A very high probability exists that a penny stock will go bankrupt. The company might suddenly shut down. Its chances of continuing in operation are very slim. Ideally, investors should allocate no more than 2 to 3 percent of their total portfolio value to ultra-penny and penny stocks. Let us see some of the Indian penny stocks list for 2024.
Undervaluation is defined as a business that is selling at a single-digit PE multiple while the market is trading at more than 20 times on a trailing basis. For example: when a stock is trading at a price lower than the intrinsic value of the stock. In reality, however, this is not always a compelling reason to invest in the stock of a specific business. A number of other criteria must be considered in order to determine whether or not it offers good value.
What are Penny Stocks?
Penny stocks are shares that trade at low prices, typically under 20 Rupees, on stock markets or exchanges. These stocks grab investors’ attention due to their affordability. However, they also come with considerable risk.
Although this is the primary criteria to examine, as you can see from the definition, it does not mean that it is the only one to evaluate. Investors should avoid investing in stocks if the company’s financial condition is in bad shape.
These stocks are illiquid and not well-liked by institutional investors, who prefer to hold cash. As a result of the limited quantity of information accessible, doing research and analysis on these businesses may be very difficult.
The potential for such businesses to become multibaggers, delivering huge returns for investors in a relatively short period of time, is significant. if you are a beginner then you would also be interested in best mutual funds to invest for long term.
These stocks trade at low volumes, so they are likely to experience longer transaction times. However, when seeking a business with strong foundations and purchasing it at a bargain price, you won’t be disappointed.
First and foremost, you must devote a significant amount of time to studying the PBV and PE, maybe as much as three years. This is due to the possibility that a year’s performance may be unintentionally stage-managed or stage-managed by others.
Furthermore, the fact that the price-based criteria are low is not adequate in and of themselves. Improved building blocks, which serve as the foundation for these ratios, are essential to their long-term viability.
Top 10 – Best Penny Stocks in India for 2024
You should also consider best stocks to buy for long term if you are interested. Let us look into the top 10 – best penny shares in India 2024 which you should consider it.
Sr. | Name Of Company | Intrinsic Value (IV) | Price to Earning (P/E) | Earning Per Share (EPS) | Book Value (BV) | 1-Year Return (%) |
1 | Soma Textiles & Industries Ltd. | 84.96 | 13.13 | 39.25 | 22.99 | 158.82 |
2 | Brightcom Group Ltd | 86.26 | 2.44 | 7.01 | 34.69 | -50.79 |
3 | Bsel Infrastructure Realty Ltd. | 113.25 | 2.16 | 6.23 | 54.91 | 291.28 |
4 | Ultracab (India) Ltd | 52.72 | 28.29 | 3.07 | 18.1 | -30.56 |
5 | Atv Projects India Ltd. | 18.28 | 13.5 | 1.13 | 36.87 | 62.42 |
6 | Sakuma Exports Ltd. | 15.83 | 15.38 | 1.05 | 19.22 | 7.64 |
7 | Arnold Holdings Ltd | 37.53 | 18.75 | 0.99 | 20.31 | -34 |
8 | Comfort Fincap Ltd. | 15.27 | 8.69 | 0.99 | 9.81 | -38.69 |
9 | Scandent Imaging Limited | 27.17 | 8.68 | 0.89 | 8.96 | -37.65 |
10 | Madhav Infra Projects Ltd | 11.13 | 7.4 | 0.87 | 6.88 | 48.8 |
List of Indian Penny Stocks with Strong Fundamentals in 2024
In 2024, several Indian penny stocks exhibit strong fundamentals and have yielded profits in the previous year. Investors may contemplate acquiring these stocks at low prices due to their past performance, aiming to leverage favorable market conditions. To better understand penny stocks, let’s take a look at it.
Sr. | Name Of Company | Intrinsic Value (IV) | Price to Earning (P/E) | Earning Per Share (EPS) | Book Value (BV) | 1-Year Return (%) |
1 | Regency Investments Ltd | 31.98 | 33.71 | 0.84 | 12.42 | 55.27 |
2 | Patel Integrated Logistics Ltd. | 10.95 | 21.92 | 0.76 | 18.41 | 20.58 |
3 | Tirupati Sarjan Ltd. | 11.61 | 25.36 | 0.54 | 24.81 | 25.35 |
4 | B.A.G.Films & Media Ltd. | 5.57 | 11.65 | 0.52 | 7.4 | 19.61 |
5 | Tgb Banquets And Hotels Ltd. | 10.09 | 27.2 | 0.48 | 26.61 | 16.07 |
6 | Odyssey Corporation Ltd. | 9.37 | 17.76 | 0.44 | 19.05 | -1.27 |
7 | Utique Enterprises Ltd | 21.07 | 18.47 | 0.35 | 12.67 | -14.3 |
8 | Alstone Textiles (India) Ltd | 1.14 | 4.45 | 0.14 | 1.18 | -78.67 |
9 | Kcl Infra Projects Ltd | 3.26 | 30.33 | 0.09 | 3.24 | -5.75 |
10 | Inventure Growth & Securities Ltd. | 1.73 | 23.22 | 0.09 | 2.52 | -21.43 |
11 | Sacheta Metals Ltd. | 15.79 | 24.03 | 1.02 | 19.59 | 1.87 |
12 | Celebrity Fashions Ltd. | 10.86 | 18.52 | 1.02 | 5.39 | -10.68 |
13 | Akashdeep Metal Industries Ltd | 18.38 | 20.41 | 0.97 | 8.37 | -4.5 |
14 | Balurghat Technologies Ltd. | 9.7 | 19.72 | 0.93 | 9.91 | 93.89 |
15 | Century Extrusions Ltd. | 12.5 | 19.1 | 0.81 | 8.78 | 58.17 |
16 | Indianivesh Ltd. | NA | 20.98 | 0.75 | -8.96 | -71.81 |
17 | Alankit Ltd | 19.14 | 20.74 | 0.75 | 7.52 | 28.37 |
18 | Zodiac Ventures Limited | 5.51 | 20.16 | 0.68 | 2.8 | -64.61 |
19 | Shyam Century Ferrous Ltd | 12.17 | 29.11 | 0.67 | 7.62 | -11.88 |
20 | Enbee Trade & Finance Ltd. | 17.12 | 22.27 | 0.65 | 8.96 | -48.22 |
21 | Mauria Udyog Ltd | 3.22 | 17.98 | 0.64 | 2.03 | 194.12 |
22 | Kaiser Corporation Limited | 7.24 | 25.23 | 0.6 | 1.33 | -75.57 |
23 | Galactico Corporate Services Ltd | 7.64 | 6.93 | 0.58 | 2.06 | -74.5 |
24 | Super Tannery Limited | 6.16 | 16.46 | 0.54 | 8.72 | 28.59 |
25 | Gennex Laboratories Ltd. | 6.13 | 27.8 | 0.52 | 4.87 | 120.56 |
26 | Zeal Aqua Ltd | 10.17 | 14.99 | 0.52 | 5.77 | 2.52 |
27 | Mishtann Foods Ltd | NA | 31.85 | 0.5 | 3.06 | 75.5 |
28 | Kcd Industries India Ltd | NA | 21.35 | 0.44 | 3.65 | 56.75 |
29 | Bhandari Hosiery Exports Ltd. | 4.52 | 15.31 | 0.4 | 5.52 | 33.26 |
30 | Super Crop Safe Ltd. | 4.43 | 24.21 | 0.38 | 6.4 | 38.15 |
31 | Seacoast Shipping Services Ltd | 14.28 | 9.04 | 0.37 | 2.29 | -52.59 |
32 | Il&Fs Investment Managers Ltd. | 4.15 | 29.58 | 0.34 | 6.24 | 25.81 |
33 | Marsons Limited | 1.59 | 25.8 | 0.33 | 0.97 | 130.06 |
34 | Swasti Vinayaka Art And Heritage Corporation Ltd | 3.14 | 13.5 | 0.29 | 2.35 | 42.34 |
35 | Comfort Intech Ltd. | 7.29 | 30.55 | 0.28 | 4.16 | 204.32 |
36 | Surat Textile Mills Ltd. | 4.12 | 30.6 | 0.24 | 9.04 | -6.49 |
37 | B.C. Power Controls Ltd | 3.4 | 26.15 | 0.24 | 6.12 | 26.12 |
38 | Swasti Vinayaka Synthetics Ltd. | 3.9 | 30.9 | 0.23 | 2.19 | 14.64 |
39 | Advik Capital Ltd | 5.61 | 13.49 | 0.22 | 1.5 | -15.59 |
40 | Country Condo’s Ltd. | 2.32 | 19.98 | 0.22 | 3.12 | 8.86 |
41 | Diligent Industries Ltd. | 1.52 | 31.75 | 0.2 | 1.47 | -47.15 |
42 | Sulabh Engineers & Services Ltd. | 2.18 | 32.84 | 0.19 | 3.21 | 52 |
43 | Tilak Ventures Ltd | 2.3 | 21.82 | 0.19 | 3.4 | -1.85 |
44 | Pmc Fincorp Limited | 2.95 | 23.06 | 0.12 | 2.06 | 4.35 |
45 | G G Engineering Ltd | 0.8 | 12.43 | 0.1 | 0.84 | -86.39 |
46 | Tatia Global Vennture Ltd. | 1.15 | 29.7 | 0.1 | 1.73 | 125.4 |
47 | Sadbhav Infrastructure Project Ltd | NA | 1.1 | -3.36 | -10.28 | -11.93 |
48 | Dish Tv India Ltd. | NA | 16.65 | -9.22 | -4.15 | 19.87 |
49 | Reliance Home Finance Ltd | NA | 0.02 | 118.11 | -1.4 | -48.68 |
50 | Essar Shipping Ltd. | NA | 5.48 | 81.97 | -130.21 | 101.74 |
Why to Invest in Penny Stocks for Beginners?
The general investing public is disinterested in Indian penny stocks. They want to exit the market as soon as these stocks produce a fair return. As a result, penny stocks trade at such low prices. There has been a lot of evidence that they are in breach of the exchange regulations and lacking in openness.
There is no movement in ultra-penny stocks until there is some sort of news or a turnaround event taking place. The speculation results in an increase in trading volumes, which in turn drives prices to soar to unprecedented heights.
The majority of them, nevertheless, end out to be incorrect or really fundamentally stronger than the most of them. Price decreases as a result of any negative news that comes out.
Conclusion
In this topic we have seen Indian penny stocks list for 2024. The investors, holding a majority interest in the business, continue to retain their shares due to the dividends they receive. This means purchasing shares from the list of penny stocks in India for 2024 doesn’t always equate to value investment. Key aspects involve selecting a stock with the potential to appreciate over time.