4 Penny Stocks Under ₹20 With High ROE & ROCE of More Than 20%

People choose penny stocks because of the appeal of potentially high returns, the ability to buy a large number of shares with a small investment, and the thrill of investing in companies that can experience significant growth.

However, due to the illiquidity of penny stocks, the stock can reach its designated circuit levels with only a small increase in the volume of transactions. Even if the stock prices are within the usual buying range for investors and offer huge potential profits, penny stocks are quite dangerous for retail investors. So choose and invest wisely.

Below are some penny stocks available under Rs. 20 with high ROE and ROCE

Integra Essentia Limited is engaged in the trading of essential commodities such as food, clothing, infrastructure, energy and many more products and services required to sustain modern life.

With a market capitalization of Rs. 401 Crores, shares of Integra Essentia Limited closed at Rs. 3.76 per share, down 0.53 percent from the previous day’s closing price of Rs. 3.78.

Operating revenue grew by 38.71 percent from Rs. 67.27 Crores in Q4FY23 to Rs. 93.31 Crores in Q4FY24, accompanied by profits from Rs. 1.69 Crores to Rs. 5.92 Crores.

In terms of Return ratios, it has reported a return on equity (ROE) of 15.9 percent and a return on capital employed (ROCE) of 17.1 percent. It has reported a debt-to-equity ratio of 0.06.

Seacoast Shipping Limited is mainly engaged in providing logistics services to importers and exporters. It focuses on dry bulk logistics, container freight forwarding and inland road logistics.

With a market capitalization of Rs. 299 Crores, shares of Seacoast Shipping Limited closed at Rs. 5.56 per share, down 0.71 percent from the previous day’s closing price of Rs. 5.60.

Operating revenue grew by 8.24 percent from Rs. 115.50 Crores in Q4FY23 to Rs. 125.02 Crores in Q4FY24, accompanied by profits from Rs. 1.22 Crores to Rs. 7.50 Crores.

In terms of Return ratios, it has reported a return on equity (ROE) of 21.4 percent and a return on capital employed (ROCE) of 28.3 percent. It has reported a debt-to-equity ratio of 0.24.

MK Proteins Limited is engaged in the production and supply of refined vegetable oils and by-products, through the refining of rice bran, cottonseed, soya beans and many more.

With a market capitalization of Rs. 292 Crores, shares of MK Proteins Limited closed at Rs. 146 per share, down 3.38 percent from the previous day’s closing price of Rs. 151.10.

Operating income declined by 22 percent from Rs. 315 Crores in FY23 to Rs. 246 Crores in FY24, while profit stood at Rs. 11 Crores in both the years.

In terms of Return ratios, it has reported a return on equity (ROE) of 20.1 percent and a return on capital employed (ROCE) of 18.8 percent. It has reported a debt-to-equity ratio of 0.33.

Captain Pipes Limited is engaged in the manufacture and sale of unplasticized polyvinyl chloride (UPVC) pipes and fittings. It offers a wide range of piping solutions for agricultural, plumbing, drainage and other applications

With a market capitalization of Rs. 265 Crores, shares of Captain Pipes Limited closed at Rs. 17.94 per share, down 0.77 percent from the previous day’s closing price of Rs. 18.08.

Operating income declined by 4.57 percent from Rs. 21.23 Crores in Q4FY23 to Rs. 20.26 Crores in Q4FY24, accompanied by profits of Rs. 96 Lakhs to Rs. 91 Lakhs.

In terms of Return ratios, it has reported a return on equity (ROE) of 17.5 percent and a return on capital employed (ROCE) of 25 percent. It has reported a debt-to-equity ratio of 0.23.

Written by Bharath KS

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