Investing in undervalued stocks under 10 can be a game-changer for retail investors looking to build long-term wealth. While most penny stocks are considered risky, a handful of these low-price shares come with strong fundamentals, offering the potential for multibagger returns. In this post, we highlight undervalued stocks under ₹10 in India (as of June 2025) that are backed by solid financials, consistent revenue growth, or improving business models.
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Why Consider Stocks Under 10?
- Low capital requirement: Ideal for small investors or beginners.
- High upside potential: Small-cap and micro-cap stocks can deliver exponential growth.
- Undiscovered gems: Some are ignored by institutional investors but have improving fundamentals.
⚠️ Note: Always do your due diligence. Low price ≠ good value.
Top Undervalued Stocks Under 10 (with Fundamentals) – June 2025
Truly Undervalued Picks
| Stock Name | Current Price (₹) | Sector | Key Highlights |
|---|---|---|---|
| Sarveshwar Foods Ltd | ₹8.00 | FMCG / Food Export | ROCE 61%, ROE 133%, consistent sales growth, high export focus |
| Steel Exchange India Ltd | ₹8.40–₹9.99 | Steel & Infrastructure | Revenue surge, infra tailwind, improving margins |
| GVK Power & Infra Ltd | ₹4.60 | Infra, Power, Airports | 54% promoter holding, positive ROCE, long-term contracts |
| Exxaro Tiles Ltd | ₹9.65 | Building Materials | Strong branding, low debt, stock split in 2025 |
| Alstone Textiles India Ltd | ₹0.60 | Trading/Textiles | Deep value pick; P/B < 1; speculative with moderate liquidity |
| Evexia Lifecare Ltd | ₹3.50 | Chemicals / Consumer | Positive net profits, expanding product line |
Prices as of June 2025. Data sourced from NSE India.
Analyzing These Selections
- Debt Awareness: Exxaro and Sarveshwar show healthy debt levels; others like GVK need deeper debt scrutiny.
- Promoter Confidence: GVK’s 54% promoter stake is a strong indicator of vested interest.
- Profitability Signals: Sarveshwar stands out with stellar ROCE/ROE; Evexia shows modest profits compared to cost.
- Sector Potential: Steel and construction are benefiting from government infrastructure spending, providing macro-level tailwinds.
Risk Mitigation Tips
- Diversify across these six picks to lower individual-company concentration risk.
- Track quarterly earnings for signs of growth, margin improvement, or debt changes.
- Monitor liquidity; some penny stocks may have sporadic volume, leading to high price swings.
- Set stop-losses around key moving averages (e.g. 200‑ or 50‑day MA) to manage downside.
How to Analyze Stocks Under 10
Before investing, check these key financial metrics:
- Debt-to-Equity Ratio – Prefer companies with lower leverage.
- Promoter Holding – A rising or high promoter holding shows trust.
- Cash Flow – Positive or improving operating cash flow is a good sign.
- Profit Growth – Check YoY net profit or EBITDA trends.
- Return Ratios – RoCE and RoE give insight into capital efficiency.
Pro Tip:
Avoid falling into the “cheap price = good stock” trap. Focus on value, not just price.
Risks with Penny Stocks
- High volatility and low liquidity
- Insider manipulation risk
- Sudden regulatory changes
- Often ignored by analysts, leading to poor information access
How to Invest Safely in Sub-10 Stocks
- Limit exposure to 5–10% of your portfolio
- Use SIP or staggered entries to average out cost
- Track quarterly results and management commentary
- Follow news and sectoral trends closely
FAQs on Stocks Under 10
Can stocks under ₹10 become multibaggers?
Yes, if backed by improving fundamentals, strong industry tailwinds, and good management.
Should beginners invest in penny stocks?
Only a small allocation is recommended. Beginners should focus more on large and mid-cap stocks.
Where can I track these stocks?
Use platforms like NSE India, Moneycontrol, or Screener.in for real-time data.
Conclusion
Investing in undervalued stocks under ₹10 with solid fundamentals can be rewarding — but it’s not without risks. Do thorough research, invest wisely, and stay updated on financial performance.
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