Penny Stocks in COVID-19

 

Due to COVID-19 Pandemic share markets has fallen considerably and has recovered considerably but there are few stocks which become penny stocks and are on path recovery after such a big fall in the valuations of these companies, but despite fall these companies have strong fundamentals. There are few stocks which can rise to their previous highs and even scope of improvement:-

1.       Sadbhav Engineering Limited:-

This company is based in Ahmedabad Gujarat and this company is founded by Vishnubhai Patel in year 1988. This company is field of construction of roads, Highways, Bridges, Mining and irrigation related projects. Stock of company has made high of Rs. 440 Rs/share on Jan 11, 2018 and low of Rs. 23.25 in April,2020 during COVID-19. Since then after lockdown period get over stock has gained some momentum and is trading at Rs.53.80 per share, This stock will give good returns in near terms as projects has been started and government is focused on Infrastructure. Company financial deteriorated considerably in recent past as company has clocked losses of Rs. 123 crores in Q1 2020-21. But with changing scenario company fundamentals will improve in near term.

2.       Prakash Pipes limited:-

Prakash Pipes limited is group company of Prakash Industries and has been recently separated from Prakash Industries and get listed as separate entity on stock market. This company is in business of manufacturing of PVC pipes and fittings since 1981. These manufacture wide range of products such as Garden Pipes, SWR pipes, Plumbing pipes, Column Pipes, Agri pipes etc. Company has recently started Flexible packaging which consists of packaging films and laminates which provides enhanced print quality and good aesthetics and improved shelf life which has picked up sales specially during COVID-19 period and even after that.

Company share has fallen to as low as Rs. 21.60 per share and now rising to make to new highs of Rs. 86 per share. Company is clocking good nos. as well during Jun’2020 quarter company clocked profit of Rs. 7 crores. Company is clocking good profits from last 5 quarters and company is giving dividend of Rs. 1.20 per share every year which good yield. So this company will outperform its peers and will be outperformer in near terms.