Best Stocks Under ₹5 For Jan 2025:Global Capital Markets, Harshil Agrotech and More Based on 5Y CAGR

Investing in stocks priced under ₹5 has gained attention among investors seeking high returns in a potentially short time frame. While the low price may seem attractive, investing in such stocks requires caution and thorough research. Many of these companies are in financial distress, face poor liquidity, or are underperforming, which leads to their low market value. In this blog, we will explore the best stocks under ₹5 for Jan 2025 based on 5Y CAGR.

Best Stocks Under ₹5 Based on 5Y CAGR

Note: The stocks have been selected based on 5Y CAGR and market capitalisation of less than ₹1,000 Crore as of Jan 8, 2025

Overview of Best Stocks Under ₹5

Global Capital Markets Ltd

Global Capital Markets Ltd is involved in the business of finance and investments. In FY24, the company reported a total revenue of ₹119.94 lakh, compared to ₹1,948.51 lakh in the previous year. In terms of profit/(loss) before taxation, the company achieved a profit of ₹0.14 lakh, in contrast to a loss of ₹(9.74) lakh in the prior year.

Key Metrics:

• Return on Equity (ROE): 0.02%

• Return on Capital Employed (ROCE): 0.02%

Harshil Agrotech Ltd

Incorporated in 1972, Harshil Agrotech Ltd is engaged in the trading of agricultural goods and Commodity & Agri Materials. In addition, it is also involved in preparing, manufacturing, processing, marketing, trading, importing, exporting, improving, selling and dealing in agricultural food products.

Key Metrics:

• ROE: 13.5%

• ROCE: 16.4%

ARC Finance Ltd

ARC Finance Ltd provides various financial services. The company trades in shares and lends Secure and Unsecured loans. The company’s total income for the year ended March 31, 2024, was ₹924.21 lakh, compared to ₹691.60 lakh in the previous year. The company reported a net profit of ₹27.13 lakh for the year ended March 31, 2024, down from ₹32.73 lakh in the prior year.

Key Metrics:

• ROE: 0.53%

• ROCE: 0.69%

Mega Corp Ltd

Mega Corp Ltd is a Non-Systematically Important Non-Deposit Taking Non-Banking Financial Company classified as an NBFC (CIC). It provides financing in urban and rural areas. The total revenue for the year was ₹424.46 lakh, compared to ₹316.99 lakh in the previous year. The profit for the year stood at ₹53.50 lakh, with a profit after tax of ₹25.94 lakh.

Key Metrics:

• ROE: 1.07%

• ROCE: 6.39%

Standard Capital Markets Ltd

Standard Capital Markets Ltd is in the business of Non-banking Financial activities. In FY24, the company achieved revenues of ₹3,096.77 lakh, reflecting a significant growth of 173.42% compared to the previous year’s revenue of ₹1,132.61 lakh. The profit after tax for the year ending March 31, 2024, was ₹1,071.01 lakh, marking a 380.50% increase from the profit after tax of ₹222.81 lakh recorded for the year ending March 31, 2023.

Conclusion

While investing in stocks under ₹5 can present opportunities for high returns, it is crucial to exercise caution due to their volatile nature and inherent risks. Such stocks are typically characterised by low liquidity, erratic price movements, and uncertain future prospects. Therefore, investors should conduct thorough research, assess the financial health of the company, and be prepared for the possibility of significant losses.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities market are subject to market risks, read all the related documents carefully before investing.