India is embracing both tradition and innovation, emerging as a dynamic leader of change with abundant opportunities. Advanced technology and openness to new concepts position the country to lead the charge toward a future of inclusive, tech-driven growth.
Companies are swiftly adopting emerging technologies, making ground for business ventures and investments.
Consequently, smart investors are focusing on penny stocks – small, frequently overlooked companies with substantial potential. These affordable stocks present a unique opportunity to participate in the technology boom without requiring huge capital outlays.
Let us explore this year’s top IT sector penny stock contenders to see which ones may have the greatest prospects.
IT sector overview
The information technology sector has evolved into a major engine fueling India’s economic expansion. It has been instrumental in increasing the nation’s gross domestic product.
As per government data, in FY23, the IT sector accounted for 7.5% of India’s GDP, a proportion expected to reach 10% by 2025. By 2026, India’s IT revenues could amount to a remarkable $350 billion.
India has solidly positioned itself as the premier global offshoring centre for IT services. With an established reputation for providing both onshore and offshore solutions to international clients, the emergence of new technologies offers additional prospects for India’s leading IT companies to pursue.
Also read: Best Chemical Stocks to Invest in India for 2024
What are penny stocks?
Penny stocks refer to shares that trade at a low price, often with tiny market capitalizations and minimal liquidity, typically found on smaller exchanges. These stocks tend to be highly speculative and carry significant risk due to their:
- Limited liquidity,
- Fewer shareholders,
- Wide bid-ask spreads, and often
- Opaque financial information.
Their prices can swing wildly, driven by market rumours, specific company developments, or broader industry trends. Unlike larger stocks, penny stocks do not trade as frequently, making it harder to buy or sell them quickly when needed.
3 best IT sector penny stocks in India
Now, here are the top 3 best IT sector penny stocks in India according to lowest market capitalisation and higher 5-year returns.
- Baron Infotech Ltd
- Fourth Generation Information Systems Ltd
- G-Tech Info Training Ltd
| Baron Infotech Ltd | Fourth Generation Information Systems Ltd | G-Tech Info Training Ltd | |
| Market Capitalisation (₹ crores) | 1.02 | 2.33 | 0.64 |
| Current Market Price (₹) | 1.00 | 6.55 | 1.84 |
| ROCE (%) | -7.55 | -10.26 | 19.05 |
| 1-Year Returns (%) | 28.21 | 31.26 | 38.35 |
| 5-Year Returns (%) | 39.40 | 21.34 | 21.32 |
Let us understand each of the best IT sector penny stocks in detail.
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Baron Infotech Ltd
Founded in 1994 – Baron Infotech Ltd is a software services firm headquartered in Hyderabad.
Baron has a set of solutions that includes a full spectrum of service offerings such as:
- ERP Solutions
- Bank Care-Total Banking Solutions
- Supply Chain Management Solutions
- Business Consultancy Services
- Testing & Quality Assurance
- Client/Server Applications
- E-Commerce Solution
Fourth Generation Information Systems Ltd
Fourth Generation Information Systems Limited is a leading technology services and solutions company incorporated in the year 1998 that offers computer system integration services, programming services and embedded systems development services.
The company offers the following varied services:
- Installation and maintenance of hardware and software
- Project management, advisory, deployment, customisation & training
- Integration across various technologies including ERP, CRM & Web
- Recruitment services
The organisation provides a variety of services that enable clients to enjoy a full spectrum of integrated hardware design and software-oriented solutions.
G-Tech Info Training Ltd
G-Tech Info Training Ltd was incorporated in 1994 and is headquartered in Mumbai. It provides information technology-enabled services including computer training, knowledge process outsourcing, and business process outsourcing.
- The company services all brands of computers, laptops, tablets, hardware and software, offering low-cost specialist repair services for laptops and notebooks in western India.
- It is establishing partnerships with e-commerce and online portals to sell its products through the G-Tech platform, expanding into smaller towns in India.
- The company delivers customised solutions for business outcomes using its Secure Borderless Workspaces (SBWS™) operating model, enabling distributed, location-independent agile delivery.
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Bottomline
India is poised for a future in which technology and tradition combine to bring forth significant opportunities for advancement and innovation. As information technology propels economic expansion, prudent investors are paying close attention to fledgling tech stocks, which offer affordable access to a thriving industry.
Researching leading IT penny stocks could reveal promising opportunities for those willing to take on the risks and potential profits of this fast-changing investment environment.
FAQs
1. Which penny share will grow in 2024?
In 2024, penny stocks can be great. Some emerging sectors which one can look at are IT, pharma, renewable energy, etc.
According to one year sales growth, the penny shares that can grow in value in 2024 are:
- Nila Spaces Ltd
- Thakkers Group Ltd
- Avance Technologies Ltd
- Spright Agro Ltd
- Empower India Ltd
2. Which shares will boom in 2024?
In 2024 – shares in India’s sunrise sectors are poised for growth, driven by the country’s expanding economy and supportive government policies. Key sectors to watch include:
- Electronics and semiconductors,
- Electric vehicles (EV),
- Renewable energy,
- Agro and food processing, and
- Healthcare & pharmaceuticals.
All these industries can benefit from technological advancements, sustainable trends, and increased demand.
3. Which is the best stock in the IT sector?
India has solidly positioned itself as the premier global offshoring centre for IT services. With an established reputation for providing both onshore and offshore solutions to international clients, the emergence of new technologies offers additional prospects for India’s leading IT companies to pursue.
According to market capitalisation, the best IT stocks are:
- TCS
- Infosys
- HCL Technologies
- Wipro
- LTIMindtree Ltd
4. What are the top 5 penny stocks?
The prospects of penny stocks could be very good in the coming years because of government initiatives. Some of the growing sectors which one can look at include but are not limited to, IT, pharma, renewable energy, etc.
Based on one year of sales growth, below are the names of the penny shares;
- Nila Spaces Ltd
- Thakkers Group Ltd
- Avance Technologies Ltd
- Spright Agro Ltd
- Empower India Ltd
5. Which sector to invest in 2024?
The shares of emerging industries can rise significantly due to the country’s expanding economy and favourable government policies.
Technological progress and rising demand are the primary drivers fueling the growth of these key sectors:
- Electronics,
- Semiconductors,
- Electric vehicles,
- Renewable energy,
- Agro and food processing,
- Healthcare & pharmaceuticals
