PENNY Stocks below Rs. 10 🪙 | Top 10 Penny Stocks with Detailed Analysis

Harsh Vira | CS CFP CWM CFA-IF | Finance Expert

19 Jul 202412:52

Summary

TLDRThe video discusses the potential of top 10 penny stocks that could become multi-baggers in the future. It highlights companies like Advik Capital, Madhav Infra Projects, Integra Essencia, and others involved in diverse sectors like non-deposit taking NBFC, infrastructure, and education. The speaker emphasizes the high-risk nature of penny stocks and advises thorough research and consultation with financial advisors before investing.

Takeaways

📈 The script discusses the potential of penny stocks to provide significant returns, using the example of a friend who turned an initial investment of ₹1 into a profit of 8 lakhs as a case study.
💡 It emphasizes the importance of having a high risk appetite when investing in penny stocks due to their volatile nature, which can lead to both substantial profits and losses.
⚠️ The speaker clarifies that the stocks mentioned are based on personal research and not financial advice, urging viewers to conduct their own research or consult with a financial advisor before investing.
🏢 The script introduces 'Advik Capital' as a non-deposit taking NBFC involved in lending and borrowing businesses, with a focus on sectors like plant and machinery leasing, highlighting its growth potential.
🌟 'Madhu Infra Projects Limited' is presented as a company involved in infrastructure development and solar power generation since 2010, with a recent award for a fully owned subsidiary solar plant and a growing revenue and profit.
🌱 'Integra Sensia' is highlighted for its involvement in essential and day-to-day items like agro, FMCG products, and textiles, as well as trading in infrastructure and energy products.
💼 'Standard Capital' is described as a registered NBFC providing advisory arbitration, mediation, dispute resolution, and commercial contract services, with significant growth in revenue and profit.
🛋️ 'Comfort Intech' has a diversified business including liquor manufacturing and distribution, along with consumer appliances and durable home appliances, noting the risks associated with government restrictions in the alcohol sector.
💻 'Infibeam Avenues' is a software development company offering maintenance, web development, payment gateway services, and e-commerce, with a rapidly expanding client base and significant growth.
🔩 'Prakash Steelage' is a manufacturer of stainless steel and tubes exported to multiple countries, with a low P/E ratio and high profit growth, suggesting potential for a multibagger return.
📚 'Bits Limited' provides education and skill imparting in various domains like arts, commerce, science, and technical education, emphasizing the importance of skills over traditional education systems.
⚡ 'Jaiprakash Power Ventures Limited' is involved in coal mining, sand mining, cement, grinding, and thermal and hydroelectricity production, with potential benefits from the growing renewable sector in India.
🛠️ 'Tpa Tools' is highlighted for its high dividend yield, being involved in the manufacturing of iron and steel products, with an exceptionally low P/E ratio and a high return on equity.

Q & A

What is the main theme of the video script?
-The main theme of the video script is to discuss the potential of 'penny stocks' to become multibaggers in the future, based on the presenter's personal research and analysis.
What is the first company mentioned in the script and what business is it involved in?
-The first company mentioned is Advik Capital, which is involved in non-deposit taking NBFC activities, funds borrowing, lending, and leasing of plant and machinery.
What is the significance of the company Bajaj Finance mentioned in the script?
-Bajaj Finance is mentioned as an example of a company in the same sector as Advik Capital, which has seen significant growth and investment returns, indicating the potential of such businesses.
What is the second company discussed in the video and what are its areas of business?
-The second company is Mahavir Infra Projects Limited, which is involved in infrastructure development, solar power generation, and has also entered into real estate and hydro power generation businesses.
What award did Mahavir Infra Projects Limited recently receive?
-Mahavir Infra Projects Limited recently received an award for being the second most efficient solar plant in Gujarat.
What is the third company mentioned and what types of products does it trade in?
-The third company is Integrassia, which is involved in essential and day-to-day items such as agro, FMCG products, and textiles, as well as trading in infrastructure, energy products like TMT bar solar power generators, hydrogen cell power generators, and solar and hydrogen cell power generators.
What is the fourth company discussed and what services does it provide?
-The fourth company is Standard Capital, a non-deposit taking NBFC registered with RBI, providing advisory arbitration, mediate dispute resolution, commercial contract, drafting, and pleading litigation services.
What is the fifth company mentioned and what is its business diversification?
-The fifth company is Comfort Intech, with diversified businesses including liquor manufacturing, distribution, and durable home appliances, as well as multiple sectors like electronics and textiles.
What is the sixth company discussed and what are its main areas of business?
-The sixth company is Infibeam Avenues, involved in software development services, maintenance web development, payment gateway services, e-commerce, and insurer services.
What is the seventh company mentioned and what does it manufacture?
-The seventh company is Prakash Steelage, which manufactures stainless steels and tubes that are exported to multiple countries.
What is the eighth company discussed and what does it offer in terms of education?
-The eighth company is Bits Limited, which offers education and skill imparting in multiple domains such as arts, commerce, science, computer software, computer hardware, business management, hotel management, engineering, and technical education.
What is the ninth company mentioned and what is its involvement in the renewable sector?
-The ninth company is Jaiprakash Power Ventures Limited, involved in coal mining, sand mining, cement, grinding, and thermal and hydroelectricity production, which could benefit directly from the growing renewable sector in India.
What is the tenth company discussed and what is unique about its dividend policy?
-The tenth company is Taparia Tools, which offers dividends that are significantly high compared to its share price, providing a high dividend yield to its shareholders.
What is the general advice given by the presenter regarding investing in penny stocks?
-The presenter advises that one should only invest in penny stocks if they have a high risk appetite, as these stocks are volatile and can result in both significant profits and losses. It is also recommended to do personal research or consult an investment advisor before investing.

Outlines

00:00

📈 High Risk, High Reward: Penny Stocks with Multibagger Potential

The paragraph discusses the potential of penny stocks to deliver significant returns, using the example of a friend who made a substantial profit from a minimal investment. It emphasizes the high volatility and risk associated with penny stocks, advising investors to only consider them if they have a high risk appetite. The speaker introduces a list of top 10 penny stocks that could potentially become multibaggers in the future, based on personal research and not as financial advice. The first stock mentioned is Advik Capital, a non-deposit NBFC involved in lending and leasing, with a growing sector and impressive financials, despite a decrease in promoter stake.

05:03

🏭 Diverse Ventures: Infrastructure and Energy Sector Investments

This paragraph delves into various companies involved in infrastructure development, solar power generation, and other sectors. Companies like Madhav Infra Projects Limited and OJCE Limited have ventured into real estate and hydro power generation, with the latter recently winning an award for its solar plant. The speaker highlights the undervalued nature of these stocks, with significant growth potential, and mentions the high returns on investment they have provided in the past. The paragraph also touches on the risks involved, such as government restrictions in certain sectors, and the importance of investor research.

10:03

💼 Business Expansion and Market Opportunities in Diverse Sectors

The final paragraph covers a range of companies operating in diverse sectors, from manufacturing to education and skill development. It discusses the growth and profitability of these companies, highlighting their low price-to-earnings and price-to-book ratios compared to industry standards. The speaker mentions specific companies like Infibeam Avenues, which has shown significant revenue and profit growth, and Bits Limited, which focuses on education across various domains. The paragraph concludes with a call to action for viewers to research and consult financial advisors before investing, and to like and share the video for more informative content.

Mindmap

Keywords

💡Penny Stocks

Penny stocks refer to shares of small public companies that trade at low prices per share, often less than ₹10. They are highly volatile and risky but can offer significant returns. In the video, the speaker mentions the potential of penny stocks to become 'multi-baggers,' meaning they could multiply in value many times over.

💡Multi-Bagger

A multi-bagger is a term used to describe an investment that has increased in value multiple times its original purchase price. The video highlights the potential for some penny stocks to become multi-baggers, providing examples of stocks that have shown substantial growth.

💡Risk Appetite

Risk appetite refers to the level of risk an investor is willing to take on in their investment activities. The speaker emphasizes the importance of having a high-risk appetite when investing in penny stocks due to their volatile nature, which can lead to both significant gains and losses.

💡Volatility

Volatility is the degree of variation in the trading price of a security over time. High volatility indicates significant price fluctuations. The video mentions that penny stocks are highly volatile, which makes them risky but also presents opportunities for large profits.

💡Promoter Holding

Promoter holding refers to the percentage of shares owned by the company's promoters, which can include the founders, management, or key stakeholders. In the video, changes in promoter holding are discussed as an indicator of confidence or lack thereof in the company's future prospects.

💡Price-to-Earnings (P/E) Ratio

The P/E ratio is a valuation metric that compares a company's current share price to its per-share earnings. It is used to gauge whether a stock is over or undervalued. The video uses P/E ratios to evaluate the attractiveness of various penny stocks, noting when they are lower than the industry average.

💡Dividend Yield

Dividend yield is the dividend income a stock generates relative to its price, expressed as a percentage. It indicates how much a company returns to its shareholders in dividends. The video highlights stocks with high dividend yields, suggesting their potential for stable income in addition to capital gains.

💡Return on Equity (ROE)

ROE measures a company's profitability by revealing how much profit a company generates with the money shareholders have invested. A high ROE indicates efficient use of equity. The video discusses the ROE of different companies to assess their financial health and growth potential.

💡Debt-to-Equity Ratio

The debt-to-equity ratio is a measure of a company's financial leverage, calculated by dividing its total liabilities by shareholders' equity. It indicates how much debt a company is using to finance its assets relative to the value of shareholders’ equity. The video examines this ratio to assess the risk level of investing in certain stocks.

💡Book Value

Book value is the net asset value of a company, calculated as total assets minus intangible assets (patents, goodwill) and liabilities. It represents the intrinsic value of the company. In the video, companies with stock prices lower than their book values are highlighted as potentially undervalued investments.

Highlights

A friend made a profit of 8 lakhs by investing in a share that went from ₹1 to ₹80, the stock is called Lord Engineering.

Top 10 penny stocks that could potentially become multibaggers in the future are discussed in the video.

Investing in penny stocks should only be done if one has a high risk appetite due to their volatile nature.

All stocks mentioned in the video are based on personal research of the speaker and his team, not a buy or hold recommendation.

Advik Capital, a non-banking financial company involved in lending and borrowing, has seen impressive growth with a low PE ratio compared to industry standards.

Madhu Infra Projects Limited has been involved in infrastructure development and solar power generation business since 2010, and recently won an award for the most efficient solar plant in Gujarat.

Integra ESS has a diversified business including essential and day-to-day items like agro, FMCG products, and textile business.

Standard Capital is a non-banking financial company registered with RBI, providing advisory, arbitration, mediation, dispute resolution, commercial contract, drafting, and pleading litigation services.

Comfort Intek's business is diversified, involved in liquor manufacturing and distribution, along with durable home appliances.

Infibeam Avenues is involved in software development services, maintenance web development, payment gateway services, e-commerce, and after-sales installer services.

Prakash Steelage manufactures and exports stainless steel and tubes, with a PE ratio significantly lower than the industry average.

Bits Limited provides education and skill imparting in multiple domains like arts, commerce, science, computer software, hardware, business management, hotel management, engineering, and technical education.

Jaiprakash Power Ventures Limited is involved in coal mining, sand mining, cement, grinding, and thermal and hydroelectricity production.

Taparia Tools pays dividends of nearly 500 times its share price, involved in the manufacturing of iron and steel products.

The speaker emphasizes the importance of personal research and consulting a financial advisor before investing in any stocks mentioned.

The video encourages viewers to like, share, and subscribe for more informative content on making money from the market.