Best Stocks in India 2016-2017 in NSE-BSE

What is Stocks Investing? What are best stocks in India NSE-BSE? Have you just started to invest in the stock market?

You have found some stocks trading at just Rs.5 or 10. What an opportunity? There must be blind people to leave these stocks unnoticed. I will profit from them. It can easily double or triple.

If this is your thought then that is exactly ‘Stocks Investing‘. But is this rational? Let us find out….

I have a friend who bought a lot of Birla Power Solutions and Jupiter Biosciences in 2009. These were really hot penny stocks in late 2008. Let me tell you that he regrets his decision now. They have gone way down.

Best Stocks to buy in India 2016-2017 on NSE - BSE

Are you gung ho about buying top stocks? You’ve made up your mind already? While I would certainly advice to invest in top quality stocks, here are a list of top low cost shares to invest in 2016-2017. How did we select them? The criteria we used for choosing best stocks was…

• We made sure they’re not companies that vanish overnight. They must have been around a few years
• They may not strictly be penny shares but border around them. Ie., each shares costs less than Rs.25 and market Cap less than 500crores
• Their products/services must be real and visible
• Must have some downside protection in short-term
• Promoter holding must be 40% minimum

By this way we can at least make sure to screen the majority of bad companies (which most penny stocks usually are). Here is the list of top shares in India that meet above criteria

1)  IL& FS Investment Managers – This is a very good company managed by IL&FS group. They are involved in Private Equity business and are the only listed PE firm in India. IL&FS has a strong brand equity. The last value of stock was around Rs.21 . It gives a very good dividend and has no debts. While you cannot expect it to triple or quadruple in next year, it is somewhat a decent stock to buy in at low cost per share.

Update: This penny stock paid Rs 1.3 as dividend ie., 7% of cost price. It is also down by Rs.2. The decent fundamentals are still intact.

2)  JVL Agro Industries – It has a Market Cap of around Rs.200 crores and trading at around Rs.15 per share. It has P/E of 4 and book value of Rs.15. JVLis the largest single in-house manufacturer of Vanaspathi Oils. It has a dividend yield of around 1.5%

Update – This penny stock has moved from Rs 16.9 to Rs 20.5. Not great performance but not bad either.

3)  NeoCorp International Ltd – Neo Corp is a packaging provider expecially in textile manufacturing. It manufactures under PackTech brand. It has a market cap of around Rs.60 crores and per share costs around Rs.15. The PE ratio is close to 2 and dividend yield is 4%.

Update:The market cap of this penny stock has doubled in last one year after featuring first on our list. It now trades at Rs31.

4)  Genus Power Infrastructure – This is one of the leading electricity meters manufacturer in India. Have moderate debt on their books. The stock costs around Rs.21 and the market cap is around Rs.500crore. The PE ratio is around 9 and promoter holds around 50%. Earns around Rs70 crore profit every year. Decent fundamentals.

Update: This penny stock has gone up to Rs 46 now from Rs 21 when we first listed it. More than doubled.

5) Manali Petrochemicals – The company earns around a quarterly profit of Rs 9 crore and has almost no debt. It has been around for a long time and is currently valued at around Rs 200 crores.They are also regular in their dividend policy and the current dividend yield is around 4.3 %. A good penny stock to bet on for long term with decent fundamentals.

Update- The penny stock has more than doubled from Rs 200 crore to Rs 522 crores.

6) Nitish Estates – Nitish Estates is a leading real estate player in Bangalore . They build luxury apartments and have some good venture funding for their projects. As with many realtors they have some debt and you need to be remindful of that. This penny stock trades around Rs.14 and is a high risk bet.

Update – The stock is up by 10%.

7) Noida Toll Bridge – This is a toll bridge company promoted by IL and FS. Decent promoters. Good fundamentals. They can collect toll till 2031. At decent PE, the earnings growth will be minimal but re-rating can happen when bull market happens but you need patience. Handsome dividend yield. Good penny stock to bet on. Risk is removal of toll privileges but is remote possibility. New addition in 2016 penny stocks list.

8) Lycos Internet – New addition in Mar 2016. This is a Advertising company involved in Ad Media. Certainly the numbers say it is not a penny stock. It has great numbers in last 2 quarters. But the authenticity of numbers of this penny stock must be drilled further.The company has good ROE and ROCE and does not deserve to be a penny stock or trade at PE of 2.5. Again, not sure why market has not looked at this stock. Tread carefully and watch closely. If their numbers are true , when bull markets start there is chance for out-performance.