decide to exit a position abruptly.
Inherent risks
Typically, shares under Rs. 20 are offered by small businesses that might lack the stability and credibility of big companies. Hence, investing in certain penny stocks will always carry a considerable amount of risk.
Inadequate information
Penny stocks might not be regularly covered by news agencies and financial experts. This can be inconvenient if you are looking for more detailed and authentic insights before entering any position.
Scams
Fraudulent parties or companies can engage in pump-and-dump manoeuvers, where penny stocks with very little or virtually no underlying value are sold to dupe unsuspecting investors. These bad investments can cause serious losses in the long run.
What considerations should you make before investing in shares under Rs. 20?
By now, you must be aware that investing in penny stocks can not be an impulsive move. It has to be well-researched and reinforced by sound financial instincts. Be mindful of the following factors before you step onto the fickle turf of penny stocks.
Industry evaluation
The domain of a penny stock has a pivotal influence on its growth potential. So, go through the competition and industry trends to comprehend if the firm is a candidate for expansion and success.
Financials
While investing in a penny stock, carry out a personal audit of the company’s financial health. This includes checking its revenue, profit margins, and debt. Likewise, look at its leadership and business models to assess if it has what it takes to thrive in today’s competitive landscape.
Liquidity
As discussed earlier, stocks under Rs. 20 are afflicted by low liquidity. Ensure the penny stocks you are interested in hold decent liquidity levels so that you at least can buy or sell them at any time.
Diversification
To reduce your portfolio risk and increase the likelihood of gains, diversify by investing in penny stocks offered across segments and domains.
Closing thoughts
Low-cost stocks under Rs. 20 are a viable investment channel if you are a beginner or simply have limited funds to spare. But their volatile nature, coupled with inherent risks and vulnerability to scams, makes them a little less than desirable. However, if a penny stock has caught your attention, then the first order of business should be to run a background check on the company along with a thorough analysis of its financials, industry trends, and growth patterns.
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