Investing in penny stocks entails inherent risks and may not be suitable for all investors. These stocks are often prone to pump and dump schemes, liquidity issues, and manipulation.
Despite these risks, penny stocks have garnered some attention among Indian investors due to their low prices. Many see them as an opportunity to invest in small companies with potential for significant growth over the long term.
However, it's important to recognize the inherent risks involved. We advise investors to conduct thorough research and/or seek guidance from a financial advisor before diving into penny stock investments.
In our upcoming guide to Indian penny stocks in 2024, we'll explore their definition, characteristics, potential benefits, risks, strategies, and more to provide a comprehensive understanding of this investment avenue.
**Market Share Disclaimer:**
This guide provides information on Indian penny stocks for educational purposes only. It does not constitute financial advice, and readers should conduct their own research before making investment decisions. The content may not be current at the time of reading, and prices of penny stocks are subject to rapid change. Investing in penny stocks carries significant risks, including volatility and susceptibility to manipulation. Readers are advised to exercise caution and seek professional financial advice if needed. The author and publisher disclaim any responsibility for losses incurred from actions based on information in this guide.
- MPS Infotecnics Limited
MPS Infotecnics Limited was originally incorporated in January 1989 as "Ultimate Software Private Ltd", which later on was changed to Visesh Technologies Pvt Ltd in February 1993. Subsequently, the Company was converted to a Public Limited Company effective from May 1995 and the name of Company was changed to Visesh Infosystems Ltd in July 1997 and thereafter changed to its current name i.e. Visesh Infotecnics Ltd. The Company is presently engaged in System Integration and Networking Solutions, Telecommunication; Enterprise Software; Domain Registration and web hosting; VAS and IT enabled Services. Initially the company developed various kinds of softwares in COBOL, its main product popularly known as BUSINESSOFT consisting of finance module, sales & purchase, inventory control, MRP-I & MRP-II, implemented successfully at more than 600 sites covering more than 200 clients. Recently in 1999, VIL has launched an upgraded version of BUSINESSOFT known as BUSINESSPRO in Visual Basic with Oracle at the backend, which is flexible, friendly, seamlessly integrated, scalable solution for the whole gamut of functions for an enterprise.
2. GTL Infra
It is a pioneer in the shared passive telecom infrastructure space in India. Headquartered in Navi Mumbai, Maharashtra, India, GTL Infra has about 28,000 towers located across 22 telecom circles in India, which enables telecom service providers to offer 2G, 3G and 4G services across the country.
3. Prismx Global Ventures Ltd
Prismx Global Ventures Limited (PRIX.BO) is a small-cap company that trades in commodities, shares, and securities. The company was incorporated in 1973 and is based in Mumbai, India. Prismx Global Ventures Limited has three business segments: Commodity trading, Finance, Information technologies.
Research Thoroughly:
It's crucial to conduct thorough research before investing, especially in penny stocks. Due to the obscure nature of many of these companies, comprehensive information may be scarce.
Price Manipulation:
Penny stocks priced under INR 1 are particularly susceptible to price manipulation. Traders with significant stakes can exploit these stocks for personal gain, influencing their prices artificially.
Risk Analysis:
Investors should carefully analyze the risks associated with stocks priced under Rupee 1. These companies often lack solid growth prospects and may not be financially stable, increasing the likelihood of investment losses.
Liquidity:
Consider the liquidity of the stock before investing. Illiquid stocks can pose challenges when it comes to buying or selling shares, impacting your ability to manage your investment effectively over time.
Scams and Frauds:
Beware of scams and fraudulent schemes prevalent in the penny stock market. Some stocks priced under 1 rupee may be promoted deceptively, promising unrealistic returns. Exercise caution and skepticism when evaluating investment opportunities in this space.
