Penny share of 9 will go beyond 100
"Penny stock" is a term used to describe shares of small, typically low-priced companies that trade on stock exchanges at a relatively low market price, often for less than Rs 10 per share in the United States. These stocks are also sometimes referred to as micro-cap stocks because they generally have a small market capitalization.
Here are some key characteristics and considerations associated with penny stocks:
Low Market Capitalization: Penny stocks represent companies with a small market capitalization. This means they are usually smaller and less established than the large-cap or mid-cap companies traded on major stock exchanges.
High Volatility: Penny stocks tend to be highly volatile, meaning their prices can fluctuate significantly over short periods. This volatility can present both opportunities and risks for investors.
Lack of Liquidity: Due to their small market capitalization, penny stocks often have lower trading volumes, which can make it difficult to buy or sell shares without impacting the stock's price.
Higher Risk: Investing in penny stocks is considered riskier compared to investing in larger, more established companies. These companies may have limited financial histories, and there may be less publicly available information about them.
Limited Regulatory Oversight: Penny stocks are sometimes associated with companies that are not subject to the same regulatory scrutiny as larger companies listed on major stock exchanges. This can lead to a higher risk of fraud and manipulation.
Potential for High Returns: While penny stocks are inherently risky, some investors are attracted to them because of their potential for significant price appreciation. A small investment in a penny stock that experiences substantial growth can result in substantial profits.
Research is Critical: Due diligence and research are crucial when considering investing in penny stocks. Investors should thoroughly research the company's financials, management team, business model, and industry prospects before making an investment.
Long-Term Viability: Many penny stocks fail, so it's essential to assess whether the company has a viable business plan and the potential for sustainable growth.
Diversification: Because of the higher risk associated with penny stocks, it's generally advisable for investors to limit the portion of their portfolio allocated to them and maintain a diversified investment strategy.
Beware of Pump-and-Dump Schemes: Some penny stocks may be manipulated by fraudulent actors who artificially inflate their prices before selling their own shares at a profit, leaving other investors with losses. Be cautious of unsolicited stock tips and promotional materials.
In summary, penny stocks can be a high-risk, high-reward investment. They are typically more suitable for experienced investors who are willing to do extensive research and understand the potential risks involved. Novice investors should exercise caution and consider seeking advice from financial professionals before investing in penny stocks.
Tirupati Forge Ltd
| Metric | Value |
|---|---|
| Market Cap | ₹ 85.8 Cr. |
| Current Price | ₹ 8.75 |
| High / Low | ₹ 25.6 / 6.75 |
| Stock P/E | 11.4 |
| Book Value | ₹ 3.70 |
| Dividend Yield | 0.00 % |
| ROCE | 31.8 % |
| ROE | 29.2 % |
| Face Value | ₹ 2.00 |
| Profit after tax | ₹ 7.49 Cr. |
| ROE 3Yr | 21.1 % |
| Return on equity | 29.2 % |
| Promoter holding | 57.6 % |
| EVEBITDA | 6.91 |
| Profit growth | -10.7 % |
| Industry PE | 29.5 |
| Return over 3 years | 37.2 % |
| Profit Variation 3Yrs | 220 % |
| Debt | ₹ 10.1 Cr. |
| Debt to equity | 0.28 |
| Reserves | ₹ 16.6 Cr. |
| Current assets | ₹ 34.6 Cr. |
| Current liabilities | ₹ 12.7 Cr. |
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