Looking for value in penny stocks? 6 names with high PBV under Rs 10 soar up to 1,500%
The common factor is the low price-to-book value, or PBV, which means the stock is trading at a low valuation compared with its book value. Book value broadly refers to the company’s net asset value on its balance sheet after deducting liabilities from assets.
A PBV below 1 means the market price is lower than the company’s stated book value per share. This can sometimes indicate undervaluation, but in penny stocks it can also reflect weak business quality, poor liquidity, governance risk or investor doubt about the value of assets.
Bhagawati Gas was the biggest gainer in the pack, rising 1,513% in the past year to Rs 8.55. The stock had a PBV of 0.93 and a market capitalisation of Rs 14.3 crore.
The company’s quarterly numbers were mixed. Revenue declined 88% YoY in the latest quarter, while net profit rose 4.01%. The stock gained 32.35% over the quarter but fell 10.38% in the past week, showing the sharp volatility often seen in penny counters.
Trio Mercantile was the second-biggest gainer, rising 223% in one year to Rs 2.2. The banking and finance stock had a PBV of 0.63 and a market cap of Rs 15 crore. Its quarterly revenue grew 102.79% YoY, but net profit fell 19.08%.
Dolphin Medical Services also turned a multibagger, rising 200.45% to Rs 6.64. The healthcare stock had a PBV of 0.99 and a market capitalisation of Rs 10 crore. Its revenue rose 22% YoY in the quarter, while net profit fell 43%.Indo Credit Capital gained 158.2% in the past year to Rs 8.03. The stock had a PBV of 1 and a market cap of Rs 5.8 crore. Its latest quarterly net profit rose 48% YoY. Sword-Edge Commercials advanced 139.13% over the past year to Rs 0.55. The stock had a PBV of 0.59 and a market cap of Rs 12 crore. Its net profit rose 66% YoY, while the stock also gained 139% over the quarter and week, according to the data.
NHC Foods rose 115% in one year to Rs 2.58. The food, beverages and tobacco sector stock had a PBV of 0.83 and a market capitalisation of Rs 158 crore. It also touched a 52-week high. The company’s quarterly revenue rose 234% YoY, while net profit surged 929%.
The rally shows how low PBV penny stocks can attract investor attention when the market starts looking for deep-value opportunities. A stock trading below book value can look cheap on paper, especially if profits improve or assets are seen as underappreciated.
But the risk is equally high. Penny stocks often have thin trading volumes, small market caps and limited analyst coverage. Their prices can move sharply on low volumes, and strong past returns may not always be backed by durable earnings growth.
The data also shows that not every rally was supported by clean financial momentum. Bhagawati Gas surged despite a sharp fall in quarterly revenue. Trio Mercantile and Dolphin Medical Services also delivered strong one-year gains even as their latest quarterly profits declined.
For investors, the key takeaway is that low PBV alone should not be treated as a buy signal. In penny stocks, book value needs to be tested against asset quality, debt, cash flows, promoter record, liquidity and corporate governance.
These stocks have delivered eye-popping gains over the past year. But in the penny stock space, a low valuation can either signal hidden value or a warning sign. The difference usually becomes clear only when earnings quality and balance sheet strength are tested.
(This article has been written by Podishetti Akash, who is not a SEBI-registered Research Analyst or an investment advisor. Podishetti Akash does not hold any financial interest in the above as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of the EconomicTimes Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment.)
