ASX Penny Stocks To Watch In October 2025

The Australian market has seen a steady rise, with the ASX200 up 10% over the past ten months, driven in part by renewed interest in critical minerals due to geopolitical tensions. While penny stocks might sound like a term from trading days gone by, they still represent an intriguing segment for investors seeking growth opportunities. These smaller or newer companies can offer significant potential when backed by solid financials, and this article highlights three such stocks that could present hidden value and long-term promise.

Top 10 Penny Stocks In Australia

Click here to see the full list of 422 stocks from our ASX Penny Stocks screener.

Let's review some notable picks from our screened stocks.

Australian Vanadium (ASX:AVL)

Simply Wall St Financial Health Rating: ★★★★★☆

Overview: Australian Vanadium Limited, along with its subsidiary, focuses on mineral exploration activities in Australia and has a market cap of A$103.62 million.

Operations: The company generates revenue from two main segments: Downstream - Energy Storage with A$0.61 million and Midstream - Electrolyte Plant with A$0.01 million.

Market Cap: A$103.62M

Australian Vanadium Limited, with a market cap of A$103.62 million, is pre-revenue and currently unprofitable, having reported sales of A$0.624 million and a net loss of A$11.91 million for the year ended June 30, 2025. The company recently received a significant milestone payment of $4.9 million from the Federal Government under the Modern Manufacturing Initiative Grant to support its vanadium project development efforts. While AVL remains debt-free and has sufficient short-term assets to cover liabilities, it faces going concern doubts from auditors due to its limited cash runway and high volatility in share price performance.

• Jump into the full analysis health report here for a deeper understanding of Australian Vanadium.
• Review our growth performance report to gain insights into Australian Vanadium's future.

Wagners Holding (ASX:WGN)

Simply Wall St Financial Health Rating: ★★★★★☆

Overview: Wagners Holding Company Limited is involved in the production and sale of construction and building materials across Australia, the United States, New Zealand, the United Kingdom, Papua New Guinea, and Malaysia, with a market capitalization of A$587.19 million.

Operations: The company's revenue is primarily derived from Construction Materials (A$257.69 million), Project Services (A$105.71 million), and Composite Fibre Technology (A$68.45 million), with a smaller contribution from Earth Friendly Concrete (A$0.16 million).

Market Cap: A$587.19M

Wagners Holding Company Limited, with a market cap of A$587.19 million, has demonstrated strong earnings growth, with net income rising to A$22.72 million from A$10.28 million year-on-year. Despite a decrease in sales to A$431.27 million from the previous year, its profit margins have improved significantly and interest payments are well-covered by EBIT at 3.9 times coverage. The company recently completed a follow-on equity offering raising A$30 million and was added to the S&P/ASX Emerging Companies Index, indicating growing investor interest despite challenges like long-term liabilities exceeding short-term assets and insider selling activities.

• Get an in-depth perspective on Wagners Holding's performance by reading our balance sheet health report here.
• Assess Wagners Holding's future earnings estimates with our detailed growth reports.

Zeotech (ASX:ZEO)

Simply Wall St Financial Health Rating: ★★★★★★

Overview: Zeotech Limited focuses on the exploration and evaluation of mineral properties in Australia, with a market cap of A$181.02 million.

Operations: The company's revenue segment involves exploration, evaluation, and related activities of minerals, generating A$0.97 million.

Market Cap: A$181.02M

Zeotech Limited, with a market cap of A$181.02 million, is a pre-revenue company focused on mineral exploration and evaluation in Australia, generating only A$0.97 million in sales. Despite being debt-free and having short-term assets exceeding liabilities, the company remains unprofitable with a negative return on equity of -39.96%. Recent financial activities include raising A$13 million through a follow-on equity offering to bolster its cash runway beyond the current 8-month estimate based on free cash flow. The management team is relatively new with an average tenure of 1.1 years, while the board has more experience at 5.3 years average tenure.

• Click here and access our complete financial health analysis report to understand the dynamics of Zeotech.
• Learn about Zeotech's historical performance here.

Turning Ideas Into Actions

• Unlock more gems! Our ASX Penny Stocks screener has unearthed 419 more companies for you to explore.Click here to unveil our expertly curated list of 422 ASX Penny Stocks.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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