Investing

It’s crucial to monitor the worth of the stocks as well as their price when investing in the stock market. In general, many investors choose stocks with cheaper stock market prices.
Keep in mind that stocks with lower prices typically have greater danger than those with higher prices. Low-priced securities are not precisely defined, though.
However, according to several financial experts, stocks with a price of less than Rs 20 are regarded as low-priced stocks. On the other hand, high-priced securities are those with a price tag of more than Rs 500.
Potential investors are drawn to the comparatively cheaper stocks because they can purchase a greater number in a smaller amount.
This piece will explain the distinction between low-priced and expensive stocks and which stocks deliver in detail.

Difference between High and Low Priced Stock?

Risk

It’s crucial to monitor the worth of the stocks as well as their price when investing in the stock market. In general, many investors choose stocks with cheaper stock market prices.
Keep in mind that stocks with lower prices typically have greater danger than those with higher prices. Low-priced securities are not precisely defined, though.
However, according to several financial experts, stocks with a price of less than Rs 20 are regarded as low-priced stocks. On the other hand, high-priced securities are those with a price tag of more than Rs 500.
Potential investors are drawn to the comparatively cheaper stocks because they can purchase a greater number in a smaller amount.
This piece will explain the distinction between low-priced and expensive stocks and which stocks deliver in detail.

Regulations

The Security and Exchange Board of India (SEBI) keeps track of all stock market action. Because they are the focus of interest in the market, high-priced stocks receive more scrutiny, whereas low-priced stocks receive little attention from investors. Most of the time, they do not even have a file with SEBI and are not listed on important stock exchanges.It’s crucial to monitor the worth of the stocks as well as their price when investing in the stock market. In general, many investors choose stocks with cheaper stock market prices.
Keep in mind that stocks with lower prices typically have greater danger than those with higher prices. Low-priced securities are not precisely defined, though.

Volatility

The typical stock price will fluctuate when there is volatility. Since low-priced equities are less expensive, they are viewed as being very volatile. Since they frequently rise and fall in value over brief periods of time, it stands to reason that their prices will drop quickly.
As a result, investors seeking safety and reliable companies do not favour cheap stocks. On the other hand, expensive equities behave differently from inexpensive stocks.
The Security and Exchange Board of India (SEBI) keeps track of all stock market action. Because they are the focus of interest in the market, high-priced stocks receive more scrutiny, whereas low-priced stocks receive little attention from investors.

Affordability

All new investors who have just joined the stock market can typically afford the low-priced stocks.
Due to their simplicity in purchase and management, novice investors favour low-priced stocks to those that are highly priced. On the other hand, there are some limitations on the entrance of new investors in the case of blue-chip stocks.
Due to their portfolios or other significant factors, many new investors are unable to expand their investment in expensive stocks.VoAll new investors who have just joined the stock market can typically afford the low-priced stocks.

Which Stocks Deliver Higher Returns To Investors?

For every investor, returns are the factor that counts most when it comes to investments. The greatest indicator isn’t always the stock’s retail price.
Low-priced stocks occasionally have a chance to increase in value and provide buyers with returns, but this is extremely unlikely.
High-priced securities, on the other hand, are worth more than Rs 500. The majority of investors trust these stocks because they have the potential to provide better returns.
Pricey equities have proven to be highly profitable in both the short- and long-term. Investors must initially make a sizable expenditure for higher-priced stocks.
All beginning buyers can typically afford the low-priced stocks.

Brokerage firms Antique started a buy on Arvind Smartspace, JPMorgan kept an overweight rating on Bajaj Auto, and IDBI Capital also started covering on Coforge with a buy rating.

From ETNow and other sources, we have compiled a list of the best brokerage firms’ recommendations:

On Bajaj Auto, JPMorgan says: Overweight | Target: Rs. 4400 | Upside 16%

Let us Look at the Fundamentals

Profit & Loss

Consolidated Figures in Rs. Crores / View StandalonePRODUCT SEGMENTS

	Mar 2011	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	TTM
Sales +	16,408	19,582	20,025	20,137	21,595	22,574	21,755	25,210	30,358	29,919	27,741	33,145	35,501
Expenses +	13,229	15,901	16,370	15,974	17,467	17,781	17,326	20,364	25,160	24,809	22,803	27,886	29,347
Operating Profit	3,179	3,681	3,656	4,163	4,128	4,793	4,429	4,846	5,198	5,109	4,938	5,259	6,154
OPM %	19%	19%	18%	21%	19%	21%	20%	19%	17%	17%	18%	16%	17%
Other Income +	1,386	502	790	674	228	1,194	1,468	1,404	2,028	1,832	1,570	2,671	1,788
Interest	2	23	1	1	6	1	1	1	4	3	7	9	27
Depreciation	124	147	168	181	267	307	307	315	266	246	259	270	280
Profit before tax	4,438	4,013	4,277	4,655	4,083	5,679	5,588	5,933	6,956	6,692	6,241	7,652	7,636
Tax %	23%	25%	29%	31%	31%	28%	27%	29%	29%	22%	22%	19%
Net Profit	3,455	3,048	3,133	3,380	3,026	4,061	4,079	4,219	4,928	5,212	4,857	6,166	5,882
EPS in Rs	119.39	105.35	108.26	116.82	104.56	140.35	140.98	145.80	170.29	180.11	167.85	213.08	204.41
Dividend Payout %	34%	43%	42%	43%	48%	39%	39%	41%	35%	67%	83%	66%

Compounded Sales Growth
10 Years:	5%
5 Years:	9%
3 Years:	3%
TTM:	5%

Compounded Profit Growth
10 Years:	6%
5 Years:	6%
3 Years:	5%
TTM:	-2%

Stock Price CAGR
10 Years:	9%
5 Years:	7%
3 Years:	25%
1 Year:	6%

Return on Equity
10 Years:	25%
5 Years:	21%
3 Years:	21%
Last Year:	19%

Balance Sheet

Consolidated Figures in Rs. Crores / View StandaloneCORPORATE ACTIONS

	Mar 2011	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Sep 2022
Share Capital +	289	289	289	289	289	289	289	289	289	289	289	289	284
Reserves	4,518	5,792	7,776	9,878	10,806	13,731	17,567	20,136	22,944	21,373	26,984	29,570	25,753
Borrowings +	347	150	116	59	112	118	120	121	125	126	121	123	124
Other Liabilities +	3,994	4,894	4,461	5,081	4,758	3,102	3,661	4,595	5,476	4,722	6,207	5,129	6,356
Total Liabilities	9,149	11,126	12,642	15,308	15,966	17,240	21,638	25,141	28,834	26,510	33,602	35,111	32,516
Fixed Assets +	1,855	1,920	2,355	2,660	2,448	2,026	2,002	1,878	1,764	1,699	1,668	1,836	1,787
CWIP	70	42	294	144	255	52	42	56	48	60	16	77	222
Investments	4,211	4,473	6,059	8,448	8,985	11,067	15,477	18,895	20,603	19,914	24,687	26,634	22,786
Other Assets +	3,013	4,692	3,934	4,056	4,277	4,095	4,117	4,312	6,420	4,837	7,232	6,564	7,721
Total Assets	9,149	11,126	12,642	15,308	15,966	17,240	21,638	25,141	28,834	26,510	33,602	35,111	32,516

Most brokerage houses stay optimistic about the stock in light of the combined PVR-INOX, which has a share of 43% in multiplex screens and 50%+ in multiplex box office, an improving slate of Hindi films, and a solid pipeline for the entire film industry in FY24. Following the company’s first investor conference following the merger, shares of PVR rose as much as 3% during the day, reaching $1,574.95 per share. On Wednesday, the price increased by 0.94 percent to $1,542.05 per share.

Let us look at the Fundamentals

Profit & Loss

Consolidated Figures in Rs. Crores / View StandalonePRODUCT SEGMENTS

	Mar 2011	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	TTM
Sales +	459	518	806	1,348	1,477	1,850	2,119	2,334	3,086	3,414	280	1,331	3,146
Expenses +	370	441	688	1,133	1,271	1,551	1,799	1,933	2,499	2,338	616	1,225	2,262
Operating Profit	90	76	119	215	206	299	320	401	587	1,076	-336	106	884
OPM %	20%	15%	15%	16%	14%	16%	15%	17%	19%	32%	-120%	8%	28%
Other Income +	10	10	6	11	2	45	52	30	32	38	469	326	100
Interest	16	18	37	80	78	84	81	84	128	482	498	498	508
Depreciation	67	36	56	94	117	115	138	154	191	542	575	614	626
Profit before tax	16	31	32	52	12	145	153	194	299	90	-939	-681	-150
Tax %	98%	18%	-39%	4%	7%	32%	37%	36%	37%	70%	20%	28%
Net Profit	0	25	44	50	12	99	96	124	189	27	-748	-489	-108
EPS in Rs	2.80	9.08	10.47	12.71	2.86	19.58	19.08	24.84	37.81	4.95	-123.07	-80.04	-17.56
Dividend Payout %	33%	61%	9%	18%	33%	10%	10%	8%	5%	75%	0%	0%

Compounded Sales Growth
10 Years:	10%
5 Years:	-9%
3 Years:	-24%
TTM:	223%

Compounded Profit Growth
10 Years:	%
5 Years:	%
3 Years:	%
TTM:	84%

Stock Price CAGR
10 Years:	18%
5 Years:	4%
3 Years:	15%
1 Year:	-21%

Return on Equity
10 Years:	-6%
5 Years:	-13%
3 Years:	-26%
Last Year:	-32%

Balance Sheet

Consolidated Figures in Rs. Crores / View StandaloneCORPORATE ACTIONS

	Mar 2011	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Sep 2022
Share Capital +	27	26	40	41	42	47	47	47	47	51	61	61	61
Reserves	314	257	603	358	368	835	918	1,029	1,449	1,429	1,773	1,309	1,318
Borrowings +	162	203	657	613	747	660	820	831	1,282	5,066	5,003	5,196	5,291
Other Liabilities +	153	126	287	340	273	356	440	442	1,062	881	665	757	646
Total Liabilities	656	613	1,586	1,352	1,429	1,897	2,225	2,348	3,840	7,428	7,502	7,323	7,316
Fixed Assets +	368	273	996	820	860	1,000	1,509	1,590	2,742	5,886	5,475	5,407	5,360
CWIP	58	88	145	107	80	76	106	102	221	155	217	64	104
Investments	1	1	38	24	2	2	2	21	11	2	1	0	0
Other Assets +	230	252	407	402	486	820	609	636	866	1,385	1,808	1,851	1,852
Total Assets	656	613	1,586	1,352	1,429	1,897	2,225	2,348	3,840	7,428	7,502	7,323	7,316

Exchange-traded funds (ETFs), bonds, derivatives, and other financial assets can all be traded on the stock exchange, an electronic marketplace. With the aid of brokers, it creates a market place for investors and traders to exchange and list securities.

The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) handle the majority of the trading volume of listed securities in the Indian equity share market.

After the stock exchanges of Hong Kong, China, and Japan, the major market exchanges in India, the BSE and NSE, are among the biggest stock exchanges in Asia.

Market capitalization, the number of listed businesses, traded products, liquidity of listed securities, and benchmark index are the main areas of distinction between NSE and BSE.

What is NSE?

By market capitalization, the National Stock trading (NSE) is India’s largest stock trading market. It was the first stock exchange in India to create a fully automated, electronic, or screen-based trading system. It was founded in 1992 and granted stock exchange status in 1993.

The distribution of actual share certificates became obsolete when the extensive paper-based trading system was eventually superseded by the electronic trading system.

NIFTY, also known as National Fifty, is the stock exchange’s benchmark indicator. NIFTY, which was introduced in 1995–1996 and is based on the market capitalization of fifty of the most actively traded businesses listed on the National Stock Exchange, provides its value.

The Nifty 50 monitors the sixteen hundred stocks listed on the NSE’s fifty largest and most liquid companies. There are fifty biggest stocks.

What is BSE?

The Bombay Stock Exchange was first known as “The Native Share and Stock Brokers Association” when it was founded in 1875. It is the older sibling of the NSE and Asia’s first stock market. BSE didn’t switch from the open-cry system to completely electronic trading until 1995.

Like the NSE, the BSE has a benchmark indicator called the SENSEX. (Sensitive Index). A weighted average value of the top thirty companies listed on the stock exchange, it was first presented in 1986. Along with Eurex, the SENSEX is traded globally on numerous prestigious exchanges in China, Russia, Brazil, and South Africa.

There are numerous divisions of the Bombay Stock Exchange. With over 250 companies, the BSE SME platform is the biggest in India.

Updates on the cold maintenance of the furnace at GMB Glasmanufaktur Brandenburg GmbH from Stock Report Borosil Renewables Ltd. sharing icon for Facebook Twitter sharing icon for sharing Twitter sharing icon on Pinterest Share this icon can be pinned. WhatsApp sharing icon for sharing Email sending button for sharing Updates on the cold maintenance of the furnace at GMB Glasmanufaktur Brandenburg GmbH from Borosil Renewables Ltd. There was a glass leakage incident from GMB’s furnace on July 31, 2022, prior to the purchase of a majority stake of 86% (through wholly owned subsidiaries) in GMB Glasmanufaktur Brandenburg GmbH (GMB) and Interfloat Corporation (Interfloat) in October 2022. GMB runs its manufacturing plant in Tschernitz, Germany, with a single furnace that can produce 300 tonnes per day (TPD).

Let us look at the Fundamentals

Profit & Loss

Standalone Figures in Rs. Crores / View Consolidated

	Mar 2011	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	TTM
Sales +	118	126	134	156	175	222	267	296	217	271	502	644	680
Expenses +	898	127	131	146	168	212	248	255	182	234	305	399	497
Operating Profit	-780	-1	3	9	7	10	19	41	34	37	197	245	183
OPM %	-664%	-1%	2%	6%	4%	5%	7%	14%	16%	14%	39%	38%	27%
Other Income +	1,582	42	25	36	62	11	126	35	30	3	5	20	18
Interest	2	0	0	0	0	1	1	0	0	7	8	3	4
Depreciation	1	1	2	4	5	5	6	5	18	32	42	42	43
Profit before tax	799	40	26	42	64	15	138	70	46	1	153	220	155
Tax %	19%	20%	24%	11%	23%	-4%	8%	34%	-0%	64%	41%	25%
Net Profit	648	33	20	37	49	16	127	46	46	0	90	166	123
EPS in Rs	40.49	2.62	1.65	3.10	4.10	1.69	13.77	5.02	5.01	0.04	6.89	12.72	9.45
Dividend Payout %	2%	14%	23%	16%	15%	37%	5%	12%	13%	0%	0%	0%

Compounded Sales Growth
10 Years:	18%
5 Years:	19%
3 Years:	44%
TTM:	3%

Compounded Profit Growth
10 Years:	23%
5 Years:	32%
3 Years:	53%
TTM:	-34%

Stock Price CAGR
10 Years:	58%
5 Years:	48%
3 Years:	132%
1 Year:	-31%

Return on Equity
10 Years:	8%
5 Years:	12%
3 Years:	17%
Last Year:	24%

Balance Sheet

Standalone Figures in Rs. Crores / View ConsolidatedCORPORATE ACTIONS

	Mar 2011	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Sep 2022
Share Capital +	4	3	3	3	3	2	2	2	9	11	13	13	13
Reserves	663	621	624	654	694	634	769	819	323	315	602	772	828
Borrowings +	0	0	2	1	2	33	0	0	42	92	79	157	213
Other Liabilities +	30	36	30	33	50	37	41	65	51	75	89	113	137
Total Liabilities	696	659	659	691	750	705	813	887	425	494	783	1,055	1,192
Fixed Assets +	8	34	80	173	156	158	109	108	117	345	320	278	262
CWIP	3	47	14	6	6	5	5	4	125	1	4	297	600
Investments	496	425	409	380	445	380	454	509	46	7	280	214	24
Other Assets +	189	153	155	132	143	162	245	266	138	141	178	267	305
Total Assets	696	659	659	691	750	705	813	887	425	494	783	1,055	1,192

Shares of KPIT Technologies tumbled over 17% to Rs 760 in Monday’s trade on BSE after the global brokerage firm JPMorgan initiated coverage on the stock with an underweight rating and a target price of Rs 520, a potential downside of 44% from Friday’s closing price of Rs 925.

JPMorgan’s target for the stock is driven by lower structural margins, risks from single vertical and high client concentration, and excessive valuations, according to media reports.The average price estimate for the stock, according to Trendlyne data, is Rs 786, down 15% from Friday’s closing price of Rs 925. KPIT Technologies’s average rating from 11 analysts is a hold. Of these experts, three have strong sell and sell ratings, three have strong buy and buy ratings, and one has a hold rating. Seven analysts have strong buy and buy ratings. At 2.49 a.m., the stock was trading 14.4% lower than its previous day’s ending price of 925 rupees per share, at Rs. 792. On the other hand..

Let us look at the Fundamentals

Profit & Loss

Consolidated Figures in Rs. Crores / View StandaloneGEOGRAPHICAL SEGMENTS

	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	TTM
Sales +	0	641	2,156	2,036	2,432	2,999
Expenses +	0	550	1,866	1,729	1,994	2,440
Operating Profit	-0	92	290	307	439	560
OPM %		14%	13%	15%	18%	19%
Other Income +	0	1	19	21	45	62
Interest	0	7	20	17	19	29
Depreciation	0	19	108	133	120	135
Profit before tax	-0	67	181	178	345	458
Tax %	0%	18%	18%	17%	20%
Net Profit	-0	55	148	147	276	356
EPS in Rs	-27.00	1.98	5.38	5.33	10.00	12.72
Dividend Payout %	0%	37%	18%	28%	31%

Compounded Sales Growth
10 Years:	%
5 Years:	%
3 Years:	56%
TTM:	29%

Compounded Profit Growth
10 Years:	%
5 Years:	%
3 Years:	50%
TTM:	41%

Stock Price CAGR
10 Years:	%
5 Years:	%
3 Years:	178%
1 Year:	33%

Return on Equity
10 Years:	%
5 Years:	%
3 Years:	17%
Last Year:	21%

Balance Sheet

Consolidated Figures in Rs. Crores / View StandaloneCORPORATE ACTIONS

	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Sep 2022
Share Capital +	0	268	269	269	270	270
Reserves	-0	691	780	938	1,040	1,122
Borrowings +	0	132	204	230	227	186
Other Liabilities +	0	582	384	531	799	862
Total Liabilities	0	1,674	1,637	1,968	2,336	2,441
Fixed Assets +	0	420	526	577	641	678
CWIP	0	1	5	12	0	2
Investments	0	50	9	127	129	128
Other Assets +	0	1,204	1,096	1,251	1,566	1,633
Total Assets	0	1,674	1,637	1,968	2,336	2,441

Cash Flows

Consolidated Figures in Rs. Crores / View Standalone

	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022
Cash from Operating Activity +	-0	151	389	628	475
Cash from Investing Activity +	0	16	-136	-503	-292
Cash from Financing Activity +	0	34	-177	-115	-127
Net Cash Flow	0	201	75	10	56

The Chicago Board of Options Exchange Volatility Index, or VIX, is a gauge for stock market volatility and investor sentiment.

The VIX strives to predict market volatility through the lens of options trades.

What Is the VIX and How Does It Measure Volatility?

The Volatility Index of the Chicago Board of Exchange is referred to in finance as VIX. This index serves as a general benchmark for stock market volatility and gauges S&P 500 index options. The trading environment is more choppy the higher the index level, thus its other moniker, the fear index, is rather appropriate.

Based on a snapshot of trade behaviour over the preceding 30 days, it gauges expected future volatility.

What Do the VIX Numbers Mean?

• Typically, a VIX reading of 20 or more is regarded as “high.”
• The VIX is often regarded as “low” below 12.
• Any age between 12 and 20 is regarded as “normal.”

Put options provide investors the right to sell shares of a stock on a given date at a specific price, therefore investing in a put option is equivalent to betting that the price of a stock will decrease before the put contract expires.

These are investments that can profit from negative feelings like dread; they are bearish. Because it is widely believed that volatility may have peaked or reached a turning point, there is a saying on Wall Street that goes, “When the VIX is high, it’s time to buy.”

In other words, a dropping VIX number means that the stock market’s general mood is more upbeat or positive. The VIX should be thought of as a percentage even though it isn’t expressed that way. At a VIX of 22, the implied volatility for the SPX is 22%.

How Is the VIX Calculated? What Is the VIX Formula?

The VIX is composed of a continually shifting portfolio of SPX options, unlike the S&P 500 index, which is made up of specific equities. It uses both normal weekly SPX options and those with Friday expirations. Further information on the Chicago Board of Options’ process and selection criteria can be found on the website.

How Do I Interpret the VIX?

There are various ways to read the VIX, but it’s crucial to remember that it’s a theoretical index and not a forecasting tool. Fear, the emotion it tracks, is not even something that can be quantified by concrete facts like the most recent Consumer Price Index. Instead, the VIX uses option pricing to predict how the market will behave in the future.

“The VIX does not measure actual volatility, but rather, implied volatility.”

It’s also critical to comprehend how strongly emotions can influence the stock market. For instance, during earnings season, a company may post strong growth but face a sharp decline in its value because it fell short of analyst expectations. Investors trying to preserve their interests by selling their shares, which lowers prices, is an indication of fear.

At its worst, fear-driven selling has the potential to crash the market and trigger feelings of panic that may lead to capitulation.

But, the VIX is not meant to elicit fear.

Can the VIX Go Above 100?

Although it hasn’t done so since data collection started in 1990, theoretically the VIX can rise over 100.

The VIX attained its two highest points at the following times:

1. The VIX peaked 89.53 on October 24, 2008, at the height of the Financial Crisis, which resulted from the global collapse of mortgage-backed securities.
2. The VIX peaked at 82.69 on March 16, 2020, at the start of the COVID-19 pandemic.

Experts also contend that the VIX would have reached 100 on Monday, October 19, 1987, during the Black Stock Market Collapse if data collection had started in the 1980s.

The VIX is seen in this chart from the Federal Reserve’s data centre, FRED, from 1990 to 2022. Receding areas are indicated by shading:

How Do I Trade the VIX? Can You Buy Options on the VIX?

Investors can invest in derivatives that track the VIX but cannot directly purchase the VIX itself. Examples of these derivatives include exchange-traded funds (ETFs) based on the VIX, such as ProShares VIX Mid-Term Futures ETF (VIXM), and exchange-traded notes (ETNs), such as the iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) and the iPath Series B S& (VXZ).

What Is the VIX at Today?

Visit the daily updated website of the Chicago Board of Options Exchange to see the VIX’s current level.

Penny stocks are frequently the appropriate first stop for novice investors. Penny stocks, as the name suggests, are those businesses that trade with a cheap share price, frequently less than $1. It’s easy to see why novices are drawn in by the idea of investing in a business for a few cents and then profitably selling their shares when the price rises to multiple dollars. Because to the incredibly low prices, an investor can own thousands of shares for a relatively small investment.

But heed this fair warning: Due to their lack of liquidity, wide bid-ask spreads (the amount by which the ask price for an asset exceeds the bid price), small market capitalization, and restricted following and disclosure, such stocks are typically regarded as being highly speculative and high risk.

KEY TAKEAWAYS

• Companies that frequently trade for less than $1 per share are known as penny stocks.
• Because the major stock exchanges, such NYSE and Nasdaq, have listing conditions that must be met, including a minimum share price, penny stocks frequently trade off the major market exchanges.
• Lack of liquidity can be a key problem with penny stocks; it’s not unusual for an investor to become trapped in a position for several days or weeks before there is sufficient supply or demand to enter or leave a position.

Understanding Penny Stocks

A “penny stock” is a securities issued by a small-cap or micro-cap company with a market capitalization of less than $250 million, according to the Securities and Exchange Commission (SEC).
Think of penny stocks as the opposite of blue-chip stocks: they frequently have little or no financial history, or a bad one: The underlying company may be on the verge of bankruptcy. Others define penny stocks as those that trade at less than $5 per share (though some experts choose to adopt a lower cut-off value of $1 per share).

Typically, a penny stock trades off the main stock exchanges. This is due to the large stock exchanges’ listing criteria for the businesses that trade on them, such NYSE and Nasdaq. If a firm fails to maintain a minimum closing bid price of $1 per share after 180 days, Nasdaq will delist its shares.

Narrowing Down Trading Candidates

The next step is to choose which stock to trade once you have a better understanding of where to trade penny stocks. Using stock screening tools, such the one on the OTC Markets website or Finviz, is a common strategy.
The simplest technique to reduce the trading universe is to screen for stocks with a price below $1.

Depending on your approach and level of risk tolerance, you can further narrow the selection down from here.

Your list, based on the filter above, should resemble this once you master using Finviz’s stock screener:

No.	Ticker	Company	Sector	Price ($)
1	ASRT	Assertio Holdings, Inc.	Drug Manufacturers	0.99
2	CPHI	China Pharma Holdings, Inc.	Drug Manufacturers	0.67
3	NEPT	Neptune Wellness Solutions, Inc.	Drug Manufacturers	0.66
4	RMTI	Rockwell Medical, Inc.	Drug Manufacturers	0.65
5	SNDL	Sundial Growers, Inc.	Drug Manufacturers	0.72
6	TLGT	Teligent, Inc.	Drug Manufacturers	0.45
7	TXMD	TherapeuticsMD, Inc.	Drug Manufacturers	0.77
8	ZOM	Zomedica Corp.	Drug Manufacturers	0.60

Opening an Account

When opening a trading account, there are numerous things to take into account, including costs, customer service, and how simple it is to move money. Choose a broker that will fulfil your needs by taking your time to compare their specialisations. The fee structure is one element that penny stock investors should pay close attention to. Some brokers charge commissions based on the number of shares.

A per-share structure might be more appropriate for buyers of a small number of shares, but it might not be the ideal option for penny stock traders.

Understanding the Risks

It’s crucial to comprehend the dangers associated with trading penny stocks. These securities typically don’t have a following in the financial community because the majority of institutional investors, such as mutual funds, index funds, and money managers, are prohibited by charter from trading penny stocks.

Since retail investors frequently become caught in a position for days or weeks before there is enough supply or demand to enter or exit, suffering significant price changes along the way, liquidity is a key concern.

As you can see Bodal Chemicals is currently trading at Rs 57.70 but our experts suggest to wait till it goes above 60 and for the downside one can take position at Rs41.50.

The latest balance sheet data shows that Bodal Chemicals had liabilities of ₹8.04b due within a year, and liabilities of ₹2.66b falling due after that. On the other hand, it had cash of ₹151.5m and ₹5.95b worth of receivables due within a year. So its liabilities outweigh the sum of its cash and (near-term) receivables by ₹4.59b.

Bodal Chemicals has a market capitalization of ₹11.7b, so it could very likely raise cash to ameliorate its balance sheet, if the need arose. But it’s clear that we should definitely closely examine whether it can manage its debt without dilution.

Let us look at the Fundamentals

Profit & Loss

Consolidated Figures in Rs. Crores / View Standalone

	Mar 2011	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	TTM
Sales +	573	614	527	960	1,043	908	1,233	1,142	1,424	1,375	1,226	2,051	1,768
Expenses +	512	610	508	770	859	758	1,007	946	1,187	1,237	1,140	1,831	1,608
Operating Profit	61	4	20	189	184	150	226	196	236	138	87	220	160
OPM %	11%	1%	4%	20%	18%	16%	18%	17%	17%	10%	7%	11%	9%
Other Income +	1	6	4	-70	5	19	15	8	13	10	16	-1	10
Interest	23	35	40	47	27	12	9	5	9	19	17	29	36
Depreciation	14	16	16	25	22	26	29	12	21	28	30	47	50
Profit before tax	25	-41	-33	47	139	131	204	186	219	101	55	142	84
Tax %	33%	27%	30%	35%	34%	34%	35%	33%	35%	15%	28%	31%
Net Profit	17	-30	-23	30	92	86	133	122	141	86	40	99	64
EPS in Rs	1.67	-2.73	-2.12	2.76	8.41	7.88	12.18	10.03	11.72	7.12	3.43	8.79	5.50
Dividend Payout %	32%	0%	0%	0%	0%	8%	7%	8%	7%	11%	23%	9%

Compounded Sales Growth
10 Years:	13%
5 Years:	11%
3 Years:	13%
TTM:	-6%

Compounded Profit Growth
10 Years:	18%
5 Years:	-4%
3 Years:	-8%
TTM:	-38%

Stock Price CAGR
10 Years:	26%
5 Years:	-16%
3 Years:	11%
1 Year:	-47%

Return on Equity
10 Years:	17%
5 Years:	12%
3 Years:	8%
Last Year:	11%

Balance Sheet

Consolidated Figures in Rs. Crores / View StandaloneCORPORATE ACTIONS

	Mar 2011	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Sep 2022
Share Capital +	20	22	37	47	47	22	22	24	25	24	24	24	25
Reserves	48	36	13	43	135	213	341	673	805	907	957	1,031	1,049
Borrowings +	259	345	348	372	209	143	151	181	171	257	454	676	644
Other Liabilities +	222	172	90	156	169	132	193	194	290	267	314	382	357
Total Liabilities	549	575	473	593	534	510	707	1,072	1,290	1,455	1,749	2,113	2,074
Fixed Assets +	272	279	265	168	190	192	222	437	609	656	804	817	803
CWIP	1	2	0	9	3	0	9	19	26	7	14	70	274
Investments	1	0	1	1	2	2	17	17	6	3	6	0	0
Other Assets +	275	294	207	415	339	316	459	599	650	789	924	1,227	997
Total Assets	549	575	473	593	534	510	707	1,072	1,290	1,455	1,749	2,113	2,074

In a bullish market on Friday, the Nifty Pharma index moved in the green around 11:16AM (IST).

Among the top gainers were Granules India (up 5.43%), Glenmark Pharmaceuticals (up 4.43%), Ipca Laboratories (up 2.42%), Glaxosmithkline Pharmaceuticals (up 2.37%), and Sanofi India (up 2.31%).
The biggest losers on the index were Lupin (down 1.33%), Sun Pharmaceutical Industries (down 0.67%), Pfizer (down 0.46%), Gland Pharma (down 0.41%), and Zydus Lifesciences (down 0.22%).

At the time this story was being written, the Nifty Pharma index was up 0.55 percent, standing at 12008.6.

The BSE Sensex increased by 591.23 points to 58551.32, while the benchmark NSE Nifty50 indicator increased by 162.65 points to 17243.35.

Following Covid, analysts noted that the pace of US FDA inspections has once more accelerated and that they have observed a rise in incidents with 483 observations and unfavourable outcomes.