Most Active Stocks Under Rs. 10: A Detailed Overview
Introduction
Investing in stocks priced under Rs. 10 can be an intriguing opportunity for both beginners and seasoned investors seeking affordable entry points into the market. Stocks commonly known as penny stocks hold significant growth potential because of their affordable pricing and heightened trading activity. In this article, we explore the top 10 most active stocks under Rs. 10 as of November 6, 2024, along with a detailed analysis of their performance and market activity.
Most Active Stocks Under Rs. 10
Below is a curated list of stocks priced under Rs. 10 that have demonstrated notable market activity:
|
Name |
Sub-Sector |
Market Cap (in Cr.) |
Close Price (Rs.) |
PE Ratio |
Relative Volume |
|
Diversified Support Services |
4.64 |
4.96 |
-0.92 |
6.77 |
|
|
Wellness Services |
4.2 |
4 |
6.36 |
5.2 |
|
|
Textiles |
59.35 |
9.67 |
-100.59 |
4.15 |
|
|
- |
6.59 |
8.11 |
-0.06 |
3.76 |
|
|
Pharmaceuticals |
16.64 |
4.2 |
30.25 |
3.53 |
In-Depth Stock Analysis
1. Kaarya Facilities & Services Ltd
Kaarya Facilities and Services Limited specializes in delivering holistic solutions for managing assets and facilities. The company provides a range of property management and maintenance services, including housekeeping, pest control, façade cleaning, gardening, and building system maintenance. Additionally, it handles the installation and repair of mechanical systems for buildings.
The company has demonstrated strong revenue growth of 18.56% over the past three years, supported by an efficient cash conversion cycle of -154.91 days and a high promoter holding of 55.43%. However, it faces significant challenges, including poor profit growth of -414.95% and weak financial metrics, such as an ROE of -225.09% and an ROCE of -36.33% over the same period. Additionally, the company has negative cash flow from operations at -0.64 and a low EBITDA margin of 0.08% over the past five years, highlighting concerns about profitability and operational efficiency.
2. Hanman Fit Ltd
Hanman Fit Limited, previously recognized as Powerhouse Gym & Wellness Limited, was founded on February 8, 2013. The company operates in the health and fitness sector, focusing on providing gym and wellness services across India, with a mission to promote health and fitness nationwide.
The company has a PEG ratio of 0.01 and an efficient cash conversion cycle of -1,202.75 days, with a high promoter holding of 54.04%. However, it has struggled with a revenue decline of -28.72% over the past three years, and shows poor financial performance, including a low ROE of 0.38% and a negative ROCE of -4.20%. Additionally, the company has a very low EBITDA margin of -114.88% over the past five years, indicating challenges in profitability.
3. Gem Spinners India Ltd
Gem Spinners India Ltd. (GSIL) is a textile company that manufactures cotton yarn, knitted fabric, and garments:
Products: GSIL's products include combed cotton yarn, carded cotton yarn, melange yarn, organic cotton yarn, knit fabrics, and knit garments.
Location: GSIL's plant is located in Kancheepuram District, Tamil Nadu.
The company operates with almost no debt, boasts a highly efficient cash conversion cycle of 0 days, and enjoys strong promoter confidence with a holding of 72.86%. However, it has faced challenges with poor profit growth of just 1.60% over the past three years, along with a negative ROE of -1,047.05% and ROCE of -1,047.00%. The company also has negative cash flow from operations at -0.05 and a low EBITDA margin of 0% over the past five years, indicating ongoing profitability issues.
Advantages of Investing in Stocks Under Rs. 10
-
Affordability: Low prices allow retail investors to diversify their portfolios with limited capital.
-
Growth Potential: Penny stocks often exhibit sharp price increases due to market sentiment or sectoral momentum.
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Sectoral Opportunities: Many stocks under Rs. 10 belong to emerging industries, offering exposure to potential growth areas.
Risks of Investing in Penny Stocks
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High Volatility: Price fluctuations can lead to significant losses in a short period.
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Limited Transparency: Financial and operational data may be scarce, making it challenging to analyze these stocks comprehensively.
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Liquidity Concerns: Low trading volumes can make it difficult to buy or sell large quantities without affecting prices.
Tips for Investing in Low-Priced Stocks
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Research Extensively: Before investing, understand the company’s business model, financials, and industry trends.
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Start Small: Limit your initial exposure to penny stocks to minimize risks.
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Monitor Regularly: Track the performance of your investments closely, as penny stocks can change direction rapidly.
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Diversify: Spread your investments across different sectors to mitigate risks associated with any single industry.
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Stay Cautious: Only invest an amount you can afford to lose, as penny stocks carry a high level of speculation.
Frequently Asked Questions
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What are penny stocks?
Penny stocks are shares of smaller companies, typically priced under Rs. 10, known for their affordability and growth potential.
-
Are penny stocks suitable for all investors?
While they can offer high returns, penny stocks are best suited for experienced investors due to their inherent risks and volatility.
-
How can I choose the best penny stocks?
Focus on factors like market activity, sector performance, and the company’s financial health before investing.
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What is the biggest risk in investing in stocks under Rs. 10?
The biggest risk is high volatility, which can lead to significant short-term losses.
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Where can I find information on active penny stocks on Enrich Money?
Enrich Money provides in-depth stock analysis, including active penny stocks, through its user-friendly platform. You can access detailed stock data, charts, and performance metrics to make informed investment decisions.
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Disclaimer: This blog is dedicated exclusively for educational purposes. Please note that the securities and investments mentioned here are provided for informative purposes only and should not be construed as recommendations. Kindly ensure thorough research prior to making any investment decisions. Participation in the securities market carries inherent risks, and it's important to carefully review all associated documents before committing to investments. Please be aware that the attainment of investment objectives is not guaranteed. It's important to note that the past performance of securities and instruments does not reliably predict future performance.
