Penny stocks under Rs 15: Investors in the stock market are always looking for get-rich-quick multi-bagger penny stocks. A quick search on Trade Brains portal’s stock screener reveals around 950 penny stocks under Rs 15 with a maximum market cap of Rs 1500 crore. How to pick top penny stocks under Rs 15 in such a huge pool? In this article, we will try to answer correctly.
Penny stocks below Rs.15
In this article, we have put together the top penny stocks under Rs 15 that risk-taking investors can add to their watchlist. In the company description, we talk about the business and key metrics that make this penny stock attractive.
Before we move on to the list, a small section is devoted to understanding the research methodology.
This list includes only stocks trading between Rs.5 to Rs.15. We have capped the market capitalization at Rs 1,500 crore. Additionally, the debt to equity ceiling was set at 1 to avoid high debt penny stocks.
Along with this, a filter is set so that both the return ratios (RoCE and RoE) are greater than 1.
After familiarizing ourselves with the filters used, let us now move forward to know the best stocks under Rs 15 mentioned in this article.
|CMP||₹12.6||Market Cap (Cr.)||₹1,100|
|face value||₹1.0||The book is worth it||₹5.68|
|Promoter Holding||49.8%||Cost of book value||2.23|
|Debt to Equity||0.52||Dividend yield||0.00%|
|Net profit margin||9.30%||Operating profit margin||9.65%|
Steel Exchange India Limited or SEIL is an integrated steel producer producing Sponge Iron (220.000 TPA), Billet & Ingots (340,000 TPA), TMT Rebars (225,000 TPA) and Captive Power (71.64 MW).
Incorporated in 1999, SEIL is a Vizag Profile Group Company. The group is primarily engaged in the real estate sector and develops residential properties.
Steel Hand was established in 1999 as part of the diversification efforts of a business group that was earlier trading in steel and allied products. As of today, it operates two steel plants and has a strong brand value for its ‘Simhatri TMT’ bars.
In the past three years, the small-cap steel producer has seen its revenue rise to Rs. 781 crore in 2020 to Rs. 1,099 crores by 2022. Steel stock currently trades at a P/E of 8.43, giving the small-cap company a market value of Rs 1,123.
|CMP||₹7.84||Market Cap (Cr.)||₹737|
|face value||₹1.0||The book is worth it||₹2.57|
|Promoter Holding||50.6%||Cost of book value||3.05|
|Debt to Equity||0.4||Dividend yield||0.37%|
|Net profit margin||9.15%||Operating profit margin||9.27%|
Founded in 1995, Sincom Formulations is a pharmaceutical company headquartered in Mumbai, Maharashtra. A state-of-the-art manufacturing facility is located at Pithampur in Madhya Pradesh. The small-cap pharmaceutical company exports its formulations to more than 15 countries. It has a strong workforce of approximately 300 employees.
Syncom manufactures and sells formulations in various dosage forms: tablets, capsules, liquid orals, vials and ampoule injections and dry vial injections, dry syrups, ointments, inhalers and herbs.
Promoters seem to be bullish on the company as they have raised their stake from 38.98% in September 2019 to 50.57% as of September 2022.
Its sales have continued to grow since 2018. However, sales declined by 11.84% to Rs 216 crore in 2021-22 from Rs 245 crore in 2020-21.
It has a low debt-to-equity ratio of 0.40. The stock trades at a P/E ratio of 45.4 giving the small cap company a market capitalization of Rs 737 crore.
|CMP||₹10.8||Market Cap (Cr.)||₹147|
|face value||₹1.0||The book is worth it||₹9.42|
|Promoter Holding||74.8%||Cost of book value||1.16|
|Debt to Equity||0.06||Dividend yield||0.00%|
|Net profit margin||23.0%||Operating profit margin||67.9%|
Surana Telecom and Power Limited was established in 1989 as a manufacturer of Petro Products and Telecommunication Products. Over the years the company slowly diversified into other sectors.
As on date, the company is engaged in the manufacturing of jelly filled cables, optic fiber cables and solar photovoltaic modules. It has also set up a joint venture with Suzlan for 1.25 MW capacity wind power generation.
Surana is also engaged in manufacturing of Aluminum Wires, Composites and International Quality CDMA Mobile Handset.
The manufacturing company’s stock is currently trading at a PE of 11.7, giving it a small-cap market value of Rs 147 crore. It has a high promoter holding of 74.8% and has a zero debt-to-equity ratio of 0.06.
|CMP||₹7.4||Market Cap (Cr.)||₹74.9|
|face value||₹1.0||The book is worth it||₹4.96|
|Promoter Holding||66.7%||Cost of book value||1.49|
|Debt to Equity||0.41||Dividend yield||0.00%|
|Net profit margin||7.9%||Operating profit margin||19.9%|
Akash Exploration Services has been in the business of providing various oil and gas industry services for the last 25 years. Headquartered in Ahmedabad, Gujarat, the company employs more than 900 people.
The company has two ISO certifications and an OHSAS certification to its name, which gives it a brand image and corporate identity. Its list of renowned clients includes ONGC, GSPCL, Cairn, Essar and many more.
Promoter holding has been reduced to 6.56% from 66.77% in June 2021 which was 73.77%. Excluding FY2021, AES’s revenue is Rs. 67 crore in the financial year to Rs. 77 crores in FY22.
Another good thing about the company is that it has reduced its debt over the years, resulting in an increase in its interest coverage ratio.
|CMP||₹11.7||Market Cap (Cr.)||₹81|
|face value||₹2.0||The book is worth it||₹12.20|
|Promoter Holding||18.9%||Cost of book value||0.96|
|Debt to Equity||0.47||Dividend yield||0.00%|
|Net profit margin||5.96%||Operating profit margin||15.5%|
Incorporated in 1992, Scanpoint Geomatics Ltd. (SGL) provides computer programming, consulting and related activities to several business areas including GIS services, GIS software & solutions and other products in the geomax domain.
Its range of solutions are used in smart cities, security, land registry management, urban information systems, agriculture and monitoring.
The company has developed a wide range of products in-house: GIS & IP Desktop, GIS & IP Enterprise Suite, Photogrammetry Suite and IGiS CAD in the Geomax space.
SGL’s sales stood at Rs 33 crore in FY22, compared to Rs 43 crore and Rs 53 crore in FY21 and FY20 respectively. However, its net profit remained flat at Rs 2 crore on the back of higher operating margins.
Top Penny Stocks Under Rs.15
Below is a list of best penny stocks under Rs.15.
|Name of the company||profession||CMP (Rs.)||Market Value (Rs Crore)|
|Steel Exchange India||Steel||12.6||1,114|
|Cincom Formulations (India)||Medicines||7.83||736|
|Surana Telecom and Power||Diversified||10.9||148|
|Akash Research Services||Oil and gas||8.35||85|
At the end
Investing in penny stocks is highly speculative in nature. They are risky due to lack of liquidity. The amount of information available on them is limited, bringing with them elements of high risk. Their bid and ask spreads are usually large, which brings a lot of volatility to their prices. Many penny stocks are prone to pump and dump strategies.
However, if looked at properly, some penny stocks actually have the potential to generate multi-packer returns. As an investor, do you think penny stocks will take your portfolio sky high? How about continuing this conversation in the comments below?
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Vikalp Mishra is a Commerce graduate from Delhi University. He likes to write about finance, money and business. He is a voracious reader with a genuine interest in investing. Email him at [email protected]
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