Best Stocks Under Rs. 20 in India (2024)

Last Updated on Feb 6, 2024 by Harshit Singh

Stocks under Rs. 20 are much adorned by the investors due to their low price and high profit. Many stocks under Rs. 20 are currently trading at the NSE, but which are the best stocks Rs. 20? We have identified the best stocks under Rs. 20 in NSE based on different criteria.

Best stocks under Rs. 20 in India

Note: The data in the above table is from 5th February 2024. These best stocks under Rs. 20 are filtered using Tickertape Stock Screener using the following parameters:

  • Close Price: Set to 0.02 – 20
  • 5Y Average Net Profit Margin: Set the limit to 10 to High (Sort from highest to lowest)
  • 5Y Average Return on Equity: Set the limit to 10 to High

Details on the filters used to sort the best stocks under Rs. 20

Close price: This is the stock’s close price on the last day it traded. The close price is set to 20 as a high limit to get all the stocks under Rs. 20.

5-yr average net profit margin: Net profit margin explains the number of units of profit earned for every 100 units of revenue. 5-yr average net profit margin is the average of the net profit margin number over the previous five financial years. A profit margin of 10% is considered average. 

Fundamentally strong stocks under Rs. 20 in India

Note: The data in the above table is from 5th February 2024. The best stocks under Rs. 20 are filtered using Tickertape Stock Screener using the following parameters:

  • Close Price: Set to 0.02 – 20
  • Fundamental Score: Sort from highest to lowest

Detail on the filter used to sort the best fundamentally strong stocks in India

Fundamental Score: The score is a smallcase proprietary score between 1 and 10 assigned to stocks listed on the NSE. The score helps rank the stock over other stocks in the respective sector. The higher the score, the better the company. The score is calculated considering factors like valuation, profitability, market share growth, financial health and earnings growth of the company.


Most active stocks under Rs. 20

Note: The data in the above table is from 5th February 2024. The best stocks under Rs. 20 are filtered using Tickertape Stock Screener using the following parameters:

  • Close Price: Set to 0.02 – 20
  • Relative Volume: Sort from highest to lowest

Detail on the filter used to sort the most active stocks under Rs. 20

Relative Volume: Often called RVOL, this ratio displays the stock’s average volume over the previous 10 days divided by the average volume of the stock over the previous 91 days. The ratio helps understand how in demand the stock has been in the past few days.

Suppose the 10-day average volume is 10,000 and the 90-day average volume is 4,000; then the relative volume is 10,000/4,000 = 2.5. RVOL above 2 is considered to be a signal of high demand for the stock, and when a stock is in demand, the price tends to move up very quickly.

Best dividend-paying stocks under Rs. 20

Note: The data in the above table is from 5th February 2024. The best stocks under Rs. 20 are filtered using Tickertape Stock Screener using the following parameters:

  • Close Price: Set to 0.03 – 20
  • Dividend Yield: Sort from highest to lowest

Detail on the filter used to sort the highest dividend yield stocks under Rs. 20

Dividend Yield: The ratio is calculated as dividend per share (DPS) for the most recent fiscal year divided by the stock’s close price. The ratio calculates the earnings on investment, considering only dividends declared. The higher the dividend yield, the better. One should always consider dividend yield when investing in a company’s stock, as it can be a significant part of the return that might be generated. High dividend yield stocks could be a good investment avenue to supplement any income needs.

Suppose DPS is Rs. 16 and the stock price is Rs. 250; the dividend yield is calculated as (16/250)*100 = 6.4%.

Best stocks under Rs. 20 with highest return

Note: The data in the above table is from 5th February 2024. The top gainers share under Rs. 20 are filtered using Tickertape Stock Screener using the following parameters:

  • Close Price: Set to 0.03 – 20
  • 1Y Return: Sort from highest to lowest

Detail on the filter used to sort the stocks under Rs. 20 with highest returns

1Y return: The 1-year return of a stock shows its performance over the past year. It is expressed as a percentage change and helps investors assess how well a stock grew in the last year.

Best stocks under Rs. 20 with positive net income (Q)

Note: The data in the above table is from 5th February 2024. The best stocks under Rs. 20 are filtered using Tickertape Stock Screener using the following parameters:

  • Close Price: Set to 0.03 – 20
  • Net Income (Q): Sort from highest to lowest

Detail on the filter used to sort the stocks under Rs. 20 with highest net income (Q)

Net Income (Q): It reflects the financial performance of a company during the latest quarter. It’s calculated by subtracting all expenses and taxes from the total revenue generated in that quarter. A positive net income (Q) signifies profit, while a negative one indicates a loss during the quarter.

Factors to consider before investing in stocks under Rs. 20

Risk is the most essential factor to consider before investing in stocks below Rs 20. While many of these semi-penny stocks have generated mass wealth for investors, many others have been a failure on the markets. Note that these stocks can be the worst performers in the case of market turndowns. Also, a majority of these stocks may deal with liquidity issues. 

Investment horizon, sector, and timing are other essential factors you need to consider before investing. Remember that stock investing attracts taxes, with LTCG tax fixed at 10% (after Rs. 1 lakh) and STCG tax at 15%.

To conclude

Timing is arguably the most crucial factor to consider when investing in the stock markets. The right stock picked at the right time can turn your fortunes. Investing in semi-penny stocks can benefit if the company has growth potential and your research is viable. But remember that investing in any stock attracts considerable risk, which is magnified manyfold with semi-penny stocks.

Aid your research by visiting Tickertape, which has many options, filters, and tools to customise your investment journey and help you pick the right stock per your risk appetite.

FAQs

What are penny stocks?

Stocks trading at a low value and having a small market capitalisation are called penny stocks. These usually trade lower than Rs. 10.

Which are the best stocks below Rs. 20 in India today?

The top-performing stocks below Rs. 20 in India today are as follows – 
– Ishan International Ltd
– Franklin Industries Ltd
– Growington Ventures India Ltd
– 7NR Retail Ltd
– Kanani Industries Ltd

How to get under Rs. 20 share list on Tickertape?

Launch ‘Stock Screener’ and set the ‘Closed Price’ limit to Rs. 20.

Which is the best stock under Rs. 20 in January 2024?

Based on 1 month return, the best stock under Rs. 20 is Ishan International Ltd, which recorded a growth of 1,530.62% in the past month.

Harshit Singh
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