In 2023, India’s electric vehicle industry stood at US $ 2 billion. It is expected to rise to US$ 7.09 billion by 2025. The Indian Economic Survey 2023 has projected the Indian EV market to grow at a stupendous CAGR of 49% between 2022 and 2030.
Consequently, Electric Vehicle (EV) penny stocks have become an attractive choice for investors hoping to get good returns on a limited budget.
This blog explores fundamentally strong EV penny stocks in India and guides how to invest wisely in these hidden gems. These stocks exhibit robust financials and show promising prospects for growth.
However, keep in mind that this is just for information purposes. Do your research and then invest carefully.
Understanding Fundamentally Strong EV Penny Stocks in India
Fundamentally strong EV penny stocks are shares of companies that, despite their modest market price, boast robust fundamentals. Although often considered high-risk investments, penny stocks can sometimes hide diamonds in the rough for investors who are diligent in their research.
These stocks are not mere speculative bets. They demonstrate solid fundamentals, such as steady net profits, attractive dividend yields, and strong return ratios. This robust financial health makes them appealing to investors interested in tapping into the burgeoning EV market through more affordably priced shares in India.
Fundamentally Solid EV Penny Stocks in India: 2024’s Top Picks and Investment Guide
Name | Mkt Cap (₹ Cr.) | Dividend Yield(in%) | ROE (Return on Equity) | ROCE (Return on Capital Employed) | Net Cash flow (₹ cr) | Book Value | Stock PE | Debt to equity |
List of best EV penny stocks with strong fundamentals in India.
Note: This blog is only for informational purposes; we are not SEBI registered, and we are not promoting any company or pushing you to buy stocks of a specific company; please do your research before purchasing the stocks.
Insights on Top Fundamentally Strong EV Penny Stocks in India in 2024
Let’s take a look at each fundamentally strong electric vehicle penny stockin detail. Here is the best EV penny stocks list:
1. Amara Raja Energy & Mobility Ltd
Amara Raja Energy & Mobility Ltd’s EV penny stock is an appealing investment as the company is almost debt-free. It also has a healthy dividend payout of 19.7%. Despite slower sales growth, its recent stock price CAGR of 56% in the last year indicates strong market confidence and potential for growth.
2. Indo National Ltd
Investing in Indo National Ltd’s EV penny stock is promising due to its iconic brand ‘Nippo’, known for high-quality batteries. Despite some financial concerns, the impressive stock price CAGR of 96% over the past year highlights strong investor confidence and market potential. It also signals a possible turnaround in its performance.
3. Panasonic Energy India Co Ltd
Panasonic Energy India Co Ltd’s EV penny stock is an attractive investment as the company is nearly debt-free. This enhances its financial stability. With a compelling stock price CAGR of 133% over the past year and a remarkable TTM profit growth of 617%, the stock showcases strong growth potential despite some operational challenges.
4. HBL Power Systems Ltd
HBL Power Systems Ltd’s EV penny stock is a compelling investment choice due to its impressive stock price CAGR of 368% over the past year. It has also shown a profit growth of 146% in the trailing twelve months. Additionally, the company has maintained a healthy dividend payout of 31.7%. Hence, it is especially appealing to dividend-seeking investors.
5. Eveready Industries India Ltd
Investing in Eveready Industries India Ltd’s EV penny stock is attractive for its strong return on equity, notably 40% over the past three years. Despite challenges in sales growth, the company’s recent profit growth, which soared by 1124% TTM, showcases its potential for remarkable financial performance.
6. Goldstar Power Ltd
Goldstar Power Ltd is a leading player in battery manufacturing. Investing in this EV penny stock is attractive for its promising profit growth, with a remarkable 147% increase over the past year. Despite modest sales growth, the stock’s CAGR of 147% in the last year highlights strong market confidence and potential for continued financial success.
7. Exide Industries Ltd
Exide Industries Ltd’s EV penny stock is a good investment choice due to its strong financial footing. The company is also nearly debt-free. With a significant stock price CAGR of 115% over the past year and consistent performance in equity returns, Exide demonstrates potential for robust growth in the evolving battery sector.
Guidelines for Investing in EV Penny Stocks with Strong Fundamentals
While penny stocks are a high-risk investment, especially in a dynamic sector such as the EV industry, one may still opt to invest in fundamentally strong penny stocks.
Here are the steps to follow:
- Thoroughly research the business model, market potential, and financial health of the company.
- Stay up to date on real-time market trends in the EV industry and how they may affect the stocks you have chosen.
- Allocate only a specific proportion of your total investment to penny stocks because they can be volatile.
- Diversify your investments not only across different companies but also across various sectors.
Critical Factors to Evaluate When Choosing High-Potential Penny Stocks
Before you put your money into fundamentally strong EV penny stocks, there are a few things to keep in mind. Don’t just focus on the numbers. Look at where the industry is headed and any rules that might change things. Also, check out the people running the company.
It’s smart to spread your money across different things to stay safe if one doesn’t do well. And always remember, make your choices based on thorough research and what you want to achieve financially.
FAQs
Which is the Best EV Stock in India?
In this blog, we have discussed in detail fundamentally strong EV penny stocks. However, it is important that you thoroughly research the company’s prospects before considering any investment.
Which EV Penny Stock Will Grow Significantly in India in 2024?
Identify the top 10 EV penny stocks in India exhibiting strong fundamentals. These could be a positive net cash flow, a high book value, a favourable return on equity, a favourable Piotriski score, a low debt-to-equity ratio, etc.
Which EV Penny Stock is Highly Undervalued?
Although we’ve provided a list earlier, any EV penny stock in India with solid fundamentals but a low to moderate share price, such as those below 1 Rupee, might be considered undervalued. Ensure you conduct comprehensive research before considering an investment in such stocks.
