Stocks Under Rs 20: The headline says: “The Dolly Khanna portfolio becomes multibagger.” Or it can be, “XYZ stock with price below Rs. 20 per action becomes Rs. 200.” We realize after reading the news that it’s no longer a penny reserve that it was.
You can be a rookie investor who expects to buy low quote shares or a bonus-hunter between small-caps. One thing is clear, such actions can be a story of rags to rich.
Although the investor’s appetite for these fundamentally strong actions is enormous, availability is in short supply. A quick race in Screener is about 1,200 companies that are listed on the market with a participation price less than Rs. 20 per action.
How will you choose profitable companies between this large pool? What filters to use: income growth, profitability, debt to equity ratio or what more?
In this article, we bring you so strong stocks of penny and also the best shares under Rs 20. So without further preambles, let’s jump.
Best shares under Rs 20
Stocks under Rs 20 #1 – Syncom Formula
|Market Cap (Rs. Cr.)||875||CMP (Rs.)||9.3|
|Stock PE||44.2||Debt to equity||0.266|
|Promotor Holding (%)||50.6||Price to book value (Rs.)||4|
|Facial value (Rs.)||1||Current rate||1.79|
Founded in 1995, Syncom Formulations is a pharmaceutical company based in Mumbai, Maharashtra. It has a cutting edge manufacturing plant in Pithampur, Madhya Pradesh. The small pharmaceutical company exports its formulations to more than 15 countries and employs approximately 300 people.
Syncom produces and sells formulations in various forms of dosage: tablets, capsules, liquid orals, ampoule injections “, dry syrups, ointments, inhalers and herbs.
Promoters seem to be harassed in the company as they have increased their participation from 38.98% in September 2019 to more than 50.5% in June 2022. Their sales have grown steadily since 2018. However, it recorded a decrease of 10.20% in March 2022 in sales in Rs. 220 crores.
It has a low debt-equity ratio of $0.26 and the debt ratio is $44.
Stocks under Rs 20 #2 – Aakash Exploration Services
|Market Cap (Rs. Cr.)||130||CMP (Rs.)||12.8|
|Stock PE||22.5||Debt to equity||0.2|
|Promotor Holding (%)||66.8||Price to book value (Rs.)||2.72|
|Facial value (Rs.)||1||Current rate||1.25|
Aakash Exploration Services have been in the business of providing several oil and gas field services over the past 25 years. The company is based in Ahmedabad, Gujarat and employs more than 900 people.
The company has two ISO certifications and a OHSAS certification in its name giving it a brand image and corporate identity. Its list of recognized customers includes NGOsC, GSPCL, Cairn, Essar and more.
The owner ' s tenure, although high in 66.77%, has been reduced by 6.56 per cent of 73.77% in June 2021. Excluding financial year 2021, AES revenues have grown from Rs. 67 crores in FY20 to Rs. 77 crores in FY22.
Another good thing of the company is that it has reduced its debt over the years and, consequently, its relation of interest has risen.
Stocks under Rs 20 #3 – Steel Exchange India
|Market Cap (Rs. Cr.)||1275||CMP (Rs.)||14.4|
|Stock PE||10.9||Debt to equity||1.05|
|Promotor Holding (%)||49.8||Price to book value (Rs.)||2.92|
|Facial value (Rs.)||1||Current rate||1.43|
Steel Exchange India Ltd. o SEIL is an integrated steel manufacturer that produces sponge iron (220.000 TPA), billet ‘ ingots (340,000 TPA), TMT rebars (225,000 TPA) and captive power (71.64 MW). It is a company of the Vizag Profiles Group. The group is mainly in the real estate sector that develops residential properties.
The steel arm was established in 1999 as part of the efforts to diversify the business group previously used for the trade in steel and allied products. From today, it operates two steel plants and has a strong brand value for its “Simhadri TMT” bars.
In the last three years, the small-layer steel manufacturer has scaled its Rs revenue. 781 crores in 2020 to Rs. 1,099 crores in 2022.
Stocks under Rs 20 #4 – One Point One Solutions
|Market Cap (Rs. Cr.)||207||CMP (Rs.)||11|
|Stock PE||29.6||Debt to equity||0.32|
|Promotor Holding (%)||70.1||Price to book value (Rs.)||4.44|
|Facial value (Rs.)||2||Current rate||1.31|
One Point One Solutions is a BPM/BPO service provider with 5,500 employees present in their 8 delivery centers. It provides a variety of services to your customers, including customer service, lead generation, facial verification, email management, online chat services, content management, accounts receivable, SMS administration and more.
It has a high participation of promoters of 70.13% that has remained stable in the last five quarters. From its income growth, it reported a total income of Rs. 132 crores for the year ended March 2022, an increase of almost 30%. With this, the lower line of the company became green as it reported a benefit of Rs. 3 crores.
In January of this year, the service provider divided its shares of Rs. 10 face value to Rs. 2. The actions began to operate on an ex-split basis of January 18, 2022.
Stocks under Rs 20 #5 – JCT
|Market Cap (Rs. Cr.)||317||CMP (Rs.)||3.65|
|Stock PE||32.9||Debt to equity||0.49|
|Promotor Holding (%)||27.2||Price to book value (Rs.)||0.9|
|Facial value (Rs.)||2.5||Current rate||0.75|
A part of the Thapar Group, JCT Limited draws a long history. It started operations in 1946.
To date, JCT has an integrated textile installation in Punjab with a production capacity of 63 million metres per year. It has two business segments: cotton, synthetic textiles and nylon filament thread.
The recent National Technical Textiles Mission to boost the manufacture and export of man-made fibre-specific textile products is supposed to help the company’s revenues.
The company has shown a growing trend in income. But its profitability has decreased year after year. This is mainly due to the high cost of material incurred in the FY22. The manufacturer has a low participation of promoters of 27.25 per cent and almost all that is promised.
But despite that, in an impressive note, the address has worked to reduce leverage by paying the debt.
List of 9 best shares under Rs 20
We go through five fundamentally good actions in detail above. The list below presents some more such companies.
|Company name||Industry||CMP (Rs.)||Market Cap (Rs. Cr.)||3 Yr-Stock CAGR|
|Syncom Formulations (India)||Pharma||9.3||875||120%|
|Jaiprakash Power Ventures||Energy||8.1||5.544||70%|
|Tim Metal & Industries||Trading||14.3||127||60%|
|Tirupati Forge||Forging||13.3||130||61 per cent|
|Aakash Exploration Services||Oil gas||12.8||130||122%|
|Steel Exchange India||Steel||14.4||1.275||128%|
|Manaksia Coated Metals & Industries||Metals||19.6||125||60%|
|One Point One Soultions||BPO||11.6||217||62%|
At the close
In this article, we covered some of the best actions under Rs 20. Such small businesses have the potential to offer multibagger returns. However, they can also result in strong losses for shareholders as their stock prices are very volatile. Therefore, investors should approach these companies with caution.
As a retail investor, what investment approach does it follow? Do you prefer small companies, medium or large part or maintain a balance between them? How about you let us know in the comments below?