Penny stocks are shares of small or micro-cap companies that trade at very low prices.
These stocks are attractive to small investors due to their affordability and the potential for very high returns, as their prices can multiply significantly if the company grows.
However, penny stocks carry substantial risks such as high volatility, low liquidity, price manipulation, lack of reliable information, and a higher chance of losses or delisting.
They often have special surveillance measures by regulatory authorities to curb speculative trading and fraud. Due diligence and caution are critical when investing in penny stocks due to their speculative nature.
Foreign Institutional Investors (FIIs) can sometimes get trapped in penny stocks. This is simply because of a sudden fall in some stocks, allowing little room to exit, especially as holdings could be large. At other times, it could be deliberate buying in penny stocks at lower levels.
In any case, here are 3 penny stocks where FIIs currently have a holding in excess of 15%. Please note, this is not a recommendation of any kind nor an analysis.
All of these companies are filing their mandatory returns with the exchanges. The trading activity too is regular in these stocks.
#1 Leading Leasing Finance and Investment Company
First on our list is Leading Leasing Finance and Investment. The company is a prominent player specialising in leasing, finance, and investment services. The non-banking finance company is regulated and registered with Reserve Bank of India since March 1998.
The company has a diversified lending portfolio that includes retail, small and medium enterprises (SME), and commercial customers, with a significant presence in both urban and rural India.
FII Holdings in Leading Leasing Finance
FIIs hold a stake of 56% in the company as at the end of June 2025. Interestingly, FIIs held a stake of just 43.39% as at the end of the March 2025 quarter. They have hiked their stake by almost 13% in the June quarter. The promoters do not hold any stake in the company as per the latest data.
Financial Performance
For the year ended 31 March 2025, the company reported total revenue and net profit after tax of Rs 290 m and Rs 37.5 m respectively. The was sharply higher from FY24 numbers wherein the company reported total revenue of just Rs 49.7 m and net profits of Rs 20.9 m.
For Q1 FY26, the company reported revenues of Rs 111 m, significantly higher than Rs 25 m in the corresponding period last year. Net profits for the period were Rs 57 m as against losses YoY.
Despite showing profit growth over the years, the company has some challenges such as a low return on equity and not paying dividends currently.
How Shares of Leading Leasing Finance have Performed
In the past five days, Leading Leasing Finance shares have moved marginally lower to Rs 5.55 from Rs 5.61. In the last one month, the share price has been flat.
The stock touched its 52-week high of Rs 12.31 on 11 November 2024 and its 52-week low of Rs 4.74 on 28 March 2025.
Leading Leasing Finance Share Price – 1 Month
#2 Mercury Trade Links
Next on our list is Mercury Trade Links.
The company is engaged primarily in trading agricultural products. The business includes trading, export, and import of agro products such as fertilisers, manures, plant and animal foods, pesticides including insecticides, herbicides, and fungicides.
FII Holdings in Mercury Trade Links
FIIs hold a stake of 29.19% in the company as at the end of June 2025. Their stake has reduced from 31.52% held in the December 2024 quarter. The promoters do not hold any stake in the company as per the latest data.
Financial Performance
In FY25, Mercury Trade Links reported revenue of Rs 1,130 m against Rs 138.3 m in the corresponding period of the previous year.
Net profit was Rs 16.5 m against a net profit of Rs 11.3 m YoY. There was a sharp jump especially in gross income of the company in FY25.
How Shares of Mercury Trade Links have Performed
In the past five days, Mercury Trade Links shares have moved higher to Rs 14.51 from Rs 13.9.
In the last one month, the share price has doubled.
The stock touched its 52-week high of Rs 105.04 on 18 December 2024 and its 52-week low of Rs 5.88 on 4 September 2025.
Mercury Trade Links Share Price – 1 Month
#3 Standard Industries
Third on our list is Standard Industries.
Standard Industries founded as Standard Mills Company is a company that historically operated in textiles, chemicals, and apparels. The Mafatlals took over management, and since 1979, it has been a constituent of the Stanrose Group.
Currently the company has trading activity in textiles and deals in 100% cotton towels, bed sheets, interlining fabric, cotton and blended dhoti, cotton/PC blended and poly viscose suiting etc. Standard Industries has a long-standing track record but is currently reporting losses.
FII Holdings in Standard Industries
Foreign Institutional Investors hold a solid stake of 38.86% in the company as at the end of June 2025. Their stake has remained the same over the last few quarters. Promoters hold a 20.29% stake in the company. Their stake too has remained consistent for many quarters now.
Financial Performance
Standard Industries has been reporting losses for the last two years. While the losses were marginal in FY24, it worsened to Rs 135 m in FY25.
For Q1 FY26, the company reported net sales of Rs 105 m with losses at Rs 10.3 m.
How Shares of Standard Industries have Performed
In the past five days, Standard Industries shares have remained almost flat moving to Rs 18.93 from Rs 18.95. In the last one month, the share price has moved lower by almost 2%.
The stock touched its 52-week high of Rs 31.07 on 12 December 2024 and its 52-week low of Rs 17.5 on 18 February 2025. The stock now trades very close to its 52-week lows.
Standard Industries Share Price – 1 Month
Conclusion
Penny stocks can rise rapidly if the small company succeeds, offering substantial percentage gains. These stocks allow investors with limited capital to buy large quantities of shares affordably.
However, prices can fluctuate dramatically, leading to potential steep losses.
While penny stocks offer exciting growth opportunities, they are speculative investments that require careful research and a tolerance for high risk. They are best suited for experienced investors who can handle the volatility and potential losses while seeking high returns.
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Happy investing.
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