Investing in penny stocks—those trading under ₹50—can offer substantial returns, albeit with higher risks. In 2025, several such stocks in India show promising growth potential. This article highlights some of the best penny stocks under ₹50, backed by data and analysis.
What Are Penny Stocks?
Penny stocks are low-priced shares of small-cap companies. They are known for their high volatility and potential for significant gains. However, they also carry higher risks due to limited liquidity and less regulatory oversight.
Top Penny Stocks Under ₹50 in India (2025)
1. Orient Paper & Industries Ltd (₹48)
- Market Cap: ₹1,039.71 Cr
- P/E Ratio: 8.05
- Book Value: ₹71
- Debt-to-Equity: 0.18
- Promoter Holding: 39%
- Overview: Part of the CK Birla Group, Orient Paper is India’s largest tissue paper manufacturer and exporter. It also has a chemicals division producing caustic soda. The company has a global presence, with 11.3% of its income from international customers.
2. Infibeam Avenues Ltd (₹18.6)
- Market Cap: ₹5,200 Cr
- Revenue Growth (5-Year CAGR): 22%
- Overview: A fintech company operating CCAvenue, a payment gateway supporting over 250 payment options. Recent acquisitions, including Rediff.com, aim to expand its digital footprint. The company has received approval from NPCI for a TPAP license under the RediffPay brand.
3. Yes Bank Ltd (₹24.06)
- Market Cap: ₹74,219.93 Cr
- Annual Range: ₹15.70 – ₹32.85
- Overview: A private sector bank showing signs of recovery with consistent financial growth. Total income reached ₹9,099.60 crore in March 2024, marking a 10.39% increase from the previous quarter.
4. Rattan India Power Ltd (₹14.25)
- Market Cap: ₹7,481 Cr
- P/E Ratio: 0.74
- 52-Week High: ₹21.10
- Overview: An energy company with a low P/E ratio, indicating potential undervaluation. The company has a debt-to-equity ratio of 0.78, showing moderate leverage.
5. Trident Ltd (₹35)
- Market Cap: ₹17,000 Cr
- Overview: A diversified conglomerate with interests in textiles, paper, chemicals, and energy. The company has shown consistent performance and is considered a multibagger penny stock for 2025.
Key Metrics to Consider
When evaluating penny stocks, consider the following:
- P/E Ratio: A lower P/E may indicate undervaluation.
- Debt-to-Equity Ratio: Lower ratios suggest financial stability.
- Promoter Holding: Higher holdings can indicate confidence in the company’s future.
- Revenue and Profit Growth: Consistent growth is a positive sign.
- Market Capitalization: Provides insight into the company’s size and stability.
Risks Involved
- Volatility: Penny stocks can experience significant price swings.
- Liquidity Issues: Lower trading volumes can make it hard to buy or sell shares.
- Limited Information: Less coverage by analysts can make research challenging.
- Regulatory Risks: Smaller companies may be more susceptible to regulatory changes.
Conclusion
Investing in penny stocks under ₹50 can be rewarding but requires careful analysis and risk management. The stocks listed above have shown potential in 2025, but it’s essential to conduct your research or consult a financial advisor before investing.
Have you checked our latest Post Dividend Stocks in India You Shouldn’t Ignore in 2025. check it now
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