3 Penny Stocks Under ₹100 with Strong Fundamentals – Hidden Gems?
Finding solid penny stocks under ₹100 is like searching for gold in a coal mine—most are risky, Many stocks under ₹100 are volatile and speculative, but some have strong fundamentals that make them worth considering. If you’re hunting for undervalued stocks that have decent financials, we have three names that stand out based on key metrics.
If you’re someone who loves finding undervalued stocks, this blog is for you! I’ve picked three penny stocks under ₹100 that have:
Strong return ratios (ROE & ROCE)
Low debt (or even debt-free!)
Attractive PEG ratios (undervalued compared to growth)
Decent operating margins
Before we dive in, if you’re new to stock picking, you might want to check out my guides:
- Simple steps to Select the Best Stocks
- Which is Better for You: Dividend Investing or Value Investing?
Now, let’s explore three hidden gems that could be worth a spot on your watchlist!
U. Y. Fincorp – A Small Finance Play with Strong Returns
Industry: Finance
About the Company:
U.Y. Fincorp is a non-banking financial company (NBFC) engaged in lending and investment activities. It primarily provides loans and financial services to individuals and businesses.
Metric | Value | Remarks |
Current Price | ₹19.00 | Stock price as of now |
ROE | 22.74% | Strong profitability |
ROCE | 29.48% | Efficient capital usage |
Debt/Equity | 0.01 | Almost no debt (low risk) |
Operating Margin | 13.21% | Decent profitability margin |
P/E Ratio | 23.53 | Reasonably priced |
PEG Ratio | 0.39 | Undervalued compared to growth |
RSI | 36.43 | Approaching oversold zone |
Why Consider?
This NBFC has solid returns, minimal debt, and a low PEG ratio (0.39), meaning it’s undervalued relative to growth. Also, its PE ratio is below 25 which makes it good consideration for investment. However, recent profit (-55.63%) and sales (-54.68%) declines are concerns. If it stabilizes, it could be a strong rebound candidate.
Lower price of 19 rupees can be attractive for this penny stock.
BNR Udyog – A Debt-Free Company with Impressive Growth
Industry: Finance
About the Company:
BNR Udyog operates in business consultancy, healthcare services, and financial investments. It has a diversified portfolio, reducing risks associated with a single industry.
Metric | Value | Remarks |
Current Price | ₹60.99 | Stock price as of now |
ROE | 53.81% | Exceptional returns |
ROCE | 63.55% | Highly efficient capital usage |
Debt/Equity | 0.00 | Completely debt-free |
Operating Margin | 29.10% | Very strong profitability |
P/E Ratio | 25.76 | Fairly valued |
PEG Ratio | 0.39 | Priced well for its growth |
RSI | 49.55 | Neutral zone |
Why Consider?
A company with zero debt and ROE of 53.81% is a rare find. With high operating margins (29.10%), it has strong profitability. PEG at 0.39 makes it reasonably priced for its growth, but profit and sales have dipped (-10% and -32.14%). So observing it for while can be good idea till the time some positive news came for it.
The RSI of 49.55 here is also in the neutral zone. So waiting for it come down below 40 can be good chance for entrance.
Shree Digvijay Cement – A Dividend-Paying Small-Cap
Industry: Finance
About the Company:
Shree Digvijay Cement is a well-established cement manufacturer in India. It produces a variety of cement products for the construction and infrastructure industry and has a reputation for quality. It mostly operates and do its sales in the northern India. But the company has a potential to grow ahead.
Metric | Value | Remarks |
Current Price | ₹69.63 | Stock price as of now |
ROE | 24.86% | Strong profitability |
ROCE | 34.08% | Efficient capital usage |
Debt/Equity | 0.21 | Low debt |
Operating Margin | 10.57% | Decent profitability |
P/E Ratio | 26.68 | Slightly expensive |
PEG Ratio | 0.23 | Very attractive for long-term growth |
RSI | 49.35 | Neutral zone |
Dividend Yield | 4.30% | High yield for a penny stock |
Why Consider?
If you’re looking for a dividend-paying penny stock, this cement player stands out. A PEG of 0.23 means it’s significantly undervalued relative to its growth potential. Also in a cement industry it has very low debt of 0.21 .While its quarterly profit dipped (-115.38%), it maintains a 4.3% dividend yield, making it a good choice for income-focused investors. But it has neutral RSI of 49.35 which makes it technically not in the very right position to enter in the stocks.
The Final Take
These three stocks have strong fundamentals, low PEG ratios (which means they are undervalued for their growth potential), and very little debt—good signs for long-term investors. That said, their recent profit declines are something to watch. It might be best to wait for some stability before jumping in.
What’s your take? Do any of these stocks look interesting to you? Let’s talk in the comments!