Penny Stocks Below Rs 15: Investors in the stock market are always looking for multi-bag penny stocks that can make them rich quickly. A quick search on Trade Brains Portal’s stock screener turns up about 950 penny stocks below Rs 15 with a maximum market cap of Rs 1500 crore. Among such a large pool, how do we select best penny stocks under Rs 15? In this article, we will try to answer that correctly.
Penny Stocks Below Rs 15
In this article, we have put together the best penny stocks under Rs 15 that venture investors can add to their watch lists. In the company description, we talk about the business and key metrics that make these penny stocks attractive.
Before we jump to the list, a short section is dedicated to understanding the research methodology.
Research Methodology
The list covers stocks trading between Rs 5 and Rs 15 only. We have kept the upper range of market capitalization at Rs 1,500 crore. Additionally, the debt-to-equity upper limit was set as 1 to avoid heavy debt-to-equity provisions.
Along with that, a filter was set for both return ratios (RoCE and RoE) being more than 1.
Having familiarized ourselves with the filters used, let us now move forward to know the best stocks under Rs 15 mentioned in this article.
Penny Stocks Below Rs 15 #1 – Steel Exchange India
CMP | ₹ 8.55 | Market Value (Cr.) | ₹993.21 |
EPS | ₹1.52 | Stock P/E | 0 |
ROCE | 11.49% | ROE | 21.62% |
Face value | ₹ 1.0 | Book value | ₹ 5.68 |
Advertiser Holding | 49.8% | Price to Book Value | 2.23 |
Debt to Equity | 0.52 | Dividend Yield | 0.00% |
Net Profit Margin | -4.28% | Operating Profit Margin | 6.86% |
Steel Exchange India Ltd. or SEIL is an integrated steel manufacturer that produces sponge iron (220,000 TPA), billets and ingots (340,000 TPA), TMT rebars (225,000 TPA) and captive power (71.64 MW).
Incorporated in 1999, SEIL is a Vizag Profiles Group company. The group is mainly engaged in the real estate sector and develops residential buildings.
The steel arm was set up in 1999 as part of the diversification efforts of the business group which used to trade steel and allied products earlier. Till today, it operates two steel plants and has a strong brand value for its ‘Simhadri TMT’ bars.
Over the past three years, the small-cap steel maker has grown its revenues from Rs. 781 crore in 2020 to Rs. 1,099 crore in the year 2022. The steel stock being a small-cap company market value of Rs 993.21.
Penny Stocks Below Rs 15 #2 – Syncom Formulations India
CMP | ₹ 10.15 | Market Value (Cr.) | ₹ 974.78 |
EPS | ₹ 0.18 | Stock P/E | 42.26 |
ROCE | 9.6% | ROE | 8.48 |
Face value | ₹ 1.0 | Book value | ₹ 2.57 |
Advertiser Holding | 50.6% | Price to Book Value | 3.05 |
Debt to Equity | 0.32 | Dividend Yield | 0% |
Net Profit Margin | 8.93% | Operating Profit Margin | 8.85% |
Founded in 1995, Syncom Formulations is a pharmaceutical company based out of Mumbai, Maharashtra. It has a state-of-the-art factory in Pithampur, Madhya Pradesh. The 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 ampoules injections and dry vials, dry syrups, ointments, inhalers and herbs.
Promoters seem to be optimistic about the company as they have increased their stake from 38.98% in September 2019 to over 50.57% in September 2022.
Its sales have grown steadily since 2018. However, it has registered a decline of 11.84% to Rs 216 crore in FY 2021-22 on sales of Rs 245 crore in FY 2020-21.
It has a low debt-to-equity ratio of 0.32. The stock trades at a P/E ratio of 42.26 giving the small-cap company a market cap of Rs 974.78 crore.
Penny Stocks Below Rs 15 #3 – Surana Telecom and Power
CMP | 11.7 ₹ | Market Value (Cr.) | ₹157.48 |
EPS | ₹0.92 | Stock P/E | 0 |
ROCE | 5.37% | ROE | 3.63% |
Face value | ₹ 1.0 | Book value | ₹ 9.42 |
Advertiser Holding | 74.95% | Price to Book Value | 1.16 |
Debt to Equity | 0.11 | Dividend Yield | 0.00% |
Net Profit Margin | 15.4% | Operating Profit Margin | 67.9% |
Surana Telecom and Power Ltd. was established in 1989 as a producer of petroleum products and telecom products. Over the years the company slowly diversified into other sectors.
To date, the company is engaged in manufacturing jelly-filled cables, optical fiber cables and solar photovoltaic modules. It has also set up a joint venture with Suzlon for wind power generation of 1.25MW capacity.
Surana is also engaged in the production of aluminum rods, coupling kits and international-quality CDMA mobile handsets.
The manufacturing company’s stock is currently trading at a PE of 0 giving it a small-cap market valuation of Rs 157.48 crore. It has a high promoter ownership of 74.95% and a debt-to-equity ratio of 0.11.
Penny Stocks Under Rs 15 #4 – Aakash Exploration Services
CMP | ₹ 7.05 | Market Value (Cr.) | ₹ 71.89 |
EPS | ₹ 0.56 | Stock P/E | 13.1 |
ROCE | 11.14% | ROE | 9% |
Face value | ₹ 1.0 | Book value | ₹ 4.96 |
Advertiser Holding | 66.7% | Price to Book Value | 1.49 |
Debt to Equity | 0.46 | Dividend Yield | 0.00% |
Net Profit Margin | 4.9% | Operating Profit Margin | 14.4% |
Aakash Exploration Services has been in the business of providing various oil and gas field services for the last 25 years. The company is headquartered in Ahmedabad, Gujarat, and employs over 900 people.
The company has two ISO certificates and one OHSAS certificate in its name giving it a brand image and corporate identity. Its list of famous clients includes ONGC, GSPCL, Cairn, Essar and more.
The promoter holding, although high at 66.77%, was reduced by 6.56% from 73.77% in June 2021. Excluding the financial year 2021, AES’s revenues grew from Rs. 67 crore in FY20 to Rs. 77 crore in FY22.
Another good thing about the company is that it has reduced its debt over the years and consequently its interest coverage ratio has increased.
Penny Stocks Below Rs 15 #5 – Scanpoint Geomatics
CMP | ₹ 7.05 | Market Value (Cr.) | ₹ 48.65 |
EPS | ₹ 0.17 | Stock P/E | 79.37 |
ROCE | 2.29% | ROE | 0.69% |
Face value | ₹ 2.0 | Book value | ₹ 12.20 |
Advertiser Holding | 18.9% | Price to Book Value | 0.96 |
Debt to Equity | 0.63 | Dividend Yield | 0.00% |
Net Profit Margin | 3.41% | Operating Profit Margin | 21.28% |
Incorporated in 1992, Scanpoint Geomatics Ltd. (SGL) provides computer programming, consulting, and related activities including GIS services, GIS software and solutions, and other products in the Geomacs domain to several business areas.
Its range of solutions finds use across smart cities, defence, land management, urban information systems, agriculture and tracking.
The company natively developed a wide range of products: GIS & IP Desktop, GIS & IP Enterprise Suite, Photogrammetry Suite, and IGiS CAD in the Geomacs space.
SGL’s sales stood at Rs 33 crore in FY22, down from Rs 43 crore and Rs 53 crore in FY21 and FY20 respectively. However, its net profit remained at the same level of Rs 2 crore on the back of higher operating margins.
Best Penny Stocks Under Rs 15
Presented below is a list of best penny stocks under Rs 15.
Company Name | industry | CMP (Rs) | Market Value (Rs Cr) |
---|---|---|---|
Steel Exchange India | steel | 8.55 | 993.21 |
Mishtann Foods | FMCG | 16.8 | 1 414 |
Syncom Formulations (India) | Pharmaceuticals | 10.15 | 974.78 |
Ducon Infratechnologies | Software | 9.35 | 248.24 |
Ruchi Infrastructure | Diversified | 12.2 | 263.99 |
Surana Telecom and Power | Diversified | 11.7 | 157.48 |
Debock Industries | Diversified | 9.55 | 104.25 |
Aakash Research Services | Oil & Gas | 7.05 | 71.89 |
Century Extrusions | Aluminum | 16.3 | 130.48 |
Scanpoint Geomatics | Software | 7.05 | 48.65 |
In conclusion
Investing in penny stocks is highly speculative in nature. They are risky because they lack liquidity. The amount of information available about them is low, bringing the high-risk element. Their bid and ask spreads are usually large, which brings a lot of volatility in their prices. Many penny stocks are prone to pump-and-dump strategies.
However, if looked at properly, some penny stocks do have the potential to generate multi-bagger returns. As an investor, do you think penny stocks can take your portfolio to heaven? How about we continue this conversation in the comments below?
By using the stock screener, stock heat map, portfolio backtestingand stock compare tool on the Trade Brains portal, investors gain access to comprehensive tools that enable them to identify the best stocks also updated with stock market newsand make a well-informed investment.
Vikalp Mishra is a commerce graduate from the University of Delhi. He likes to write about finance, money and business. He is a voracious reader with a genuine interest in investing. Email him at vikalp.mishra@tradebrains.in.
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