You must consider the fundamentals while trying to choose the top penny stocks.
Your success may be hampered by a variety of factors. However, owning fundamentally sound equities is one method an investor may rest easy without worrying too much,
Finding the top penny stocks for 2023 is still difficult for investors as we enter a new year. As the RBI and US Fed attempt to contain inflation by decreasing demand in the economy, interest rates are rising everywhere.
Whether 2023 will be a smooth year for the penny stock market is unknown. or whether it will cause trouble.
However, there will be chances to earn money.
Vardhman Acrylics, one of the top producers and suppliers of acrylic fibre and a company that is solely listed on the NSE, manufactures acrylic fibre.
The business is one of the top three providers of installed capacity. Around 90% of the overall operational capacity in the domestic acrylic fibre market is held by these top three competitors.
The majority of its income (about 90%) comes from the sale of fibre and tow, with the remainder coming from the trade of acrylonitrile.
2. Confidence Petroleum
In addition to producing LPG cylinders, Confidence Petroleum is a provider of car LPG in India. Additionally, the business provides filled LPG cylinders and engages in LPG bottling for industrial and commercial clients.
The Confidence group, one of the biggest participants in the private sector, has a variety of corporate interests in the energy industry and a sizable presence in the LPG market.
The corporation, which was badly impacted by the pandemic, began to operate better near the end of 2021 as its business began to resemble pre-covid levels.
3. Texmo Pipes & Products Ltd
On July 3, 2008, Texmo Pipes & Products was officially established. PVC pipes, UPVC casing pipes, plumbing pipes, SWR pipes, HDPE pipes, permanently lubricated pipes, HDPE sprinkler pipes, moulded fittings, etc. are all produced by the firm.
Burhanpur, Madhya Pradesh, is home to the company’s production facilities.
Among the company’s clients are Tata Power, Siemens, Power Grid Corporation, BSNL, and Indian Railways.
4. Singer India
One of Singer Asia’s operating subsidiaries, along with those in Bangladesh and Sri Lanka, is Singer India. The business sells home consumer durables (HCD) items in retail.
It is a market leader for sewing machines and small appliances.
Sewing items and household appliances are the two primary business sectors for the firm. Over the years, other items have been added, including water heaters and room coolers.
Due to portfolio diversification, the corporation has recorded rising sales and earnings throughout the years. A few years ago, the firm ventured into the household appliances market in an effort to diversify away from sewing machines.
5. Shree Digvijay Cement
A leader in the cement industry is Shree Digvijay Cement. In the cement sector, the company’s brands “Kamal Cement” and “Cement ka Sardar” are well-known.
The business was established in 1944 and produces cement in the coastal community of Digvijaygram in Gujarat’s Jamnagar District.
As of March 2022, the company’s sales increased from Rs 4,133 million (m) to Rs 6,293 m during the previous five years. In a similar vein, revenue increased from Rs 133 m to Rs 553 m.
6. NBCC India
Due to its skills and on-time delivery, NBCC India, a Navratna CPSE, has become the unchallenged leader in the construction industry.
Project management consultancy (PMC), engineering procurement & construction (EPC), and real estate development make up the three main operating categories for NBCC.
The corporation also includes a brand-new division called government property redevelopment. NBCC could take on more of these projects since they provide larger margins in the future.
7. Grauer & Weil (India)
The whole line of metal finishing chemicals, as well as all kinds of machinery and plating facilities designed to strict international standards and delivered all over the world, are all produced by Grauer & Weil (India).
Additionally, it produces lubricants and engages in the manufacturing of paints.
With a market share of over 30%, it has been in the electroplating business for more than 60 years and continues to hold the top spot in the domestic market.
Due to its involvement in so many industries, the firm has a well-diversified product line.
The business entered the decorative paints market in 2022.
8. Morepen Laboratories
Morepen Laboratories produces and sells APIs, bulk medications, home diagnostics, formulations, and over-the-counter (OTC) items.
The firm is presently concentrating on novel anti-diabetic therapeutic areas and spending resources in the development of goods under the therapeutic category of anti-coagulants.
The firm has increased its revenues and earnings over the last five years at a CAGR of 21% and 28%, respectively.
9. Orient Abrasives
As a venture to produce calcined and fused alumina products, Orient Abrasives was established by the Rajgarhia group of businesses in technical partnership with Karborundum, Bentueky, Czechoslovakia.
The business boasts the distinction of being India’s top manufacturer of calcined and fused goods.
The company’s main raw materials are unprocessed bauxite and calcined alumina, and it has integrated facilities for both in Bhatia, Jamnagar, and Bhuj in Gujarat.
10. Aarey Drugs
Metronidazole, metronidazole benzoate, methyl, and nitro imidazole are among the medications and intermediates that are produced by Aarey Drugs. Allergy, dermatology, and infectious illnesses are the therapeutic goals of its medicines.
The business has built relationships with its clients and suppliers and largely serves domestic markets.
As the continuing Covid-19 epidemic raised demand for pharmaceutical items in 2021 and 2022, the company’s profits grew. The corporation gained further advantages from the release of higher-value goods such the analgesics and antibiotics albendazole, nimesulide, lumefantrine, and metronidazole.
|Company||ROE (%)||ROCE (%)||Latest EPS (Rs)||TTM PE (x)||TTM Price to book (x)|
|Singer India Ltd||12.9||18.4||1.5||36.1||5.3|
|Shri Digvijay Cement||17.8||28.8||3.0||23.5||3.3|
|Grauer & Weil||14.4||19.4||4.3||21||3.2|
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