Best Penny Stocks to Buy for 2018 in India

Penny stocks that the investors may invest are Videocon, Suzlon, GTL Infra and South Indian Bank.  These penny stocks are volatile and risky so the investors should keep a stop loss while trading on these penny stocks

South Indian Bank Limited (NSE: SOUTHBANK)

South Indian Bank stock fall after the company reported for Q1 of FY19 the net profit of ₹23.04 crore compared to ₹101.47 crore in the corresponding period of Q1 2018. This decline was driven by substantial fall in Treasury Trading profit of ₹73 crore and incremental MTM provision in the Treasury Book of ₹41 crore due to challenging market conditions.

Further, the net profit fell due to an incremental one time employee cost of ₹33 crore driven by rise in gratuity ceiling and wage revision. Excluding these significant items, the net profit would be ₹ 119 crore for the first quarter 2019. Further, the bank is focusing on retail, MSME and agriculture and is focusing to improve the asset quality. The investors may buy on dips with the target of Rs.27.

 

Suzlon Energy Ltd (NSE: SUZLON)

Suzlon stock had witnessed fall in the price after the company’s decision to withdraw the annual growth guidance due to approval delays, prolonged execution cycles and bid deferrals. As a result, the company has posted loss in Q1 2019. Earlier the company was expecting 45-56% revenue growth in the current fiscal year due to its order book and execution capabilities.

The company will get the clarity on the growth of the company by third quarter of 2019 and will return to growth by FY 20. The order book at the Q1 2019 end stands at 1,134MW. The target price on the penny stock is Rs.12

GTL Infrastructure Limited (NSE: GTLINFRA)

GTL Infrastructure plan to sell their loans through a consortium of lenders to Edelweiss Asset Restructuring Company, which has offered cash payment of 60 per cent of the loan amount and an equity upside. As per the deal, majority stake of 63 per cent will continued to be hold by lenders in the company.  The stock can move to a level of Rs.3 in a year

 

Videocon Industries Ltd. (NSE: VIDEOIND)

Videocon stock fell as the company’s chief Venugopal Dhoot is facing legal cases due to corporate fraud and is facing investigation from multiple agencies for a deal with former ICICI Bank chief Chanda Kochhar’s husband Deepak Kochhar. On the other hand, In June, the National Company Law Tribunal (NCLT) had admitted the company under the Insolvency and Bankruptcy Code. This stock is good for trading and the target is Rs.8