Best Low PE Penny Stocks: Most of the time investors are in search of the best stocks to earn multi-bagger returns with lower risk. One of the best ways to achieve it is through buying penny stocks. But, as a cautious investor, it is essential to secure the capital downside also with proper research and analysis.
In this article, let us explore a few of the best low PE Penny Stocks in India to earn good returns. So, let’s get started.
Best Low PE Penny Stocks in India
In this article on the best low PE Penny stocks in India, let us first look into the overview of the companies, followed by the financial analysis and a conclusion at the end. So, in the next section of the article, we are going to take a look at the best low PE Penny stocks in India.
Best Low PE Penny Stocks #1 – BN Rathi Securities
BN Rathi Securities Ltd is a stock broking firm that provides integrated services including the entire spectrum of activities relating to financial market transactions. It was established in 1985 and was renamed BN Rathi Securities Ltd in 1994.
With over 5 decades of experience in financial services, it has a significant market share of 60,000 plus clients as per the CDSL reports.
The company offers financial and investment services such as equity, Mutual Funds, IPOs, Currency, and futures & Options (F&O), etc.
Along with the above-mentioned services, it also offers the latest technology-based investment solutions such as Algo Trading, mobile trading, etc. Further, to guide the investors they also offer daily and weekly research reports.
If we look into the financials of the company, both sales, as well as net profits of the company, have increased on a YoY basis. The sales and net profits have increased from Rs 43 Crs to Rs 46 Crs and Rs 5 Crs to 7.5 Crs respectively from FY22 to FY23.
Despite being a penny stock, the company is yielding good returns with an ROE of 19.3 % and ROCE of 30.4 % respectively in FY23. Moreover, it is a debt-free penny stock with a low PE of 4.61 compared to the sector PE of 24.68. Adding on to the above benefits, the company has a high dividend yield of 3.5%.
|CMP (In Rs)||42||Market Cap (in Rs Crs)||35|
|Stock P/E||4.4||Sector P/E||24.29|
|EPS (In Rs)||9.02||ROE (in %)||19.3|
|ROCE (in %)||30.4||Book Value (In Rs)||38.35|
|Promoter Holding (%)||58.1||Price to Book Value||0.79|
|Debt Equity Ratio||0||Face value (in Rs)||10|
Best Low PE Penny Stocks #2 – Coral India Finance and Housing
Coral India Finance and Housing Ltd is one of the housing development companies in India with two segments namely Finance and Construction.
Established in 1995, the company provides all types of Financial Services including bill discounting, Raising & placement of funds, placement of securities, advising on investments of funds, financial consultants, project counselling & advisory services, etc.
Further, in the construction field, it serves as Builders, Developers, and Contractors for all types of Construction work, including land and property development and Real estate dealers.
Looking at the financials of the company, it is evident that the company is performing well consistently. The revenue has increased from Rs 15 Crs to Rs 31 Crs over the last 5 years from FY19 to FY23. Their profits grew multifold in the period from Rs 8 Crore in FY19 to Rs 18 Crore in FY23.
Although there is no increase in ROE and ROCE compared to the previous year, it has increased over the years from an ROE of 6.44 % to 12.24% and a ROCE of 7.71% to 14.01% respectively from FY19 to FY23. Moreover, it is a debt-free stock with a low PE of 7.31, indicating the financial stability and growth potential of the company.
|CMP (In Rs)||35||Market Cap (in Rs Crs)||140|
|Stock P/E||7.31||Sector P/E||23|
|EPS (In Rs)||4.55||ROE (in %)||12.24|
|ROCE (in %)||15||Book Value (In Rs)||37.11|
|Promoter Holding (%)||75||Price to Book Value||0.9|
|Debt Equity Ratio||0||Face value (in Rs)||2|
Best Low PE Penny Stocks #3 – Pritika Auto Industries
Pritika Auto Industries Limited is an Indian-based auto ancillary manufacturer that was incorporated in 1980. The Company has been currently engaged in the business of manufacturing & selling tractors and other automotive parts, components & engineering goods.
It has manufacturing facilities located in Punjab and Himachal Pradesh with a total capacity of around 50,000 metric tons per annum (MTPA).
Further, the company manufactures a wide range of products including hydraulic lift housings, crankcases, axle housings, and many more. It supplies its products to (Original Equipment Manufacturers) OEMs.
Moving on, if we look into the financials of the company, the sales of the company have increased by 33.5% from Rs 271 Cr in FY22 to Rs 362 Cr in FY23.
The net profits have also increased from Rs 14 Cr to Rs15 Cr in the last year. There is a downtrend in the ROCE and other return ratios as the company has used its funds in the repayment of debts. Overall it is low PE penny stock that has growth potential in the future.
|CMP (In Rs)||16.45||Market Cap (in Rs Crs)||145|
|Stock P/E||9.85||Sector P/E||34.52|
|EPS (In Rs)||1.67||ROE (in %)||9.19|
|ROCE (in %)||13.42||Book Value (In Rs)||18.19|
|Promoter Holding (%)||48.5||Price to Book Value||0.91|
|Debt Equity Ratio||0.59||Face value (in Rs)||2|
Best Low PE Penny Stocks #4 – Hisar Spinning Mills
Hisar Spinning Mills Ltd is an Indian company that is in the textile sector, and more specifically into the spinning business. Established in 1992, Hisar Spinning Mills Ltd manufactures and sells cotton blended yarn and is situated in Haryana.
As a part of the expansion, it has installed 3 Open end machines with double-sided frames with 224 rotors each, totaling 672 rotors along with ring doublers for the manufacture of cotton yarn with an installed capacity of 2,200 metric tons. The stock of this company is traded only on the Bombay Stock Exchange (BSE).
The company’s revenue has been increasing consistently over the last 5 years. The revenue has increased by 35% in the last Fiscal year from Rs 35 Cr to Rs 46 Cr. However, their net profit reduced from Rs 4 Cr to Rs 3 Cr due to the increase in expenses.
If we look at the overall performance of the company, the company is on the verge of becoming a debt-free company with a decrease in debt-equity ratio from 0.3 to 0.15 from FY19 to FY23 which is a positive sign for the investors.
Above all, it is trading at a low PE of 4.86 compared to the sector PE of 22.78, which indicates that the stock is available at a cheaper price.
|CMP (In Rs)||45||Market Cap (in Rs Crs)||17|
|Stock P/E||5||Sector P/E||22.82|
|EPS (In Rs)||8.87||ROE (in %)||16.36|
|ROCE (in %)||20.47||Book Value (In Rs)||54.19|
|Promoter Holding (%)||50.47||Price to Book Value||0.8|
|Debt Equity Ratio||0.15||Face value (in Rs)||10|
Best Low PE Penny Stocks #5 – Acme Resources
Acme Resources Ltd is an Indian NBFC that was incorporated in the year 1985. The company is mainly engaged in rendering banking services such as granting of loans & advances, and trading in shares, properties & securities.
Along with this, the company is also into the sales and purchase of properties and has a major investment interest in the infrastructure sector. It has 2 subsidiaries namely Atul Agro Private Ltd and OJAS Suppliers Limited.
If we look at the financials of the company, it has yielded the best results in FY23 compared to the last 5 years. The sales and profits of the company have increased from Rs 7 Cr to Rs 28 Cr and from Rs 2 Cr to Rs 12 Cr respectively, from FY22 to FY23.
The profits of the company have surged after its announcement to invest Rs 52,474 Cr on the new Green Hydrogen Plant in Tamil Nadu, which would be one of the largest green hydrogen and ammonia-producing plants in India.
Further, if we see the ratios of the company, it has given good returns with an ROE of 9.89% and ROCE of 12.92%. To wrap up, it is a low PE penny stock with higher growth potential as the Government of India is encouraging the production of green hydrogen in the near future.
|CMP (In Rs)||27||Market Cap (in Rs Crs)||75|
|Stock P/E||5.7||Sector P/E||24.49|
|EPS (In Rs)||4.82||ROE (in %)||9.89|
|ROCE (in %)||12.92||Book Value (In Rs)||48.78|
|Promoter Holding (%)||73.43||Price to Book Value||0.61|
|Debt Equity Ratio||0.09||Face value (in Rs)||10|
List of Top Low PE Penny Stocks in India
|Stock Name||CMP (In Rs.)||Stock PE||Sector PE|
|BN Rathi Securities||43||4.6||24.68|
|Coral India Finance & Housing Ltd||35||7.31||19.7|
|Pritika Auto Industries Ltd||16||9.82||34.52|
|Hisar Spinning Mills Ltd||45||5||22.78|
|Ashirwad Steel and Industry||31||2.3||17.91|
|Leading Leasing Finance & Investment Ltd||2.9||14.7||41.73|
In this article on the best low PE Penny stocks in India, we have discussed in detail the best low PE Penny stocks in India, which have the good financial stability to yield rewarding returns.
Later we had a look at the list of the best low PE Penny Stocks in India. Hope this article will add value to your investment journey. Happy Reading!
Written by Bhagyalakshmi Patil
By utilizing the stock screener, stock heatmap, portfolio backtesting, and stock compare tool on the Trade Brains portal, investors gain access to comprehensive tools that enable them to identify the best stocks also get updated with stock market news, and make well-informed investment decisions.
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