People choose penny stocks because of the allure of potentially high returns, the ability to buy a large number of shares with a small investment, and the excitement of investing in companies that could experience significant growth.
However, due to the illiquidity of penny stocks, the stock can hit its assigned circuit levels with just a minor increase in the volume of trades. Even if the stock prices are within the usual buying range for the investors and offer enormous potential profits, penny stocks are quit dangerous for retail investors. So choose and invest wisely.
Listed below are some of the penny stocks available under Rs. 20 with high ROE and ROCE
Integra Essentia
Integra Essentia Limited is engaged in the business of life essentials like food, clothing, infrastructure, energy, and many more products and services that are required to sustain modern life.
With a market capitalization of Rs. 401 Crores, the shares of Integra Essentia Limited closed at Rs. 3.76 per equity share, down 0.53 percent from its previous day’s close price of Rs. 3.78.
Its revenue from operations grew by 38.71 percent from Rs. 67.27 Crores in Q4FY23 to Rs. 93.31 Crores in Q4FY24, accompanied by profits of Rs. 1.69 Crores to Rs. 5.92 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 15.9 percent, and a return on capital employed (ROCE) of 17.1 percent. It has reported a debt-to-equity ratio of 0.06.
Seacoast Shipping Services
Seacoast Shipping Limited is primarily engaged in the business of providing logistics services to importers and exporters. It focuses on dry bulk logistics, container freight forwarding, and inland road logistics.
With a market capitalization of Rs. 299 Crores, the shares of Seacoast Shipping Limited closed at Rs. 5.56 per equity share, down 0.71 percent from its previous day’s close price of Rs. 5.60.
Its revenue from operations grew by 8.24 percent from Rs. 115.50 Crores in Q4FY23 to Rs. 125.02 Crores in Q4FY24, accompanied by profits of Rs. 1.22 Crores to Rs. 7.50 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 21.4 percent, and a return on capital employed (ROCE) of 28.3 percent. It has reported a debt-to-equity ratio of 0.24.
M K Proteins
M K Proteins Limited is engaged in the business of manufacturing and supplying vegetable refined oils and byproducts, by refining rice bran, cotton seed, soya bean, and many more.
With a market capitalization of Rs. 292 Crores, the shares of M K Proteins Limited closed at Rs. 146 per equity share, down 3.38 percent from its previous day’s close price of Rs. 151.10.
Its revenue from operations declined by 22 percent from Rs. 315 Crores in FY23 to Rs. 246 Crores in FY24, accompanied by profits of Rs. 11 Crores in both years.
In terms of Return ratios, it has reported a return on equity (ROE) of 20.1 percent, and a return on capital employed (ROCE) of 18.8 percent. It has reported a debt-to-equity ratio of 0.33.
Captain Pipes
Captain Pipes Limited is engaged in the business of manufacturing and selling of unplasticized polyvinyl chloride (UPVC) pipes and fittings. It offers a wide range of piping solutions for applications in agriculture, plumbing, drainage, and others
With a market capitalization of Rs. 265 Crores, the shares of Captain Pipes Limited closed at Rs. 17.94 per equity share, down 0.77 percent from its previous day’s close price of Rs. 18.08.
Its revenue from operations declined by 4.57 percent from Rs. 21.23 Crores in Q4FY23 to Rs. 20.26 Crores in Q4FY24, accompanied by profits of Rs. 96 Lakhs to Rs. 91 Lakhs.
In terms of Return ratios, it has reported a return on equity (ROE) of 17.5 percent, and a return on capital employed (ROCE) of 25 percent. It has reported a debt-to-equity ratio of 0.23.
Written by Bharath KS
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