These five penny stocks have started 2024 with a bang

Investors often gravitate towards penny stocks, seeking high returns on their investment. Penny stocks are low-priced shares, which makes them attractive propositions for investors with limited capital. 

At the start of the year 2024, many penny stocks and small-cap companies caught the attention of market watchers with their strong momentum. In this article, we are going to explore five of the top entities from the penny stocks list that started the year on a high note. 

Top Five Penny Stocks With Strong Starts in 2024

The following list of penny stocks experienced a meteoric rise in their share prices at the beginning of the year 2024. Favourable news, robust financial performance, and good future growth potential could be a few of the key reasons that led to the sharp increase in their prices and demand. Here is a quick overview of the top five penny stocks, including their key financial data.      

1. Alok Industries

Founded in 1986, Alok Industries is the largest vertically integrated textile company in India. The company’s product portfolio includes home textiles, garments, technical textiles, textile accessories, corrugated packaging, polyester, spun yarns, and apparel fabrics, among others. 

The share price of Alok Industries witnessed a sharp rise during the first 10 days of the year 2024. From January 1 to January 10, 2024, the company’s shares went from Rs. 21.50 to Rs. 37.50, a rise of about Rs. 16 (64%). 

One of the primary reasons for this meteoric rise was a capital infusion of about Rs. 33 billion by Reliance Industries Limited. In exchange, the company allotted non-convertible preference shares to Reliance Industries. The Rs. 33 billion capital infusion is expected to help Alok Industries turn profitable in the next few years, making the company one of the best penny stocks to buy from a long-term perspective. 

Now that you are aware of the company, let us look at some of the key financial metrics of Alok Industries Limited. 

Note: Figures in parentheses represent negative values. 

2. Integra Essentia

Integra Essentia, formerly known as Integra Garments & Textiles Limited, is another one of the penny stocks that started 2024 with a bang. The company has four business verticals: FMCG (agro), textiles (clothing), infrastructure, and energy.

Within the first 17 days of January 2024, the company rallied from Rs. 3.63 to Rs. 7.56 per share, an increase of Rs. 3.93 (108%). The driving factor behind this massive share price rally was a 1:1 bonus share issue, for which the company had set a record date of January 11, 2024. 

The second quarter of FY24, especially, has been stellar for Integra Essentia. During the quarter, the company posted strong financial performance, increased its stake in Brewtus Breweries, and received a major order worth Rs. 120 million for agro products.        

Here is a quick overview of the company’s financial performance during the previous two financial years. 

3. Advik Capital

Established in 1985, Advik Capital is a Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India. The company offers a wide range of credit solutions to individuals and businesses. Some of the offerings of Advik Capital include gold loans, property loans, car loans, personal loans, and business loans.  

During the first week of 2024, the company’s shares rallied from Rs. 2.13 per share to Rs. 4.15 per share, an increase of Rs. 2.02 per share (94.83%). One of the reasons behind this incredible rise in Advik Capital’s share price could be the company’s announcement of entering into the Alternative Investment Fund (AIF) space, where it plans to raise Rs. 2.5 billion, with the company investing 10% of the amount.    

Now, let us look at some of the key financial metrics of Advik Capital Limited for the previous two years. 

4. Zeal Aqua

Zeal Aqua is another entity in the penny stocks list that started the year 2024 on a high note. The company is in the business of aquaculture, which involves raising fish and other seafood. Zeal Aqua is one of India’s largest premium seafood suppliers with a total production capacity of more than 1,500 metric tonnes. The company also exports a major part of the seafood it produces to more than 20 different countries. 

During the first two months of 2024, the share price of Zeal Aqua rose sharply from Rs. 8.20 per share on January 1 to Rs. 15.75 per share on February 7, an increase of Rs. 7.55 (92%). The company’s consistently improving financial situation could be one of the factors behind this rally.      

Now that we have looked into the company, let us move on to the key financial metrics of Zeal Aqua Limited for the previous two financial years. 

5. Reliance Power

A part of the Reliance Group of Companies, headed by Anil Dhirubhai Ambani, Reliance Power has the largest under-development power generation portfolio in the private sector in India. The company is in the business of power generation across different mediums. The power projects under its belt include coal-based power, gas-based power, solar power, wind power, and hydroelectricity.   

In just the first week of 2024 alone, the company’s share price went up from Rs. 23.95 per share to Rs. 32.05, a jump of about Rs. 8.10 (33.80%). The surge in Reliance Power’s share price was attributed to possible tariff hikes in the power sector, good financial performance, and significant strides towards renewable energy generation. The company is one of the top penny shares to buy from a long-term perspective.  

Here are some crucial financial metrics of Reliance Power Limited for the previous two financial years.

Note: Figures in parentheses represent negative values. 

Conclusion

Although the five penny stocks discussed above started the year off on a high note, their share prices have undergone corrections since then. However, each company has shown promise in its respective sector and can be considered a potential long-term investment. That said, it is important to remember that penny stocks, by their nature, carry higher risks compared to more established, higher-priced stocks. It is advisable to conduct thorough research into the company before investing in any penny stock.

The Research 360 platform of Motilal Oswal can help you with stock research. On the platform, you can find detailed financial and technical information for all penny stocks listed on the Indian stock exchanges. Additionally, you can also compare the performance of the stocks with those of their peers and keep track of the various news and announcements related to them.