Hello Everyone & Welcome you all once again with all new theme of Multibagger Penny Stocks which are showing strength and can give Multibagger returns in the year 2022. As you are aware that if the fundamentals of the small companies are strong then investment in such companies can yield much higher returns but vis vis in case the fundamentals are poor then it can lead in to heavy losses to the investors and can lead into the wipe out of capital. So it’s obvious that investment in penny stocks are risky, if all goes well it can yield in higher returns but if it goes wrong you do not have a way out. So before investing in to the penny stocks study well about the company fundamentals, management change, shareholding, key parameters so that you will be able to identify the turn around story.
Going forward few stocks which are having potential of turn around & the key indications are coming in technical and fundamentals of the companies are updated for all of you.
In case you have suggestion you can write to us, at the end of this section you have the space to share your views.
So let’s begin with the top 5 penny stocks which are having the potential to become a Multibagger in the years ahead.
Top 3 Multibagger Penny Stocks
1. Alok Industries
Background
As all of you are aware that debt ridden Alok Industries gone through bankruptcy proceedings and acquired by the resolution applicants Reliance Industries & JM Financial Asset Reconstruction Company in the year 2019 & the resolution plan was implemented in 22nd January 2020 vide NCLT Ahmadabad approved resolution plan Dtd. 19th March 2019.
Now it’s almost 2 years and new Management is working in the company which is showing the positive growth in the company.
Fundamental View on Alok Industries
On Revenue Front the Revenue of the Company from March 19 Quarter of Rs. 810 Crores Grown up to Rs. 1905 Crores in September 21 quarterly results which is 235% higher, and on 18th January 2022 Q3 results are expected to be awesome. We can expect the company net loss to get narrow or company may come in profits. Further with the Reliance Management and looking into the current trend the next financial year we can expect Rs.10000 crores plus revenue which is quite good. Already company is generating the profits on operating front.
For more details you can have look on the videos uploaded on YouTube Channel. Also please have a look on the below video of Alok Indusrties Quarterly results expectations.
Technical View on Alok Industries
From the above technical chart it is very clear that the stock is trading in a range for quite long time and the strong support is placed at Rs. 20 & now the range is expected to shift and the momentum might come in the stock. In short to medium term the stock of Alok Industries can show 32 to 40 levels and with the growth in the company the stock price is expected to do better.
For many investors Alok Industries already become a Multibagger stock as most of the peoples were accumulated it in the range of Rs. 1.5 to Rs. 4.
2. Suzlon Energy
Background
Suzlon Energy was a growing story with renewable energy (wind power) theme in 2005 to 2008 & which was the first company become a world leader in renewable wind energy and as an end to end solution provider right from the identification of land to the installation of wind energy projects & was a growing story all over the investors. The wind energy projects are capital extensive projects and which needs high capital cost right from initiation of the project till the completion. However due to high debt accumulation and rejection of few turbines in US resulted in to heavy losses to the company and ultimately the company had to sale it’s assets to over come 3 time debt restructuring kept the hopes alive for the investors but the company kept on accumulating the debt and could not come out of the challenges, even the Sun Pharma promoter Dilip Sanghvi invested about 1800 crores in the company but the challeges continued for the company. Final Debt restructuring of the company done in 2020 where in promotors of the company agreed to invest about Rs. 392 crores remaining debt of the company converted into two categories Rs. 3600 crores of debt company agreed to pay in 10 years and the remaining debt was converted into other instruments payable over a period of 20 years.
Fundamental Prospective of Suzlon Energy
The debt restructuring done in 2020 was the final hope for the company to became live in the markets and survive and after implementation of the debt restructuring plan the company is working on selective business projects having high profit potentials and as of now the company is generating profits at operating levels however the interest payment burden is still high and as a result the company is still making losses however going forward we are hopeful that the company can come in profits by looking into the actions taken by the company in terms of cost reduction, accepting selective business proposals & also energy into solar energy projects.
Technical Perspective of Suzlon Energy
So let us have a look at the above technical chart of Suzlon Energy where in you can see that the stock had given a break out above 7.6 and 8. Now 7.6 has become a strong support for traders and investors and during a short to medium time frame the stock is heading towards 13.20 levels and can further move towards 22 levels which is quite possible in coming months. So this stock is to be looked for short to medium term investment and can be reviewed periodically with the company’s financials for further developments.
3. Vodafone Idea
Background
Vodafone Idea is an emerged entity of Vodafone and Idea in 2018 and recently rebranded as Vi in September 2020. In this company promoter holding is 72.05% with Vodafone holding around 45.2% stake whereas Idea 26% stake. As of now the company holds largest spectrum over 1850 Mhz across various circles in India. The Company presently has a subscriber base of 269 million which was reduced from 311 million as on 2019. The company is having high debt burden due to AGR dues over 58250 crores in which company has already paid 7850 crores, including AGR dues company is have over 2 lakhs cores debt burden highest in Indian industry. Even in these tough conditions Vodafone idea is leader in IoT (Internet of Things) and holding major market share.
What’s changing for Company?
Govt announced relief package for telecom sector such as 4 year moratorium on AGR and Spectrum payment, Reduce Bank Guarantees (return of bank guarantee) & option to covert statutory dues to Govt equity.
With this announcement company got immediate relief and now can focus on raising funds and due to above Govt relief package the investors can attract towards Vodafone Idea and the much awaiting fund rising plan of Vodafone Idea of about 25000 crores may come true.
5G Trials – Vodafone Idea recorded highest speed over 4 GBPS during trials.
Tariff hike by telecom players will help in Vodafone Idea to improve it’s ARPU which may help company to generate cash from operations.
Vodafone Idea pays payment to the bondholders which also boosted the sentiment in increase in stock price of the company.
Fundamentals Checks
Market Cap – 43390 Crores Promoter Holding 72.05%
Revenue of the company is decreasing from 44958 crores in FY 20 to 39060 crores in TTM (Trailing Twelve Months), Company is generating profits at operating front and due higher interest burden company is making losses however the losses are narrowing from -73878 crores to -26006 crores in TTM. Total Debt of Rs. 207342 crores. Positive aspect is the company still have strong assets of over 161614 crores, with the promoter holding of 72.05%.
On fundamental check company has long time to go & improve, however the relief measures can help the company to survive and may come back and become a turnaround story.
Technical View
Let’s have a look at the weekly chart of Vodafone Idea and you can notice that the stock has given break out with the high volume above Rs. 13 levels and weekly 200 period moving averages is coming at 14.20 levels. The stock is sustaining above the breakout levels and having high probability of moving towards 19.80 & 30 levels. The stock is forming a round bottom which is indicating that the stock might reach towards 40 levels.
Continuous monitoring on charts and fundamental developments can attract good returns going forward from Vodafone Idea.
Disclaimer :- The content posted here are only for Educational purpose only & not a Buy or Sell recommendations . Plz do consult your financial advisor before taking any decision for trading or investment. We are not a SEBI Registered advisor.
