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.
Listed below are such penny stocks whose PE is less than the Industry:
Seacoast Shipping Services Ltd
With a market capitalization of Rs. 332 crores, the shares of the logistics services company started Tuesday’s trading session on a higher note at Rs. 6.44 compared to its previous close of Rs. 6.32. During the trading session, the shares hit a low of Rs. 6.10, losing around 3 percent and are currently trading at Rs. 6.17 apiece.
Coming onto the company’s financial statements, the revenue zoomed by 347 percent from Rs. 27.99 crores during the December quarter to Rs. 125.02 crores in the March quarter. On the other hand, the net profits magnified by 10,614 percent from Rs. 7 lakhs to Rs. 7.50 crores during the same period. The company is set to announce it quarterly on 24th August.
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In terms of key financial metrics, the company reported a Return on Equity (RoE) of 15.94 percent and a return on capital employed (RoCE) of 24.57 percent for the period spanning FY23-24. Further, the net profit margin during FY23-24 was 5.42 percent.
Moreover, the share is considered to be undervalued as the PE ratio stands at 14.9 times compared to the industry average of 23 times and the PEG ratio stands at 0.04 times, which means the market has underestimated its value with its projected earning potential.
Seacoast Shipping Services Limited is a logistics company that provides a one-stop solution for the oceanic transport of dry bulk cargoes worldwide.
They offer clearing and forwarding services for export containers, handle FCL and break-bulk cargo, and provide freight broking services with contracts from major shipping companies.
Integra Essentia Ltd
With a market capitalization of Rs. 448 crores, the shares of the diversified company started Tuesday’s trading session on a flatter note at Rs. 4.15 compared to its previous close of Rs. 4.17. During the trading session, the shares hit a high of Rs. 4.23, gaining around 2 percent and are currently at Rs. 4.23 apiece.
Looking at the company’s financial performance, the revenue decreased by around 8 percent from Rs. 93.31 crores during the March quarter to Rs. 86.06 crores in the June quarter. On the other hand, the net profits declined by 59 percent from Rs. 5.93 crores to Rs. 2.45 crores during the same period.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 13.17 percent and a return on capital employed (RoCE) of 15.66 percent for the period spanning FY23-24. Additionally, during the same period, the net profit margin stood at 5.56 percent.
Furthermore, the stock might be deemed undervalued, given its PE ratio of 26.9 times, in contrast to the industry average of 38.4 times.
Headquartered in New Delhi, Integra Essentia Ltd was incorporated in 2007. The company is engaged in dealing and trading agricultural commodities, life necessities, items of basic human needs, other essential goods, and infrastructural products among others.
DRC Systems India Ltd
With a market capitalization of Rs. 386 crores, the shares of the IT company started Tuesday’s trading session on a higher note at Rs. 29.25, gaining around 1 percent compared to its previous close of Rs. 28.96 and are currently trading at Rs. 28.89 apiece.
Coming onto the company’s financial performance, the revenue decreased by 10 percent from Rs. 15.36 crores during the March quarter to Rs. 15.36 crores in the June quarter. On the other hand, the net profits declined by around 3 percent from Rs. 3.96 crores to Rs. 3.85 crores during the same timeframe.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 24.36 percent and a return on capital employed (RoCE) of 24.90 percent for the period spanning FY23-24. Additionally, during the same period, the net profit margin stood at 24.34 percent.
Additionally, the stock might be deemed undervalued, given its PE ratio of 26.9 times, in contrast to the industry average of 39.2 times.
DRC Systems India Ltd is an IT services and consultancy company that delivers customized software solutions, web and mobile app development, and enterprise resource planning services to clients across various industries.
Written By Vaibhav Patil
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