Best Penny Stocks in India 2023: The stock market is known to make the lucky few millionaires over decades, years, and sometimes even months.
Ace investors like Warren Buffet are known to produce average returns of 30%, but what makes them special is that they have managed to do so for over 5 decades.
But on the other hand, there also exist stocks that have given multifold returns in just a short period of time.
Take the example of IKAB Securities and Investments the stock had increased from Rs. 39 to Rs. 930 giving up to 2460% returns when it touched its peak
These are the kind of stocks that one dream of adding to his/her portfolio. However, the stock market has a section that is specific to only these stocks where such dream returns are sometimes possible called Penny stocks.
In this article, we take a look at the Top Penny Stocks that could turn out to be multibaggers in the near future. Keep Reading to find out!
What are Penny Stocks?
Penny stock is a term used to describe stocks that trade at single or double digits and at the same time have a low market capitalization.
These stocks have a lot of potential to give multifold returns as their low valuations currently allow it. It is easier for Rs. 100 cr company to double its valuation than for Reliance an Rs. 1,574,340 cr company to double its valuation.
And hence this potential attracts a lot of investors but it is noteworthy that these companies bring with them a lot of risks and are generally avoided particularly of their volatility.
Often most of the penny stocks have proven to be wealth destroyers with only a selected few turning out to be multibaggers.
Best Penny Stocks in India for 2023
Best Penny Stocks in India 2023 #1 – Auro Labs
| Face Value (₹): 10 | ROE (%): 9.45 |
| Market Cap (Cr): ₹43.3 Cr | Net Profit Margin: 5.58% |
| EPS (₹): 2.18 | Current Ratio: 2.15 |
| Stock P/E (TTM): 31.9 | Debt to Equity: 0.28 |
| Dividend Yield (%): 0.00 | Promoter’s Holdings (%): 52.1% |
Founded in 1989, Auro Laboratories manufactures APIs and specializes in diabetes therapy. They also undertake custom manufacturing of API’s and intermediaries on a contract basis.
Some of their key APIs include Metformin Hydrochloride, Chlorzoxazone, and Chlorphenamine Maleate. Here Metformin Hydrochloride accounts for 90% of its income.
The company has only one manufacturing unit located in Tarapur which has a 500-tonne capacity. Its products are exported to countries like Egypt, Germany, Malaysia, Singapore, South Africa, Brazil, Spain, and the United Kingdom.
The company currently has a Mcap of Rs. 43.3 crores and its shares trade at Rs. 69.5. The company’s revenues have increased continuously from Rs. 40.79 cr in 2018 to Rs. 54 crores in 2021. Although the revenues of the company have come down to Rs. 50.87 crores in FY22.
Although the company’s net profit has reduced by more than 50% in FY22 Its net profit growth for the last 5 years averages to 28%.
The company comes with a high promoter holding of 51.99% with no pledged shares and also has a low debt with a debt-equity ratio of 0.28.
It has a good current ratio of 2.15. Its shares trade at a PE of 31.9 which is slightly overvalued in comparison to the industry PE of 23.6
Quick Read: Detailed Guide to Wealthzi’s Automated Mutual Fund
Best Penny Stocks in India 2023 #2 – Generic Pharmasec Ltd
| Face Value (₹): 1 | ROE (%): -1.17% |
| Market Cap (Cr): ₹108Cr | Net Profit Margin: -0.77% |
| EPS (₹): -0.02 | Current Ratio: 3.90 |
| Stock P/E (TTM): NA | Debt to Equity: 0.00 |
| Dividend Yield (%): 0.00 | Promoter’s Holdings (%): 60% |
Founded in 1992, Genpharmasec Ltd is engaged in the buying, selling, and distribution of pharma, medicinal, and medicated preparation. In addition to this, the company also deals in the securities market.
Its products include Diagnostic Equipment, pharmaceutical medicinal and medicated preparations, patent medicines, drugs, herbs, etc.
They have tied up with Abbott Point of Care, the USA for the distribution of one of their niche diagnostic equipment called the i-STAT 1 Analyze.
This is a handheld blood analyzer used in ICUs in order to aid them to get immediate test results. Over the next 2 years, the company plans to expand across the 4 metros and also widen its product portfolio.
The company currently has a Mcap of 108 crores and its shares trade at Rs. 3.91. The company’s revenues have increased from Rs. 38 lakhs in 2018 to Rs. 27.32 crores in 2022. But the company has incurred a net loss of Rs 0.21 crores for FY22.
The company comes with a high promoter holding of 60.0% with no pledged shares and also has zero debt. It also has a good current ratio of 4.11. It however has a negative ROE of 1.17%.
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Best Penny Stocks in India 2023 #3 – Ashapuri Gold Ornament Ltd.
| Face Value (₹): 10 | ROE (%): 3.84 |
| Market Cap (Cr): ₹186 Cr | Net Profit Margin: 1.86% |
| EPS (₹): 1.26 | Current Ratio: 6.98 |
| Stock P/E (TTM): 59.3 | Debt to Equity: 0.00 |
| Dividend Yield (%): 0.00 | Promoter’s Holdings (%): 62.2% |
Founded in 2008, Ashapuri Gold Ornament Ltd. is engaged in the business of wholesale trading of jewellery. They offer 22-carat gold ornaments.
Its products include choker sets, Toda sets, Pota jewellery, Saloya, bracelets, and other antique jewellery. However, what’s interesting here are their clients.
Ashapuri Golds cater to clients from the high-end market segment to the mid-market value segment. Their client portfolio includes the likes of Malabar Gold, Titan, etc.
The company currently has a Mcap of 186 crores and its shares trade at Rs. 74.5. The company’s revenues have increased continuously from Rs. 47 cr in 2018 to Rs. 164 crores in 2022.
Its net profit growth for the last 5 years averages 138%. The company comes with a high promoter holding of 62.2% with no pledged shares and also has zero debt. It has a current ratio of 6.98.
Bonus Share
The Below company proves to have good prospects in the industry but did not make the list as it shares trade in triple digits despite being a very small-cap stock.
Ksolves India Ltd.
Founded in 2014, Ksolves India Ltd. is an IT company engaged in the business of software development, enterprise solutions, consulting, and other IT solutions.
Ksolves designs develop and maintain software systems in addition to creating and modifying existing products in order to improve their functionality!
They provide their services to companies in the Real Estate, E-commerce, Finance, Telecom, and Healthcare sector. The company works on technologies like AI, AR and VR, IoT iOS, and android apps. Their major clients include
- Onpoint Group
- Sharemeister
- Knight Broadband
- Ekogenio
- CountAbout
- Cut Yeti
- Hardy Nutritionals
In addition to this, the company also has entered into strategic partnerships with Salesforce, Adobe, Odoo, and Drupal Association. In the coming years, the company plans to offer services in AI, Machine learning, Big Data, etc.
They also plan to open onshore delivery centers in North America and Europe. Its promoter holding currently stands at 58.9%. The company has a PE of 22.4 and comes with zero debt.
In Closing
These were our top picks for penny stocks however one should always perform their own research before entering these stocks. A note of caution once again, these stocks are inherently riskier than large-cap and mid-cap stocks.
Generally one should not invest more than 5% of his/her portfolio into these stocks. That’s all for this post “Best Penny Stocks in India 2023” Let us know what you think and your favorite penny stocks in the comments below. Happy Investing!
Frequently Asked Questions (FAQs)
- Which are the best penny stocks to buy in India?
Some of the best penny stocks that you can buy in India are Sinclairs Hotel & Resorts, Zee Media Corporation Limited, Jullundur Motor Agency, Indraprastha Medical Corporation Ltd, and Coffee Day Enterprises Ltd.
However, it is important that you do thorough research before you invest in any of these stocks or get help from your investment adviser.
- What is the most successful penny stock ever in India?
Some of the most successful penny stocks in India are Eicher Motors (₹9 to ₹2,261), Kotak Mahindra Bank (₹1.8 to 1717.80), Lupin Limited (₹2 to ₹702.80), Titan Company Limited (₹2.6 to 2,390.00), Bajaj Finance (₹2.8 to 6,144 per share) and many others.
Please note that these shares gave huge returns over a number of years and not in short time spans.
- How do I choose penny stocks?
One of the best ways of choosing penny stocks that have the potential of giving good returns is by doing research about the company.
One can easily find companies that are trading below a given price and then find out businesses that are known if any, and then study these companies to buy a stock.
- What is the fastest-growing penny stock?
Some of the fastest-growing penny stocks are RTCL, Tranway Technologies, Triveni Glass, Orosil Smiths India, Citizen Infoline, Swiss Military Consumer Goods, IL&FS Engineering and Construction, and Tine Agro.
- Which penny stock is fundamentally strong?
It is important to research companies before investing in them. We may mention a few companies, but information keeps changing from time to time.
Even if a company is fundamentally strong now, things might change in the near future, if something adverse about the company is discovered.
The fundamental strength of the company must be researched before buying/investing in the stock and investors have to stay updated about the companies that they have invested in from time to time.
You can now get the latest updates in the stock market on Trade Brains News and you can even use our Trade Brains Portal for fundamental analysis of your favorite stocks.
The post Best Penny Stocks in India 2023 with Strong Fundamentals! appeared first on Trade Brains.
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