Overview

Stocks below 5 rupees sit at the speculative end of the Indian market. Most are micro-cap companies with thin liquidity, uneven earnings and stretched balance sheets. Some so-called multibagger penny stocks have delivered outsized returns, but the label only applies in hindsight. This guide profiles ten stocks below 5 rupees on valuation, profitability, debt and promoter holding, using data from October 1 to 5, 2026. A due diligence checklist and FAQs follow. The snapshot is a research starting point, not a recommendation.

Company	Sector	Market Cap (₹ Cr)	CMP (₹)	P/E	52W High / Low (₹)	Debt to Equity	Promoter Holding
Sadhana Nitro Chem	Chemicals	749	2.59	N/A	3.32 / 1.27	N/A	59.6%
Rama Steel Tubes	Steel pipes and tubes	718	4.39	59.5	11.29 / 3.43	~0.14	34.2%
Salasar Techno Engineering	EPC, galvanised structures	715	4.09	17.6	10.99 / 3.80	~0.52	44.5%
Sarveshwar Foods	Basmati and non-basmati rice	424	3.48	39.7	6.64 / 2.50	N/A	40.9%
GVK Power & Infrastructure	Power, infrastructure services	396	2.51	N/A	3.68 / 2.03	N/A	54.2%
Davangere Sugar	Sugar, ethanol, cogeneration	387	2.28	47.5	5.50 / 1.74	~0.42	35.1%
Evexia Lifecare	Trading, healthcare	375	2.00	454.6	2.15 / 0.47	0.92	3.4%
Nandan Denim	Textiles	375	2.60	10.2	3.57 / 1.80	0.18	51.0%
Sakuma Exports	Agri commodity trading	241	1.56	22.6	3.10 / 1.10	Low	46.3%
Rollatainers	Packaging, real estate leasing	124	4.95	N/A	6.57 / 1.06	N/A	51.0%

*N/A means the ratio isn’t meaningful because of losses or negative equity. Sorted by market cap, not ranked. Sources: Screener.in, Finology and Jainam’s stock pages; prices and market cap change daily.

Stock-by-Stock Analysis

Sadhana Nitro Chem

Business overview: A 1973-founded maker of chemical intermediates and performance chemicals, with a wireless equipment arm.

Metric	Value
Market cap	₹749 Cr
CMP	₹2.59
Book value	₹1.54
ROCE / ROE	-11.6% / -24.2%
Promoter holding	59.6%

What to watch: Whether sales recover from FY26’s ₹41 Cr, which came with a net loss of ₹87 Cr.

Financial risk: Interest coverage is weak and five-year sales are down 15% a year. Operational risk: Debtor days of about 1,275 suggest money is slow to come in.

Rama Steel Tubes

Business overview: Makes steel pipes, tubes and related products.

Metric	Value
Market cap	₹718 Cr
CMP	₹4.39
P/E	59.5
ROCE / ROE	6.01% / 3.78%
Borrowings	₹58 Cr (FY26), down from ₹100 Cr (FY24)
Promoter holding	34.18%

What to watch: FY26 sales of ₹954 Cr and profit of ₹15 Cr, alongside the falling debt.

Financial risk: About ₹11 Cr of other income is a large slice of that profit, and three-year profit growth is -6% a year. 

Operational risk: Promoter holding fell another 1.71% last quarter.

Salasar Techno Engineering

Business overview: EPC provider making galvanised steel structures and executing telecom tower, transmission line and railway work.

Metric	Value
Market cap	₹715 Cr
CMP	₹4.09
P/E	17.6
ROCE / ROE	10.1% / 5.82%
Borrowings	₹412 Cr (March 2026)
Promoter holding	44.50%

What to watch: Q1 FY27 profit of ₹4.78 Cr on sales of ₹290.77 Cr, after FY26 profit of ₹45 Cr on ₹1,459 Cr.

Financial risk: Interest cost of ₹54 Cr a year and contingent liabilities of ₹259 Cr. 

Operational risk: Debtor days of 157, and promoter holding down from 63.07% in September 2023.

Sarveshwar Foods

Business overview: A Jammu and Kashmir rice company selling in domestic and export markets.

Metric	Value
Market cap	₹424 Cr
CMP	₹3.48
P/E	39.7
ROCE / ROE	5.86% / 3.36%
Promoter holding	40.9%

What to watch: FY26 profit of ₹10 Cr on revenue of ₹665 Cr, and the ₹84.55 Cr preferential warrant issue proposed in September 2026.

Financial risk: Low returns on equity, and the stock is down about 45% over a year despite profits. 

Operational risk: Promoter holding fell 14% over three years.

GVK Power & Infrastructure

Business overview: Provides operation and maintenance, manpower and consultancy services to power plants, airports and infrastructure entities. FY26 operating income was nil.

Metric	Value
Market cap	₹396 Cr
CMP	₹2.51
P/E, P/B, ROE	Not meaningful (negative book value of ₹9.23)
ROCE	-12.3%
Borrowings	₹700.54 Cr (March 2026)
Promoter holding	54.2%, unchanged

What to watch: A revival would need operating income to restart and net worth to recover. FY26 sales were ₹80.53 Cr against a loss of ₹1,382.69 Cr.

Financial risk: Interest coverage is critically low, and five-year sales are down 23.6% a year. Operational risk: The company has said the energy and transport outlook is bleak and the airports are closed.

Davangere Sugar

Business overview: Integrated sugar, ethanol and cogeneration company.

Metric	Value
Market cap	₹387 Cr
CMP	₹2.28
P/E	47.5
ROCE / ROE	5.52% / 1.99%
Borrowings	₹250 Cr (March 2026)
Promoter holding	35.1%

What to watch: Q1 FY27 profit of ₹0.94 Cr on sales of ₹34.72 Cr, after FY26 profit of ₹9 Cr on ₹239 Cr.

Financial risk: Interest cost of ₹27 Cr a year against that profit. 

Operational risk: Working capital days of 348, and promoter holding down from 74% in FY23.

Evexia Lifecare

Business overview: Listed in the trading segment, with exposure to healthcare products. It has cut debt by about ₹308.61 Cr.

Metric	Value
Market cap	₹375 Cr
CMP	₹2.00
P/E	454.6 (tiny earnings, not a real multiple)
P/B	0.92
ROE	0.29%
Debt to equity	0.92
Promoter holding	3.36%

What to watch: Revenue growth of 52.81% a year, and whether the Q1 FY27 profit of ₹0.42 Cr on sales of ₹29.66 Cr can scale.

Financial risk: ROCE of 0.2% and a profit decline of 36.85% year on year. 

Operational risk: Promoters hold just 3.36%, and the stock has gone from ₹0.47 to ₹2.00 within 52 weeks, which is a lot of price movement for so little profit.

Nandan Denim

Business overview: Chiripal Group is a denim, yarn, cotton fabric and shirting maker selling to global buyers. Exports tie its fortunes to textile demand cycles, cotton prices, and capacity utilisation.

Metric	Value
Market cap	₹375 Cr
CMP	₹2.60
P/E	10.2
P/B	0.56
ROE	5.22%
Debt to equity	0.18
Promoter holding	51.01%

What to watch: Q1 FY27 net profit of ₹14.80 Cr on sales of ₹622.39 Cr, and whether sales stabilise after a 19.03% year-on-year decline.

Financial risk: ROCE of 7.33% leaves little cushion. 

Operational risk: Raw cotton prices and export demand swings. Promoter holding fell from 64.87% in March 2024 to 51.01% in March 2025.

Sakuma Exports

Business overview: Trades bulk agricultural commodities such as sugar, edible oils, oilseeds, pulses and cotton, and offers structured financial products linked to them.

Metric	Value
Market cap	₹241 Cr
CMP	₹1.56
P/E	22.6
P/B	0.33
ROE	1.31%
Debt to equity	Low (borrowings ₹9 Cr)
Promoter holding	46.29%

What to watch: Q1 FY27 net profit of ₹2.82 Cr on sales of ₹333.32 Cr, and a near debt-free balance sheet.

Financial risk: FY26 profit of ₹10 Cr on sales of ₹1,708 Cr is a thin margin, and other income of ₹11.4 Cr is larger than that profit. 

Operational risk: Debtor days rose from 75 to 95.7, and promoter holding fell 15.6% over three years.

Rollatainers

Business overview: A Haryana company whose former packaging plant is shut and partly leased, so it now earns mostly from real estate leasing.

Metric	Value
Market cap	₹124 Cr
CMP	₹4.95
P/B	12.3
ROE	-73.8%
Borrowings	₹11 Cr
Promoter holding	50.96%

What to watch: Whether operations restart. FY26 sales were zero, and the ₹17 Cr FY26 profit came from a one-time disposal gain.

Financial risk: Negative reserves of ₹16 Cr and low interest coverage. Operational risk: No manufacturing activity, and a 52-week range of ₹1.06 to ₹6.57.

Also Read: Penny Stocks Under ₹1 in India

What Are Penny Stocks in India?

Penny stocks under 5 Rs are low-priced shares, often from small companies, struggling businesses or emerging sectors. Trading is thin, so prices can swing sharply. Multibagger penny stock stories usually involve a company that fixed its debt, grew revenue or caught a sector upswing, and most stocks under 5 Rs never get there.

Crucial Risk & Due Diligence Checklist for ₹5 Stocks

Circuit limits and liquidity traps: Many stocks below ₹5 trade under 2% or 5% circuit filters. Low volume can leave you stuck in an upper circuit when buying or a lower circuit when selling, so check the 30-day average daily volume.

Promoter pledging and shareholding trends: Look at whether promoter holding is falling over consecutive quarters or a large share is pledged against debt.

SEBI surveillance measures (ASM / GSM): Check whether the stock is under the Additional or Graded Surveillance Measure frameworks, which exist to curb unwarranted speculation and price manipulation.

Financial health and debt serviceability: Favour companies with positive EBITDA, falling debt to equity and improving interest coverage over loss-making, highly leveraged micro-caps.

Investment Tips

Avoid decisions driven by tips or price spikes, and research revenue growth, profit consistency and debt before buying shares under 5 Rs.

Additional Stocks Under ₹1

Some penny stocks under 5 rs trade below ₹1. Filatex Fashions (₹0.18) and Standard Capital Markets (₹0.31) traded below ₹1 as of October 2, 2026. 

Kindly verify current trading and surveillance status on NSE or BSE first.

How to Buy Stocks Below 5 Rupees?

Open a demat account with Jainam to get started with buying stocks. You can complete online KYC, link your bank account, and place orders through a demat account.

Final Key Takeaways

• A price below ₹5 says nothing about quality. Judge each stock on market cap, debt, earnings and promoter holding.
• Several of these ten have thin or one-off profits, as Evexia and Rollatainers show, and promoter holding is falling in most.
• Check liquidity, circuit limits and ASM or GSM status before buying any of these stocks under 5 Rs.
• “Multibagger” is a hindsight label, not a forecast for any stock in this list.
• Treat this as a research starting point, not a recommendation, and check live prices.