Introduction:
Penny stocks are low-cost and speculative shares of small-cap companies trading at relatively low volumes. These shares typically have prices under Rs. 10 in India and are known for their high volatility.
Investing in penny stocks carries inherent risks and is generally unsuitable for all investors. These risks include vulnerability to Ponzi schemes, liquidity challenges, and susceptibility to stock manipulation.
But despite these risks, penny shares have gained decent popularity among investors in India due to their low prices and potentially high rewards. Many investors view purchasing penny shares long-term as an opportunity to invest in small companies with significant growth potential.
However, you must conduct thorough research and seek guidance from a financial advisor before considering any investment in penny shares. Selecting fundamentally strong penny stocks not only helps in risk mitigation but also ensures the desired financial growth in the long term.
To aid investors seeking growth prospects in the Indian stock markets, we have curated a list of the best fundamentally strong penny stocks that exhibit potential for outperformance in 2024. Keep reading.
Best fundamentally strong penny stocks in 2024
Selecting the best penny stocks can be an arduous task. It’s because these stocks often remain hidden from the public and there isn’t too much information available about them. Below are a few handpicked options that you can explore:
First on this list of top fundamentally strong penny stocks in India is Unitech Limited. The company is engaged in the construction of real estate properties across India. There was a time during the COVID-19 pandemic when realty sector stocks were among the worst-performing stocks in the markets. However, they have made an astounding comeback and are looking good for future growth.
As of 10 March 2024, Unitech Stocks were trading for Rs. 11.40 per share at the National Stock Exchange (NSE) and Rs. 11.38 per share at the Bombay Stock Exchange (BSE). The stock has zoomed by 674.15% in the last year and still looks good for more upsurge in the future.
Read More: Penny Stock in India 2024
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Salasar Techno Engineering
Next on this list is Salasar Techno Engineering Limited. It is a Kolkata-based construction and engineering company that provides services such as Engineering Procurement and Control (EPC) for rural electrification, telecommunication, power transmission, and solar plant projects.
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As of 10 March 2024, Salasar Techno Engineering shares were available for Rs. 21.75 per share at the NSE and BSE. The stock has gained 138.24% in the last year, and its market cap stood at Rs. 3,618 crores.
Vodafone Idea is a leading telecom service provider in India. The company's range of business services encompasses voice, broadband, content, enterprise, and various value-added services (VAS) such as entertainment, SMS, utility, and more.
As of 11 March 2024, Vodafone Idea shares were trading for Rs. 13.75 per share at the NSE as well as the BSE. The stock is among the best fundamentally strong penny stocks in India. The company’s market cap stood at Rs. 69,369 crores.
Virgo Global Limited specialise in IT software-related services. The company has a diversified business portfolio that spans the manufacturing, trading, dealing, and maintenance of computer hardware and software.
With a positive outlook for the upcoming quarter, Virgo Global Ltd maintains an impressive return on equity, boasting a three-year ROE of 32.5%. As of 11 March 2024, Virgo Global Limited shares were trading for Rs. 9.87 per share at the BSE. The shares are not listed on the NSE.
Trident Limited is a textile company that manufactures and trades yarn, towels, bedsheets, napkins, comforters, pillows, etc. As of 11 March 2024, its share price at the NSE was Rs. 39.10 per share, and at the BSE, it was Rs. 39.13 per share. The company has solid fundamentals, with a market cap of Rs. 20,665 crores and a P/E of 49.1.
To conclude
Investing in fundamentally strong penny stocks can be rewarding for those willing to navigate the inherent risks. However, as with any other investment, thorough research and a disciplined approach are essential. The stocks mentioned above are merely suggestions, and you must use your wisdom to make informed investment decisions.
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