Top 5 penny stocks to watch out for in August!
With a P/E ratio of 8.35 and a dividend yield of 1.97 per cent
Investing in Penny Stocks can be both thrilling and risky. These low-priced stocks have the potential to bring immense rewards to those who dare to venture into this realm. While some see them as speculative and impulsive, astute investors recognize the hidden gems that may one day turn into the next big success story. In this article, we present a list of the top 5 penny stocks to watch in August, each with its unique potential for growth and value.
1. IDBI Bank
IDBI Bank has been on a remarkable upswing, recently reaching a fresh 52-week high with an impressive 8 per cent surge, supported by substantial trading volumes. Sustaining above the pivotal point, the stock shows promising signs. The improving relative strength line adds further optimism for IDBI Bank's future prospects.
2. Kesoram Industries
As a flagship company of the esteemed B.K Birla group, Kesoram Industries operates in the Cement and Rayon, TP & Chemicals sectors. The stock has been on the cusp of a two-year-long horizontal trendline breakout in the Rs 78-80 zone. Additionally, technical indicators signal a super bullish trend, making Kesoram Industries an intriguing option for investors looking for a potentially robust uptrend.
3. Indian Railway Finance Corporate (IRFC)
With a P/E ratio of 8.35 and a dividend yield of 1.97 per cent, IRFC exhibits solid fundamentals. The stock recently experienced a cup and handle pattern breakout at the Rs 37.10-37.50 level, further bolstering its attractiveness. The MACD line and histogram indicate strong bullish momentum, while the RSI's upward trajectory strengthens the case for keeping IRFC on the watch list.
4. Lemon Tree Hotels
After reaching an all-time high of Rs 103.4 in December, Lemon Tree Hotels went through a corrective phase before establishing a strong base and resuming its ascent. The stock recently broke out of a downward sloping trendline on the weekly chart, showcasing its potential for further growth. Investors eagerly await the upcoming earnings announcement on August 10, 2023, to assess its performance.
5. Paradeep Phosphates
Paradeep Phosphates is showing strong technical picture, with a breakout of a cup-like pattern on the daily chart. Notably, the stock has witnessed significant activity on both volume and price fronts just before its earnings announcement, signaling positive momentum. The stock's favorable positioning makes it a compelling option for investors with a keen eye on growth prospects.
Do let us know in the comment section on which penny stock you are keeping an eye for in the month of August. We have categorized penny stocks as stocks trading below Rs 100.