Best Penny Stocks to Buy in India 2024

by Anjali Sharma
05 July 20249 min read
link-whatsapplink-telegramlink-twitterlink-linkdinlink-redditlink-copy
best penny stocks to buybest penny stocks to buy
link-whatsapplink-telegramlink-twitterlink-linkdinlink-redditlink-copy
audio icon

00:00 / 00:00

prev iconnext icon

Penny stocks intrigue every investor’s interest, whether a seasoned trader or a novice in the market. In this article we will discuss the best penny stocks to buy in 2024. 

What are Penny Stocks?

Penny stocks are named such because the market price of these stocks is low, and each stock is priced below Rs 20-25. A single stock can be purchased for ‘pennies’ or a low price. Penny stocks are popular because of their low entry price, volatile movement and potential for big gains even with small price movements. However, penny stocks mean high risk as they may have low trading volume with liquidity risk and a new or small business with limited past record or transparency. 

Now that we know what a penny stock is, let's check out the best penny stocks in 2024

List of Best Penny Stocks in India 2024

Stock

Market Cap (Rs Cr)

ROCE %

ROE %

D/E

P/E

CMP s (Rs)

Compounded Sales Growth (5 years)

Compounded Profit Growth (5 years)

Brightcom Group

1895

30.9

22.3

0.07

1.34

9.45

25

27

Mishtann Foods

1826

11.1

98.7

0.08

5.28

17.2

75 (10 years)

184 (10 years)

Alok Industries

13674

-4.32

  -

  -

  -

27.5

10

13

Dish TV India

3055

    -

  -

  -

  -

16.6

-21

-

Madhav Infra

311

13.3

12.2

0.81

14.4

11.5

7

35

Rajnandini Metal

296

21.3

31.1

1.77

19.4

10.7

55

71

Comfort Intech

293

6.51

11.9

0.17

17.2

9.15

24

170

Seacoast

220

28

21

0.24

10.9

4.08

325

359

Tirupati Forge

184

18.8

15.4

0.27

27.7

18.8

21

10

Prakash Steelage

159

    -

    -

0.02

2.74

9.11

20

45

Overview of Best Penny Stocks

Brightcom Group Ltd

Incorporated in 2010, Brightcom Group Ltd offers digital marketing solutions to businesses, agencies and online publishers worldwide. Their clients include leading blue chip advertisers like Airtel, British Airways, Coca-Cola, Hyundai Motors, ICICI Bank, ITC, ING, Lenovo, LIC, Maruti Suzuki, MTV, P&G, Qatar Airways, Samsung, Viacom, Sony, Star India, Vodafone, Titan, and Unilever. 

They have a global presence, including in the US, Israel, Latin America ME, Western Europe and Asia Pacific regions.

In FY 24, company recorded a Net Sales of Rs 7606 crores and Net Profit of Rs 1415 crores. It has delivered healthy sales growth of 17% and profit growth of 39% over the last 10 years. Promoter’s holding in the company is 18.38% 

Mishtann Foods

Incorporated in 1981, Mishtann Foods is in the business of processing and packaging of food items like basmati rice, wheat and marketing of pulses and salt. Company processes and markets a variety of unbranded Basmati. Apart from this, they sell finished pulses and edible salt procured  from third party manufacturers. Currently, company has 15 Super Stockist in 10 states with 70000 plus Retailers. 

In FY 24, company recorded a Net Sales of Rs 338 crores and Net Profit of Rs 94 crores. It has delivered healthy sales growth of 75% and profit growth of 184% over the last 10 years. Promoter’s holding in the company is 48.38%. 

Alok Industries

Incorporated in 1993, Alok Industries is a textile company engaged in manufacturing of textile, leather and other apparel products. Alok Industries Ltd. is one of the largest fully-integrated textile companies in the country with primary business involves knitting, homemade textiles, weaving, readymade garments, and polyester yarns.

In 2014, the company was awarded the Gold Trophy by the Cotton Textile Exports Council of India for the highest exports of fabrics. 

Recently, the company issued 3,300 crore non-convertible redeemable preference shares to Reliance Industries Limited. 

In FY 24, company recorded a Net Sales of Rs 5510 crores and Net Loss of Rs -847 crores. It has delivered healthy sales growth of 10% and profit growth of 13% over the last 5 years. Promoter’s holding in the company is 75%. Company has shown sales deceleration over the years with a 10 year CAGR of -10%. Company has booked losses in recent years with negative operating cash flows.

Dish TV India

Dish TV India Ltd is a leading direct-to-home (DTH) company, providing DTH services across the segments in the country. It provides services under its own 3 brands i.e. DishTV, d2h and Zing Digital. It provides services under its own 3 brands i.e. DishTV, d2h and Zing Digital. Dish TV India Limited is a well-known player in the Indian entertainment industry. 

In FY 24, company recorded a Net Sales of Rs 1857 crores and Net Loss of Rs -1967 crores. Company’s Net Sales have fallen in past years with 5 year CAGR of -21% and they have incurred losses in recent past. Promoter’s holding in the company is 4.04% 

Madhav Infra

Incorporated in 2010, Madhav Infra Projects Ltd is part of Vadodara based Madhav Group. It operates in fields of Energy, Real Estate, Highways and Urban Infrastructure and undertakes large scale self-financed BOT projects like road and water supply, industrial projects for core sectors, turnkey projects for utilities and urban infrastructure like bus stands, solar, PV and small hydro power projects. The Company, through its subsidiary, MI Solar Private Limited is engaged in the business of renewable energy through solar generation, trading and transmitting.

In FY 24, company recorded a Net Sales of Rs 460 crores and Net Profit of Rs 23 crores. It has delivered healthy sales growth of 7% and profit growth of 35% over the last 5 years. Promoter’s holding in the company is 68.8%. 

Rajnandini Metal

Incorporated in 2010, Rajnandini Metal Ltd in the business of manufacturing high-grade Copper casting rods and copper wires. From trading in scrap metals like copper wire, ingot, and scrap items from industries and electrical applications, it started making copper rods, wires of varied types in 2019. It caters to recycling industries, steel raw materials, plastics, chemicals, petrochemicals & construction.

Company’s major clients include Kei Industries Ltd, Svarn Infratel Pvt Ltd, etc. Its top 5 customers made up for 66% of the total operating income in FY23.

In FY 24, the company recorded a Net Sales of Rs 315 crores and Net Profit of Rs 0.29 crores. It has delivered healthy profit growth of 71% over the last 5 years. Promoter’s holding in the company is 51.68%. The 5 year ROE is 32%

Comfort Intech

Incorporated in 1994, Comfort Intech Ltd is in the business of trading goods including fans, fabrics, water heater and monoblock pumps on the e-commerce platforms and suppliers of the marketplace platforms. 

Further, it manufactures & deals in spirits, including India Made Foreign, Country, Beverage and similar products. They also trade in shares and mutual funds, acting as intermediary services such as agent, broker, supplier, manufacturer, dealer, distillers, merchandisers, etc

In FY 24, company recorded a Net Sales of Rs 157 crores and Net Profit of Rs 17 crores. It has delivered healthy sales growth of 29% and profit growth of 22% over the last 10 years. Promoter’s holding in the company is 57.46%.

Seacoast Shipping Services Ltd

Incorporated in 2005, Seacoast Shipping Services Ltd provides logistics to importers and exporters. It is one of the largest freight forwarders in Gujrat and among top 3 freight forwarders handling agri and commodity exports from Mundra port. It serves companies like Welspun, Arcelor Mittal, Reliance Industries, Adani Group, GSK etc. Company ships over 5 MT of dry bulk and goods annually with agreements with large shipping companies worldwide.

In FY 24, company recorded Net Sales of Rs 374 crores and Net Profit of Rs 20 crores. It has delivered healthy sales and profit growth over the years. However the promoter’s holding in the company has come down from 53% in FY ‘22 to 0.04% in FY ‘24.

Tirupati Forge

Incorporated in 2012, company manufactures mass quantity carbon steel forged flanges, forged components and other automotive components. Company was initially set up to cater to international market (mainly to the US). It started exporting to Italy, Morocco, etc. and also supplies to the domestic market. They have all production capacity under one roof in Rajkot Gujarat. They cater to user industries like Automotive, Aerospace, Mining & Construction, Marine, Railway, Power,Oil & Gas.

In FY 24, company recorded a Net Sales of Rs 110 crores and Net Profit of Rs 7 crores. It has delivered healthy sales growth of 32% and profit growth of 92% over the last 10 years. Promoter’s holding in the company is 57.7% Company’s 5 year ROE is 17%

Prakash Steelage

Incorporated in 1996, Prakash Steelage Ltd manufactures and exports stainless Steel tubes & pipes. PSL is a part of the Prakash group, which has over 30 years of extensive experience in the distribution and manufacturing of value-added steel products in India. The company manufactures steel products for various industries e.g condernsers, pharmaceuticals, pumps and valves worldwide and caters to 250+ customers.

In FY 24, company recorded a Net Sales of Rs 106 crores and Net Profit of Rs 58 crores. It has delivered healthy sales growth of 20% and profit growth of 45% over the last 5 years. Promoter’s holding in the company is 33.52%.

Features of Penny Stocks

  • Volatility: Since penny stock companies have relatively smaller market capitalization, they are more prone to market events, news or sentiment. 

  • Affordable: Penny stocks are low priced hence more affordable for investors with limited starting capital to invest. 

  • Transparency: Penny stock companies are smaller in size with less publicly available information, lesser regulatory scrutiny and prone to oversight. This makes them riskier compared to larger companies.

  • Liquidity: Some penny stocks have high liquidity due to high investor interest and trading, yet other penny stocks may have very low trading volume raising liquidity concerns.

  • Opportunity: Penny stocks can offer potential for high profits due to low base Even a slight uptick in price can bring high profits which lures investors.

In essence, Penny stocks offer high volatility and the potential for significant gains with small price movements, but they also pose risks such as limited transparency and liquidity issues. Before discussing things to consider before selecting penny stocks, if you're starting your investment journey across segments like stocks, mutual funds, commodities, futures and options consider downloading the Rupeezy trading app today.

How to Select the Best Penny Stocks

  1. As with any equity investment, do your own research into the company's business, competitive edge, industry potential, revenue and profitability, overall debt and valuation. 

  2. Place stop loss when trading in penny stocks since they can be highly volatile and prone to rumours or short term trends.

  3. Check trading volume in the stock so that you can easily divest anytime with sufficient liquidity in the scrip.

  4. Assess your portfolio mix and invest in penny stocks within the allocation. 

  5. Keep an eye on events related to the company and industry that can impact your investment.

Conclusion

Penny stocks can be a viable investment opportunity for investors who conduct proper research, study company fundamentals and industry prospects, manage risk with stop loss and diversification and stay updated on market trends and events. Open a free demat account with Rupeezy and start your stock investing journey today. Access advanced trading tools at no subscription fee. 

Want to invest in stocks
Want to invest in stocks

Open Rupeezy account now. It is 100% free and secure.

Start Stock Investment
background_image_blog