High Penny Shares Below Rs 1

High Penny Shares Below Rs 1: Many traders stay up for investing in penny shares within the hopes of multi-bagger positive factors. As a bull market rages in an financial upcycle, many penny shares rise from micro-cap to small-cap, leading to multi-fold positive factors for the traders.

Nonetheless, a fast search on Commerce Brains Portal tells us that there are some 1,750 corporations beneath the Rs 250 market cap. The place will we begin? On this article, we’ll current you a listing of such prime penny shares beneath Rs 1 which you’ll be able to add to your watchlist.

What are penny shares?

Penny shares are corporations with low share costs and small market capitalization. There isn’t a strict vary for outlining a inventory as a penny inventory. Ideally, it’s believed {that a} inventory value beneath Rs 75 with a market capitalization of as much as Rs 250 crore will be termed a penny inventory. 

Penny shares have low liquidity and may show excessive volatility, shifting as a lot as damaging 10% or optimistic 10% in a single single day.

High Penny Shares Below Rs 1

For our research of prime penny shares beneath Rs 1, we’ll transient ourselves on the enterprise and key metrics of the shares. So with out additional ado, allow us to soar in.

High Penny Shares Below Rs 1 #1 – Visagar Monetary Companies

Established in 1994, Visagar Monetary Companies is a non-banking monetary firm (NBFC) within the funding and monetary providers business. It is part of the Visagar Group which has enterprise pursuits in different sectors reminiscent of textiles, schooling, media and actual property.

The corporate’s major enterprise is investing in listed and unlisted securities of assorted corporations. It holds a well-diversified portfolio of securities from a number of sectors: monetary providers, schooling, actual property, and extra. 

Along with appearing as an funding firm, Visagar Monetary Companies additionally provides monetary advisory, company advisory, and different associated providers reminiscent of debt financing, debt swapping, international forex financing, promoter PMS, and so forth.

Visagar Monetary Companies is a low-debt penny inventory beneath Rs 1 with a market capitalisation of Rs 56.6 crore. Its e book worth per share is Rs 1.06 towards the present market value of Rs 0.97 giving it a price-to-book worth ratio of 0.92.

High Penny Shares Below Rs 1 #2 – ACI Infocom

ACI Infocom was began in 1982 as a producer of floppy disks. It had technical collaboration with Shugart Associates of USA and is likely one of the oldest corporations in India’s data expertise sector.

The corporate noticed a administration change in 2012 when it was taken over by Prog Dyechem Personal Restricted. Since then, it has shifted its enterprise focus to actual property. As of the current date, ACI Infocom supplies consultancy providers for small and medium-sized initiatives within the industrial and residential segments.

Moreover, additionally it is concerned in SRA initiatives, building contracts, and redevelopment initiatives.

The true property inventory has a promoter shareholding of twenty-two.90%. The corporate is debt free and has excessive web revenue and working revenue margins of 18.9% and 26.5% respectively. It clocked a web revenue of Rs 10 lakh on an revenue of Rs 53 lakh in FY23. 

High Penny Shares Below Rs 1 #3 – Yamini Investments Firm

Headquartered in Delhi, India, Yamini Investments Firm is a micro-cap firm with a market valuation of Rs 34.2 crore. It’s a penny inventory with a share value of Rs 0.65. The corporate is engaged within the enterprise of investing in shares, offering loans & advances and different providers.

Proceeds from the sale of shares & different securities and curiosity earned make up the revenue of the corporate. It earned a web revenue of Rs 21 lakh on revenues of Rs 4.33 crore for the monetary yr 2022-23.

Yamini Investments is a debt-free penny inventory beneath Rs 1. It presently trades at a excessive price-to-earnings ratio and price-to-book worth ratio of 163 and 5 respectively for a penny inventory. On a cautionary notice, it has a low promoter shareholding of 1.78% solely.

High Penny Shares Below Rs 1 #4 – A R C Finance

ARC Finance was integrated in 1982 as ARC Modellors & Companies Ltd. Later in 1993, its identify was modified to ARC Finance Ltd. 

As of the current date, it’s a registered non-deposit taking NBFC. ARC Finance is concerned within the enterprise of offering loans and investing/buying and selling in securities.

ARC Finance has been worthwhile for the final 4 years. It earned a revenue after tax of Rs 33 lakh on an working revenue of Rs 6.92 crore in FY23. All through the interval, the administration of ARF Finance demonstrated superior gross sales and working efficiency which translated into larger profitability.

The NBFC has a promoter shareholding of 12%. It has low debt on its steadiness sheet giving it a debt-to-equity ratio of 0.27. The inventory presently trades at a excessive P/E of 101 giving the penny inventory a market capitalization of Rs 33.4 crore.

High Penny Shares Below Rs 1 #5 – NCL Analysis and Monetary Companies

Based in 1998, NCL Analysis and Monetary Companies is a non-deposit taking NBFC. It supplies monetary providers to micro, small and medium enterprises (MSMEs), small and medium enterprises (SMEs), the company sector, and the non-corporate sector. 

The corporate provides secured and unsecured financing choices to its purchasers based mostly on their threat profiles after making an allowance for their creditworthiness and compensation capability. Along with this, NCL additionally invests in a number of listed and unlisted corporations.

It’s a penny inventory beneath Rs 1. NCL Analysis and Monetary Companies has a e book worth of Rs 1.16 per share giving it a gorgeous price-to-book worth ratio of 0.33. The micro-cap firm is debt-free and reported a web revenue margin of 15.4% in FY23. The final two fiscals have been good for NCL because it clocked a revenue after tax of Rs 1.04 crore and Rs 60 lakh in FY22 and FY23 respectively.

Record of High Penny Shares Below Rs 1

The desk beneath places collectively the names of penny shares beneath Rs 1 we lined above.

Cautionary Assertion

Though penny shares could make an excellent rags-to-riches story, traders should train excessive warning whereas placing cash in such small corporations. Penny shares are dangerous due to the unsure nature of their earnings and enterprise fashions. In any damaging occasion, the liquidity might evaporate leaving traders with unsellable shares of their portfolio.

Along with this, they may also be vulnerable to pump-and-dump schemes the place false value motion is created so traders purchase into the inventory whereas outdated traders make their exit profiting positive factors. 

Conclusion

We famous above in our research of the highest penny shares beneath Rs 1 that many of the corporations belong to the monetary providers sector. Nonetheless, there isn’t any clear distribution that almost all of micro-cap corporations are in the identical business. 

One might discover penny shares throughout totally different sectors: actual property, schooling, buying and selling, retail, and so forth. Moreover, traders can look past Rs 1 scrip and think about shares buying and selling at totally different value ranges. 

Do you assume share value alone is usually a figuring out issue for investing your cash? What different elements ought to be thought of? On prime of that, what elements ought to one rigorously think about for investing in penny shares? How about we proceed this dialog within the feedback beneath?

Written By – Vikalp Mishra

By using the inventory screener, inventory heatmap, portfolio backtesting, and inventory examine device on the Commerce Brains portal, traders acquire entry to complete instruments that allow them to determine the most effective shares additionally get up to date with inventory market information, and make well-informed funding choices.