Pharma Penny Stocks English

Pharma Penny Stocks

The below table shows the Pharma Penny Stocks based on the Highest Market Capitalization.

NameClose PriceMarket Cap(Crores)
Morepen Laboratories Ltd46.152359.04
Syncom Formulations (India) Ltd12.71193.8
Nectar Lifesciences Ltd34.15765.85
Rajnish Wellness Ltd7.31562.78
Gennex Laboratories Ltd16.05365.72
Ambalal Sarabhai Enterprises Ltd47.61365.52
Kimia Biosciences Ltd51.83245.67
Pharmaids Pharmaceuticals Ltd62.96141.36
Lasa Supergenerics Ltd25.75129.01
Bharat Immunologicals and Biologicals Corporation Ltd29.81128.96

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What are Pharma Penny Stocks?

Pharma penny stocks refer to shares of small pharmaceutical companies traded at very low prices, often below Rs. 100. These stocks are typically listed on smaller exchanges and can be highly speculative due to their low market capitalization and high volatility.

Investing in pharma penny stocks involves higher risk as they are often from companies with limited resources, facing challenges like rigorous regulatory approval processes and intense competition. Their prices can be highly sensitive to news such as clinical trial results or changes in healthcare regulations.

However, these stocks also offer the potential for significant returns if the company achieves a breakthrough or is acquired by a larger firm. Investors may be attracted to pharma penny stocks for their low entry cost and the opportunity to invest in a company that could potentially produce the next blockbuster drug.

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Pharma Sector Penny Stocks

The table below shows the Pharma Sector Penny Stocks based on 1 Year Return.

NameClose Price1Y Return(%)
Pharmaids Pharmaceuticals Ltd62.96204.6
Gennex Laboratories Ltd16.05166.61
Ambalal Sarabhai Enterprises Ltd47.61117.2
Syncom Formulations (India) Ltd12.7104.84
Nectar Lifesciences Ltd34.1596.26
Morepen Laboratories Ltd46.1568.12
Kimia Biosciences Ltd51.8341.38
Bharat Immunologicals and Biologicals Corporation Ltd29.8116.45
Lasa Supergenerics Ltd25.757.07
Rajnish Wellness Ltd7.31-55.32

Best Pharma Penny Stocks In India

The below table shows the Best Pharma Penny Stocks In India based on 1-Month Return.

NameClose Price1M Return(%)
Pharmaids Pharmaceuticals Ltd62.9612.58
Bharat Immunologicals and Biologicals Corporation Ltd29.817.86
Rajnish Wellness Ltd7.316.62
Nectar Lifesciences Ltd34.154.65
Ambalal Sarabhai Enterprises Ltd47.614.41
Morepen Laboratories Ltd46.153.62
Kimia Biosciences Ltd51.830.98
Lasa Supergenerics Ltd25.750.4
Syncom Formulations (India) Ltd12.7-1.99
Gennex Laboratories Ltd16.05-7.13

Who Should Invest In Pharma Penny Stocks?

Pharma penny stocks are suitable for high-risk investors who have a thorough understanding of the pharmaceutical industry and can afford potential losses. These investors typically have a speculative approach and are looking for high-reward opportunities despite the increased risk of volatility and uncertainty.

Such investors should have the ability to conduct extensive research into pharmaceutical companies’ pipelines, understand the intricacies of clinical trials, and keep abreast of FDA approvals. A sound knowledge of biotechnology and drug development processes is crucial to navigate this high-stakes market.

Moreover, investors in pharma penny stocks should have a diversified portfolio to mitigate risks. They should also possess the patience to wait for long-term developments, as pharmaceutical ventures can take years to materialize into profitable products, if at all. Market timing and a readiness to act swiftly on industry news are also key.

Features of Pharma Penny Stocks In India

The main features of pharma penny stocks in India include their low price per share, high volatility, and potential for substantial returns. They’re often from smaller, less-established companies engaged in drug development, with significant growth possibilities if successful in their endeavors.

Affordable Entry Point: Pharma penny stocks in India offer an accessible investment opportunity due to their low price, allowing investors to purchase a larger number of shares with a smaller amount of capital, potentially maximizing gains if the stock value increases.

High-Risk, High-Reward: These stocks carry higher risks due to their volatility and the speculative nature of the pharmaceutical industry. However, they also offer the possibility of high rewards, especially if the company makes a significant medical breakthrough or gets acquired by a larger entity.

Innovation Potential: Investing in pharma penny stocks means betting on innovation. These companies are often in the early stages of developing new drugs or medical technologies, and success can lead to exponential stock value growth.

Market Sensitivity: Pharma penny stocks are highly sensitive to regulatory news, clinical trial results, and sector trends. Positive drug development news can send stock prices soaring, while setbacks can lead to significant losses.

Why Invest In Pharma Penny Stocks?

Investing in pharma penny stocks is an attractive option for those seeking high returns from small investments, as success in drug development or regulatory approval can significantly increase stock value. This sector appeals to speculative investors willing to embrace risk for potential high rewards.

Investors in pharma penny stocks have the opportunity to support emerging medical research and innovations that could lead to breakthrough treatments. A successful product can transform a small pharmaceutical company’s prospects, leading to rapid stock appreciation and substantial profits for early investors.

However, the risk is commensurate with the potential reward. Pharma penny stocks are prone to volatility and tied closely to clinical trial outcomes and regulatory decisions. They require diligent research and a strong stomach for the market’s ups and downs, suited for those with an in-depth understanding of the biotech sector.

How To Invest In Pharma Penny Stocks?

To invest in pharma penny stocks, conduct thorough research on emerging pharmaceutical companies, understand their drug pipelines, and evaluate their financial health. Use a reputable brokerage that allows trading in penny stocks, and be prepared for high volatility and potential risk.

Begin by examining the scientific credibility of the company’s research, the experience of its management team, and the potential market for its drugs. Look for companies with innovative products that meet unaddressed medical needs, as these factors can be indicative of future success.

Be strategic about your investment size, keeping it to a small portion of your portfolio to mitigate risk. Monitor the stocks closely, as pharma penny stocks can experience swift price changes. Stay informed on industry news, particularly about drug trials and FDA approvals, which can greatly impact stock performance.

Performance Metrics Of Pharma Penny In India

Performance metrics of pharma penny stocks in India include volatility, liquidity, and price-to-earnings ratio, alongside clinical trial progress, patent approvals, and regulatory milestones. These indicators help assess the potential and stability of these high-risk investments in a competitive and stringent regulatory environment.

Volatility in pharma penny stocks is typically higher than in established pharmaceutical companies, driven by market speculation and news of drug developments. High volatility can lead to substantial price swings, providing opportunities for high returns but also posing significant investment risk.

Liquidity is another crucial metric, as it reflects the ease with which stocks can be bought or sold in the market without affecting their price. Lower liquidity is common with penny stocks, which can make exiting positions difficult. Additionally, regulatory news can drastically affect stock prices, making close monitoring of industry events essential for investors.

Advantages Of Investing In Pharma Penny Stock India

The main advantages of investing in pharma penny stocks in India include the potential for substantial returns from small initial investments, the opportunity to support innovative healthcare solutions, and the possibility of benefiting from rapid stock appreciation if the company achieves clinical or regulatory success.

Explosive Growth Potential: Pharma penny stocks in India offer the tantalizing prospect of rapid and substantial growth. A successful drug trial or regulatory nod can multiply the stock’s value overnight, offering investors significant returns compared to their initial stakes.

Innovation Frontiers: By investing in pharma penny stocks, individuals have the chance to be part of cutting-edge medical advancements. Investors not only stand to gain financially but also contribute to the development of potentially life-saving treatments.

Market Entry Accessibility: With their low share prices, pharma penny stocks allow for market entry at a minimal cost. This accessibility enables investors with limited capital to diversify their portfolios across several prospective healthcare ventures.

Regulatory Catalysts: These stocks often surge in value following positive news such as patent approvals or regulatory clearances, which can serve as catalysts for stock appreciation, providing savvy investors with the opportunity to capitalize on these pivotal moments.

Challenges Of Investing In Pharma Penny Stocks

The main challenges of investing in pharma penny stocks include high volatility, which can result in significant losses, low liquidity making it difficult to sell shares, susceptibility to market rumors, and the intensive research required to evaluate the viability of the companies and their medical products.

High Volatility Risks: Pharma penny stocks are notorious for their extreme price fluctuations. This high volatility can lead to substantial financial losses as quickly as gains, making these investments particularly risky for those without the ability to closely monitor market changes.

Liquidity Concerns: These stocks often suffer from low liquidity, meaning fewer buyers and sellers. This can make it challenging to execute trades without affecting the stock price significantly, potentially trapping investors in positions they cannot easily exit.

Susceptibility to Speculation: Due to their low trading volumes and smaller market caps, pharma penny stocks are highly vulnerable to market manipulation and rumors. Even unfounded news can lead to erratic price movements, complicating investment decisions.

Research Intensity: Investing successfully in pharma penny stocks requires diligent research to understand the underlying company’s drug pipeline and market potential. This involves a significant time investment and expertise in both finance and pharmaceutical sciences to assess risks accurately.

Introduction to Penny Pharma Stocks

Morepen Laboratories Ltd

The Market Cap of Morepen Laboratories Ltd is Rs. 2,359.04 crores. The stock has seen a monthly return of 68.12% and a yearly return of 3.62%. Currently, it is 22.21% below its 52-week high.

Morepen Laboratories Limited operates as a pharmaceutical company, specializing in the creation and distribution of various active pharmaceutical ingredients (APIs), branded and generic formulations, as well as home health products. Their API range encompasses a list of critical medications like Apixaban and Atorvastatin, and their formulations include products such as Intebact Capsules and Rythmix Kid Syrup.

The company’s consumer health division offers products designed for home health management, featuring items like the Dr. Morepen Room Air Purifier and Compressor Nebulizer. Morepen Laboratories is supported by its subsidiaries, which include Dr. Morepen Limited, Morepen Devices Limited, and Total Care Limited, each contributing to the company’s expansive product portfolio.

Syncom Formulations (India) Ltd

The Market Cap of Syncom Formulations (India) Ltd stands at Rs. 1,193.80 crores. The stock has surged by 104.84% in the past month, while it has seen a decrease of 1.99% over the past year. Currently, the stock is trading 46.85% below its 52-week high.

Syncom Formulations (India) Limited operates from India in the pharmaceutical sector, specializing in the manufacture, distribution, and trade of a wide array of pharmaceutical drugs and commodities. Additionally, the company engages in property rentals. It produces a vast range of dosages, including tablets, capsules, and injectables, catering to various medical needs.

The company’s portfolio spans from antibiotics like Ciprofloxacin in multiple strengths to a variety of injectables such as Cefazolin, Cefotaxime, and Cefuroxime. It also provides ophthalmic solutions, ointments, gels, and nutritional products through its domestic divisions: Cratus Life Care, Cratus Evolve, and Cratus Right Nutrition. This diverse offering underlines Syncom’s commitment to addressing comprehensive healthcare demands.

Nectar Lifesciences Ltd

The Market Cap of Nectar Lifesciences Ltd is Rs. 765.85 crores. In the past month, the stock has delivered a return of 96.26%, and it has posted a return of 4.65% over the past year. The stock currently stands 33.82% below its 52-week high.

Nectar Lifesciences Limited, based in India, operates in the pharmaceutical sector, with its business spanning the production of active pharmaceutical ingredients (APIs), formulations, menthol derivatives, and empty capsules. It specializes in manufacturing oral and sterile cephalosporin products used in antibiotics.

The company’s product range includes various oral cephalosporins like cefixime and cefdinir, as well as sterile variants such as ceftriaxone sodium and ceftazidime. Nectar Lifesciences also offers contract manufacturing services for solid dosage forms like tablets and capsules, as well as injectables, focusing on cephalosporin drugs.

Pharmaids Pharmaceuticals Ltd

The Market Cap of Pharmaids Pharmaceuticals Ltd stands at Rs. 141.36 crores. Over the past month, the stock has witnessed a remarkable return of 204.60%, while its one-year return sits at 12.58%. Presently, it is trading at a distance of 25.84% from its 52-week high.

Pharmaids Pharmaceuticals Limited, based in India, is a supplier of specialty chemicals, skincare, hospital care, and generic products, focusing on orthopedic, neuro, gastro, and other areas. The company engages in trading and manufacturing generics, bulk drugs, and intermediaries, and operates within a single segment, Drug Formulations.

Its specialty chemicals include Retino!, DL Alpha Tocopherol, D Pantothenate, Cyanocobalamin, Pyridoxine Hcl, Thiamine, Nicotinic Acid, and Water Sol. Vitamin E, Coenzyme Q10, and D-Biotin. Skincare offerings encompass Best Care Hands, Hand Sanitizer, Moisturizing Cream, Skinsure Plus, SkinSure Ultra, Alcohol Gel, and Barrier Cream. Hospital care products consist of Xepi Rub M, Facein Spray, Sod Hypochlorite, Sanmedin, Strumen G, Strumen TRIACID, Facein Eco, Facein Power 256, Facein Spray, Sod Hypochlorite, Wipes, and PPE. Generic products include Linzomust, Benfoshine, and Amplimmune, among others.

Gennex Laboratories Ltd

The Market Cap of Gennex Laboratories Ltd stands at Rs. 365.72 crores. Over the past month, the stock has surged by 166.61%, while its one-year return is at -7.13%. Currently, it is trading 36.39% below its 52-week high.

Gennex Laboratories Limited, based in India, specializes in manufacturing active pharmaceutical ingredients (APIs). Their product range includes bulk drugs, intermediaries, and biotech products, with a strong portfolio covering expectorants, muscle relaxants, analgesics, and antifungals across major product segments.

Operating primarily in the Pharmaceutical Products (Bulk Drugs) segment, Gennex Laboratories Limited serves both domestic and international markets with manufacturing facilities located in India. Their extensive range of active pharmaceutical ingredients encompasses various medications such as expectorants, skeletal muscle relaxants, urinary tract analgesics, and anti-fungal products, catering to diverse medical needs.

Ambalal Sarabhai Enterprises Ltd

The Market Cap of Ambalal Sarabhai Enterprises Ltd is Rs. 365.52 crores. Over the past month, the stock has seen a return of 117.20%, while its yearly return stands at 4.41%. Currently, it is 47.03% below its 52-week high.

Ambalal Sarabhai Enterprises Limited, based in India, manufactures pharmaceuticals and electronics. Its segments encompass Pharmaceuticals and Electronics. Asence Inc., its wholly owned subsidiary, specializes in supplying pharmaceutical preparations to international markets. Another subsidiary, Sarabhai Chemicals (India) Private Limited, focuses on oncology, infertility, and urogynaecological products.

The company’s wholly-owned subsidiary, Suvik Hitek Private Limited, manufactures pharmaceuticals and markets generics and veterinary products domestically. Additionally, its subsidiary, Systronics (India) Limited, produces analytical and test-measuring instruments distributed across India. Other subsidiaries include Synbiotics Limited, Asence Pharma Private Limited, and Sarabhai M Chemicals Limited, among others.

Bharat Immunologicals and Biologicals Corporation Ltd

The Market Cap of Bharat Immunologicals and Biologicals Corporation Ltd is Rs. 128.96 crores. Over the past month, the stock has yielded a return of 16.45%, while its yearly return stands at 7.86%. Presently, it is 47.23% below its 52-week high.

Bharat Immunologicals and Biologicals Corporation Limited, an Indian biotechnology firm, specializes in manufacturing oral polio vaccines, zinc tablets, and diarrhea management kits. Its operations encompass segments like oral polio vaccine, zinc tablets, BIB VIT, and BIBSANIT. Additionally, it produces Ready to Use Therapeutic Food (RUTF) for malnourished children.

The company’s manufacturing unit, situated in Village Chola, Bulandshahr, Uttar Pradesh, India, has transitioned from a trivalent oral polio vaccine (tOPV) to a bivalent oral polio vaccine (bOPV). Moreover, it has expanded into plasma-derived medicines and Oral Cholera vaccines to diversify its product portfolio.

Rajnish Wellness Ltd

The Market Cap of Rajnish Wellness Ltd stands at Rs. 562.78 crores. Over the past month, the stock has experienced a significant decline of -55.32%, while its yearly return is at 6.62%. Currently, it is trading 143.5% below its 52-week high.

Rajnish Wellness Limited, an Indian company, specializes in producing and marketing ayurvedic medicinal products tailored for personal sexual wellness. Its product range comprises ayurvedic ethical medicines, personal care items, and medicinal sexual enhancement products. The flagship brand, Playwin, dominates the sexual wellness sector, with a strong presence in Maharashtra, Karnataka, and Odisha.

Moreover, the company offers contraceptives, sexual enhancement supplements, and personal lubricants to meet diverse consumer needs.

Kimia Biosciences Ltd

The Market Cap of Kimia Biosciences Ltd stands at Rs. 245.67 crores. Over the past month, the stock has yielded a return of 41.38%, while its one-year return sits at 0.98%. Presently, it is 12.68% below its 52-week high.

Kimia Biosciences Limited, based in India, manufactures bulk drugs catering to various therapeutic segments. The company offers a range of products, including active pharmaceutical ingredients (APIs), intermediates, and formulations. Its commercial portfolio comprises a diverse array of pharmaceuticals, from acotiamide hydrochloride hydrate to ursodeoxycholic acid.

The company’s focus on high-potential therapeutic segments underscores its commitment to meeting diverse medical needs. Through its wide range of offerings, including APIs, intermediates, and formulations, Kimia Biosciences aims to contribute to the healthcare sector by providing essential pharmaceutical products to patients worldwide.

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Penny Pharma Stocks List – FAQ

Which Stocks Are The Best Pharma Penny Stocks?

Best Pharma Penny Stocks #1: Morepen Laboratories Ltd

Best Pharma Penny Stocks #2: Syncom Formulations (India) Ltd

Best Pharma Penny Stocks #3: Nectar Lifesciences Ltd

Best Pharma Penny Stocks #4: Rajnish Wellness Ltd

Best Pharma Penny Stocks #5: Gennex Laboratories Ltd

The top best Pharma Penny Stocks are based on market capitalization.

What Are The Low Price NSE Pharma Stocks?

Investors seeking low-priced options in the pharmaceutical sector on the NSE can consider stocks like Rajnish Wellness Ltd, Syncom Formulations (India) Ltd, Gennex Laboratories Ltd, Lasa Supergenerics Ltd, and Bharat Immunologicals and Biologicals Corporation Ltd for potential investment opportunities.

Is it good to invest in Pharma Penny Stocks?

Investing in pharma penny stocks can offer significant growth potential, but it comes with higher risks due to their volatility and speculative nature. Investors should conduct thorough research and consider their risk tolerance before investing, as these stocks can experience sudden price fluctuations and market uncertainties.

How To Invest In Pharma Penny Stocks?

To invest in pharma penny stocks, conduct extensive research on companies’ drug pipelines, financials, and regulatory standings. Open a brokerage account that allows trading in penny stocks, carefully monitor market trends and news, and consider diversifying your portfolio to mitigate the risk associated with these volatile investments.

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.

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