The Publicly listed companies with a very low price value that is generally below INR 10. Having such less price value, investors have the opportunity to trade the stocks in a bulk amount and make more money. However, with a higher return, these penny stocks have more risk. Therefore, a person with vast knowledge of the working of penny stocks and the fundamentals and growth opportunity of the company you choose to invest in should only go for penny stocks. Investors must invest in penny stocks carefully, as they can default and carry a lot of risks.
Here are some of the penny stocks that will probably grow in the next year of 2023. Read everything about those penny stocks and then invest in the right one.
Yes bank is definitely one of the best stocks to invest in in 2023. The bank seems stable now as Carlyle Group and Advent International(global private equity firms) have received a nod to become the owner of 9.99 % each. This has happened due to the approval of RBI to hold more than 5% of the bank. Yes Bank also sold their loans worth INR 48,000 cr to JC Flowers Asset Reconstruction Private Limited in September to clean their balance sheet.
Suzlon Energy Ltd
Suzlon Energy has a pile of debt, but if it is considered for penny stocks, it looks promising for 2023. Adani green energy Ltd bagged this company in October after the quarterly profit post with a tax of INR 56.47 cr vs. INR 13.34 cr loss.
Government policies about climate change and companies’ approaches to reducing debt can support Suzlon Energy Ltd stocks to grow and make a profit for investors.
South Indian Bank
It is expected that South Indian Bank to grow more successful in the coming year, 2023. This private bank reduced its assets, which did not add any profit to 2.15% in September 2022. It has been reduced significantly compared to the 3.85% of year on year basis. It also showed a remarkable gain last year. It has given a profit after tax of INR 223.28 cr vs. a loss of 187.09 cr (YoY). Due to its growth in customer base, especially nonresident customers, there is a huge probability of South Indian Bank growing in 2023. The price has risen from INR 7.25 to INR 18.15 on December 9th. This shows the original potential of this penny stock.
This company has a massive debt on them. Hence It has been a complicated penny. It consolidated all laws of INR 303.91 crores in the September quarter. This included debt repayment of 390 cr. The company is looking forward to repaying a debt amount of INR 1500 cr in the coming year. Due to this, it seems that Reliance Power can do well in 2023.
Penny stocks are not for rookies and new stock market players. Your investment can easily evaporate if you choose the wrong company that cannot tackle its odds. Its risky nature makes it more interning for experienced investors. If you have enough knowledge and got some ideas from the above stocks, go for penny stocks without fear and earn a lot of money for yourself.