Best Shares Below ₹1 in January 2025 – Based on 5yr CAGR

Stocks priced below ₹1 often attract investors because of their affordability. However, they come with high risks, such as sharp price swings, low trading activity, and even chances of scams. While these stocks can provide significant returns, they require careful consideration before investing. In this article, we’ll explore the top shares below rs 1 NSE in January 2025, based on 5-year CAGR, and discuss their benefits and risks.

Top 10 Shares Below Rs 1 NSE In January 2025 – 5yr CAGR Basis

Note: Below 1 rs share price list provided here is as of December 23, 2024. The stocks are sorted based on their 5-year CAGR. 

Overview Of Top Shares Below 1 Rupee In January 2025

1. Stampede Capital Ltd

Stampede Capital Limited is a fintech company that focuses on automating tasks and using cloud computing to support financial markets.

In FY 2024, the company reported a total revenue of ₹7.51 crore, reflecting a 28.06% decrease compared to the previous quarter. This trend is even more pronounced when looking at the annual figures, with total revenue dropping drastically from ₹16.82 crore in FY 2020, marking an 89.64% decline over 4 years.

Key metrics: 

• EPS (Earning Per Share): NA
• ROE (Return on Equity): 438.46%%

2. Visagar Financial Services Ltd

Visagar Financial Services Ltd, established in 1994, is a Non-Banking Financial Company (NBFC) engaged in investment and financial activities.

In Q2 FY25, the company reported revenue of ₹75.94 crore and a net profit of ₹3.86 crore, recovering from a net loss of ₹2.58 crore in June 2024. For the full fiscal year 2023-24, the company achieved a total revenue of ₹334.18 crore but ended with a marginal net loss of ₹1.21 crore. 

Key metrics: 

• EPS: -₹0.06
• ROE: -5.29%

3. S G N Telecoms Ltd

Established in 1986, SGN Telecoms Ltd specialises in manufacturing and supplying various range of power, control, and data cables.

In September 2024 and June 2024, it recorded net losses of ₹0.06 crore and ₹0.09 crore, respectively, with an Earnings Per Share (EPS) of -₹0.01 in both quarters. For the full fiscal year 2023-24, the net loss stood at ₹0.62 crore, resulting in an annual EPS of -₹0.08.

Key metrics: 

• EPS: -₹0.02
• ROE: -38.78%

4. Virtual Global Education Ltd

Established in 1993, Virtual Global Education Limited focuses on skill development, training, and helping unemployed youth find job opportunities.

For the quarter ended September 2024, Virtual Global Education Limited reported a net profit of ₹0.05 crore compared to a loss of ₹0.04 crore in June 2024 and a loss of ₹1.83 crore for the financial year 2023-24. The earnings per share (EPS) stood at ₹0.01 for September 2024, improving from ₹-0.01 in June 2024 and ₹-0.04 for FY 2023-24.

Key metrics: 

• EPS: -₹0.04
• ROE: -2.79%

5. MFL India Ltd

Established in 1981, MFL India Ltd is a logistics and cargo transportation company. It operates its own fleet of trucks and specialised equipment for handling and transporting cargo.

For the quarter ending September 2024, the company reported revenue of ₹12.65 crore and a net loss of ₹0.43 crore, compared to ₹11.50 crore in revenue and a net loss of ₹0.02 crore in the previous quarter. For FY 2022-23, the company recorded revenue of ₹13.75 crore with no net profit or loss.

Key metrics: 

• EPS: NA
• ROE: -281.69%

What Are Shares Below ₹1?

Shares priced below ₹1 usually belong to small or less established companies. These stocks are very cheap, making them popular among investors looking to start with a small budget. However, they can be highly unpredictable.

Risks of Investing in Shares Below ₹1

1. High Volatility: Prices can change drastically, leading to significant losses.
2. Low Liquidity: These stocks often have low trading volumes, making it difficult to buy or sell without impacting the price.
3. Risk of Fraud: Their low price and less regulation make them more vulnerable to scams and manipulation.
4. Limited Information: Companies offering these shares may not disclose enough financial details, making it hard to assess their value.

Things to Know Before Investing in Shares Below ₹1

While these stocks may seem attractive because of their low cost, they carry a high risk of scams and losses. In India, there have been instances of unsolicited tips promoting low-priced stocks that later collapsed.

Before investing, do thorough research. Check the company’s financial status, management credibility, and business potential. Avoid stocks that lack transparency or seem overhyped.

Conclusion

Shares below ₹1 might look tempting due to their affordability, but they come with significant risks like volatility, low liquidity, and fraud. Always understand these risks and seek advice from a financial expert before investing.

Investments in securities market are subject to market risks, read all the related documents carefully before investing

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.