Stocks that typically cost less than Rs 20 are called penny stocks. These stocks can yield high returns if approached with caution and proper planning. It’s important to note that penny stocks are often illiquid, meaning they can be difficult to sell quickly.

However, by conducting thorough research, one can identify the right penny stocks to invest in for maximum profit. If you’re interested in investment in stocks, especially penny stocks, we’ve compiled a list of the top five penny stocks to consider in 2023.

1. Suzlon

Suzlon Share Price: Rs 8.20

Suzlon Energy Ltd had an annual range of Rs 5.42 (low) to Rs 12.15 (high) as of March 2023. Despite being heavy with debt, the company may have a promising future in the stock market thanks to the Indian Government’s initiatives towards embracing renewable energy.

As a leading player in the wind energy sector, Suzlon Energy Ltd has a strong market position and has been actively expanding its operations globally, which could potentially position it for future growth and profitability.

2. Vodafone Idea

Vodafone Idea Share Price: Rs 6.10

Vodafone Idea Limited, commonly known as Vodafone, is an Indian telecommunications company that provides mobile, voice, data, and internet services to customers in India.

The company has a significant market share in the Indian telecom industry and has been expanding its network to reach more customers in the country. Vodafone, with an annual range of Rs 5.80 to Rs 11.55 in March 2023, has made it onto our list of top penny stocks to watch.

3. Alok Industries

Alok Industries Share Price: Rs 12.80

Alok Industries, a textile industry player, has been effectively utilizing its capital to generate revenue, with its Return On Capital Employed (ROCE) showing notable improvement over the past two years.

Alok Industries had a range of Rs 10.10 to Rs 29.80 in March this year, making investment in stocks of this company attractive for investors.

4. Vikas Lifecare

Vikas Lifecare Share Price: Rs 3.25

Vikas Lifecare’s main strength lies in its high trailing 12-month earnings per share (EPS) growth, coupled with an improvement in its Return On Capital Employed (ROCE) over the past two years, similar to Alok Industries.

The stock has recently seen a significant rise, fueled by the news that the company will receive funds from the GOI for research and development purposes. As of March this year, its annual range was Rs 3.25 to Rs 6.85.

5. Infibeam Avenues

Infibeam Avenue Share Price: Rs 13.80

Infibeam Avenues is an Indian technology and e-commerce company that provides solutions for digital payments, e-commerce software, and technology platforms.

One of Infibeam’s significant accomplishments is the creation of the “DIGITAL INDIA e-commerce platform” for the Government of India. Its annual range was Rs 12.50 to Rs 20.80 in March 2023.

Conclusion

Penny stocks are undoubtedly attractive to investors due to their high potential for rapid growth, offering the opportunity to make significant profits by investing relatively small amounts. It is essential to gather sufficient information about the company’s shares and stocks before investing in them to make an informed decision. By doing so, investors can mitigate the risks associated with penny stocks and increase their chances of achieving successful outcomes.