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Debt Free Penny Stocks Below 1 Rupee
Top Penny Stocks Under Rs 1 - Low Risk, High Reward The below-listed stocks are absolutely debt-free and multi-bagger penny stocks. The following stocks are as per my fundamental analysis. I am not suggesting you to invest blindly, do your own research before investing. 1. Coral India Finance and HoRead more
Top Penny Stocks Under Rs 1 – Low Risk, High Reward
The below-listed stocks are absolutely debt-free and multi-bagger penny stocks. The following stocks are as per my fundamental analysis.
I am not suggesting you to invest blindly, do your own research before investing.
1. Coral India Finance and Housing Ltd.
Coral India Finance and Housing Ltd. – a Debt-Free Multibagger Penny Stock
Coral India Finance & Housing Ltd. (Real Estate Industry) is listed under the penny stock category and its performance makes it a multi-bagger. The company belongs to the small-cap, and the market capitalization is INR 143 crore.
The company holds a record of having a debt-to-equity ratio equal to zero for five years which indicates the company is completely debt-free.
When compared with the previous trading sessions, on July 21, the share price is up by 0.14 percent and is at INR 35.65 per share.
In the financial year, FY23, the company had impressive growth in ROE (12.4 %), and ROCE (14.0 %) respectively.
In FY 22-23, the revenue growth was 7 percent when compared with FY 21-22. The company’s year-on-year growth was at INR 29 crore.
The net profit made significant progress from INR 17 crore in FY 21-22 to INR 18 crore in FY 22-23.
With such impressive performances, you should miss out on participating in trading, Coral India Finance & Housing Ltd, multi-bagger penny stocks.
2. Oswal Agro Mills Ltd.
Oswal Agro Mills Ltd – A Debt-Free Multibagger Penny Stock
Oswal Agro Mills Ltd. is a small-cap company with a market capitalization of INR 386 and was listed under the penny stocks.
The company is immersed in conducting trades and developing real estate, does item trading, and invests its excess cash by issuing loans in the form of inter-corporate deposits. The company shares trade at INR 28.80 per share.
In contrast to the previous trading session, the company share went down by 0.52 percent to INR 28.80.
The important parameters like Return on Investment (ROI) and Return on Capital Employment (ROCE) touched 2.86 percent and 1.93 percent respectively.
The company made a good sale, it spiraled by 145 percent to 27 crore in FY 22-23 and the net profit rose by 350 percent to 9 crore.
With such a progressive growth in the performance of the stocks, you can think it about buying these penny stocks.
3. Jullundur Motor Agency Delhi Ltd
Jullundur Motor Agency, Delhi Ltd is one of the leading vehicle spare parts distribution firms, the company has attained expertise in trading and entertains the distribution channel of vehicle parts, accessories, and gasoline supplies.
On July 21, 2023, the price per share was INR 71.80 and in fact, went down by 1.31 percent from the previous session.
The significant elements that infuse you to opt for Jullundur Motor Agency shares are the following upswing figures.
First, the company is a completely debt-free multi-bagger penny stock that represents a loan-free firm. Something you can think of to purchase it.
Second, in FY23, the company’s ROE/ROCE was 13.21/17.65 and the revenue rose by 15 percent to 503 crore in reference to the previous year FY22. Meanwhile, the net profit weighed by 12 percent to INR 27 crore.
Features of Penny Stocks:
Penny stocks begin with a single-digit low price, less than INR 10 and with this feature made available, you can buy more penny shares with a small capital investment.
Penny stocks yield huge capital appreciation on selecting the companies that hold good market fundamentals over the long term.
Penny stocks are high-risk investments and you are advised to approach them with caution. Hence, experts suggest you do detailed research before making an investment in penny stocks.
Providing suggestions for purchase of the upcoming well-to-do penny stocks in the year ahead, 2023-24 for you.
Best Companies Where You CAN Buy Stocks in July 2023
List of the best penny stocks whose stock price is less than 1 Rupee
List of the Penny Stocks Below INR 1 @NSE as of March 30, 2023 (Forbes Official Website)
List of the Penny stocks below INR 1 @BSE as of March 30, 2023 (Courtesy: Forbes Official Website)
Benefit in Investing in Penny Stocks Below INR 1
You shall benefit from penny stocks below INR 1 as these stocks get multiplied quite easily.
If you happen to purchase 100 stocks for 0.5 percent per share and the sector projects a positive slide by 90 percent then the investment value reaches INR 4500 from INR 50.
And, equally a negative slide is a fall in the share price can cause a huge loss. Hence, you need to get prepared for a calculated risk.
Important Observations:
The stock markets rallied very high during covid-19 and strangely several smallcap, midcap, and largecap peers had spiraled. However, experts say that you must be calculative and be ready to take risks.
The stock markets are highly volatile, before considering a penny stock you must analyze the chosen company’s revenue model. In addition, you check for the sustainability of the business operations.
See lessWhy is Option Selling Better than Option Buying?
Why selling puts is better than buying calls? You can understand why option selling is better than option buying only after you realize the process involved in buying and selling of underlying assets and the level of risk assessment, and the profitability one can dream of. With my current experienceRead more
Why selling puts is better than buying calls?
You can understand why option selling is better than option buying only after you realize the process involved in buying and selling of underlying assets and the level of risk assessment, and the profitability one can dream of.
With my current experience in derivatives, let me evaluate those facts that shall determine option selling to reap more profitability than option buying.
Let me compare various factors between buy options and sell options before I arrive at the conclusion that Option Selling is the Right Choice for Profitability.
Buy Options at the Start of Expiry/End of Expiry: Impact on premiums
Start of Expiry:
Whenever I trade option calls in a monthly expiry segment, I could make considerable profit because change in price is observed due to Delta.
The ideal time for the decay in premium is quite less, just 5 to 6 days before the start of expiry.
End of Expiry:
Whenever I reach the end of the expiry, theta decay works in opposite direction and only if you identify strong directional move (highly bullish drive), the option shall prevent a decrease in option premium and hence it is not an ideal period to execute buy option.
Sell Options : Impact of Decay on Premiums
Start of Expiry:
Sell options never benefited me in a monthly expiry, and the negative side movement did affect my underlying assets.
I held options for about six days at the start of the expiry and time decay did cause a fall in premium but the main change in price was an outcome of Delta, that occurs in a directional move.
In addition, in the given scenario, the market should be a range bound, to make an option selling.
End of Expiry:
When I executed sell options close to the expiry, theta decay worked for me and my stocks could experience a drastic decrease in option premium in respect to time.
The situation is highly conducive for selling and until a strong directional move against my seller position came, I always incurred a good profiting.
Not just for me, even you can benefit from fast decay in price as your stocks head near to expiry.
Employing Margins for Option buying and Selling:
For option buying, the margin is the premium of the NIFTY option and if the price per share is 100/- and the lot size is 75, then the total premium shall be 75X100 equals 7500/- which is reasonably low.
For Options Selling the margins will be high as 1.2 lakh to sell a lot of NIFTY and hold it. In order to reduce the margin, you can hedge positions with future On the Money option buying as a hedge.
Therefore if you sell 10900 calls and buy 11100 calls then the margin shall be reduced by half. Sometimes I prefer to pledge long term holdings, bonds as a source of collateral.
Risks and Probability of Profits : Options Buying/Selling
In the option buying, the profits are unlimited and your loss is limited. I did obtain the highest profitability when I purchased in the money option and at the money option gave a profitability of 50 percent.
In the option selling the risk of your underlying assets are unlimited and the profitability depends on what option I execute.
When I did sell the Money (OTM) it gave 99 percent of probable success, and at the Money option it gave 50 percent of probable success.
Sellers Must Execute Option Adjustment:
In a realistic situation, 80 percent of options buying expire and show unworthiness.
In case of options selling, 70 percent of the selling options generate small premiums that reflect profitability.
But, if incidentally, one trade goes negative you may end up in losing more than the earned profits.
The payoff can be like +12,+16,+20,+10, -200 and hence as a seller I will be alert at adjusting options. The margin in Option selling is high and it does encounter unlimited risk.
See lessWhat is the Required Margin for Option Selling in Nifty?
What is the margin required to sell Nifty options? Margin is a specific percentage of the amount of the option trade you are supposed to maintain with the stock exchange after you sign an option contract. The basic purpose of the margin is, it protects the interests of investors/traders and stock brRead more
What is the margin required to sell Nifty options?
Margin is a specific percentage of the amount of the option trade you are supposed to maintain with the stock exchange after you sign an option contract.
The basic purpose of the margin is, it protects the interests of investors/traders and stock brokers too. The margin limits the losses of the investors/traders and at the same time, the stock brokers need not get involved in cushioning the investors/traders losses.
Features of the Margin:
Option Buyer:
If you want to buy stocks then you will have to pay the premium of the contract and when the deal gets finalized the balance amount should be settled in the next two working days.
However, the NSE/BSE will transfer the premium to the stock broker of the option seller and it is deposited into the seller’s trading account.
Option Seller:
If the seller’s contract fails then the loss incurred by, shall be limited to the premium amount.
Required Margin for Option seller:
Seller will have to deposit margin amount as a security because the price fluctuations in option price of your underlying assets can cause a considerable loss.
The margin amount is dependent on the volatility of the underlying asset and the option contract.
If Shri. Z sells a lot size carrying 500 shares of call option of Y company. Then, if the premium received by the stock exchange is INR 10.00 for the strike price of INR 980 and the margin is about 20 percent of the option position.
The option position stands at 500 X980 ( 4,90,000/-) and the margin amount will be (20 percent of 4,90,000/). That means, it will be 98,000.
Margin:
There are various kinds of margins that feature specific purposes, such as initial margin, and maintenance margin.
Initial Margin:
At the time of buying of the underlying assets, you will need to make minimum payment of capital/equity which is why it is called initial margin.
The process of margin is implemented to avoid excessive, irrational trading by traders and restrict unnecessary speculation.
Your trading account must be limited to the set margin and you are free to utilise the account until the amount is equal or greater than.
Maintenance Margin:
If you are holding a trading account then you should hold a minimum margin amount in case you fail to maintain the margin level, the broker has the authority to sell the equity and bring it back to the initial level.
Options Settlement:
You may be prepared to sell or purchase an option, but you have the option to exit before the date of expiry, by considering an offsetting position in the market. Otherwise, you can continue to hold the stocks until the maturity date and then the clearing house shall settle the trade.
See lessWhat is the Best Strategy for Option Buying?
Best Option Buying Strategies in India Writing cash secured puts is the best strategy to purchase shares by executing it and when you read these short paragraphs you will understand the ease of making an option buying. Buying a stock needs a lot of patience because you must execute a degree of tolerRead more
Best Option Buying Strategies in India
Writing cash secured puts is the best strategy to purchase shares by executing it and when you read these short paragraphs you will understand the ease of making an option buying.
Buying a stock needs a lot of patience because you must execute a degree of tolerance and wait for a good reasonable buying price.
Imagine a situation wherein somebody shall offer cash and with which you can buy your preferred stock at a price lower than the same day trades. Yes, you can arrive at such a situation by writing cash secured puts.
Writing Cash Secured Puts:
Are you interested in generating income by writing cash secured puts? Then follow the below steps.
In this kind of strategy, when you move in to sell a put then you are at the same time providing rights to sell you about 100 shares of the stock at your decided strike price.
First Scenario:
Let me cite one example, say a stock is at INR 500/share and when it falls to INR 455/share, you should go for write a cash-secured put at that price INR 455 strike, by setting in an expiry in next two weeks and collect premium INR 543.
It means you are in agreement to buy 100 shares of the company stock @ INR 455 per share irrespective of a condition on or before the expiration date.
Note:
Make it sure that your trading account is with a cash of INR 45500 so that the moment the set strike price is reached, the money gets transferred and so does the 100 shares.
In any case, if the company stock closes below the strike price at the expiration, you will get to buy 100 shares for INR 455 per share and you can keep the INR 543 premium that was collected from you.
Second Scenario:
In another scenario, the stock may close above the strike price at the expiration, then you can keep the premium of INR 543 in this case and since the option buyer shall not be exercising the option you will not get to buy 100 shares.
You can at this stage continue to repeat the same process and obtain more premium.
You can end up in entering either of the three possible ways:
1. Out of the money: The contract expires and you can keep the premium and shall not buy the shares.
2. At the Money: The contract expires and you can keep the premium and shall not buy the shares.
3. In the Money: The contract expires yet it shall be exercised, you will keep the premium and buy the share at the chosen strike price.
Therefore, if you observe this strategy enables you to buy the stock below its current price, and even get the premium paid in all the three possible occasions.
Since, you are able to obtain shares for a lower price than buying them in a day trading, it is considered to be one of the safest option strategies.
See lessWhat is the Best Strategy for Option Selling?
Best Strategies for the Option Selling in India: In the option selling covered calls, you are under obligation to sell 100 shares at a designated strike price on or before the expiration date. And, in addition you shall be paid a premium. Another interesting feature is, you can employ the options stRead more
Best Strategies for the Option Selling in India:
In the option selling covered calls, you are under obligation to sell 100 shares at a designated strike price on or before the expiration date.
And, in addition you shall be paid a premium. Another interesting feature is, you can employ the options strategies for generating income. In option selling you will be able to have maximum gain.
The gain can be calculated using a formula, Strike price minus cost basis plus contract piece and multiplied by 100.
Example:
If you own 300 shares then you are allowed to write 3 covered calls. In this case, the trader will pay you money today for the right on your stocks, the moment the stocks reach a higher price (strike price) set in the trading.
Best Option Trading Strategies:
Synthetic Call:
If you are searching for an option selling strategy with unlimited profits and limited risks. Then synthetic call strategy is the best option. In which, you will buy put options that you hold and those which are anticipated to go high in the future. This strategy is seldom compared to the insurance policy when you observe a sharp decline in the stock prices.
Bull Put Spread:
You are advised to adopt a bull put spread strategy when you are interested to improve the value of the underlying assets in the future. Bull put spread involves selling a put option and buying a put option with a lower strike price. You will have to buy one out of the money and sell another at the money put option.
Best Option Selling strategy for Intraday:
If you incline towards Intraday trading then you will have to consider factors such as risk bearing levels, goal sets and the trading analysis. You can find experts giving their fine advice to adopt the selling strategies like momentum strategy, and reversal strategy.
However, I would say, you must also assess the possible financial condition, stock exchange market knowledge, etc
See lessWhy do 95 Percent Traders Fail in Option Buying?
Reasons why your option trades fail to make money Indicators can be misleading although they turn up to enable us in making the most accurate decision making in the spheres of calls and puts. Therefore, making a detailed study of the company stocks and the company's fundamentals sometimes become a kRead more
Reasons why your option trades fail to make money
Indicators can be misleading although they turn up to enable us in making the most accurate decision making in the spheres of calls and puts. Therefore, making a detailed study of the company stocks and the company’s fundamentals sometimes become a key to success.
Henceforth do not get obsessed with indicators. But, it happens to almost 95 percent of the option buyers.
You can operate software tools to execute option chain features to achieve the best desired results. And, utilise the charts to form a concrete technical analytics, or candlestick analysis that defines support and resistance levels.
The rise and fall of the stock rise figures can be more tempting to invest more funds than your risk levels, all this, to get rich quickly. In short, never apply oversized positions beyond your capital capacity just to earn huge returns, miscalculations can lead to a disastrous fall.
I would say never dream to become a billionaire overnight, let your experience go hand in hand, plan for an incremental return of 1 to 2 percent of your investment over time. That comes to about 20 to 25 percent of the annual return on the investment.
This kind of return is better than FDI that provides you about 7 percent of the annual income over your FDIs. Hence, develop a system that can create asset portfolios in the long term , confidently.
Control Losses While Trading Option Buying:
Are you a retail trader? In case, yes, then you should follow the tips to control your option buying losses. Read out the ways to prevent money losses in Options Buying.
Try to understand the risk of leverage, impact costs, and averaging down otherwise you will lose money in the option buying segment undoubtedly.
Another reason to lose money in option buying is, like others you too may transit from trading stocks or futures to option trading. The fact is, in both the trading, the trade plans differ.
The probable chance of a buying option to go to zero quickly is high and hence you must be keen in your investment. Never, invest in buying options more than 5 percent of your trading capital.
Make use of Stop Loss technique in trading options, even if your investment is only 1 percent of the trading capital.
The buy options feature depreciation of time value and premium and therefore every extra day and weekend you hold the option positions will erode premium significantly.
See less