Top Performing Penny Stocks of May 2024
Jun 1, 2024
Image Source: ChatGPTWhy do investors love penny stocks more than large-cap stocks?
Simple.
Large caps tend to move in slooooowwwww motion.
While penny stocks move in fast motion.
For example…
Take Hindustan Unilever (HUL).
It’s taken the FMCG giant 5 years to gain over 50%.
But just last month…
A Rs 10 stock almost doubled to Rs 19.
In today’s article, we’ll look at the top performing penny stocks of May 2024.
Remember… if the momentum is strong and if there’s strong investor participation, you could expect these stocks to do well at least for the next couple of weeks.
#1 RattanIndia Power
First on the list is RattanIndia Power.
On 2 May 2024, the company’s stock price was trading at Rs 9.22. Yesterday, it closed at Rs 19.18.
That’s a 108% gain in 1 month!
Most of the gains could be attributed to a steep jump in the company’s bottomline.
The company recently reported a consolidated profit of Rs 106.7 billion (bn) in the March 2024 quarter, mainly due to exceptional gain.
The company had reported a loss of Rs 4.8 bn in the year-ago quarter.
For FY24, the company’s total income rose to Rs 37 bn from Rs 35.6 bn in the year-ago period.
Apart from strong earnings, closure of its foreign subsidiaries has boosted sentiment.
RattanIndia Power recently announced closure of its three foreign subsidiaries Bracond, Renemark, and Genoformus, in Cyprus. The company said these subsidiaries had no revenue in the last financial year.
This move comes as part of the company’s strategic restructuring efforts to streamline its operations and optimise its corporate structure.
Apart from that, the healthy operational performance put up by the power company has given investors some hope.
Despite all this, investors should not forget that it has a history of repeat losses since 2013.
It also debt on its books. The company’s total debt stands at Rs 109 bn as of September 2023.
Besides this, its interest coverage ratio (ability to repay debt) stands extremely low at 0.26x.
The promoters have already pledged more than 88% of their holding.
#2 Ashima
Next on the list is Ashima.
The company’s share price rallied from Rs 22.3 to Rs 31 in a month, registering 37% gains.
The gains could be attributed to in-line earnings posted by the textile player.
Compared to a loss of Rs 70 million last year, the company registered a profit of Rs 966 million in FY24.
This includes a one-off (first-time recognition of deferred tax assets).
The company’s operational performance improved across all business segments. The real estate division also started booking revenue for its maiden project “Swan Lake”.
Meanwhile, the textile business showed recovery.
Its investment division also reported substantially improved profitability, consistently outperforming all benchmark indices.
Ashima is engaged in the manufacture of 100% cotton yarn dyed shirting fabrics, denim fabrics and readymade garments as well as processing of textile fabrics.
It also makes investment in equity shares with a long-term perspective with the philosophy of value investment.
As of March 2024, promoter holding in the company stands at 73.5%.
#3 Mcnally Bharat Engineering
Third on this list is Mcnally Bharat Engineering.
Shares of the company rose from Rs 3.8 per share to Rs 5.11 per share in a month.
Shares have remained in focus since the start of this year when the bankruptcy court approved its acquisition by BTL EPC.
McNally Bharat Engineering is one of the established engineering companies in India, headquartered in Kolkata.
It provides turnkey solutions to sectors including power, steel, alumina, port cranes, civic and industrial water supply, etc.
The BM Khaitan family-controlled company could remain in focus as government’s massive infra thrust comes into play.
It has posted consistent losses though, and the promoter holding is also low at 32.8% with some of the shares being pledged.
It remains to be seen how this infra penny stock performs in the coming days.
#4 Modern Diaries
Next on this list is Modern Diaries.
The company manufactures and sells wide range of milk and milk products.
For liquid milk, the company has a tie-up with Mother Dairy. While ghee is sold through the company’s own retail channel and through bulk sales under its brand name.
In the month of May 2024, Modern Diaries share price rallied over 30%.
The recent gains could be attributed to strong operational performance posted by the company a week ago.
This was on the cards to be honest… usually, dairy and beverages companies benefit in the summer season and Q4 is usually a strong quarter for them. Ice-cream sales and beverage sales likely see a boost during this period.
In financial year 2024, the company posted a record profit of Rs 340 million compared to Rs 120 million in FY23.
As of March 2024, promoter holding stands at 45.7% with 99% of the shares being pledged.
To know more, check out Modern Diaries latest shareholding pattern.
#5 MK Proteins
Last on the list is MK Proteins.
Shares of the company shot up from Rs 10 to Rs 13, registering 29% gains in a month.
The recent gains could be attributed to stellar Q4 and FY24 numbers posted by the company a couple of days ago.
For the quarter ended March 2024, the company’s net profit came in at Rs 58.3 million compared to Rs 24.8 million posted in the December 2023 quarter.
The company has consistently reported strong financial performance since the past 4 years.
Also, the company has a location advantage as its manufacturing facilities are in Gujarat. Since Gujarat is one of the largest producers of groundnut in India, it helps the company procure groundnut from farmers and wholesalers in surrounding locality.
Even though the company has strong growth plans, the company is vulnerable to fluctuation in agro-based raw material prices.
As of March 2024, the company’s promoter holding stood at 74.8%.
Top Performing Penny Stocks of 2024 so Far…
So these were the top performing penny stocks of May 2024.
Apart from that, here’s a list of few other penny stocks that have performed exceptionally well in 2024 so far.
Penny Stocks with Most Gains in 2024 so far
| Company | Current Price | Change in 2024 (%) |
|---|---|---|
| Kisan Mouldings Ltd. | 64.6 | 377% |
| Nitco Ltd. | 70.1 | 124% |
| Manaksia Coated Metals & Industries Ltd. | 63.0 | 118% |
| RattanIndia Power Ltd. | 19.2 | 108% |
| IFCI Ltd. | 58.2 | 101% |
| Sakuma Exports Ltd. | 34.9 | 86% |
| Rathi Steel & Power Ltd. | 55.0 | 76% |
| Ashima Ltd. | 30.7 | 76% |
| Pudumjee Paper Products Ltd. | 88.3 | 71% |
| Vardhman Polytex Ltd. | 9.6 | 65% |
| TPL Plastech Ltd. | 84.2 | 64% |
Since you’re interested in penny stocks, check out the below screens on Equitymaster’s stock screener.
We have a separate section specifically for penny stocks.
In Conclusion
The recent rally in these penny stocks in 2024 has attracted attention from investors.
While short-term gains may be attractive, it is crucial to carefully assess the potential risks and long-term viability of these investments before deciding.
Investing always involves a certain degree of risk, and it’s crucial to weigh the pros and cons before taking the plunge.
For more, watch the below video where penny stocks expert Rahul Shah talks about 3 penny stocks and why they should be on your watchlist.
Happy Investing!
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here…
Yash Vora is a financial writer with the Microcap Millionaires team at Equitymaster. He has followed the stock markets right from his early college days. So, Yash has a keen eye for the big market movers. His clear and crisp writeups offer sharp insights on market moving stocks, fund flows, economic data and IPOs. When not looking at stocks, Yash loves a game of table tennis or chess.
Read More: Top Performing Penny Stocks of May 2024