Top 5 Penny Stocks Under Rs 10 to Look for in 2025

For many Indians, penny stocks mean an opportunity with high risk and high reward. These stocks typically trade below Rs 10 and are often very volatile in nature. These Penny shares are often overlooked by institutional players due to liquidity concerns. However, these penny stocks can sometimes become a key to earning significant wealth if chosen wisely.

Let's understand what penny stocks are and why it is important to learn more about them before investing in them in 2025

(*The stocks referenced in this article are for illustrative purposes only and do not constitute investment advice. Please conduct your own research before making any investment decisions. All prices and market capitalisations quoted are as of July 15, 2025, and may experience significant fluctuations thereafter.*)

Also Read | Top 5 Bluechip Stocks to Invest in India in 2025

What Are Penny Stocks?

Imagine wandering through Mumbai Bazaar, where treasures hide beneath piles of overlooked items—a perfect metaphor for penny stocks. These penny shares are priced below Rs 10, belong to small companies or those in turnaround phases, and fly under the radar of institutional giants like Reliance or Infosys.

For investors hunting multibagger penny stocks for 2025, these underdogs offer thrilling opportunities. But tread carefully: their low prices and micro-cap status (often under Rs500 crore) make them volatile playgrounds where hype can override fundamentals.

What separates the best penny stocks from perilous gambles? The answer lies in fundamentally strong Penny stock picks. Look for debt-free balance sheets (like Ortel Communications), rising revenues (TV Vision’s 52% quarterly surge), and promoters with "skin in the game" (Supreme Engineering’s 41.27% unpledged holdings) .

Companies aligned with macro trends—defence indigenisation, renewable energy, or digital content—also hold an edge. These traits transform speculative bets into good penny stocks with credible upside .

Yet, the risks are stark. Indian penny stock markets battle manipulation, like "pump-and-dump" schemes fueled by social media hype. Low liquidity is another hurdle: exiting positions in stocks like Rollatainers (avg. volume: ~33,000 shares) can feel like "squeezing through a narrow alley during rush hour". SEBI’s surveillance list often flags such volatile scrips, urging investors to verify filings rigorously.

What Are The Characteristics of Penny Stocks? 

Penny stocks dance to their own beat. They have a wild, unpredictable rhythm that separates them from mainstream equities. Even the best penny stocks have volatility, which makes even seasoned investors catch their breath.

Take TV Vision Ltd., which swung from Rs3.65 to Rs30.27 within 52 weeks – a stomach-churning 730% surge followed by equally brutal corrections. This rollercoaster stems from their micro-cap nature: news, rumours, or even social media hype can trigger 20% daily swings.

For hunters of multibagger penny stocks for 2025, this volatility is a double-edged sword. It creates entry windows for great penny stocks to buy, but demands iron nerves to hold through turbulence.

Then there’s the liquidity trap. Unlike blue-chips, trading volumes for Indian penny stocks like Supreme Engineering average a meagre ~19,000 shares daily. Picture Mumbai’s Market during Diwali – you might spot a treasure, but escaping with it? That’s the challenge.

Exiting positions even from a good penny stock often requires slicing orders into tiny lots or accepting unfavourable prices. This illiquidity amplifies risks: even fundamentally good penny stocks can plunge if a single large seller dumps shares. Savvy investors combat this by scaling in/out patiently and avoiding overexposure to any single penny share list candidate.

But the steepest hurdle? Information asymmetry. Companies like Rollatainers Ltd. operate in near-darkness – no analyst coverage, sparse news updates, and filings buried in BSE archives. While giants like Reliance host quarterly analyst calls, penny stocks leave you deciphering half-truths from promoter interviews or regional business dailies.

Yet within this fog lies opportunity. Discerning investors spot gems like Ortel Communications – quietly expanding broadband in Odisha’s hinterlands while trading at Rs1.81. They mine for clues: promoter interviews hinting at expansion, tender wins on government portals, or land monetisation plans hidden in annual reports.

Separating the best-rated penny stocks from junk demands mastering these quirks:

• Volatility Management: Use technical charts and fundamentals to look for stocks

• Liquidity Safeguards: Verify 3-month average volume > 50,000 shares before entering

• Information Edge: Cross-reference your Penny stock news with MCA filings for contract authenticity

Ironically, these "flaws" create fertile ground for multibagger penny stocks for 2025. Their obscurity means mispricing is rampant – a Rs50 crore company scaling to Rs200 crore gets ignored by funds but can deliver 300% returns.

The best penny stocks to buy leverage this: Ortel tapping Bharat’s internet boom, or Rollatainers monetising real estate. Yet always remember: SEBI’s surveillance list flags manipulated popular penny stocks. Verify a stock’s status before joining the dance, because in this market, the rhythm changes without warning.

What Makes Penny Stocks Fundamentally Strong?

Not all penny stocks are reckless gambles—some are hidden gems built on robust foundations. The best penny stocks have distinct features which separate them from other Indian penny stocks.

Here’s what transforms an Indian penny stock into a contender for your penny share list:

1. Debt Discipline: The Bedrock of Survival

Companies that adhere to this principle are Ortel Communications Ltd., which runs almost without debt. This prevents excessive borrowing, which submerges rivals in the midst of recession. Debt-free or low-leverage balance sheets allow such firms to reinvest cash flows into growth, whether expanding broadband in Tier-3 cities (Ortel) or funding R&D for defence alloys (Supreme Engineering). For investors eyeing great penny stocks to buy, this financial prudence is non-negotiable.

2. Revenue Momentum: The Engine of Transformation

Go past periodic spikes; long-term increases in sales are an indication of operational breakthroughs. In early 2025, TV Vision Ltd. shocked analysts by posting a 52 per cent quarterly growth in revenue, suggesting there is hitherto untapped potential behind the formerly troubled company. This momentum is normally a result of new contracts, growth in market share or product launch. When scanning a penny stocks list, prioritise names with consecutive quarters of top-line expansion—they’re probably to graduate into multibagger penny stocks for 2025.

3. Promoter Commitment: Skin in the Game

A high, unpledged promoter holding—like Supreme Engineering Ltd.’s 41.27% stake—aligns leadership with minority investors. This is an indication of trust in business and minimal chances of unethical behaviours. Such stocks are the most profitable bet when the promoter has skin in the game, as most turnaround promoters tend to be aggressive and push through in the long run.

4. Sector Tailwinds: Riding Macro Waves

Popular penny stocks thrive when tethered to structural trends. Supreme Engineering’s speciality steel, used in missiles and aerospace, leverages India’s Rs6.2 lakh crore defence modernisation push. Similarly, Ortel’s rural broadband play taps into Bharat’s digital inclusion wave. These macro-aligned companies aren’t just good penny stocks—they’re stock penny stock opportunities with built-in growth runways.

5. Margin of Safety: The Cushion Against Chaos

Valuation gaps create buffers. Eros International Media Ltd. trades at 0.12x price-to-book value—a steep discount to its content library’s worth. Such metrics (P/B < 0.5, PEG < 1) offer downside protection if plans stall. For best-rated penny stocks, this margin turns volatility into opportunity, letting investors buy chaos at bargain prices.

For those eyeing multibagger penny stocks for 2025, this framework isn’t just a checklist—it’s a survival toolkit. The best penny stocks emerge not from luck, but from fundamentals weathering India’s market storms.

Top 5 Penny Stocks to Look for In 2025

Let's look at some of the few stocks which can see a strong growth in the upcoming days.

1.Ortel Communications Ltd. (CMP: Rs1.81)

The Ortel Communications Ltd. share price hovers near Rs 2.20, reflecting its micro-cap status, but also potential upside from its regional broadband focus. With a lean Ortel Communications Ltd market cap of Rs 72.55 crore and near-zero debt, the company targets India’s underserved Tier-2/3 markets like Odisha and Chhattisgarh, where internet demand surges amid limited competition.

Recent Ortel Communications Ltd Financials reveal persistent losses (TTM EPS: -Rs16.28), yet improving revenue efficiency and a 49.66% 1-year stock return signal operational spark . The Ortel Communications Ltd CEO prioritizes ARPU growth and subscriber additions, betting on Bharat’s digital boom. Investors should monitor Ortel Communications Ltd news for quarterly subscriber metrics or expansion updates to gauge turnaround potential .

2. Eros International Media Ltd. (CMP: Rs7.81)

Trading at a steep discount to book value, the Eros International Media Ltd. share price masks hidden value in its 1,000+ film library (e.g., Bajrangi Bhaijaan), which generates global royalties . Despite a distressed Eros International Media Ltd. market cap of Rs74.9 crore, its pivot to licensing content for OTT platforms could revive fortunes . However, Eros International Media Ltd. Financials show deep scars: Rs678 crore contingent liabilities, -36.6% ROCE, and four consecutive annual losses . The absence of clear Eros International Media Ltd. CEO updates or strategic clarity remains a concern. For contrarians, any positive Eros International Media Ltd. news—like asset sales or streaming deals—could ignite a rerating, making it a high-stakes bet on content monetisation.

3. Supreme Engineering Ltd. (CMP: Rs1.58)

Specialising in defence-grade alloys, Supreme Engineering leverages India’s Rs 6.2 lakh crore military modernisation drive. Its Supreme Engineering Ltd. share price volatility (52-week range: Rs1.30–Rs4.09) mirrors sectoral swings, but a Rs39.49 crore Supreme Engineering Ltd. market cap offers explosive upside if tenders materialise. Recent Supreme Engineering Ltd. Financials show erratic profitability, including a Q3 FY25 net loss of Rs1 crore, though government contracts could stabilize this. While Supreme Engineering Ltd. CEO details are sparse, its ISO-certified manufacturing and unpledged promoter holdings (41.27%) signal commitment. Track Supreme Engineering Ltd. news for order-book updates or working capital improvements to time entries.

4. TV Vision Ltd. (CMP: Rs8.23)

The TV Vision Ltd share price has surged 42.91% in 3 months, driven by retail investor interest (61.73% ownership) and niche channels like Mastiii (comedy) and Dhamaal (music) 311. Despite a Rs31.31 crore TV Vision Ltd. Market cap, it's TV Vision Ltd. FINANCIALS are alarming: revenues fell 23.5% quarterly, and net losses hit Rs7.86 crore in Q4 FY25 312. However, restructuring efforts and a vernacular content focus align with India’s streaming boom. Under TV Vision Ltd. CEO Manav Dhanda, cost efficiency and digital experiments could spark recovery. Watch TV Vision Ltd. news for ad-revenue rebounds or subscription growth, though high promoter pledging (50.8%) remains a red flag.

5. Rollatainers Ltd. (CMP: Rs1.67)

Originally a packaging specialist, Rollatainers now diversifies into real estate and hospitality. Its Rollatainers Ltd. share price stagnates near Rs1.71, reflecting messy Rollatainers Ltd. financials (negative EPS, -10.8% ROCE), but strategic asset sales are reducing debt . The Rs42.8 crore Rollatainers Ltd. market cap prices in skepticism, yet a 0.6 PEG ratio hints at growth potential if new revenue streams accelerate . Recent Rollatainers Ltd. news highlights monetisation steps, like selling subsidiary RT Packaging shares to strengthen the balance sheet. Though Rollatainers Ltd. CEO updates are sparse, its pivot toward high-margin sectors warrants monitoring hospitality asset developments for reclamation potential.

Conclusion

India’s penny stocks arena offers thrilling, high-risk opportunities—like Ortel’s broadband push or Supreme Engineering’s defence bet—but demands caution. While these picks could become multibagger penny stocks for 2025, success hinges on rigorous research, strict allocation limits (5% max), and patience for catalysts to unfold. Never chase hype; verify every claim with SEBI filings. For disciplined investors, the reward could be monumental—but remember, in penny stocks, due diligence is your only true safety net. 

FAQ 

1. Are penny stocks safe for beginners?

No. Their volatility demands emotional fortitude. Start with the money you can afford to lose—and never cross 5% of your portfolio.

2. How do I verify a penny stock’s fundamentals?

• Check debt: Debt-to-equity >1? Skip.

• Study the stocks' Financials and understand their edge in the market 

• See if promoters are holding their stocks or if they have sold all their equities

After checking the track of the Penny stock news that you are looking to invest in, and if you observe strong negative news, then it's good to cut out your position from that stock.

3. What returns can I expect realistically?

Winners like TV Vision delivered 325% over 5 years, but 7 of 10 penny stocks collapse. Aim for the stocks with good fundamentals and cut the losers as soon as possible

4. Which sectors have the strongest penny stocks now?

Defence, regional media, and infrastructure are some of the best sectors with penny stocks. Government spending and digital consumption are also fueling these spaces.