2 Penny Stocks Under Rs 6 Give Breakout, Soar Over 10%!

  • Stock Market Analysis
  • Editors Pick

Penny stocks are shares of a company that is very small in size and often referred to as a micro-cap company. Stocks of such companies are extremely volatile and therefore require a higher skill set to trade them, making it not apt for everyone. 

Just because the company is small in size does not make it a bad stock. These stocks, if traded skilfully with proper risk management can reap very high rewards, obviously with equally high risk. If you are looking for such stocks here’s a list of two that are catching the street’s attention. Both stocks listed below are profitable companies with record-high profits in FY22.

Bhandari Hosiery Exports Limited

Bhandari Hosiery Exports Ltd (NS: BHEX ) is in the business of hosiery garments and fabrics, having a market capitalization of INR 71 crores. In FY22, the company clocked the highest-ever profit of INR 6.27 crores, which was a significant jump of 277.7% over the FY21 profit of INR 1.66 crores. The stock is trading at a P/E ratio of 11.33, compared to much larger peers such as Page Industries (NS: PAGE ) and VIP Industries (NS: VIPI ), both of which are currently quoting at 98.39 and 154.91, respectively. I know it’s not a fair comparison, but record-high profit coupled with quite cheap valuations does not make it ‘just another junk stock’.

Weekly chart of Bhandari Hosiery Exports with volume bars at the bottom

Image Description: Weekly chart of Bhandari Hosiery Exports with volume bars at the bottom

Image Source: Investing.com

Today, the stock surged past the resistance of a falling wedge pattern on the weekly chart, which is quite a bullish indication. A rally of 14.4% to INR 5.55 on the back of a volume of 3.1 million shares is probably setting it up for a one-way rally to the levels of around INR 7.5. The previous peak of INR 5.5 (on the daily chart) has also been taken out, so structurally also, the stock seems to be starting its up trend now.

Globe Textiles India Limited

Globe Textiles India Ltd (NS: GLOX ) is engaged in manufacturing, supplying, and trading a range of textile and apparel products and services from fibre to fashion. It also makes face masks and has a market capitalization of INR 73 crores. On the financial front, the stock did extremely well in FY22, clocking a 2,134% YoY profit growth to INR 5.14 crores and has been growing its revenue at a 5-year CAGR of 14.79%.

Daily chart of Globe Textile (India) with volume bars at the bottom

Image Description: Daily chart of Globe Textile India with volume bars at the bottom

Image Source: Investing.com

On the technical front, the stock had been witnessing quite a strong downtrend since August 2022, without any relief rally. Yesterday, it surged over 5% and today a follow-up rally of 10.31% to INR 5.35 above the falling trendline resistance is finally painting a rosy picture. The volume also surged to 3.7 million shares, the highest in nearly two months. A rally to INR 6.5 is looking like a not-so-difficult task for the stock. 

 

Disclaimer: I hold Globe Textiles shares in my portfolio.

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  • Murali Mohan @Murali Mohan
    can we buy today
    Like 0
    • Aayush Khanna/Investing.com @Aayush Khanna/Investing.com
      Your call, Murali :)
      Like 0
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  • PB CHAUHAN @PB CHAUHAN
    you are right today 2 stock up
    Like 1
    • Aayush Khanna/Investing.com @Aayush Khanna/Investing.com
      :)
      Like 0
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  • rajeev jha @rajeev jha
    thanks.
    Like 0
  • Girish Kumar @Girish Kumar
    thank you
    Like 0
  • Abil P Raju @Abil P Raju
    is this right time to buy this stocks
    Like 0
    • Aayush Khanna/Investing.com @Aayush Khanna/Investing.com
      Hi Abil, I don't give any recommendation. So, you decide :)
      Like 1
    • Abhkkl Pgchb @Abhkkl Pgchb
      how you know it gona break
      Like 1
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  • Durgaprasad Chikhalonde @Durgaprasad Chikhalonde
    believable sir
    Like 2
  • Pramod ss @Pramod ss
    good work bro👍
    Like 1
    • Aayush Khanna/Investing.com @Aayush Khanna/Investing.com
      Thank you Pramod :)
      Like 0
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  • namami ghosh @namami ghosh
    Aayush, your write-ups are lucid, clear and easily comprehensible. can imagine the effort and dedication that goes into the constant churn of articles...
    Like 8
    • Aayush Khanna/Investing.com @Aayush Khanna/Investing.com
      Comments like these keep me going :)
      Like 0
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