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Penny stocks are quite popular with small investors because of their potential for huge gains. These stocks are priced very low and such companies have low market capitalization as well.

These stocks are often illiquid, meaning they are traded in lower quantities compared to other stocks. While there is a perception that penny stocks can offer high returns. 

Listed below are such penny stocks which have a high Piotroski score: 

Weizmann Ltd 

With a market capitalization of Rs. 179 crores, the company engaged in the business of textiles started its Monday trading session at Rs. 121.95, ‘The shares have a high Piotroski score of 9’. 

Coming onto the company’s financial statements, the revenue decreased by 7 percent from Rs. 30.57 crores during the September quarter to Rs. 28.42 crores in the December quarter. On a contrasting note, the net profits zoomed by 39 percent from Rs. 1.76 crores to Rs. 2.45 crores during the same period. 

Due to increasing operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 5.59 percent during FY 21-22 to 10.86 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 9.28 percent to 16.29 percent during the same timeframe. Furthermore, the net profit margin increased from 2.88 percent during FY21-22 to 4.53 percent during FY22-23. 

Airan Ltd 

With a market capitalization of Rs. 301 crores, the shares of the IT company started Monday’s trading session on a higher note at Rs. 24.75 compared to its previous close of Rs. 24.04.During the trading session, the share clocked 5 percent upper circuit at Rs. 25.14 apiece. ‘The shares have a high Piotroski score of 8’. 

Coming onto the company’s financial statements, the revenue decreased by 7 percent from Rs. 23.55 crores during the September quarter to Rs. 21.95 crores in the December quarter. On the other hand, the net profits declined by 13 percent from Rs. 2.87 crores to Rs. 2.50 crores during the same timeframe. 

Due to increasing operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing marginally from 8.94 percent during FY 21-22 to 8.95 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 9.98 percent to 10.92 percent during the same timeframe. On a contrasting note, the net profit decreased from 11.01 percent during FY21-22 to 10.74 percent during FY22-23. 

AK Spintex Ltd 

With a market capitalization of Rs. 70 crores, the shares of the textile processing and weaving company started Monday’s trading session on a higher note at Rs. 139.90 compared to its previous close of Rs. 136.80, gaining around 1.6 percent. ‘The shares have a high Piotroski score of 9’. 

Coming onto the company’s financial statements, the revenue increased by 2 percent from Rs. 27.96 crores during the September quarter to Rs. 28.42 crores in the December quarter. In addition, the net profits zoomed by 64 percent from Rs. 1.67 crores to Rs. 2.75 crores during the same timeframe. 

Due to increasing operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 7.79 percent during FY 21-22 to 23.99 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 11.87 percent to 29.37 percent during the same timeframe. Furthermore, the net profit margin increased from 2.48 percent during FY21-22 to 6.29 percent during FY22-23. 

Written By Vaibhav Patil

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