The domestic benchmark indices, the BSE Sensex and the NSE Nifty, have witnessed selling pressure in the recent past but some penny stocks have managed to give stellar returns to the investors. According to data from Capitaline, a score of penny stocks have turned the tide in their favour and delivered more than 100% returns to their shareholders in the past six months as compared to a 3.6% decline in BSE Sensex. These penny stocks are high-risk securities with small market capitalisations, but have zero debt and a track record of solid financial performance.
However, potential investors must do due diligence before investing in penny stocks to ensure that the company has a solid business model which can generate profits under all sorts of conditions.
Let's take a look at these five penny stocks having zero debt (as on September 2021) and have generated higher returns in the last six months:
B.A.G. Films & Media Ltd
The media company has delivered multibagger returns to its investors over the past six months, outperforming Sensex by a huge margin. The company, which manages Studio24 that produces television programmes as well as national Hindi news channel News24, saw its shares jumping 120% over a six-month period, with share price surging from around ₹2.85 to ₹6.25 per share levels. Founded by Anuradha Prasad Shukla, the company had zero debt at the end of September quarter of 2021, while it reported multi-fold growth in net profit at ₹4.60 crore in the latest quarter (December 2021) from ₹4 lakh in the year-ago period. Net sales grew to ₹36.94 crore in December 2021, from ₹25.81 crore in December 2020.
Virtual Global Education
In the last six months, this education stock has risen 170% with share price currently quoting at ₹1.94 on the BSE. It is a zero debt company, engaged in providing technical and vocational secondary education. It has delivered solid financial results in the December quarter of 2021, with profit rising to ₹0.11 crore as compared to ₹0.03 crore in the same period of the previous year.
Yamini Investments Company
The financial investment firm is another penny stock with zero debt. The share price has climbed 320% over the six-month period from ₹0.53 level to ₹2.23 in intraday trade today. During the three months ended December 2021, the company reported a profit after tax of ₹0.25 crore as against ₹0.08 crore in the corresponding period last year.
The firm, engaged in sports promotion and management, has delivered 138% returns to its shareholders over the past six months. The zero-debt company had posted a net profit of ₹0.18 crore in Q3 FY22, compared with ₹0.06 crore in December 2020. Net sales jumped to ₹1.02 crore from ₹0.04 crore in the same period last year. On Monday, Toyam Industries hit a 5% upper circuit at 7.20 on the BSE. It is the only listed company on the BSE from the sports marketing and management sector.
Formed in 1993, the company is engaged in varied activities such as construction, finance, share broking and investments. The Mumbai-based realty company has given 112% returns to its shareholders in the past six months, with the stock price rising from ₹3.76 levels to ₹8 in intraday trade today on the BSE. It has reported a net profit of ₹0.38 crore in Q3 FY22, compared to ₹0.04 crore in the year-ago period. The net sales rose to ₹0.86 crore from ₹0.74 crore in the December quarter of 2020.