How to Avoid Penny Stocks While Investing in Small-Caps?

Penny Stocks ≠ Small-Caps

– Penny stocks trade below ₹10–₹20.
– Often lack fundamentals or governance.

Key Red Flags to Avoid

– Low volumes, frequent operator activity.
– Sudden price spikes without news.

Focus on Quality Small-Caps

– Positive cash flow, rising ROCE, good promoter holding.
Listed on NSE/BSE main board.

Use Research Platforms

– Univest, Screener, Trendlyne help avoid traps.
Look at ratings and broker reports.

Investment Insights

– Early-stage industry with massive long-term potential.
– Backed by global & Indian government incentives.