Best NBFC Penny Stocks in India

Best NBFC Penny Stocks in India: The headline reads, “Penny Stocks Become Multibaggers.” After reading the news we realized it was no longer a penny stock. Beginner investors hope to continue buying value-seeking stocks, either undervalued or small-cap stocks. One thing is clear: such stocks can be a rags-to-riches story.

How to pick profitable companies from this risky pool? What filters should you use: sales growth, profitability, debt-to-equity ratio, etc.? In this article, we introduce you to the best penny NBFC stocks. So without further ado, let’s dive in.

Best NBFC Penny Stocks in India

Best NBFC Penny Stock in India #1: Sakthi Finance Ltd

Sakthi Finance Ltd

Sakthi Finance was established in 1955 as Pollachi Credit Society Private Limited, headquartered in Pollachi. Sakthi Finance was launched with the objective of meeting the hire purchase requirements of Sakthi Group’s TELCO dealers.

Over the last 60 years, the business has grown into one of South India’s leading NBFCs specializing in financing the purchase of commercial vehicles and construction equipment. The company has over 50 branches in the southern states of Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and Telangana.

In fiscal 2022-23, it disbursed hire purchase advances of around Rs 821.52 crore as compared to Rs 596.66 crore in the previous fiscal 2021-22. The company’s total third-tier assets were 5.8% as of March 2023. The provision coverage ratio for Tier 3 assets is 51%.

Operating revenue rose 5.2% to $150 million, according to the company’s financial statements. 175.67 crore in FY22 to Rs 184.77 crore in FY23. Net profit rose 31% to Rs 12.49 crore from Rs 9.52 crore in FY22. The three-year average RoCE and RoE are 9.86% and 5.33%, respectively.

Best NBFC Penny Stock in India #2: Baid Finserv Limited

Baid Finserv Limited

Baid Finserv Limited (formerly Baid Leasing and Finance Company Limited). It is a no-deposit NBFC engaged in automobile loans, commercial vehicle loans (new and used), small and medium business loans, real estate loans, and other asset-backed loans.

The company has 40 branches in Rajasthan, deep penetration in semi-urban and rural areas and has started operations in Madhya Pradesh. It aimed to provide loans to underprivileged people in semi-urban and rural areas as bank credit is scarce and the market is somewhat unorganized.

Baid Finserv’s portfolio includes NBFCs, PSUs and banks such as SBI. UCO Bank. IDFC First Bank, Shriram Finance, Chola, Tata Capital, etc.

The company’s financial statement reported a 9.8% increase in operating revenue from Rs 49.94 Cr in FY22 to Rs 54.85 Cr. In FY23. Net profit rose 11.3 per cent to Rs 55.73 crore from Rs 50.05 crore in FY22. The three-year average RoCE and RoE are 9.86% and 5.33%, respectively.

Best NBFC Penny Stock in India #3: Capital Trade Links Ltd

Capital Trade Link Co., Ltd.

Capital Trade Link was established in New Delhi, India in 1984 and is a non-depository, non-banking financial company registered with the Reserve Bank of India. We obtained a registration certificate in 2001, and in 2017, we registered as a mutual fund sales business and also started vehicle loan financing.

CTL is an organization that provides financial benefits to individuals and organizations with low to medium to high level funding needs. Like banks, they extend credit facilities to individuals and businesses (proprietors, partnerships, corporations, or other entities). Money is advanced for both personal and commercial purposes.

Capital Trade Links diversified its funding sources by adding seven new lenders in FY23, including a leading PSU bank, namely State Bank of India, taking the total number of lenders to 21 as of March 2023.

During FY 2022-23, the asset portfolio increased by Rs 10.1 billion to Rs 14.3 billion in FY23 compared to Rs 4.2 billion in the previous financial year 2021-22. As of March 2023, the company’s total third-tier assets were 2.3%. The provision coverage ratio for Tier 3 assets is 13%.

According to the company’s financial statements, operating revenue increased by 78% to Rs. ₹7.83 billion in FY22 and ₹1.4 billion in FY23. Net profit rose 1.2 per cent to Rs 2.50 crore from Rs 2.47 crore in FY22. The three-year average RoCE and RoE are 9.46% and 7.88%, respectively.

Best NBFC Penny Stock in India #4: Emerald Finance Ltd

Emerald Finance Co., Ltd.

Established in 1983, Emerald Finance Limited (formerly Emerald Leasing Finance and Investment Company Limited) is an NBFC registered with RBI in 2018 and is engaged in the business of fee income, interest income and dividends.

We offer a variety of banking products and financial services to traditionally underserved customers, primarily micro, small and medium-sized enterprises (“MSMEs”) and retail customers, through a variety of delivery channels.

Emerald signed an agreement with Rainpay India Pvt. Ltd. (“Rain”) is a wholly-owned subsidiary of Rainpay Technologies Inc., an American company. This partnership allowed us to diversify our portfolio by entering the salaried employee segment and providing loans linked to our customers’ salaries. These loans are essentially the cheap ticket and provide companies with a lot of money each month.

We mainly provide financing to famous and creditworthy clients. Most of the time, these customers are customers you have had a long-standing relationship with. The effectiveness of this marketing strategy can be seen in the fact that bad debt is very minimal in the recently sourced portfolio. In FY23, Emerald reached 33 states and UTs, serving more than 11,000 people. Salary advances worth INR 18 crore have been processed.

According to the company’s financial statement, there was a 36% increase in operating revenue from Rs 84.6 crore in FY22 to Rs. 11.51 billion in FY23. Net profit recorded 130 million won. It increased by 40% to 3.45 billion won. 2.47 billion in FY22. The three-year average RoCE and RoE are 12.5% ​​and 8.92%, respectively. Promoters’ shareholding increased from 33.12% in FY18 to 67.80% in FY23.

#5 Best NBFC Penny Stocks in India: Comfort Fincap Ltd

Comfort Fincap Co., Ltd.

Comfort Group was founded in 1994 by Mr. Founded by Anil Agrawal (CA, ICWA). The group is a diversified financial services organization available on all essential platforms such as BSE, NSE, MCX, MCX-SX, Merchant Banking (Category 1). ) and non-bank financial activities encompassing primary markets, investment solutions, debt servicing, capital markets, equities, derivatives, currency derivatives, deposit services (CDSL), project financing, wholesale banking and other segments to our customer community.

Comfort Fincap Ltd. was established in 1982 and is registered as a non-systemically important non-depository non-banking financial company. It focuses on providing business-to-business lending, personal lending, stock and securities lending, real estate lending, mortgage lending, home lending, trade finance, bill discounting, stock and securities trading, and arbitrage in the stock and commodity markets. .

The company’s financial statements show an 18% increase in operating revenue from Rs 12.42 crore in FY22 to Rs 14.66 crore in FY23. Net profit was ₹4.88 billion, up 10% from ₹4.42 billion in FY22. The three-year average RoCE and RoE are 12.6% and 10.4%, respectively.

Other NBFC Penny Stocks in India

conclusion

In this article, we have covered some of the best NBFC penny stocks. These smaller companies have the potential to deliver a variety of returns. However, since the stock price is very volatile, it may result in large losses for shareholders. Therefore, investors should approach these companies with caution. It is also important to understand the nature and suitability of risk and return.

As a retail investor, what investment approach do you follow? Do you prefer small-cap, mid-cap, and large-cap stocks, or do you maintain a balance between them? Let us know in the comments below.

Written by Ashish Agarwal

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