Watch out for these multibagger penny stocks with low PE and high ROE – hidden gems or risky bets?

About 1,679 shares have advanced, 2,077 have declined and 124 were unchanged on BSE.

Indian stock markets on Friday (December 10, 2023) with the BSE Sensex Index up 0.44 per cent to close at 69,825.60 and the NSE Nifty-50 Index up 0.33 at 20,969.40. About 1,679 shares have advanced, 2,077 have declined and 124 were unchanged on BSE.

The broader market saw a decrease on Friday, led by declines in the BSE Mid-Cap and Small-Cap indexes, which fell 0.16 per cent and 0.44 per cent, respectively. However, sectoral performance was varied, with the Information Technology index experiencing gains while the Utilities index suffered the most significant losses.

The market capitalization of BSE-listed companies was Rs 3,49,23,398.51 crore or approx. Rs 3.49 lakh crore as of December 10, 2023. On the same day, 358 stocks hit a 52-week high while 19 stocks touched a 52-week low.

Low PE and high ROE multibagger Penny Stocks often catch the eye of investors seeking explosive returns. These stocks are characterized by a low price-to-earnings ratio (PE) and a high return on equity (ROE), suggesting potential undervaluation and strong profitability. However, investing in such stocks carries inherent risks. Their low price can be a result of poor fundamentals, low liquidity or limited information available, making it difficult to assess their true potential. Moreover, their high ROE might not be sustainable and their price volatility can be significant.

Following is the list of penny stocks with low PE and high ROE:

Do you hold any? Do let us know in the comments below

Disclaimer: The article is for informational purposes only and not investment advice.