Fundamentally strong penny stocks are those that trade at a lower price and have a low market capitalization. Penny stocks are considered very highly risky investments due to their speculative character and lack of liquidity.
While these companies have the potential for large profits, they also contain major risks, which investors should be aware of before investing. Fundamentally good penny companies, on the other hand, might give an excellent potential to generate large returns for investors prepared to undertake extensive research.
Below are the two penny stocks with the highest Mutual Fund holdings.
Oriental Carbon and Chemicals Ltd
Oriental Carbon and Chemicals has a market capitalization of Rs 833 crore. On Thursday, the company’s shares were trading at Rs 831.95 per share, down 1.05 percent from the previous close price.
As of Q1 FY24, mutual funds hold a 10.41 percent stake out of the 12.84 percent stake held by domestic institutional investors in the company. The company’s promoter has a 51.76 percent stake.
The stock has risen 14 percent in the previous six months and 24 percent in the last four months.
The company’s revenue from operations climbed by around 2 percent quarter on quarter in the June 2023 quarter to Rs 124 crore, up from Rs 122 crore in the March 2023 quarter, while net profit jumped by 30 percent to Rs 17 crore from Rs 13 crore.
Oriental Carbon & Chemicals Limited has been engaged in the manufacturing of Insoluble Sulphur and Sulphuric Acid. And also manufactures Commercial grade, Battery grade sulphuric acid, and Oleum.
Windlas Biotech Ltd
Windlas Biotech is valued at Rs 799 crore on the stock exchange. The company’s shares were trading at Rs 384.65 on Thursday, up 10.75 percent from the previous close price.
As of Q1 FY24, mutual funds hold a 10.51 percent stake out of the 11.53 percent stake held by domestic institutional investors in the company. The company’s promoter has a 51.76 percent stake. The stock has increased 40 percent in the previous six months and 65 percent in the last year.
The company’s revenue from operations climbed by 17 percent quarter on quarter in the June 2023 quarter to Rs 140 crore, compared to Rs 119 crore in the March 2023 quarter, in the same time frame the net profit grew by 22 percent to Rs 11 crore from Rs 9 crore.
Windlas Biotech Ltd is a leading pharmaceutical formulation and manufacturing company. The firm produces both solid and liquid medicinal dosage forms.
Written By Omkar Chitnis
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