Penny Stocks are known for their risk. But there is one Penny stock which trades at Rs 16 but actually worth more than Rs 5,00,000 per share! It would be hard to believe on it but that is true!
This company has enough assets that can be immediately used to pay 5,08,261 rupee per share which means stock worth more than 31,500x from here! So what is the name of company?
One of the Promoters of Asian Paints!
It is Elcid Investments stock which has such massive value. This company owns 2.95% stake in Asian Paints. As per latest share price of Asian Paints, this stake worth nearly ₹9,400 crore. But Market capital of Elcid Investments is just 0.32 crore or 32 lakh. Book Value of company is nearly 5,08,261.
Heavy Dividend Yield!
Beside of stake worth, Elcid Investments receives so much dividend from Asian Paints that it always has a good Cash. As a result, Elcid Investments pays nearly ₹15 per share dividend annually. This translates into 90%+ dividend yield considering its current share price of ₹16.2 .
Why Share Price doesn’t rises?
Everybody who owns shares of Elcid Investments knows these facts and therefore they never sells their shares. But there are always high number of buyers in the stock considering its massive worth. Due to this, trading rarely happens in the stock. Until, there will be no sellers in the stock, trading wouldn’t happen and stock wouldn’t go up. To move higher or lower, trading or exchange of shares is required.
Public Shareholders owns nearly 50,000 shares in the company. However, in last 1 year, trading has took place just 7 times in the counter. Maximum Volume has been 100 shares. No one is willing to sell their shares on exchanges as these facts are public and every shareholder knows it. In Grey Market, stock trades at a much higher value.
Delisting Attempt
In 2013, company had tried to delist the shares at Rs 11,445 but delisting offer failed as Public Shareholders didn’t tendered their shares. Since no active trading takes place in the counter, this stock always remain hidden in the stock market.
Recently, Promoters had tried to increase their stake in the company beyond 75% limit. Through another firm, they were holding nearly 5% more stake in the company which was not disclosed as the Promoter Group part. SEBI came to know about this fact and imposed a penalty of Rs 18 lakh on them for not complying with Rules. Promoters cannot own more than 75% stake in their listed company. That is the rule in India.
It is hard to Buy shares of this company as no one is interested in selling stock on exchange. But if you can grab, you may earn a lot of money from this stock.
Good Luck : )
Please add my name for good penny stocks.
You can check the list of good penny stocks through this link https://www.growwithmoney.com/blog/15-best-penny-stocks-to-buy-now-in-india-2021/
Good Analysis
Glad you found the article useful🙂
Kindly update the list of penny stocks below Rs.50/- every month commencing,’from 16/9/2021 and also why not u start article for publishing a list of penny stocks beginning from Rs.0.20 after good research every month or once in two months
Thanks for the feedback🙂. Would update the list soon and try the best to keep updating it regularly. If found any good stocks, then I would definitely look at creating the best penny stocks list starting from paisa.