In this article we are identifying “Top 5 penny Stocks in 2024” which can be future multibagger. We will see what is the meaning of penny stock , what are all risk involved with it and also how we should be trading this.
Top 5 penny stocks in India 2024
Here are top 5 penny stocks list as per our study.
- Swiss military consumer goods ltd
- Radhika Jeweltech Ltd
- Kriti Nutrients
- Servotech Power Systems Ltd
- KJMC Financial Services Ltd
How is a penny stock defined?
Penny stock as name defines, stock which has value of penny( US terminology). But in real market we consider penny stock which is small in price but which can have more potential to become multibagger. Ideally price should be less than 100 with less market capitalization.
What is the difference between penny stocks and regular stocks?
Penny stocks are very less in price and less in volume. But regular stocks are mostly established company having good fundamentals and also good volume.
Penny stock are more risk related to other stock and trading volume will be less and chance of trap for a trader or investor is more. We will discuss about this in further section
How to identify good penny stock and Penny stock selection criteria.
We used Screener.com for the screening of these stock and manually we checked fundamentals.Not used any scanner.
- Identify stock which is less than 100 rs( this is up to you to put limit) more price means more established the company will be.
- Add filters for profit increasing quarter or quarter.
- Add filter for particular sector you are trying.
- Check PE ratio,Debt of company.
- Mainly check profitability. Without this penny stock cannot become big. Some times company goes to loss due to external factor or due to some competition, that is normal in penny companies.But identifying reason is crucial.
- Keep on watching for at least 1 or 2 quarters .
- If you find all criteria matching , then you can decide on the same.
Best penny stocks under 50 rupees.
Swiss military consumer goods ltd and its fundamentals.
Current Market Price , Market Cap and PE ratio.
Market Cap₹ 916 crores, Current Price₹ 38.8,Stock P/E110
Company is India based company and mainly into Travel Gear , Men’s wear and also Home appliances.
Fundamentals of Stock.
- Company is almost debt free.
- Profitability is increasing year or Year
- Profit for Quarter on quarter also should be increasing.
- If any quarter if you get less profit, its fine but make sure you understand why this happened, by checking company result document.
- If its because of management issue like fraud or something please come out of it. otherwise if its because of competition or any other external thing, we can wait.
Note: Since ups and downs are more common in penny stocks they tend to have bad quarter more often. But this cannot be continuous.
Best Penny stock under 100 rupees
- KJMC Financial Services Ltd
Best penny stock under 200 rupees
- Radhika Jewel tech Ltd
- Kriti Nutrients
- Servotech Power Systems Ltd
Should I stay away from penny stocks?
Penny stocks are always risk due to its volatile nature . Since they are small in market cap and also small in volume. There are high chance that investor get trapped for longer duration.
There may be situation where company might get into lower circuit where investor cannot even sell off the position. So if you do not understand fundamentals of company better not to take position.
How do you win big with penny stocks?
To win big with Penny stocks , we have to buy at low , reason once its start to move , it will go into upper circuit and we are unable to buy it. study company fundamentals and then take position and wait for blast to happen.
Have your target set to come out ,or else forget about money and wait for wealth to create when you know company is good.
Conclusion
Penny stock will always do wonders for people who invested by seeing fundamentals of stock. If you are investing based on news its always 50:50. Profitability is main for any stock to grow . So if your risk appetite is more then only take risk in penny stock.
Note: Above list of stock is only for study purpose and not for recommendation as we are not SEBI registered.Kindly check with your financial advisor before investing.
FAQ
1)Which penny stock will boom in 2024
Above mentioned list of stock has good capability to boom in future years.
2)How do you approach penny stocks?
Approach always been checking profitability quarter on quarter or year or year. Not based on News.
3)Will penny stocks make me rich?
Yes .Provided you are betting one correct one. Otherwise it can turn you into beggar.