Best Penny stocks to buy in 2024

Best Penny Stocks to Buy in India 2024 By SMC Global Securities

The attraction of penny stocks calls with the promise of large profits as we go through the intricate trading paths. Finding the hidden treasures among these inexpensive stocks is essential for investors looking to take advantage of growing chances in 2024.

What are penny stocks?

Common shares of small public corporations that are traded at below Rs 10 per share in India are known as penny stocks. Due to their low cost and enormous profit potential, penny stocks are often favoured by traders and small investors.

Top 10 Penny Stocks to Invest in 2024

Let’s analyse the top penny stocks to purchase that could rise to become multibaggers for the Indian market in 2024.

  1. Vikas Ecotech Ltd
  2. Comfort Intech Ltd
  3. Rajnandini Metal Ltd
  4. G G Engineering Ltd
  5. Indian Infotech and Software Ltd
  6. Genpharmasec Ltd
  7. Accuracy Shipping Ltd
  8. Goyal Aluminum Ltd
  9. Prakash Steelage Ltd
  10. Kenvi Jewels Ltd

WHY SMC

  • 20 Lac+ unique clients
  • 33+ Years of Serving
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Overview of Best Penny Stocks to Invest in India

Vikas Ecotech Ltd

Vikas Ecotech impressively achieved a 61% YoY revenue growth, totalling Rs. 298.09 Cr. Despite a debt-free status and robust balance sheet, opportunities for improvement exist in the 3% pre-tax margin and 4% ROE. It is a top pick among India’s penny stocks for 2024, combining financial strength and growth.

Comfort Intech Ltd

Comfort Intech, an NBFC, specialises in offering financial solutions to a diverse clientele, encompassing commercial, industrial, and financial sectors. It provides various services, from trade finance to working capital loans and bill discounting.

Rajnandini Metal Ltd

Over the past year, Rajnandini Metal has recorded an operating revenue of Rs. 1,185.92 Cr., reflecting a modest 1% annual growth. Opportunities for enhancement lie in the 2% pre-tax margin, while the 33% return on equity (ROE) adds a bright aspect.

G G Engineering Ltd

G G Engineering Limited serves as an original equipment assembler (OEA) for Ashok Leyland and Perkins engines, specialising in manufacturing diesel generation (DG) Sets spanning 10 to 2250 kilovolt-amps (KVA).

Indian Infotech and Software Ltd

Indian Infotech & Software, a non-banking financial company, primarily focuses on finance and loans. As of January 2024, the market capitalisation for this entity is ₹344 crores. Positioned as a promising option, it emerges as a potential top pick among the current enticing penny stocks for investment in India.

Genpharmasec Ltd

Genpharmasec’s Rs. 26.44 Cr. operating revenue in the past 12 months reveals a -7% annual revenue decline. Improvements are sought in the 1% pre-tax margin and the fair but enhancing 7% return on equity (ROE), making it a compelling choice among India’s top penny stocks.

Accuracy Shipping Ltd

Accuracy Shipping secured Rs. 739.89 Cr. in operating revenue in the last 12 months, with a steady 6% annual growth. Despite a modest performance, opportunities for enhancement exist in the 1% pre-tax margin and a fair yet improvable 7% Return on Equity (ROE). This makes it a prospective long-term investment among potentially lucrative penny stocks.

Goyal Aluminum Ltd

Goyal Aluminiums achieved an operating revenue of Rs. 57.94 Cr in FY23. Despite facing a -20 % annual revenue de-growth and a 4% pre-tax margin needing enhancement, the positive aspect lies in the 12% return on equity (ROE). Positioned as a robust fundamental penny stock, Goyal Aluminiums holds promise in the Indian market.

Prakash Steelage Ltd

Prakash Steelage accomplished an operating revenue of Rs. 112.87 Cr. in FY23, demonstrating a commendable 13% annual revenue growth. Despite this, there’s an opportunity for enhancement in the 3% pre-tax margin and a concerning -8% return on equity (ROE), signalling areas for improvement.

Kenvi Jewels Ltd

Kenvi Jewels display robust growth with an impressive Rs. 103.69 Cr. operating revenue, showing a remarkable 32% annual increase. Although the 1% pre-tax margin and 3% ROE indicate areas for enhancement, it stands out as a top 2024 penny stock with promising potential.

WHY SMC

  • 20 Lac+ unique clients
  • 33+ Years of Serving
  • Advance Technical Analysis
  • Free Demat Account


Latest Performance of Top 10 Penny Stocks

Company Name CMP Rs. Mar Cap Rs.Cr. 1Yr return % ROCE % CMP / BV Debt / Eq ROE % EPS 12M Rs. P/E Div Yld %
Vikas Ecotech Ltd 4.66 628  50.0 6.76  0.59 0.26 4.02 0.10 99.1 0.00
Comfort Intech Ltd 8.79 281  190.1 6.84 0.84 0.08 5.80 0.18 21.5 0.68 
Rajnandini Metal Ltd 14.3 395 2.88 29.2  7.48 1.74 38.5 0.50 21.6 0.47 
G G Engineering Ltd 2.57 226  131.53 11.4  0.44 0.02 10.8  0.31 32.3 0.00
Indian Infotech and Software Ltd 2.72 345  70 0.34 0.56 0.00 0.27  0.01 61.1 0.00
Genpharmasec Ltd 4.54 251  14.94 2.01  5.62 0.10 7.30 0.04 189 0.00 
Accuracy Shipping Ltd 15.8 237  -9.59 11.0 2.20 0.90 7.59 0.53 0.00 0.16 
Goyal Aluminum Ltd 9.41 134 -59.8 18.4 6.98 0.08 13.1 0.15 63.4 0.00 
Prakash Steelage Ltd 10.0 175 122.22 0.00 0.00 0.00 0.00 0.24 7.42 0.00
Kenvi Jewels Ltd 7.15 90.4 102.66 7.29  6.31 0.07 4.03  0.53 110 0.00

Overview of the Penny Stocks Industry in Indian Market

In the current market, investors seeking refuge from inflation and lacklustre traditional options are increasingly exploring penny stocks in India. With their potential for significant growth, these stocks are influenced by pricing, market capitalisation, liquidity, and historical data. Over the past year, penny stocks have yielded an average return of approximately 9.5%, though the individual performance of these stocks can vary significantly.

WHY SMC

  • 20 Lac+ unique clients
  • 33+ Years of Serving
  • Advance Technical Analysis
  • Free Demat Account


Advantages and Risks Associated with Investing in Penny Stocks

Investing in penny stocks has several advantages:

  • Penny stocks offer the opportunity to buy many shares at a low price, leading to decent returns when the stock gains.
  • Early investment in promising penny stocks can pave the way for future robust growth.
  • With their low pricing, penny stocks are easily accessible to investors with small capital, enabling them to participate in trading.

The main risk in penny stock investment is the potential loss of the entire investment. Other notable risks include difficulties in cashing out due to thin trading volumes and the risk of market manipulation, leading to misleading information and potential losses from wild price fluctuations.

Why should you invest in penny stocks in India?

Opting for penny stocks in India provides an attractive prospect for substantial returns with minimal upfront investment. Compared to other assets like mutual funds or real estate, which can be difficult for inexperienced stock traders or investors, these characteristics make them more accessible.

While risks exist, the allure lies in the chance for explosive growth and identifying potential future multibaggers.

How to start Investing in Penny Stocks?

SMC’s online trading platform simplifies penny stock trading, enhancing accessibility and efficiency for investors. Here are a few steps to get you started:

Start your journey in 4 easy steps with us:

  1. Go to the official website of SMCtradeonline or simply download the app
  2. Open a free demat account
  3. Start investing

WHY SMC

  • 20 Lac+ unique clients
  • 33+ Years of Serving
  • Advance Technical Analysis
  • Free Demat Account



Conclusion
Navigating the world of penny stocks in India presents a unique avenue for investors seeking huge returns with minimal investments. While the industry is influenced by pricing, market capitalisation, and liquidity, the potential for significant growth is evident. SMC’s trading platform further streamlines the investment process, making penny stocks an accessible and enticing option for novice and seasoned investors.

References
https://economictimes.indiatimes.com/markets
https://www.moneycontrol.com/stocksmarketsindia/

Author:
All Content is verified by SMC Global Securities.

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