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Automobile penny stocks with low debt are gaining traction in India. Some have delivered 800 % returns, while others target the US$200B micro-EV market. Find which one will surge next to make informed investment decisions in 2025. The list includes giants like Hindustan Motors, Tunwal E-Motors, and more.
The auto sector is changing rapidly, driven by electric vehicle (EV) expansion, government policy, and the passion for cleaner mobility. Penny stocks provide a special combination of high risk and high reward for investors. Low-debt penny stocks take away the high risk, offering a balance between gains and stability.
Let’s explore the best automobile penny stocks to invest in 2025.
The following list includes key metrics of each stock to help one make an informed decision:
Wardwizard Innovations & Mobility is listed at ₹20.35 with a market capitalization of ₹519 crore. The firm has no debt and has given more than 800% returns in five years. It is India's first listed electric two-wheeler manufacturer. The company makes electric two-wheelers under the brand name ‘Joy e-bike.’ It also entered the EV charging and lithium-ion battery manufacturing segments.
Tunwal E-Motors trades at ₹31.80 with a market cap of ₹173 crore. Its debt-to-equity ratio is below 0.5. The company deals in high-speed electric scooters with models such as the Sport 63. Tie-ups with international tech companies enable it to include IoT features and improve battery life, which gives it a technological advantage in a competitive landscape.
Setco Automotive is listed at ₹16.99 and has a market value of ₹229 crore. It has lowered its debt by 40% from FY22 and has given a 115% return in a year. The company is a top supplier of clutches for commercial vehicles. It also benefits from India's growing demand for logistics and OEM production.
Sibar Auto Parts is currently trading at ₹10.99 and has a market cap of ₹17.68 crore. Its debt equity ratio is 0.3. The company deals in cold-forged precision two-wheeler parts, specifically EV components. It fits into India's manufacturing localization drive and has excellent long-term opportunities despite being a small-scale business.
Hindustan Motors, earlier famous for the Ambassador car, is currently concentrating on electric parts manufacturing. Its share price stands at ₹22.62 with a market capitalization of ₹466.56 crore and a P/E ratio of 14.43. In five years, it has provided 441% returns. The company is rebranding itself as a futuristic brand.
Low-cap penny stocks such as Tunwal tend to be unpredictable. Regulatory environment dynamics, like changes to GST or foreign trade troubles, can affect their expansion. On the other hand, options like Sibar call for phased acquisition due to less liquidity.
To control risk, diversify your selections across segments. Mix EV makers like Wardwizard with component companies like Sibar. Monitor order books and policy changes of these companies regularly. Take partial profits at 50 to 100% gains to decrease risk.
Auto penny stocks with minimal debt present a formidable mix of growth and protection. As the EV industry grows rapidly, these companies stand to profit in 2025 and beyond. Thus, careful investing by doing proper research can turn small wagers into huge victories for investors.
