Best Penny Stocks in India 2014-2015 Buying/Investing

What is Penny Stocks Investing? 

What are best penny stocks in India? 

Have you just started to invest in the stock market?

You have found some stocks trading at just Rs.5 or 10. What an opportunity? There must be blind people to leave these stocks unnoticed. I will profit from them. It can easily double or triple.

If this is your thought then that is exactly ‘Penny Stocks Investing‘. But is this rational? Let us find out.

I have a friend who bought a lot of Birla Power Solutions and Jupiter Bio-sciences in 2009. These were really hot penny stocks in late 2008. Let me tell you that he regrets his decision now. They have gone way down.

You buy thinking ‘I bought it at Rs 4 or 6. How much more can it go down?’. Penny stocks can give super-normal returns or super-normal losses(if there is such a term). If the penny stock you bought is not of at least reasonable quality, your money is at risk. Read On.

Best Penny Stocks to buy in India 2014-2015

Are you gung ho about buying penny stocks? You’ve made up your mind already? While I would certainly advice to invest in top quality stocks, here are a list of low cost shares to invest in 2014-2015. How did we select them? The criteria we used for choosing best penny stocks was

• We made sure they’re not companies that vanish overnight. They must have been around a few years
• They may not strictly be penny shares but border around them. Ie., each shares costs less than Rs.25 and market Cap less than 500crores
• Their products/services must be real and visible
• Must have some downside protection in short-term
• Promoter holding must be 40% minimum

By this way we can at least make sure to screen the majority of bad companies (which most penny stocks usually are). Here is the list of penny shares in India that meet above criteria

SL.No	Stock Name	Price	Market Cap(in Crores)	P/E Ratio	P/BV	Div Yield(%)
1	IL&FS Invest. Mgrs	22.4	720.1	13.1	6.95	5.65
2	JVL Agro Industries	16.9	287.1	4.3	0.61	1.17
3	NeoCorp International Ltd.	15.4	59.3	3.01	0.23	3.21
4	Genus Power Infrastructure	25.3	678.2	11.21	1.22	0.38
5	Vijay Shanthi Builders	13.8	36.4	7.85	0.3	5.76
6	Manali Petrochemicals	10.7	184.3	5.92	0.87	4.66
7	Nitesh Estates	13.9	203.3	21.4	0.47	0

1)  IL& FS Investment Managers – This is a very good company managed by IL&FS group. They are involved in Private Equity business and are the only listed PE firm in India. IL&FS has a strong brand equity. The last value of stock was around Rs.21 . It gives a very good dividend and has no debts. While you cannot expect it to triple or quadruple in next year, it is somewhat a decent stock to buy in at low cost per share

2)  JVL Agro Industries – It has a Market Cap of around Rs.200 crores and trading at around Rs.15 per share. It has P/E of 4 and book value of Rs.15. JVLis the largest single in-house manufacturer of Vanaspathi Oils. It has a dividend yield of around 1.5%

3)  NeoCorp International Ltd – Neo Corp is a packaging provider expecially in textile manufacturing. It manufactures under PackTech brand. It has a market cap of around Rs.60 crores and per share costs around Rs.15. The PE ratio is close to 2 and dividend yield is 4%.

4)  Genus Power Infrastructure – This is one of the leading electricity meters manufacturer in India. Have moderate debt on their books. The stock costs around Rs.21 and the market cap is around Rs.500 crore. The PE ratio is around 9 and promoter holds around 50%. Earns around Rs.70 crore profit every year.

5)  Vijay Shanthi Builders – They are one of the good quality construction companies in South India. Currently have multiple projects in Chennai, Bangalore.This penny stock is trading at Rs.13 with a market capitalization of Rs 40 crores. The PE is around 8.2 and yield is close to 5%.

As with realtors, they have some debt of Rs.50 crores and have profit of Rs 4 crores a year. Can expect to go high when tide turns not based on fundamentals but greedy market momentum.

6) Manali Petrochemicals – The company earns around a quarterly profit of Rs 9 crore and has almost no debt. It has been around for a long time and is currently valued at around Rs 200 crores.They are also regular in their dividend policy and the current dividend yield is around 4.3 %. A good penny stock to bet on for long term.

7) Nitish Estates – Nitish Estates is a leading real estate player in Bangalore . They build luxury apartments and have some good venture funding for their projects. As with many realtors they have some debt and you need to be remindful of that. This penny stock trades around Rs.14 and is a high risk bet.

Check out this website which regularly updates/tips about penny stocks (Disclaimer: Could be injurious to your wealth if not careful)