If you are an active share market investor in India, chances are there that at least at some point of time in your share/trading career you would have coaxed yourself into buying a stock that is trading at a very low price, say Rs. 10 or Rs. 20?
The decision of buying such a low stock also called “penny stocks“ would definitely not crop after a rational or judicious analysis of share market, rather would arise from an emotional perspective such as something like-” The stock is any way trading so low, how long can it go from here”?
“Act Like an Investor, Not a Trader”
While dealing with penny stocks it is important to think for investment for a longer term and not solely focusing on short-term profits. This is perhaps the very reason why stock market gurus never look at the market price of stocks in insolation.
The trading price could be misleading as it reflects nothing about company’s underlying business-whether it’s good or bad?
To get things easily flowing, we have come up with a list of top less-known small sized and penny stocks that can bring maximum returns in 2018.
Jaiprakash Associates Ltd
CMP: 20.40 [BSE]
This stock has been in the news landscape for quite some time and tops our list in the list of top low priced stocks to look forward to for good returns in 2018.
It is an Indian agglomerate headquartered in Noida. Founded by Jaiprakash Gaur, company deals in diverse infrastructure areas with a similar interest in engineering.
Why is it a good buy?
- This company has successfully managed to reduce its debt from 3000 crores to 6000 crores by selling its cement assets to Ultratech Cement for Rs. 16500 crore.Having a good hold of land bank in Noida, debt repayment will surely bring down the cost of interest.
- The Indian conglomerate has reported a net profit for the first time in 3 years for the quarter ending June 31, 2017.
- It currently holds a good record book and has recently cleared its ongoing litigations about a housing project by paying Rs 125 Crore to the Supreme Court.
CMP: 25.25 [BSE]
- Having recorded a stellar financial performance in the last quarter, its net profit currently rallies at Rs 22 crores.
- It also holds a good stock record of paying dividends and if the dividends like last year are retained the stock would be available at a dividend yield of near 3 percent.
- Owing to the scenario where sugar prices are going to stay robust for coming months, an optimistic market for the company can be forecasted.
Being in the sugar manufacturing industry from long, it does have a potential to deliver and investors looking forward to long-term investors should consider buying this one.
Jindal Saw Ltd.
CMP: 129.75 [BSE]
Though it is not a penny stock, we have included it owing to the huge potential it is signaling some positive hopes for investors.
- The steel sector is going to perform very well in the coming decade as the government is planning to treble overall Indian steel production by 2030.
- Jindal steel is also planning to expand its chain internationally which also a very positive sign for the company.
- New steel Policy is also going to help steel industry in a very good way anti-dumping duty imposed on the Chinese imports which will make the Indian steel more attractive.
CMP: 70.90 [BSE]
- Company’s paper division has witnessed a good growth, that is keeping it in good charts in the share market.
- Further, its debt reduction policies are intensely helping it cut down on interest. Recently, it has done away with a huge Rs 395 crore debt out of which a major chunk of 163 crores was high-cost debt.
CMP: 139 [BSE]
- This is a multinational company based in Gujarat that has a diversified portfolio in the business including logistics, agriculture, resources, and energy sector.
- Going by the current trend, the stock has a 60 percent upside potential. The company had reported a profit growth of 3% earlier in January this year accounting a total of Rs 350.35 crores.
- Moreover, It had successfully managed to bag a position in the list of top 15 global solar power developers.
Disclaimer: The article is solely for informational purpose and by no means is a solicitation to buy, sell or invest in financial instruments.Pixr8 or the author of the article do not hold responsibility for any losses/damages arising based on the information cited above.