Exploring the potential of the stock market, we have identified the “best penny stocks under Rs 10” – affordable opportunities with significant growth potential. In this guide, discover the founding dates, industries, revenue sources, and financial performance of these promising stocks, each priced below Rs 5. Uncover hidden gems for budget-friendly investments.
Table of Contents
What are Penny Stocks in India Below 10 Rupees?
The stock market is often seen as a promising avenue for making money, with investors hoping to pick up stocks at the price of a small chocolate and witness significant growth. In our quest for potential opportunities, we delved into the realm of penny stocks – those priced below Rs 10.
In our research, we focused on stocks with sound financials, ensuring they are profitable in the near term and possess a viable business model. The article on the “best penny stocks under Rs 10” will provide insights into each company’s founding date and current industry. We’ll also take a closer look at their revenue sources and examine the reported revenue and earnings for a comprehensive overview.
Overview of Best Penny Stocks under Rs 10
1. Swasti Vinayaka Art & Heritage Corporation Ltd.
- Swasti Vinayaka Art & Heritage Corp. has three revenue sources: crafting stones and jewelry, property compensation, and long-term investments in blue-chip stocks.
- 66% of revenue comes from product sales, while 88.34% is from services. FY23 revenue rose to Rs. 13 Cr, a 26% increase, with net profit surging 91%.
- The company has a low debt-to-equity ratio of 0.37, high-profit margins, and an attractive price-to-book value ratio of 1.58.
- Categorized as one of the “best penny stocks under Rs 10,” it has a 51% promoter holding, making it a compelling investment opportunity.
2. Seacoast Shipping Services Ltd
- SCSSL, founded in 2005, is a major freight forwarder in Gujarat, handling agri-commodities exports and operating dry bulk vessels globally.
- The company offers integrated freight forwarding services for notable clients like Coromandel, ArcelorMittal, Nirma, GlaxoSmithKline, Reliance, and the Adani Group.
- FY23 witnessed significant growth, with revenue surging from Rs. 128 Cr to Rs. 430 Cr, a remarkable 236% increase. Net profits rose by 460%, reaching Rs. 14 Cr from Rs. 2.55 Cr in FY22.
- Despite a modest net profit margin of 3.32%, SCSSL boasts a robust Return on Equity of 26% and Capital of 31.64%.
- While not classified as “best penny stocks under Rs 10,” SCSSL remains a promising player in the logistics sector.
3. Ajooni Biotech Ltd
- Ajooni Biotech specializes in high-yield cattle feed for dairy farmers, operating in 8 Indian states.
- The product range includes cattle feed, camel feed, cotton oil cake, mustard oil cake, and more.
- With 3 manufacturing units, Ajooni serves over 10,000 farmers and supplies renowned brands like Patanjali, IFFCO Kisan, Mother Dairy, Paras Dairy, and Saahaj Dairy.
- In FY23, the company reported a 1% revenue growth to Rs. 75 Cr, with Net Profits increasing by 8% to Rs. 1.12 Cr.
- Despite modest growth and slim margins, Ajooni maintains a solid 18% return on Capital employed.
- Trading at a low Price Book Value of 1.01x and a minimal Debt-to-equity ratio of 0.12x, the company is positioned for future expansion.
- For investors seeking “best penny stocks under Rs 10,” Ajooni presents an intriguing opportunity.
4. Inventure Growth & Securities Ltd
- Inventure Growth & Securities, established in 1995, specializes in stock broking and financial services.
- Operating through 224 locations across India, the company deals with Equity, Derivatives, Commodity, and provides depository services.
- Generating 36.52% of its revenue from Fees & Commission, with Interest Income and Sale of Shares contributing 29.2% and 23.59%, respectively.
- FY23 saw a 2.74% revenue increase to Rs. 50.9 Cr, but Net Profits dropped by 33.62% to Rs. 9.26 Cr.
- While not meeting the criteria for “best penny stocks under Rs 10,” Inventure’s diverse services and market presence make it an intriguing option for investors.
5. Mega Corporation
- Mega Corporation, a public limited Non-Banking Financial Company, was established in March 1985.
- Registered with RBI as a Non-Systemically Important Non-Deposit-taking Financial Company, it operates with assets under Rs. 500 Cr.
- The company derives 99% of its revenue from Interest Income and 1% from Rental Income.
- In FY23, Mega Corporation reported a revenue of Rs. 3.12 Cr, reflecting a 10% increase from Rs. 2.84 Cr in FY22.
- The Total Comprehensive Income shifted positively from a loss of Rs. 26 Lakhs in FY22 to a profit of 18 Lakhs in FY23.
- While not classified as “best penny stocks under Rs 10,” Mega Corporation’s financial performance and diversified income streams make it an intriguing option for investors.
List of Best Penny Stocks under Rs 10 in India
| Name | CMP | Market Cap (Crore) | PE Ratio | EPS | ROE | Promoter Holding | Debt to Equity | Net Profit Margin |
| Swasti Vinayaka Art & Heritage | ₹ 5.18 | ₹46 | 17.48 | 0.29 | 12.26% | 51.00% | 0.72 | 25.73% |
| Seacoast Shipping Services | ₹4.72 | ₹242 | 12.16 | 0.37 | 16.33% | 27.85% | 0.20 | 5.00% |
| Ajooni Biotech | ₹6.85 | ₹62 | 41.47 | 0.17 | 3.57% | 27.46% | 0.19 | 2.08% |
| Inventure Growth & Securities | ₹3.50 | ₹326 | 43.11 | 0.09 | 3.77% | 26.40% | 0.14 | 4.84% |
| Mega Corporation | ₹2.45 | ₹25 | 25.08 | 0.02 | 0.17% | 51.86% | 1.06 | 7.26% |
Note: CMP stands for Current Market Price, PE Ratio for Price-to-Earnings Ratio, EPS for Earnings Per Share, ROE for Return on Equity. Also the above figures are from google finance.
Conclusion
Penny stocks might be profitable at times, but they also come with a high risk factor. These investments may enhance or destroy your portfolio. As a result, penny stock investing must be handled with great care.
These companies’ revenues are highly variable. They overreact to both bull and bear markets. They may also lack the necessary Corporate Governance because the Company does not have large research firms covering it, allowing them to operate below the radar.
Frequently Asked Questions (FAQ)
CMP refers to the current market price of a security or share on the stock market. It reflects the price at which a specific stock or financial instrument is purchased or sold in real time.
Market capitalization (or market cap) is a measure of a company’s value based on the number of stock shares issued and the price at which investors are ready to acquire them.
Typically, the average P/E ratio is between 20 and 25. Anything less than that is regarded a good price-to-earnings ratio, while anything above is considered a bad P/E ratio.
There is no definitive answer for what constitutes a good EPS. When comparing firms, it’s important to look at how EPS is trending and how it compares to competition earnings. Remember that higher earnings per share (EPS) might indicate growth and stock price improvements.
A return of 15-20% is considered satisfactory. ROE is also used to evaluate equities, along with other financial ratios. However, it is crucial to realize that there are many other elements to consider when evaluating a stock besides return on equity.