Best Penny Stocks Under Rs 5

Best Penny Stocks Under Rs 5: The stock market is generally perceived as an easy place to make money. The common assumption is that investors flock to the market to buy stocks at small chocolate prices and watch them grow at multiples of their current price.

Based on this assumption, we set out to explore several cheap stock opportunities. In our research, we have selected stocks with good financial health and market price below Rs 5. We have selected stocks that are likely to be profitable in the near term and have a suitable business model.

In our article on Best Penny Stocks Under Rs 5, we explore the basics of each company, including when they were founded and the industry they currently operate in. Then let’s look at the revenue sources and then how much revenue and profit they make. The company reports.

Best Penny Stocks Under Rs 5

Best Penny Stocks Under Rs 5 #1 – Swasti Vinayaka Art & Heritage

Swasti Vinayaka Art & Heritage Corporation is a diversified company with three revenue streams. Firstly, it manufactures precious and semi-precious stones, paintings and gemstone sculptures. You will also receive compensation for your property.

In addition to this, we have funds dedicated to long-term investments in blue chip stocks. Management utilizes fundamental analysis and in-house technical analysis models to achieve consistent returns.

The company earns 11.66% of its revenue from product sales and the remaining 88.34% from service sales. FY23 revenue was Rs. 13Cr, up 26% from Rs. 10 Cr in FY22. Net profit increased by 91%, from 130 million won to 190 million won. 1.53 Cr in FY22 to Rs. 2.92 Cr in FY23.

Swasti Vinayaka Art & Heritage Corp. has a low debt-to-equity ratio of 0.37 and high profit margins. The stock is currently trading at an attractive price-to-book ratio of 1.58 and the promoters’ stake is 51%.

Best Penny Stocks Under Rs 5 #2 – Coastal Delivery Services

Established in 2005 as a freight forwarder and shipping agent company, Seacoast Shipping Services Limited (SCSSL) has grown to become one of the largest freight forwarders in Gujarat.

SCSSL is one of the three major freight forwarders handling agricultural exports by container from Mundra port. The company has been an international operator of modern dry bulk ships transporting approximately 5 million tonnes of bulk/unit cargo across the oceans.

The logistics company provides integrated freight forwarding services, including container and fill cargo transportation, phytosanitary services and customs clearance services. The company’s clients include Coromandel, ArcelorMittal, Nirma, GlaxoSmithKline, Reliance and Adani Group.

The company’s revenue increased from Rs. 128 Cr in FY22 to Rs. 430 Cr by FY23, up 236% in one year Net profit at the time had grown by 460%, up from ₹2.55 billion in FY22 to Rs. 14Cr in FY23.

This results in a return on equity of 26% and capital of 31.64%, despite the company’s very low net profit margin of 3.32%.

Best Penny Stocks Under Rs 5 #3 – Ajooni Biotech

Ajuni Biotech is an animal healthcare company that produces a variety of high-yield cattle feed to improve the productivity of dairy farms. The company manufactures animal feed such as cattle feed, camel feed, cotton milk cake, mustard oil cake, etc.

Ajooni has a presence in eight states in India and supplies its products to over 10,000 farmers across the country. The company has three contract manufacturing units. With this unit, the company has an animal feed production capacity of 60K MTPA. The company supplies renowned brands such as Patanjali, IFFCO Kisan, Mother Dairy, Paras Dairy and Saahaj Dairy.

During FY23, the company reported a slow revenue growth of just 1% at Rs. 74 Cr in FY22 to Rs. 75 Cr in FY23. However, net profit increased by 8% to 10 billion won. 1.04 Cr in FY22 to Rs. 1.12 Cr in FY23.

Despite slow growth and low net profit margins, the company maintains an 18% return on capital investment. Additionally, the stock trades at a low price-to-book ratio of 1.01 times. Additionally, the company has a debt-to-equity ratio of just 0.12x, allowing it to borrow for future expansion.

Best Penny Stocks Under Rs 5 #4 – Inventure Growth & Securities Ltd

Founded in 1995, Inventure Growth & Securities is in the business of providing stock brokerage and other financial services. The company deals in stocks, derivatives, and commodities and provides depository services.

The company operates through 224 locations including branches, franchises and sub-brokers across India. The company earns 36.52% of its revenue from fees and commissions charged in the form of brokerage. Interest income and stock sales account for 29.2% and 23.59% of sales.

Inventure’s revenue grew 2.74% at Rs. 49.6 Cr in FY22 to Rs. 50.9 Cr in FY23. During the same period, net profit decreased by 33.62% to 3.3 billion won. 13.95 Cr in FY22 to Rs. 9.26 Cr in FY23.

Best Penny Stocks Under Rs 5 #5 – Mega Corporation

Mega Corporation is a public limited non-banking financial company established in March 1985. The company has invested Rs. It is registered with RBI as a non-systemically important non-depository financial company with assets of less than 10%. 500Cr.

The company earns 99% of its revenue as interest income and 1% as rental income. Mega Corporation reported revenue of Rs. 3.12 Cr in FY23, up 10% from Rs. In FY22, it is 2.84. The company’s total comprehensive income increased due to a loss of KRW 50 billion. It earned a profit of 18 Lakhs in FY23 from 26 Lakhs in FY22.

List of Penny Stocks Under Rs 5

The list below compiles the 10 best penny stocks under Rs 5.

conclusion

Penny stocks can sometimes be a lucrative opportunity, but they also carry tremendous risk. These investments can make or break your portfolio. Therefore, you need to be very careful when investing in penny stocks.

The earnings of these companies are typically very volatile. They overreact to bull and bear markets. Additionally, the company may lack the necessary corporate governance and fly under the radar as there are no major research institutes covering it.

However, investors can take very small exposure to penny stocks if they are willing to increase the risk of their portfolio. So which stocks do you think are profitable? Do you have a favorite penny stock that we didn’t cover in the article? Let us know in the comments below.

Written by Nasir Hussein

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