5 Steel Penny Stocks in India Investors Are Tracking for 2027
- September 16, 2026
- Posted by: Harsh Piplani
- Category: Penny stocks
Bihar Sponge Iron CMP Rs 13.01, market cap Rs 117.00 Cr. Swastik Pipes trading at Rs 16.65. 5 steel penny stocks under Rs 100 tracked for 2027.
Quick Answer
Steel penny stocks in India 2027 include Bihar Sponge Iron Ltd., Swastik Pipes Ltd., Modern Steel Ltd., Mukat Pipes Ltd. and Kalana Ispat Ltd., all trading under Rs 100 a share. These names give investors low-cost exposure to India’s steel sector, though several carry thin or negative ROE and high leverage. Position sizing and independent research matter more here than with large-cap steel stocks. This is educational content, not investment advice, and a SEBI-registered advisor should be consulted before allocating capital to any penny stock.
Investors tracking steel penny stocks in India 2027 are looking at a mix of legacy names and smaller steel players still trading under Rs 100 a share. Bihar Sponge Iron Ltd. and Swastik Pipes Ltd. anchor this list by market cap, while smaller names such as Kalana Ispat Ltd. remain firmly in penny-stock territory.
India is the world’s second-largest steel producer, and the government’s infrastructure and manufacturing push keeps long-term demand for steel products firm. Smaller steel and pipe makers, however, are far more exposed to raw-material cost swings and thin margins than the large integrated producers, which is why several of them trade in penny-stock territory.
This article lists 5 steel stocks worth tracking for 2027, along with their current price, market capitalisation, valuation ratios and the key risks each one carries.
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5 Best Steel Penny Stocks in India for 2027
The table below lists these stocks along with their current market price, market capitalisation, PE ratio, ROE and debt-to-equity ratio. 52-week trading range is not listed here; check the Univest app for live charting and technical levels.
| Stock Name | CMP (Rs) | Market Cap (Rs Cr) | PE Ratio | ROE | Debt/Equity |
|---|---|---|---|---|---|
| Bihar Sponge Iron Ltd. | 13.01 | 117.00 | 10.01 | -33.28% | -0.81 |
| Swastik Pipes Ltd. | 16.65 | 39.00 | Loss | -44.06% | 1.02 |
| Modern Steel Ltd. | 14.09 | 19.00 | 16.20 | 5.61% | 0.01 |
| Mukat Pipes Ltd. | 14.53 | 17.00 | Loss | -0.78% | -0.51 |
| Kalana Ispat Ltd. | 18.5 | 24.00 | 25.00 | 2.20% | 0.05 |
Disclaimer: The stocks listed above are for educational purposes only and are not buy recommendations. Verify all figures independently and consult a SEBI-registered advisor before investing.
1. Bihar Sponge Iron Ltd.
CMP: Rs 13.01 | Market Cap: Rs 117.00 Cr
Bihar Sponge Iron Ltd. is a sponge iron maker with a negative ROE and negative book value, a high-risk name. The stock trades at a PE of 10.01, with an ROE of -33.28% and a debt-to-equity ratio of -0.81.
2. Swastik Pipes Ltd.
CMP: Rs 16.65 | Market Cap: Rs 39.00 Cr
Swastik Pipes Ltd. is a steel pipe manufacturer currently posting losses. The stock trades at no meaningful PE (loss-making), with an ROE of -44.06% and a debt-to-equity ratio of 1.02.
3. Modern Steel Ltd.
CMP: Rs 14.09 | Market Cap: Rs 19.00 Cr
Modern Steel Ltd. is a small, low-debt steel producer with modest profitability. The stock trades at a PE of 16.20, with an ROE of 5.61% and a debt-to-equity ratio of 0.01.
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4. Mukat Pipes Ltd.
CMP: Rs 14.53 | Market Cap: Rs 17.00 Cr
Mukat Pipes Ltd. is a micro-cap steel pipe maker near breakeven. The stock trades at no meaningful PE (loss-making), with an ROE of -0.78% and a debt-to-equity ratio of -0.51.
5. Kalana Ispat Ltd.
CMP: Rs 18.5 | Market Cap: Rs 24.00 Cr
Kalana Ispat Ltd. is a micro-cap steel producer with low leverage. The stock trades at a PE of 25.00, with an ROE of 2.20% and a debt-to-equity ratio of 0.05.
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What Are Steel Penny Stocks?
Steel penny stocks are shares of companies operating in the steel sector that trade at a low absolute price, usually under Rs 100, and often carry a small or micro market capitalisation. They give retail investors an inexpensive way to participate in the sector, but the low price also means wide daily swings, thin liquidity in some cases and, for several names on this list, negative or inconsistent earnings. These should be treated as a small, high-risk slice of a diversified portfolio rather than a core holding.
India’s Steel Sector: 2027 Overview
India is the world’s second-largest steel producer, and the government’s infrastructure and manufacturing push keeps long-term demand for steel products firm. Smaller steel and pipe makers, however, are far more exposed to raw-material cost swings and thin margins than the large integrated producers, which is why several of them trade in penny-stock territory.
Also Read: Top Multibagger Penny Stocks
Factors to Consider Before Investing
- Debt levels: Several names on this list carry negative book values or high leverage, so check the debt-to-equity ratio before investing.
- Earnings consistency: Some of these companies are currently loss-making; track the trend in losses rather than the absolute number alone.
- Liquidity: Several small-cap and micro-cap names here trade with thin daily volumes, which can widen bid-ask spreads.
- Valuation versus earnings: Compare each stock’s PE ratio against the sector PE to avoid overpaying for a re-rated stock.
- Sector cycle: Steel companies are sensitive to sector-specific cycles, so track the relevant demand and pricing trends closely.
Benefits of Investing in This Sector
- Low entry cost: Most names on this list trade below Rs 100, letting investors build a diversified position with a modest capital outlay.
- Sector exposure: These stocks offer exposure to the steel sector without the capital outlay large-cap names require.
- Turnaround potential: Several names here are working through debt reduction or restructuring, which can offer upside if execution improves.
- Portfolio diversification: Adding a small allocation to this sector gives exposure to a theme distinct from banking, IT or FMCG-heavy portfolios.
Risks to Watch
- High volatility: Several stocks on this list can move sharply on thin volumes.
- Negative book values: More than one name here carries a negative book value, reflecting accumulated losses.
- Thin liquidity: Micro-cap names on this list see low daily trading volumes.
- Inconsistent earnings: Several companies here are currently loss-making or have very high PE ratios on thin earnings.
Also Read: Top 10 Penny Stocks in India
How to Choose the Right Stock
- Prefer companies with lower debt-to-equity and a demonstrated revenue trend.
- Check ROE consistency over at least three years rather than a single strong quarter.
- Compare the company’s PE ratio against the sector PE to avoid overpaying for a re-rated stock.
- Check trading volumes before entering or exiting a position, since several names here are thinly traded.
How to Invest
- Screen steel stocks by market cap, PE ratio and ROE using the Univest Screener.
- Open a demat and trading account if you do not already have one.
- Start with a small allocation, given how volatile these small-cap and micro-cap names can be.
- Track quarterly results and sector-specific news rather than daily price moves.
- Review your position periodically and rebalance if any single stock grows too large a share of your portfolio.
Conclusion
Steel penny stocks in India 2027 sit at the intersection of a real sector story and the usual risks that come with low-priced, small-cap equities. Bihar Sponge Iron Ltd. stands out by market cap, while several of the smaller names here remain speculative turnaround bets. None of these should be treated as a core holding, and position sizing, debt checks and liquidity checks matter more here than the headline price.
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Disclaimer: Investments in the securities market, including in steel penny stocks and other small-cap equities, are subject to market risk. This content is for educational purposes only and does not constitute investment advice. Verify all data independently before investing. Uniresearch Global Pvt Ltd, Research Analyst, SEBI Registration Number INH000013776.
FAQs
1. What are steel penny stocks in India 2027?
Ans. These are shares of steel sector companies trading at low absolute prices, generally under Rs 100. Bihar Sponge Iron Ltd., Swastik Pipes Ltd., Modern Steel Ltd., Mukat Pipes Ltd. and Kalana Ispat Ltd. are among the more actively tracked names.
2. Are steel penny stocks a safe investment?
Ans. Steel penny stocks carry high risk due to volatility, thin liquidity and, in several cases, negative book values or inconsistent earnings. They can deliver strong returns during sector upcycles but should form only a small part of a diversified portfolio.
3. Which are the best steel penny stocks in India for 2027?
Ans. Based on current fundamentals, Bihar Sponge Iron Ltd. and Swastik Pipes Ltd. carry the largest market caps on this list, while the smaller names carry higher risk profiles worth researching closely.
4. What is the market capitalisation of Bihar Sponge Iron Ltd.?
Ans. Bihar Sponge Iron Ltd. has a market capitalisation of approximately Rs 117.00 Cr, making it the largest name among the steel penny stocks covered in this list.
5. How can I invest in steel penny stocks?
Ans. You can invest in steel penny stocks through any demat and trading account by screening companies on fundamentals such as PE ratio, ROE and debt-to-equity, and starting with a small allocation given the sector’s volatility.
6. Should long-term investors buy these stocks now?
Ans. Long-term investors comfortable with high volatility may consider a small allocation to steel penny stocks, but should consult a SEBI-registered financial advisor and review each company’s debt and profitability before investing.
