Penny stocks attract investors as they think they can pocket in large number of shares of a scrip being available at a very low cost. But what it is to be noted that though they may or may not reward an investor, one thing that is their inherent characteristic is the huge intrinsic risk.
Multibagger penny stocks with m-cap over Rs. 5000 crore
|Penny stock||LTP||% Gains In The last one year||M-Cap|
|RattanIndia Enterprises||Rs. 47||540%||Rs. 6497 crore|
|Poonawalla Fincorp||Rs. 171.9||356%||Rs. 13,142 crore|
|HFCL||Rs. 77||400%||Rs. 9927 crore|
|Tata Steel BSL||Rs. 93.2||298%||Rs. 10191 crore|
|Shree Renuka Sugars|
|Rs. 30.1||223%||Rs. 6407 crore|
Rajiv Rattan headed is a business conglomerate based out of Delhi. The company's work areas span power generation, consumer finance, renewable energy and electric mobility. The group's combined assets are equivalent to $2.7 billion.
The company's TTM P/E is at a negative -7264.3 while the sector P/E is at 21.37.
As of last the company commanded a market cap of Rs. 6503 crore.
This is an NBFC company commanding a market capitalization of Rs.13,142 crore . A host of brokerages are bullish on the scrip as there is a recent management change which is seen to be positive for the scrip.
There was indeed seen a downside in today's trade as the SEBI banned the company's managing director for insider trading.
The lending company is into offering a bouquet of loans from personal to professional loans and even insurance services.
The company is a leading telecom company and specializes in manufacturing of telecom equipment, optical fiber cables and intelligent power.
The focus on to 5 G technology has also improved the prospects of the company going ahead.
TTM P/E- 32.49
Sector P/E- 88.18
Tata Steel BSL:
The company in the year 2018 has been acquired by Tata Steel which was previously known as Bhushan Steel. The company is now the third largest secondary steel producing company with an existing steel production capacity of 5.6 million ton per annum. The company's products included Hot Rolled Coil ,CRCA ,CRFH ,Galvanized Coil and Sheet ,Galume Coil and Sheet ,Color Coated Coils,Color Coated Tiles,High Tensile Steel Strips,Hardened & Tempered Steel Strips,Precision Tubes,HFW/ERW Pipe (API Grade),3LP Coated Pipes,Billets and Sponge Iron.
TTM P/E- 1.8
Sector P/E- 4.43
Shree Renuka Sugars
Headquartered in Mumbai and with head office in Belgaum, the company is the largest sugar producers globally. The company is a global agribusiness and bio-energy corporation. Additionally, the company is also into refining of sugar.
The recent push for ethanol blending for fuel will augur well for the company going ahead.
P/E TTM- -20
Sectoral p/E- 13.27
These penny stocks have relatively infrequent trading which indicates less buyers and hence low liquidity. With low or limited trading, these stocks are subject to high volatility. Though considered affordable, every other investor should not take a buy decision on them given the huge volatility.
The information or the scrips collated above need not be construed for investment advice.