From the plethora of stock that exists in the market, there are some which are good in possibly almost all aspects but are expensive, while some are the golden chances, which are cheap, less known but profitable and give decent to good returns. Since it is already so tiresome to select stocks, we have got you a list of 10 stocks under Rs. 10, that you can consider for your investments if you are looking for something less expensive yet worth spending on.
These stocks are called Penny Stocks. Usually priced under Rs. 10, and have a low market capitalization too.
Following are the penny stocks that we shall be looking into in this article –
10 stocks under Rs. 10
|Name||Market Capitalization(Rs Crore)||Price (Rs) (as of 04-03-23)|
|Vodafone Idea Ltd||33589||6.9|
|Suumaya Corporation Ltd||27.8||11.25|
|Jaiprakash Power Ventures Ltd||4591.8||6.7|
|Future Consumer Ltd||159.8||0.8|
|Suzlon Energy Limited||9582.1||8.5|
|Kore Foods Limited||9.3||8|
|Oscar Global Ltd||1.8||5.5|
|Shyamkamal Investments Ltd||3.5||4.28|
Let us take a look at these stocks one at a time-
1. Vodafone Idea Ltd
Headquartered in Mumbai, with a consumer base of 290 Million across India, Vodafone Idea is a well-known name and has a market share of 30%. The Company is engaged in the business of Mobility and Long Distance services, and the trading of handsets and data cards. The Net Profit of the company rose by 36.1% in the last year to Rs 28,245.4 Crores. The sector of average net profit growth for the last fiscal year was 59.6%.
The quarterly Revenue rose 9.3% YoY to Rs 10,658.6 Crores. However, the overall revenue growth of the company has been falling for quite some time now and can’t be relied upon. This merger between Vodafone and Idea did help both companies survive the Reliance-JIO wave that came. The stock’s highest price has been Rs. 123.
2. Suumaya Corporation Ltd
Suumaya Corporation was founded in 1985, and its IPO came in 2021. The company is engaged in the trading of polymer, and textile commodities and also has a wide range of grades for diverse applications across sectors such as packaging, agriculture, automotive and consumer durables. Their products also include threads, yarns and fabrics.
The Debt to Equity Ratio of 0.4 is less than 1, which is in an ideal spot and hence is a positive sign. The Annual Revenue rose 183.3%, in the last year to Rs 3,364 Crores. Alongside this, the industry average was just 22.3%. Outperforming the industry average being a penny stock is a huge plus for the stock.
3. Alankit Ltd
Founded in 1989, the main business of the company is e-Governance and e-Governance products. The company has been able to successfully complete several such e-Governance Projects. They have PAN card centres, Fastag Services, GST Suvidha Providers and also offer distribution of cards like voter IDs, Aadhar Cards and Health Cards.
The Debt to Equity Ratio of 0.2 is less than 1, and the promoter pledges of the company are also nil. The Revenue rose 15.4%, in the last year to Rs 136.7 Crores in the previous year. The Quarterly Revenue of Alankit Ltd rose by 242.2% to Rs 109.3 Crores, the sector average of the same was just 8.4% hence making a great difference.
4. Jaiprakash Power Ventures Ltd
Jaiprakash Power Ventures Ltd is a part of the Jaypee Group and is engaged in the business of generation of Thermal and Hydro Power, cement grinding and Captive Coal Mining. The company presently owns and operates three Power plants with an aggregate capacity of more than 2220 MW, 2 MTPA Cement Grinding Units, and a 2.8 MTPA Coal Mine. The promoter holding in the company is low at just 24%.
Under DII, ICICI Bank holds a 10% stake in the company. In the previous year, the Revenue of the company increased by 41.7%, to Rs 4,859.6 Crores, the industry average is 23%. The volume of trading of the stock has been active in the recent past and has made the stock volatile too.
5. Future Consumer Ltd
Future Consumer is involved in sourcing, manufacturing, branding, marketing and distribution of fast-moving consumer goods (FMCG), Food and Processed Food Products in Urban and Rural India. Previously the company was regulated by the Reserve Bank of India as a non-deposit-taking Non-Banking Financial Company.
The company at the present has a very high debt-to-equity ratio of 3.5, and the volumes being traded are also low making it tough to exit once money is put in.
However, the company gave out good revenue growth in the previous year with a 23.5% rise when the industry average was just 20%.
6. Suzlon Energy Limited
Suzlon Energy is involved in the business of designing, developing and manufacturing of wind turbine generators (WTGs) and related components of various capacities. They are India’s largest renewable energy solution provider and have a presence in over 17 countries. The company also has a wholly-owned subsidiary named SE Forge. The subsidiary has a capacity of over 1.2 lakh MT annually.
Being a penny stock, the PE of the stock is obviously a lot lower than the industry standard of 49.5. The company’s PE itself stands at 4.1. The mutual fund holding of the stock also increased by 0.2% in the previous year.
7. Kore Foods Limited
Kore Foods Limited is engaged in the business of food processing. The company manufactures dry fruits in various flavours for exports and domestic sales and offers customized products for 5-Star hotels and other customers in the food and catering industry. The Price to Earnings ratio of the company is 4.3, which is significantly lower than the sector PE of 35.4.
Unlike most penny stocks which do not perform very well in the long term, Kore Foods has shown a growth of 153% in its stock price, which also outperformed the industry by a whopping 90%. The promoter holding of the company is also 50%, indicating the promoters’ confidence in the company.
8. Pae Limited
Pae Limited was founded in 1950 and is into the sales and services of Lead Storage Batteries, Automotive Parts and Power Backup Systems. The company has managed to increase its annual net profit by more than 300% in the previous year to reach Rs. 12.2 Crores. A very low PE of 0.6 does indicate that the company maybe on the verge of making losses, however, in the previous year the stock price of the company has risen by 24%. The company has also taken up significant debts since FY21, and the interest coverage ratio of 0.1% does not show a very good image, making an investment a little risky.
9. Oscar Global Limited
Incorporated in 1990, Oscar Global Ltd is into the production and export of Leather Garments and their accessories. The main products of the company include Leather Jackets, Leather bags, Leather Belts, Leather Coats and Leather Pants.
The one major positive of the company is its Debt to Equity ratio is nil. The company is completely debt-free, making the investment a little less risky. The return on equity of the stock was 49.2%, higher than most stocks of its category. However, the company did have a loss in the recent quarter, the annual profit, on the other hand, had a different picture, and stood at almost 3 times its previous year’s numbers.
10. Shyamkamal Investments Ltd
Shyamkamal is engaged in the business of Securities Trading and Investments Activities and also has a license to perform NBFC activities. They also perform the business of hire-purchase, leasing and financing lease operations of all kinds, purchasing, selling, hiring or letting on hire all kinds of plant and machinery and other types of equipment. The company is almost debt free and has increased activity in the previous months. The annual profit of the company was Rs. 0.2 Crore in the previous year. However, the promoters’ holding in the company is very less at just 2.59%, which may not be a very good sign.
Penny Stocks are cheap no doubt, but many investors choose to stay away from them since they are comparatively riskier and the information available about them is not much. They can give good returns, but since a lot of information about these stocks is not enough for decision-making or having confidence in them, they are less trusted in by investors. Hence, before you make an investment in such stocks, make sure that you do research well on these stocks and only then make an informed decision.