Pt 3 Using Screener.in: Uncovering Penny Stocks

Welcome back to our journey through the world of Screener.in. In this installment, we're going to explore how to use Screener.in to identify penny stocks—those intriguing, low-priced shares that can offer unique investment opportunities.

What Are Penny Stocks?

Penny stocks are shares of small companies trading at a low price, typically below Rs 10 in the Indian context. These stocks often have small market capitalizations and can be quite volatile. While they present the potential for substantial gains, they also come with higher risks.

Finding Penny Stocks with Screener.in

Using Screener.in, you can easily identify penny stocks that match your criteria. Here's how:

1. Current Price Filter: To begin, create a query in the Query Builder that filters stocks based on their current price. For example, if you want to find stocks trading at less than Rs 10, use this query:

This query will narrow down the list to stocks with a current price below Rs 10.

2. Market Cap Filter (Optional): If you want to refine your search further and focus on penny stocks with small market capitalizations, add the following criterion:

This query ensures that the market cap of the selected stocks is below 100 Crores.

3. The Penny Stock List: Once you apply these filters, Screener.in will generate a list of stocks that match your criteria. This list will include penny stocks that fit both the price and market cap requirements.

Remember that investing in penny stocks can be risky due to their volatility and limited liquidity. It's essential to conduct thorough research and consider the company's fundamentals before making any investment decisions.

Why Invest in Penny Stocks?

Penny stocks can be appealing for several reasons:

• Low Entry Cost: Their low share prices make them accessible to small investors with limited capital.
• High Growth Potential: Some penny stocks have the potential for significant price appreciation, leading to substantial returns.
• Opportunity for Diversification: Investing in penny stocks can help diversify your portfolio and reduce overall risk.

However, it's crucial to approach penny stocks with caution. While they offer potential rewards, they also carry a higher risk of loss due to their volatility.

Conclusion

In this part of our guide, you've learned how to use Screener.in to find penny stocks—those enticing, low-priced shares that can capture the imagination of investors. Keep in mind that penny stocks come with higher risks, so it's essential to do your due diligence and research thoroughly before considering any investment.

Stay tuned for Part 4, where we'll explore how to identify debt-free companies using Screener.in. Investing in companies with no or minimal debt can be a strategy to consider for a more stable portfolio.