By the way, What Are Penny Stocks?
Penny stocks are stocks that trade at a single or low double-digit stock price and have low market capitalization. Penny Stocks of India you should consider this year are mentioned below.
Penny stocks are generally seen under the negative limelight due to their speculative price movement, lack of liquidity, a small number of shareholders, and limited information/disclosure about the company.
1. Sinclairs Hotel & Resorts
Sinclairs Hotels is in the hospitality business with around 8 four-star hotels in India. The company has an inventory of 296 rooms spread across primary tourist spots in West Bengal mainly Burdwan, Darjeeling, Dooars, Kalimpong, Siliguri, and Gangtok. Its remaining two properties are in Port Blair & Ooty.
Hotel companies generally have a lot of debt in their books, however, Sinclairs is an exception in this case. The company has zero debt in its books. In addition to this, the company also has 62 crores of cash/investments in its account. The company also has a land parcel in Kolkata and West Bengal.
The company stock price has been quite stable for the past 4-5 years with the exception of covid-19, where the stock price fell by more than 50%. However, the stock has recovered from its low and still trades at a discount to the industry peers. You can consider this one as a good Penny Stocks Of India.
2. Zee Media Corporation Limited
Zee Media Corporation Limited is India’s one of the largest news networks with 14 news channels in 6 different languages touching more than 220 million viewers and digital properties like zeenews.com, WION, and dnaindia.com.
With the recent developments in Zee Group, particularly in Zee Entertainment. Zee Media could also come out of the closest with a fresh set of management & promoters willing to bring out the value in the company. WION, one of the company’s online and TV News Channels has been very well received by the audience since its inception.
The company posted its highest-ever yearly profits in FY 2020-21 as compared to the previous 12 years. The company has a high ROCE of 15-20% which is a key factor in any successful company.
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3. Jullundur Motor Agency
Jullundur Motor Agency is engaged predominantly in the trading and distribution of automobile parts, accessories, and petroleum products primarily in India.
The company has a decent sales and profit growth track record. Over the past year, shares of the company have rallied 135%. In addition to this, there are several positive factors that have supported this stock and make it a good choice among all Penny Stocks Of India.
First, one is that the company is debt-free. Jullundur Motor Agency has maintained its “no debt company” status over the years. The second positive is that it has a good dividend payout track record. At the current price, the company is offering a dividend yield of 3.3% which is more than decent. The final factor is that the stock is trading at 0.86 times its book value, which makes it attractive.
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4. Indraprastha Medical Corporation LTD
Indraprastha Medical Corporation is a multi-specialty 600-bed corporate hospital in New Delhi. Besides the hospital complex, the corporate hospital also has plans to set up five satellite centers.
The company has had debt in its books since 2002. However, the company has become debt-free in FY 2020-21. Another attractive factor is that the company has never reported a loss starting fiscal 2002. although its latest fiscal bottom line in 2021 was drastically affected.
Indraprastha Medical’s dividend payout history is so attractive that the dividend yield has stayed above 3% since 2001. The company has paid out hefty dividends till fiscal 2019. The company has a market cap. of 700 crores. And this makes it an interesting choice among all Penny Stocks Of India.
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5. Coffee Day Enterprises LTD
The coffee day is a very interesting bet on consumption, hospitality, and restaurant space. The company currently operates more than 500 outlets across India where it sells coffee, beverages & food items. The company also owns the Serai Group which has four 5 star resorts in major tourist destinations in Karnataka. It also has a land bank of more than 12,000 acres of coffee plantations in South India.
The company has been in the middle of a crisis in 2019 due to the death of its promoter VG. Siddhartha under unforeseen circumstances. Since then the stock has been on a downward spiral falling from 300 to around ₹30.
The company has since then managed to pare down its debts from more than 7000 crores to less than 1800 crores as of March 2021. The stocks were delisted from the Exchange due to non-compliance however the company got relisted on April 26th, 2021 after paying the fines and fulfilling the requirements of the Exchange.
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Conclusion: 5 Penny Stocks Of India You Should Consider In 2022!
- Sinclairs Hotel & Resorts
- Zee Media Corporation Limited
- Jullundur Motor Agency
- Indraprastha Medical Corporation LTD
- Coffee Day Enterprises LTD
On which penny stock of India have you got your eyes on? Comment Down Below!
“The stock market is filled with individuals who know the price of everything, but the value of nothing”
Phillip Fisher
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