Investing in stocks priced under ₹100 offers an attractive opportunity for high returns. These penny stocks have the potential to deliver multibagger gains. In this article, we analyze Patel Engineering, Rattan India, and Ujjivan Small Finance Bank—three stocks that have shown robust growth potential.
1. Patel Engineering
- High TTM EPS Growth: The company has showcased strong growth in earnings per share, signaling robust profitability.
- Capital Efficiency: Patel Engineering has effectively utilized its capital, with RoCE improving over the last two years, signaling efficient management.
- ROA and ROE Growth: The company’s Return on Assets (ROA) and Return on Equity (ROE) have been improving steadily, showcasing asset and shareholder fund efficiency.
- Profit Growth: The company has shown growth in quarterly net profit with rising profit margins, making it a strong candidate for long-term investors.
- FII/Institutional Interest: Increasing institutional investments further add to investor confidence.
2. Rattan India
- CANSLIM Criteria: Rattan India passes the majority of the CANSLIM investment criteria, a popular stock-picking strategy used by growth investors.
- High TTM EPS Growth: The stock has shown strong EPS growth, both on a quarterly and annual basis.
- Profitability: The company has displayed rising net profit margins, both on a quarterly and trailing twelve-month (TTM) basis, indicating strong financial performance.
- Net Profit Growth: Rattan India has consistently reported growth in net profit with increasing profit margins on a quarter-over-quarter (QoQ) and year-over-year (YoY) basis.
- Cash Flow: The company has been able to generate positive net cash flow, with cash from operations improving for the last two years.
- Institutional Investment: FII/FPI and institutional investors have been increasing their stake, a positive sign of trust in the company’s long-term prospects.
- Operating Margins: The company reported growth in operating profit along with increasing operating margins YoY in recent results, further supporting its investment potential.
3. Ujjivan Small Finance Bank
- Low Debt: Ujjivan has maintained a low debt profile and is actively working to reduce it, making it financially stable.
- Revenue Growth: The company has recorded consistent revenue growth for the past four quarters.
- Improving Profits: Annual net profits have been improving over the last two years, signaling the company’s strong performance in the competitive small finance sector.
- Zero Promoter Pledge: Ujjivan’s management has no promoter pledge, ensuring investor confidence.
- High Dividends: Offering high dividend yields, Ujjivan is a great pick for income-seeking investors.
Why These Stocks Are Potential Multibaggers
These three stocks have strong fundamentals, solid growth potential, and increasing institutional interest, making them worthy candidates for multibagger returns. Patel Engineering excels in capital and asset management, Rattan India boasts strong profitability and net cash generation, and Ujjivan Small Finance Bank offers a combination of steady growth and high dividends.
Investors looking for promising stocks under ₹100 should keep an eye on Patel Engineering, Rattan India, and Ujjivan Small Finance Bank. These stocks have the potential to provide significant returns and could be valuable additions to any portfolio looking for multibagger opportunities.
