Stocks under 20 Rs often get lumped into the “penny stock” category but price alone doesn’t tell the whole story. Many low-price Indian stocks have strong financial fundamentals, solid revenue growth, and future potential.
This blog explores undervalued Indian stocks trading under 20 as of June 2025, backed by metrics like ROCE, ROE, promoter holding, and growing profitability ideal for long-term investors seeking multibagger potential.
Undervalued Stocks Under 10 Rs with Strong Fundamentals
Why Invest in Stocks Under 20 Rs?
- 🪙 Affordable entry point for small investors
- 📈 Upside potential from early-stage or turnaround companies
- 🔎 High-growth sectors like renewables, logistics, and infra play
- 🚀 Room for re-rating as earnings and valuation metrics improve
⚠️ Reminder: Low price ≠ low risk. Always study fundamentals.
Top Undervalued Stocks Under 20 Rs in June 2025
| Stock Name | Current Price (₹) | Sector | What Makes It Interesting |
|---|---|---|---|
| Yes Bank Ltd | ₹19.73 | Private Banking | Return to profitability, digital focus |
| RattanIndia Power Ltd | ₹13.89 | Thermal Power | Restructuring story, infra-linked demand |
| Hathway Cable & Datacom | ₹14.86 | Telecom / Media | Debt-free, digital expansion |
| Orient Green Power Ltd | ₹13.40 | Renewable Energy | Green energy demand, promoter backing |
| Zee Media Corporation Ltd | ₹13.37 | Broadcasting & Digital | National footprint, undervalued relative to peers |
1. Yes Bank Ltd – Revival in Progress
- Price: ₹19.73
- Sector: Private Banking
- Market Cap: ₹59,000+ Cr
- Highlights:
- Returned to profitability after years of restructuring
- Net profit ~₹2,446 crore (FY24)
- Digital lending and retail focus gaining traction
- Why It’s Undervalued: Despite its turnaround, Yes Bank still trades at a relatively low P/B ratio (~1.2), making it appealing for long-term investors looking for value in financials.
2. RattanIndia Power Ltd – Powering a Comeback
- Price: ₹13.89
- Sector: Power Generation
- Market Cap: ₹7,000+ Cr
- Highlights:
- Focused on thermal power
- Debt restructuring completed; improving EBITDA margins
- Why It’s Undervalued: A classic restructuring story. With India’s power demand at an all-time high, RattanIndia is poised to benefit from infrastructure push and capacity utilization.
3. Hathway Cable & Datacom – Silent Digital Player
- Price: ₹14.86
- Sector: Telecom / Digital Cable
- Market Cap: ₹2,500+ Cr
- Highlights:
- Debt-free company
- Broadband user base steadily expanding
- Backed by Reliance Group (Jio stake)
- Why It’s Undervalued: Despite being profitable and having zero debt, Hathway trades at a low P/B ratio (~0.6). With internet penetration growing in Tier 2/3 cities, this could see long-term tailwinds.
4. Orient Green Power – Riding the Renewable Wave
- Price: ₹13.40
- Sector: Wind & Green Energy
- Market Cap: ₹1,050+ Cr
- Highlights:
- Focused on wind energy projects
- Promoter holding ~37%
- Low-capex expansion model
- Why It’s Undervalued: India’s push for renewable capacity makes OGPL an interesting bet. Financials are average but improving; investor interest rising in ESG-friendly plays.
5. Zee Media Corporation – Undervalued Content Network
- Price: ₹13.37
- Sector: Broadcasting & News Media
- Market Cap: ₹700+ Cr
- Highlights:
- Operates over 12 TV news channels in multiple languages
- Expanding into digital-first content
- Why It’s Undervalued: Despite a wide footprint, Zee Media trades at a steep discount compared to peers like Network18 or TV Today. Though recent earnings have been weak, its digital strategy could unlock value.
Risks of Stocks in This Category
Even undervalued ₹20 stocks have risks:
- 📉 Volatility: Lower institutional ownership → higher price swings
- 📊 Cyclical Sectors: Many operate in textiles, infra, banking—subject to cycles
- 📈 Limited Analyst Coverage: May need DIY research
- 🧾 PSU Drag: Some undervaluation exists due to state ownership inefficiency
Checklist to Evaluate Low-Priced Stocks
Before investing, look for:
✅ ROCE > 12%
✅ Debt-to-equity < 1
✅ Positive cash flow from operations
✅ Consistent EPS growth
✅ High promoter holding (ideally > 50%)
Final Thoughts
Stocks under 20 Rs can provide solid long-term returns when picked with care. The list above offers a mix of reviving private banks, debt-free PSUs, and strong textile players—each with its unique edge.
Use this category to add diversification to your portfolio without taking on the extreme risks of penny stocks trading below ₹5–10.
📌 Investor Tip: Track these stocks every quarter. Use SIP-style entries to average out cost in volatile conditions.
Don’t Miss This Best Stock to Buy For Long Term
FAQs on Stocks Under 20 Rs
Can stocks under ₹20 become multibaggers?
Yes, especially if earnings and valuation multiples expand together.
How much should I invest in these stocks?
Limit exposure to 5–15% of your equity portfolio and always diversify across sectors.