Top Penny Stocks Under Rs. 20 to Watch in 2026

Overview

• RattanIndia Power, Rama Steel Tubes, and Sarveshwar Foods delivered strong five-year returns under Rs. 20.

• Sarveshwar Foods delivered the highest five-year return at 815.91%, supported by steady food sector demand.

• Penny stocks are highly volatile, as any small news can have a massive impact on the share price. That’s why these are usually preferred by retail investors.

Penny stocks are shares of small companies that trade at a very low price, usually under Rs. 20. In India, these companies generally have a market value of less than Rs. 2,000 crore. These are high-risk, high-reward stocks. These are perfect investment options for people wanting a diamond in the rough. Let’s explore the top penny stocks under Rs. 20 that have shown good long-term growth and strong business potential in India in 2026 based on INDmoney data.

RattanIndia Power

RattanIndia Power is a major utility company trading at Rs. 9.13 at press time. With the Union Budget’s energy push in 2026, this penny stock has good growth potential. This stock has already shown its strength with a 5-year return of 197%. It reported a solid quarterly profit of Rs. 54 crore, which is a good sign for a small-cap company in the power sector.

Rama Steel Tubes

Rama Steel Tubes is a key player in the industrial space, priced at Rs. 7.99. This company makes steel pipes and tubes used in big building projects. It has a very strong track record, giving investors a 5-year return of 686.87%. With a steady quarterly revenue of Rs. 320 crore, Rama Steel Tubes continues to show that it can hold its ground in the market.

Spacenet Enterprises India

If you are looking at the technology side, Spacenet Enterprises is worth watching at Rs. 5.66. It has been a high-growth stock, showing a 5-year return of 242.29%. The company recently reported a quarterly profit of Rs. 5 crore. Spacenet Enterprises India is focused on growing its presence in its segment. In turn, making it a favorite for those who want to invest in the tech sector.

Unitech

Unitech is a well-known name in the real estate world. Even at a low price of Rs. 5.61, it has managed to give a 5-year return of 169.47%. While the real estate market can be tough, the company has seen high trading volumes, which shows that many investors are still interested in its recovery and future projects.

Also Read: SBI Share Price Up 6.9% at Rs. 1,140 on Strong Q3 FY26 Results

Sarveshwar Foods

Sarveshwar Foods is a standout name in the consumer sector. Trading at just Rs. 4.17, this penny stock has been a massive winner for long-term holders. The stock has delivered an incredible 5-year return of 815.91%. The company focuses on the food business and has shown it can scale up, reporting a quarterly revenue of Rs. 335 crore.

Salasar Techno Engineering

Salasar Techno works in the industrial and infrastructure space, with a price of Rs. 8.76. It has delivered a 5-year return of 141.81%. The company is quite efficient, reporting a quarterly profit of Rs. 16 crore. Salar Techno Engineering’s ability to grow while keeping its business stable makes it a top pick for many small-cap investors.

Media Matrix Worldwide

Media Matrix operates in the consumer and media space for Rs. 9.50. It has offered a 5-year return of 82.95%, nearly doubling investors' money over that time. With a quarterly profit of Rs. 2 crore and a strong jump in revenue, the company shows that even small media firms can find a successful path.

Also Read: Stock Market Basics for Beginners: How Investing Works

Important Tips for Penny Stock Investors

Penny stocks are exciting because they can give you higher returns more quickly than big, famous companies. However, you should always check if the company is making a profit and its trading volume to see investor confidence in the stock. Look for firms like the ones mentioned above that have a history of giving good returns consistently over a few years.

Final Thoughts

Investing in penny stocks needs patience and a good eye for value. The stocks listed above have proven that they can deliver good results over 5 years. By keeping an eye on their profit trends and how much they are growing each year, you can find opportunities that most people miss. Always remember to do your homework and keep your portfolio balanced to make the most of the market in 2026.

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FAQs

1. What are penny stocks?

Penny stocks are shares of small companies that trade at low prices, usually below Rs. 20 in India. Investors buy them because even small business improvements can lead to sharp price gains. Since the entry cost is low, retail investors see them as a way to take higher risk for potentially higher returns over time.

2. Which Indian penny stock picks are best for 2026?

Indian penny stocks showing strong five-year returns and improving profits stand out in 2026. Stocks like RattanIndia Power, Rama Steel Tubes, Sarveshwar Foods, and Salasar Techno Engineering have delivered steady growth over time. Their presence in sectors like power, steel, food, and infrastructure adds to their long-term growth potential.

3. Is investing in penny stocks safe?

Penny stocks are not fully safe because their prices can move fast and react sharply to news. However, the ones with consistent profits, steady revenue, and strong past returns are usually less risky than loss-making stocks. Investors should focus on business performance rather than only low share prices.

4. Can I buy stocks with just Rs. 20 in India?

Yes, many Indian stocks trade below Rs. 20, making them affordable for small investors. With online trading platforms, even a small amount can be invested. However, price alone should not guide decisions. Checking profits, revenue growth, and long-term returns is important before buying any stock.

5. How should beginners approach penny stock investing in 2026?

Beginners should start slow and keep penny stocks as a small part of their portfolio. It is better to choose companies that have shown steady performance over several years. Tracking earnings, avoiding overtrading, and staying patient can help reduce risk while investing in penny stocks.