Ultimate magazine theme for WordPress.

Strong low-cost stocks 2022 | the cheapest stocks

0

Today, we will discuss the low-priced stocks of several excellent firms that have the potential to yield high returns in the future. In addition, the stock market has thousands of low-priced shares in the form of penny stocks, whose share price is extremely low but whose companies have failed.

It is exceedingly difficult to locate a fundamentally sound company among low-priced equities, causing the majority of investors to incur losses. In reality, though, even shrewd investors might unearth multibagger shares among penny companies.

This suggests that even though the share price of a company is low, if the company’s fundamentals and business model are solid, the share price of such a company will climb rapidly in the future.

In light of this, we have compiled a list of stocks of outstanding low-cost companies with solid fundamentals and the potential for future growth. The business of these firms may expand in the future; hence, the share price is anticipated to rise sharply in the near future.

Let’s learn about the lowest-priced shares of the most powerful companies.

Strong low-cost stocks in 2022

You must have witnessed numerous penny stocks become multibaggers every day on the stock market, but did you realize that low-priced stocks decline many times quicker than they rise?

This is because the underlying fundamentals of the stock are weak. All of the fundamental metrics of low-priced companies may be weak, but if the management is trustworthy and the business model is solid, no one can prevent the share price from rising in the future.

Please provide a list of such inexpensive, fundamentally sound stocks.

Auro Laboratories Ltd.

India’s Low Cost Strong Stock, Fundamentally Strong Penny Share

The initial Auro Laboratories stock is one of the low-priced powerful corporations. Given that the business’s share price is less than Rs 100 and its market capitalization is at about Rs 52 crores, it is a micro cap company.

This business produces Active Pharmaceutical Ingredients (APIs). On a contract basis, the company creates a variety of APIs, with particular experience in diabetes therapy.

Metformin Hydrochloride, Chlorzoxazone, and Chlorphenamine Maleate are the key APIs produced by this company, with Metformin Hydrochloride generating 90% of the revenue.

The company has only one manufacturing facility with a 500-ton capacity. In addition to India, the company exports its products to South Africa, Brazil, Malaysia, and Singapore.

In 2017, the company’s sales was 35 crores, which climbed to 54 crores in 2021 before decreasing to 50 crores in 2022. In addition, the net profit has plummeted by 50% this year, when the average profit growth over the past five years has been 28%.

If observed, the company’s fundamentals are solid, the promoters’ shareholding is 52%, and no shares are pledged. In addition, the company’s debt is small, which is a great thing; therefore, the company’s firm has a great deal of growth potential in the future. If the company does well in the upcoming quarterly report, then this low-priced, solid stock can provide excellent profits.

Secondly, Sinclairs Hotel & Resorts

The second strong low-priced stock on the list is Sinclairs Hotel Company. Its market capitalization is under 300 crores, although the stock trades for more than Rs 100.

This suggests that despite being a micro cap firm, the share price surpassed Rs 100 since the company’s fundamentals are solid. Due to the tremendous growth potential of companies with such a modest market capitalization, investors tend to favor low-priced stocks.

The company operates four-star hotels in Gangtok, Tamil Nadu, Andaman, and Sikkim, as well as five hotels in West Bengal. In addition, the company operates hotels in Gangtok, Tamil Nadu, and Sikkim. The company’s hotels and resorts in Darjeeling, Siliguri, and Port Blair generate a substantial amount of money.

Due to the statewide lockdown, the company’s sales and profit decreased drastically in March 2022, but their business is currently booming and they are launching new hotel chains. Therefore, if the company’s profit improves, the share price will also climb.

If I were to tell you personally, this company has a great deal of development potential right now, and the best part is that it is nearly debt-free. This is why we have included this company on the list of inexpensive shares of strong corporations.

Ashapuri Gold Decoration

Ashapuri Gold Ornament is the third lowest-priced stock on the list, with a market capitalization of approximately 175 crores. The current share price of the corporation is about 70.

Ashapuri Gold Decoration
Ashapuri Gold Decoration

This company was founded in 2008 and is engaged in the wholesale jewelry trading business; its IPO occurred in 2019. This business provides 22-karat gold ornaments. Toda set, Pota jewelry, Saloya, Bracelets, and Antique jewelry are the company’s most prominent goods.

The company solely sells its products to the high end and mid market. Malabar Gold and Titan are the largest clients in their customer portfolio.

In 2019, the company’s revenue was only 88 crores, but by 2022, it will have climbed to 164 crores. The promoter holding of the company is 62%, and it is nearly debt-free despite being a small company; it is a good thing that the company has no debt. This is why we have also included this company on the list of shares with the lowest prices.

Ksolves India Private Limited

The stock of Ksolves India is my favorite among low-priced, powerful firms because it has already generated multibagger returns. In just two years since its IPO in 2020, the share price has climbed from Rs. 13 to Rs. If realized, this is a return of over 3,000 percent in two years.

The present market capitalization of the corporation is only $500 billion. This company, founded in 2014, specializes on software development and consulting. It offers IT solutions to several industries, including real estate, finance, e-commerce, telecommunications, healthcare, etc.

I say this because, despite being such a small firm, all of its fundamentals are robust, such as the company’s consistent increase in sales and earnings, promoter ownership of 68%, and lack of debt.

The company’s primary objective is to expand as much as possible in the realm of emerging technologies such as Machine Learning and Artificial Intelligence.

Now you realize why, despite being a micro cap, Ksolves India is my favorite firm on this list. Ksolves India is the strongest stock among low-priced firms.

Limited Zee Media Corporation

On the list of low-cost, strong companies, Zee Media Corporation is a solid stock. Its market capitalization is less than one thousand crores and its share price is less than twenty rupees. The business of the company is digital news publication.

Read Also: Rising Stocks In 2025 | Which Stock To Purchase For 2025?

In addition to global and national channels, the corporation operates regional news channels on which local-language news is broadcast. The company’s news network in India is branded as “Zee.” Their fourteen news stations are accessible in eight languages. In addition, there are 19 digital news websites and 3 digital news applications.

Limited Zee Media Corporation
Limited Zee Media Corporation

Zee news, Zee business, and Zee hindustan are the company’s key news channels, with Zee news (Hindi news channel) being the company’s flagship product and its flagship show, DNA News, being the most popular in every Indian household on Zee News. Most watched.

In addition, the firm operates the worldwide English news channel Wion, which is carried in South Asia, the Middle East, Africa, the United States, and the United Kingdom. Its most popular shows are Gravitas and Wion sports.

In terms of business, 93% of the company’s revenue comes from adverts, while only 7% comes from memberships. Due to the company’s modest size, the shares have been pledged as collateral for loans, however the company is steadily paying down its debt.

If you examine the financials, you will notice that the company’s sales are rising steadily, but the profit is negative. This is because the company’s expenses are quite high. As the business decreases its expenses, its profits will likewise rise.

The profit of Zee Media Company is negative because the company is still in its infancy. Currently, they must invest significantly to expand their firm. The company’s business is anticipated to expand in the foreseeable future.

The firm’s share price is also very cheap, so if you are interested in low-priced enterprises, you can conduct your own study on this company.

List of stocks of strong companies with low price 2022

No. Share Name Share Price

  1. Auro Laboratories ~ Rs 87
  2. Sinclairs Hotel & Resorts ~ Rs 120
  3. Ashapuri Gold Ornament ~ Rs 70
  4. Ksolves India Ltd ~ Rs 420
  5. Zee Media Corporation Limited ~ Rs 20

What should be considered before to investing in low-priced stocks of powerful companies?

Before investing in the least expensive solid stock, you should consider the following:

Never invest the entire sum at once.

Always invest modestly in low-priced, inexpensive equities because the danger increases with the size of the company.

If you bought in 10 low-priced companies and 5 of them went bankrupt in the future, the remaining 5 companies will provide you with gains that are several times more than your initial loss.

As the share price can increase by 10 times, 20 times, or even 100 times, the risk of loss is equal to the amount invested, whereas the possibility of profit is unbounded.

Personal investigation

Never mindlessly follow the investment advice of others. Before investing in any stock, you must conduct fundamental analysis, which include examining the company’s business strategy, balance sheet, financial statement, dividend, promoters’ share holdings, PE ratio, PB ratio, debt, etc.

It is crucial to conduct your own study since the shares that are being sold to you may only benefit the operators who purchase the shares in huge amounts and then advertise them so that small retailers like you and I can purchase them.

And as soon as the share price rises, the operator sells all of his shares, trapping fresh investors. Before investing in any low-priced stock, you should conduct research.

Understand the business model thoroughly

Until you have a thorough understanding of the company’s business model, you will stay uncertain about its future performance. The business model describes how a corporation makes money and where its revenue comes from. Who are the company’s clients? It is not the case that the company is entirely dependent on a single product or client, or that the company’s promoters are steadily lowering their interest or equity.

Maintain a focus on the future.

Whether it is a low-cost small company or a large cap company like Reliance Industries, all companies publish their annual reports on the official website of the BSE or NSE at the end of the year. In these reports, the management of the companies will decide how to expand their business in the future. It is spoken about him.

You should definitely read the Management Discussion section of the Annual Report because it also contains very important information about the company’s future plans, which will help you determine how serious the company’s promoter is about the business and whether it will continue to exist in the future. Consequently, the company can expand and the share price can rise.

FAQ

Do stocks of low priced companies give good returns?

Ans- How much return the shares will give in the future depends on the business of the company, if the management increases the business, reduces the debt and keeps on innovating, then even low priced companies can give good returns.

Which are the lowest priced strong stocks?

Ans- All the shares mentioned in this post are strong stocks of low priced companies.

Can low priced stocks become multibaggers?

Ans- Yes, cheap stocks with low prices can also become multibagger, examples of which are Eiser Motors and Titan Company.

Conclusion: In this post we talked about stocks of strong companies with low price. But before investing money in any stock, do your own research.

All the low priced strong stocks mentioned above fall under the category of small cap and micro cap companies, hence the risk also increases slightly.

Leave A Reply

Your email address will not be published.