1. Suzlon Energy Ltd
Suzlon Energy is doing really well lately. Their financial situation is better, they have a lot of orders to fulfill, and their stock price is going up. This is because the government is pushing for more use of renewable energy, which Suzlon specializes in, especially with their 20 GW of wind energy projects across India.
Experts like ICICI Securities think the future looks bright for Suzlon because the government is making policies that favor the industry. For example, they're changing the bidding process and planning to auction more wind energy projects each year. Also, there are regulations in place that require a certain amount of energy to come from wind power.
Suzlon's stock price is at its highest point in five years, and it looks like there's still room for it to grow. So, investing in Suzlon Energy in the fourth quarter could be a good idea.
- Current Market Price: INR 36.40
- Market Cap: INR 497.84 billion
- Annual Range: INR 6.95 – INR 44.00
2. Reliance Power
Reliance Power, a stock that has had big ups and downs this year, is showing signs of improvement, especially in the last quarter.
One good thing is that the company used money borrowed from Varde Partners in Singapore to pay off a debt of INR 925 crore owed by its subsidiary in Rosa, Uttar Pradesh. They had agreed to borrow up to INR 1,200 crore from Varde Partners last year.
There are also reports saying that Reliance Power is offering to settle a debt of INR 1,260 crore with its subsidiary Vidarbha Industries Power. This shows that the company is working on fixing its financial situation.
- Current Market Price: INR 22.45
- Market Cap: INR 85.37 billion
- Annual Range: INR 9.05 – INR 25.20
3. Vodafone Idea
Vodafone Idea, a company jointly owned by UK's Vodafone Plc and India's Aditya Birla Group, is being considered as a potential penny stock for the last quarter of the year. It's in a critical situation, desperately needing funding but struggling to make progress. The government, Vodafone Idea's owners, and investors are all eagerly awaiting any positive developments that could boost the company's financial stability.
Overall, the company has a strong foundation, including a sovereign guarantee. However, its massive debt has been dragging it down, especially over the past year.
Despite the challenges, there's still hope that Vodafone Idea can overcome its difficulties, given its solid fundamentals. It faces tough competition from other telecom companies, but there's a chance it could survive and thrive despite the odds.
- Current Market Price: INR 13.30
- Market Cap: INR 645.01 billion
- Annual Range: INR 5.70 – INR 15.05
4. South Indian Bank
South Indian Bank is a promising penny stock that could see a boost in its fortunes in 2023. There are two main reasons for this. Firstly, the bank has been consistently increasing its net interest margin and profits from quarter to quarter. Secondly, it's expanding its customer base, particularly among non-resident Indians, which is expected to strengthen its fundamentals.
However, the sudden departure of the bank's CEO, Murali Ramakrishnan, during a period of turnaround has led to some concerns about the bank's future growth. While this caused a temporary dip in the stock price, most market analysts remain optimistic about the bank's long-term potential.
The key to its success going forward will be how well it manages to reduce bad loans and grow its business, both with domestic and NRI clients.
- Current Market Price: INR 26.40
- Market Cap: INR 55.04 billion
- Annual Range: INR 13.75 – INR 28.50
5. Yes Bank
Yes Bank is a penny stock worth considering for 2024 due to its efforts to improve its situation. In the new year, the bank has made significant moves, such as partnering with a startup called Falcon to explore embedded finance and collaborating with Microsoft for a cutting-edge mobile application.
In 2023, the Reserve Bank of India approved global private equity firms, Carlyle Group and Advent International, to own more than 5% in Yes Bank. This approval, allowing both firms to own up to 9.99% each, indicates stability for a bank that faced near-default when the RBI imposed a moratorium.
Another important development from the year 2022 was the sale of Yes Bank's bad loans worth INR 48,000 crores to JC Flowers Asset Reconstruction Company (ARC) in September 2022. Additionally, Yes Bank acquired a 9.9% stake in JC Flowers ARC.
- Current Market Price: INR 20.90
- Market Cap: INR 601.12 billion
- Annual Range: INR 14.40 – INR 23.05
