Looking for penny stocks? Here are the 6 stocks you should keep an eye on!

Looking for penny stocks, we've filtered out good companies with low prices and strong ROCE and ROE, coupled with impressive sales and profit growth.

Looking for Penny Stocks? Here are the six stocks you should keep an eye on. To filter out these stocks, we have used a market capitalization below Rs 500 crore, stock price below Rs 50 per share, ROCE and ROE above 10 per cent, P/E ratio between 10 to 50, and year-over-year sales and profit growth over 10 per cent.

Harshil Agrotech is into the activities related to industrial design and fabrication, with a market capitalization of Rs 13.28 crore has demonstrated an impressive 1-year return of 485.71 per cent. Despite its modest PE ratio of 16.6, the company boasts a ROCE of 86.25 per cent and a remarkable ROE of 220.41 per cent. Additionally, it has shown significant growth in both sales and profits, with sales growth at 256.04 per cent and profit growth at 73.91 per cent. The stock closed at Rs 12.30 per share on Friday.

Dharni Capital Services Limited is engaged in providing a wide range of financial services, valued at a market capitalization of Rs 99.61 crore, and has exhibited a commendable 1-year return of 110.78 per cent. Despite a relatively higher price-to-earnings (P/E) ratio of 34.11, the company maintains a respectable return on capital employed (ROCE) of 27.61 per cent and a decent return on equity (ROE) of 20.56 per cent. Notably, Dharni Capital has shown robust growth in both sales and profits, with sales growth recorded at 64.66 per cent and profit growth at an impressive 145.38 per cent. The stock closed at Rs 48.90 per share on Friday.

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Stratmont Industries is primarily engaged in the business of trading Coking Coal and LAM Coke, with a market capitalization of Rs 17.42 crore, and has achieved a substantial 1-year return of 137.3 per cent. Despite a modest price-to-earnings (P/E) ratio of 14.89, the company demonstrates a reasonable return on capital employed (ROCE) of 19.32 per cent and a respectable return on equity (ROE) of 33.03 per cent. Noteworthy is Stratmont Industries' significant growth in both sales and profits, with sales growth reaching 161.85 per cent and profit growth soaring to an impressive 254.55 per cent. The stock closed at Rs 49.80 per share on Friday.

Nila Spaces specializes in the development of real estate, focusing on residential and commercial projects, with a substantial market capitalization of Rs 421.46 crore, and has achieved an impressive 1-year return of 275.44 per cent. Despite a relatively high price-to-earnings (P/E) ratio of 31.41, the company maintains a reasonable return on capital employed (ROCE) of 17.09 per cent and a commendable return on equity (ROE) of 11.1 per cent. Particularly notable is Nila Spaces' extraordinary growth in sales, which has surged to an astonishing 8881.19 per cent. Additionally, the company has demonstrated remarkable profit growth, reaching an impressive 416.51 per cent. Such exceptional growth figures underscore Nila Spaces' strong performance and its potential for further expansion in the real estate sector. The stock closed at Rs 10.70 per share on Friday.

Dhatre Udyog is a manufacturer of a diverse range of Iron & steel products, with a market capitalization of Rs 225.1 crore, and has achieved a notable 1-year return of 118.86 per cent. The company maintains a modest price-to-earnings (P/E) ratio of 21.52 and demonstrates a reasonable return on capital employed (ROCE) of 16.3 per cent. Additionally, Dhatre Udyog shows a commendable return on equity (ROE) of 12.05 per cent. The company has exhibited substantial growth in both sales and profits, with sales growth recorded at 167.67 per cent and profit growth at 103.5 per cent. These figures highlight Dhatre Udyog's strong performance and potential for further growth in its sector. The stock closed at Rs 20.66 per share on Friday.

Beryl Drugs is principally engaged in Manufacturing of Bulk Drugs, with a market capitalization of Rs 16.86 crore, and has achieved a 1-year return of 121.67 per cent. Despite a relatively modest PE ratio of 14.41, the company maintains a moderate ROCE of 11.6 per cent. Beryl Drugs also demonstrates a reasonable ROE of 10.03 per cent. Notably, the company has experienced modest growth in sales at 22.13 per cent, but its profit growth is strikingly high, reaching an impressive 408.7 per cent. This substantial increase in profitability suggests Beryl Drugs' potential for further expansion and success in the pharmaceutical industry. The stock closed at Rs 33.25 per share on Friday.

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