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.
The price/earnings-to-growth, or PEG ratio is a valuation metric used for stocks and a PEG ratio of under 1 can indicate if a stock is undervalued, has strong growth prospects, and can be a potential buy.
Listed below are some of the penny stocks with a price/earnings-to-growth or PEG ratio of less than 1 that you can add to your watchlist
Seacoast Shipping Services
Seacoast Shipping Services 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. 384.62 Crores, the shares of Seacoast Shipping Services Limited hit a 5 percent upper circuit at Rs. 7.14 per equity share, from its previous day’s close price of Rs. 6.80.
Seacoast Shipping Services Limited has delivered a PEG ratio of 0.05, along with a return on equity (ROE) of 21.4 percent and a return on capital employed (ROCE) of 28.3 percent.
Its Revenue from Operations grew by 15.55 percent from Rs. 165 Crores in FY23 to Rs. 191 Crores in FY24, accompanied by profits of Rs. 12 Crores to Rs. 11 Crores.
Shreeji Translogistics
Shreeji Translogistics Limited is engaged in the business of providing integrated national logistical solutions like freight management, logistics solutions, and warehousing services to multiple industries.
With a market capitalization of Rs. 177 Crores, the shares of Shreeji Translogistics Limited were trading at Rs. 25.28 per equity share, up 2.76 percent from its previous day’s close price of Rs. 24.60.
Shreeji Translogistics Limited has delivered a PEG ratio of 0.33, along with a return on equity (ROE) of 33.6 percent and a return on capital employed (ROCE) of 27.8 percent.
Its Revenue from Operations grew by 34.32 percent from Rs. 186 Crores in FY23 to Rs. 250 Crores in FY24, accompanied by profits of Rs. 10 Crores to Rs. 16 Crores.
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. 284 Crores, the shares of Captain Pipes Limited hit a 5 percent upper circuit at Rs. 19.28 per equity share, from its previous day’s close price of Rs. 19.28.
Captain Pipes Limited has delivered a PEG ratio of 0.93, along with a return on equity (ROE) of 17.5 percent and a return on capital employed (ROCE) of 25 percent.
Its Revenue from Operations declined by 10.48 percent from Rs. 85.29 Crores in FY23 to Rs. 76.35 Crores in FY24, accompanied by profits of Rs. 1.81 Crores to Rs. 3.98 Crores.
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. 439 Crores, the shares of M K Proteins Limited were trading at Rs. 11.69 per equity share, up 1 percent from its previous day’s close price of Rs. 11.57.
M K Proteins Limited has delivered a PEG ratio of 0.82, along with a return on equity (ROE) of 20.1 percent and a return on capital employed (ROCE) of 18.8 percent.
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.
Written by: Bharath K.S
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