Financially strong companies have significant sales growth and profit year after year and consistent cash flow. Here are two stocks that possess above mentioned criteria and those stocks belong to the penny stock category.
Listed below are two financially strong stocks under Rs 10 with consistent revenue and profit growth over the past few years.
Rajnandini Metal Ltd.
Rajnandini Metal Ltd is engaged in the business of manufacturing, and trading Steel, Iron, Iron Alloy, Castings, various kinds of chemicals, furnace oils, and petroleum products.
On Friday, shares of Rajnandini Metal Ltd were trading at Rs 9.10, flat from the previous close price, with a market value of Rs 252 crores.
Rajnandini Metal Ltd’s operational revenue has increased by 2 percent yearly, from Rs 260 crore in Q1FY23 to Rs 265 crore in Q1FY24. During the same period, net profit climbed by 53 percent, from Rs 3 crore to Rs 4.59 crore.
In the recent financial year, the company reported a net profit margin of 1.32 percent and an operating margin of 2.76 percent. Similarly, the Company’s return on equity stands at 33.01 percent and the return on capital employed at 53.99 percent.
As per the current shareholding pattern, the promoters hold a 73.24 percent stake in the company, while retail investors hold a 26.76 percent stake in the company.
Super Tannery Ltd.
Super Tannery Ltd manufactures and exports Leather and leather goods for Automotive and furniture Upholstery, Safety and lifestyle Footwear, Bags, Belts, Accessories, Sporting Goods, and Equestrian equipment.
On Friday, shares of Super Tannery Ltd Ltd were trading at Rs 8.76, up 3.55 percent from the previous close price, with a market capitalization of Rs 94 crores.
Super Tannery Ltd’s operational revenue has decreased by 13 percent year on year, from Rs 54 crore in Q1FY23 to Rs 47 crore in Q1FY24. During the same period, net profit has slightly increased by 11 percent, from Rs 1.02 crore to Rs 1.14 crore.
In the recent financial year, the company reported a net profit margin of 2.79 percent and an operating margin of 5.43 percent. Similarly, the Company’s return ratios have increased with a return on equity standing at 6.87 percent and the return on capital employed at 11.66 percent.
As per the current shareholding pattern, the promoters hold a 58.44 percent stake in the company, while retail investors hold a 41.55 percent stake in the company.
Disclaimer: The above-mentioned companies fall under the umbrella of penny stocks. These stocks may exhibit inconsistent performance, are rarely traded, and only a small number of trades might trigger a circuit limit. We recommend that individual investors conduct sufficient research before making an investment; such stocks provide a high level of risk to individual investors.
Written By Omkar Chitnis
Disclaimer
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