Low Priced Stocks For Long-Term Investment [2025]

Here is a list of low priced stocks (like penny stocks) that have fundamentals strong enough for investors to hold on to them for a very long-term. You can make your own custom screener in the Stock Engine. Subscribe to the Stock Engine

Sector:
Show columns:
Name Sector Sub-Sector Current Price (₹) M.Cap (₹ Cr.) D/E ROE-5Y (%) Income Growth (5Y) % P/E ROIC
SUZLON:[532667]IndustrialsTurbine Manufacturing57.5878,919.320.0561.8840.724.89337.37
IEX:[540750]FinancialExchange Services137.612,238.73038.6518.4826.2116.44
MARKSANS:[524404]HealthcarePharma R&D192.78,721.580.0117.124.2624.9212.67
JAMNAAUTO:[520051]IndustrialsCommercial Vehicles109.24,348.880.1219.3419.2424.5710.27
SHAREINDIA:[540725]FinancialBrokerage Services170.153,724.410.2126.1824.5513.5489.22
GRAUWEIL:[505710]MaterialsDiversified Chemicals81.863,702.110.0115.7219.7424.8512.02
NAVNETEDUL:[508989]Consumer DiscretionaryBook Publishing151.53,360.230.118.7821.3916.5511.04
FCL:[533333]MaterialsDiversified Chemicals25.772,947.88020.0739.5331.0311.82
AURUM:[539289]TechnologyIT Services & Consulting168.31,849.720.3214.56102.65-57.8158.15
Balmer Law:[532485]FinancialInvestment Holding Companies75.991,686.77056.77222.028.07265.05
DOLATALGO:[505526]FinancialOther Financial Institutions77.541,364.000.0725.0217.197.4512.69
ADVANIHOTR:[523269]Consumer DiscretionaryHotels & Resorts56.03520.89024.5639.5020.6916.04

About The Low-Priced Stock Filter

When I set out to build a practical filter for identifying low-priced stocks in India, my goal was not to chase “cheap stocks,” but to isolate fundamentally strong businesses that the market is temporarily undervaluing.

Price alone means nothing. What matters is whether the underlying business can compound value over the next 5–10 years.

So I focused the filter around a few parameters that directly connect today’s price with tomorrow’s earnings power.

  1. Growth: The first thing I needed was evidence of sustained business growth. Instead of looking at short-term quarterly numbers, I rely on 5–10 year revenue trends. Companies that show consistent, modest growth—even at lower price points—tend to be businesses with stable demand and operational discipline. This avoids the common trap of buying low-price stocks that look cheap because their revenues are stagnating.
  2. ROE and ROIC: Next, I added ROE and ROIC, not as decorative metrics, but as hard proof of capital efficiency. A low-priced stock with ROE above 15% and ROIC above 10% is telling you something: despite the low price, the business is generating superior returns on each rupee invested. For long-term compounding, this parameter is non-negotiable.
  3. Debt Load: I also filtered heavily on Debt-to-Equity. Many low-price stocks remain suppressed because of excessive leverage. I avoid these because debt destroys value silently—first through interest burden and later through reduced flexibility in downturns. Low debt ensures that growth, when it comes, flows to shareholders rather than lenders.
  4. FCF Positive: Because stock prices ultimately follow free cash flow, I include FCF strength and FCF growth signals. A low-price stock generating consistent cash is far more reliable than one merely posting accounting profits. Free cash flow also acts as a protective layer when market cycles turn unfavourable.
  5. Valuation (P/E): I also used valuation filters—P/E, P/S, and PEG—to prevent overpaying even for fundamentally strong companies. A stock can be “low priced” and still be expensive relative to its earnings power. This step ensures the filter surfaces stocks that are genuinely mispriced, not just low in absolute price.

This combination gives me a shortlist of low-priced stocks where fundamentals, cash flows, leverage, and valuation all point in the same direction: long-term compounding potential with controlled downside risk.

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