Morning shows the day!
India’s Warren Buffet, Rakesh Jhunjhunwala, thinks differently during portfolio management. The ‘big bull’ of the market decided to keep 5.66% of investment in small penny stocks! People in 2021 appear to be thrown off by the pandemic, unsure where to put their money. If you’re interested in the best penny stocks, you’ll find that they’re right on track with an established trend of rising prices with minimum risk. Before investing any money into any financial venture, do your homework about the best penny stocks of 2022.
Here we will check some researched data to understand how the top penny stocks game stormed the market recently. You should check the system rather than the flow of mass.
Penny stocks are stocks that trade for less than $1 in the West. However, this basket comprises equities with less than $5. In the Indian market, the price is less than ₹10, even sometimes less than ₹1. Low price mitigates your portfolio risk, and many of them can turn a tiny investment into a large sum of money. For example, if you hold 10,000 shares of the best penny stock that is now trading at ₹100, a ₹10 increase in the share price can net you 10,000×10 in a single day. However, if you are new to portfolio investment, then the golden rule of diversification and long term holding is to be followed.
When the domestic equity market was experiencing high volatility in the current fiscal year 2021-22, at least 20+ penny stocks in India managed to more than tenfold investors’ wealth. This indicates that a ₹1 lakh investment in any of these stocks on Jan’21 has grown to nearly ₹10 lakh this year. A penny stock is any stock available for less than a single number.No matter how experienced you are, as a new trader or experienced investor, the best penny stock pie is for all.
While there is always the risk and losses when investing in penny stocks in India or the international market, there is also the possibility of huge profits if the company is listed on major markets or equipped with the performance.
In general, penny stocks are also known for their lack of liquidity, and a select few can deliver enormous returns in a short period. These top penny stocks can easily increase in value by 5x, 10x, or even 100x in a short period. Even some best penny stocks of India in 2021 zoomed up to 9,000% to 10,000% returns in one year! As the post-covid global capital market becomes more unpredictable due to interest rate hikes, inflationary pressure, and the Russia-Ukraine war, retail and institutional investors move toward larger companies, citing their consistent performance and good fundamentals as reasons to invest.
In the case of the Indian market, if we look at the current scenario, Kaiser Corporation’s stock has risen 100 times in the last year, from a low of ₹0.38 to a high of ₹38.95, a surprising 10,150% growth. In this mid-March, the Kaiser scaled up ₹80. Profit margins of the company were not extraordinary to justify the growth. Taking a look at the shareholding pattern may tell you a different side. Because the promoters own 59.5% of the corporation, retail stockholders have plenty of liquidity.
Read Also: Best Pharma Stocks to Buy in India for Long
This chart clearly shows that the few penny stocks escalate from rag to riches within one year upto 2,000% growth.
Penny stock in India below 1 rupee is available but don’t expect 10x or 20x growth all of a sudden. India’s maximum top penny stocks have also taken nearly 1 year to escalate the growth graph. As a college student, you can invest your tiffin savings or internship fees into penny stocks below 1 rupee without a second thought. If you invest in penny stocks below 1 rupee in India, you may have sky-high growth, despite the risk. However, it would help if you exercise caution and conduct as much research before investing in them. Let’s look at the tricky concept of penny stocks in India that trade for less than a rupee.
It is good to check some basic parameters to avoid fraud or scam risk in penny stocks below 1rupees trading. Investors should check promoters’ share in the company with a minimum market cap of 10 cr; earning per share (EPS)should be >0.
If we observe penny stocks in India, Shalimar Productions, valued at ₹0.49 in October 2021, zoomed up ₹1 this March-end,104% growth in 6 months. The company is a BSE-listed company with around 6,000 stockholders. The corporation provided an 80% return to its owners in the previous year. Furthermore, the company has returned 85.71% during the last three years!
The stock price of Sword–Edge Commercials Limited has risen from ₹.33 to ₹.83 between Oct 2021 and mid-April 2022.Almost 151% growth in 6 months! The company is traded on both the BSE and the NSE if we check the financial data. There are six different firms that make up the Sword Edge corporate family. The company returned 88.35% in the previous year, market capital 17.8 cr, net income in FY21 was ₹ .32 cr, EPS in that year was .01, and 1,133.33% returned during the previous five years. This can easily join the top 10 penny stock clubs in India as per the momentum.
Penny stocks in India below rupee 1 are exceptionally inexpensive and cost-effective because they trade below Rs. 1. You have the option to purchase a large number of penny stocks for less than a rupee, from which you may profit if the price rises quickly.
Top Penny stocks of India in 2021 had shown 10× to 100× acceleration amid the pandemic. Before purchasing stock in a firm, one should examine its business model and long-term growth prospects. Healthy EPS, debt and promoters’ shareholding are major components of the screening process. These high-risk bets on penny stocks can sometimes pay off handsomely in a short period. The shares of Advik Capital are a good example of this.
This stock has a high chance to become one of the multibagger penny stocks in 2022. This multibagger penny stock in India only in the last 30 days advanced from ₹3.8 to ₹4.97(mid-March to mid-April 2021), clocking near 30%. If you invested 1 lakh in multibagger penny stock one month ago, it is now 1.30 Lakh. Similarly, in YTD time, you had to start with ₹2.91 and land now at ₹4.97, near 70% gain!
•GRM Overseas Ltd.
This multibagger penny stock has jumped from ₹201 to ₹556 in the last 6 months. The company has recorded an 8198% gain to investors in 5yr; if you invested ₹1 Lakh in 2017, it is now nearby ₹82 Lakh. If the investor started the journey from January 2021 with 1 lakh, it is about to withdraw ₹14,02,000. As of this April, GRM holds a market cap of ₹3337 cr; EPS is ₹14.66 and 72% holding of promoters. All financial healths are indicating its growth as multibagger penny stocks in 2022.
•Basant Agro Tech (India) Ltd.
It is a fertilizer firm that produces seeds, fertilizers, and organic products. Its market value is 146 crores, and it is solely listed on the BSE. The company clocked revenue of ₹323cr; promoters own 53% of the share. If the investor started his journey in Dec 2021 with 1 lakh, this April, he is enjoying about 1.48 lakh gaining, sharp growth from ₹11.21 to ₹27.9. The healthy EPS of this multibagger penny stock is 1.66.
•Precision Wires India Limited
Precision ltd is the largest winding wires manufacturer in India. This company has a market value of ₹839 crores and is listed on the NSE and BSE stock exchanges. The company’s return on equity is 13.1%, while its return on capital employed is 20.4%. With a market value of ₹1,000 cr and EPS of 5.31, Precision has a higher possibility to join the multibagger penny stock club in 2022. In addition, its debt is smaller than its profit, almost a debt-free company.
•Kothari Petrochemicals Limited
The company produces Polyisobutylene, which is used in various applications such as fuel, rubber modification, PVC pipes etc. The company has a market value of 418 crores, has a strong return on equity of 20%, and a decent return on capital employed of 27.3%. Promoters capture 70% ownership pie. The company stormed the capital market with EPS of 5.49 and 111% growth in share value in the last 6 months. It has full potential to get enlisted in the best penny stock of 2022.
The majority of penny stocks may not generate enough return on investment to make the transaction profitable due to the rapid share price volatility. However, Penny stocks that pay dividends may help a penny stock portfolio attain a higher total return. Therefore, these penny stocks like to be appeared as one of the best penny stocks of 2022 as per financial history.
•Rail Vikas Nigam Ltd.(₹1.58 dividend per share)
•Satluj Jal Vidyut Nigam(₹1.15 dividend per share)
•Sumedha Fiscal( ₹1.58 dividend yield per share)
•B N Rathi Securities (dividend yield 3.02%)
In the case of multibagger penny stocks of 2022 list discussion, we consider EPS always >0. The EPS calculation includes profit and the number of shares, so it is a major parameter of financial health. However, higher EPS does not always guarantee the future of the profit pie. Apart from the above list of potential multibagger penny stock of 2022 list, you can also include Hathaway cable datacom, Texmo pipe and products, Ircon international.
Debt-free penny stocks in India are a bonus for investors. A firm with little or no debt sends a message to investors that it can manage its funding requirements through internally generated cash and is thus a cash-rich firm. In addition, during an economic downturn, many debt-heavy companies’ profits suffer from decreased sales and the payment of fixed interest. Still, those with no debt or little debt are unaffected. As a result, they face less interest rate risk.
Some debt-free penny stocks of India are as follows
•Railtel corporation India (last one 30 days share surges 23%)
•Jamna auto industries (share accelerated to 2.5% in last 30 days)
•Ador infotech( investors gain 11% in last 30 days)
•Singer India ltd.( its share escalates to 10% in last one month).
If you want to check the data and performance history of the best penny stocks of 2021, you will find strong market confidence. First, conduct extensive background research on the stocks you intend to buy. To buy the best penny stock in 2022:
This article suggests to you the comparatively safe and best multibagger penny stocks of India in 2022.
This entire article already figured out India’s top 10 penny stocks in the 2022 list with various categories like performing dividend, debt-free, and EPS value. It helps to mitigate your risk, even for a small investment. Apart from the above list, you can also add Orosil Smiths India and IL & FS Engineering and Construction( not IL&FS Transportation Networks) to this club.
Yes and No!
You can’t expect a penny stock company in India with 30 cr market capital to hit 3,000 cr from venture capital. But you can expect 10x to 100x growth in some penny stock shares within a year.
Research or consult your financial experts; they help you get potential penny stocks.
Check the’ Penny stocks below 1 rupee; is it worthy?’ subheading section of this article to get a clear concept about penny sticks below 1 rupee.
Market volatility, cash flow, high capital risk with low investments, and EPS are key indicators. Avoid market hype and rely on performance data.
Read Also: How to Invest in Cryptocurrencies in India.
All the information are used for education purpose only. Investing in stock market poses a risk of financial losses. Investors must therefore exercise due caution. InvestoAxis is not liable or responsible for any losses caused as a result of decisions based on the article.