7 FII-backed penny stocks rally up to 60% in FY24. Time to watchlist them?
Penny stocks are often treated like 'kachra' stocks by matured investors who happily ignore all get-rich-quick schemes. However, one can't help but take notice when foreign institutional investors or FIIs are also investing in such penny stocks. An analysis of institutional ownership in penny stocks, as defined by those with market capitalisation below Rs 1,000 crore and share price below Rs 25, shows that FIIs hold over 10% stake in a dozen such counters.
Out of them, 7 have given double-digit returns in FY24 so far. Here's the full list:1) Globus Power Generation Jaipur-based clean energy company Globus Power Generation has seen FII holding stable around the 18% mark in the last four quarters. The stock has rallied around 64% in FY24 so far.
Foreign investors in the company include Elm Park Fund, Ares Diversified and Eos Multi Strategy Fund.2) Nectar LifesciencesChandigarh-headquartered pharma company Nectar Lifesciences, which has rallied 56% in the financial year, is 16% owned by FIIs. But mutual fund holding is below 1%.3) Visa Steel FII ownership at Kolkata-based Visa Steel, which was admitted to NCLT in November 2022, has seen FII holding stable at 21.95% in the last 4 quarters. The stock has rallied over 53% so far in FY24.
The company owes lenders led by SBI a total of Rs 3,400 crore. Besides SBI and PNB, the other lenders to the company are Bank of India, Bank of Baroda, Union Bank of India and Canara Bank.4) Dhanlaxmi Bank Private sector lender Dhanlaxmi Bank, which swung to profit in June quarter with a net profit of Rs 28 crore, has rallied 46% this financial year. FIIs owned around 11% in the company as on June-end.5) Sampann Utpadan IndiaSampann Utpadan India, which is engaged in power generation through
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