Don`t get pound foolish with penny stocks

Scrip Name

Group

CMP
Rs

Total
Income/
Sales
Rs Cr

Net
Profit
Rs Cr

EPS
Rs

P/E Ratio
Times

52-Week
Low
(Rs)

Date

Elgi Finance

Z

7.38

1.06

-3.33

N.A.

Negative

1.12

29/9/04

Ushakiran Fin

Z

7

0.2

-2.93

-1.09

Negative

5.75

23/9/04

Shree Steel Wire

Z

9.44

1.7

0.16

0.34

27.76

2.3

2/3/2005

EPC Industries

Z

8.15

35.67

-8.85

-22.13

Negative

1.6

14/7/04

Akar Tools Ltd

Z

19.35

9.48

0.13

0.43

45

4

2/8/2004

Om Metal & Min.

Z

125

44.13

4.97

8.85

14.12

18.75

28/10/04

GRM Overseas

Z

16.12

81.46

0.77

2.08

7.75

1.44

1/10/2004

FGP Ltd

B2

13.6

4.91

3.27

2.75

4.95

1.57

24/8/04

Capital Trust

B2

7.11

7.05

0.14

0.18

39.5

1.3

30/7/04

Everlon Synthetic

B2

9.7

15.38

-0.39

-0.78

Negative

1.3

27/7/04

Procal Electronics

B2

3.95

0.13

-0.9

-2.56

Negative

0.55

20/7/04

Narmada Gela

B2

84.8

47.98

1.87

4.27

19.86

26.4

9/12/2004

Secu Cap Inv

B2

29.66

2.93

2.22

7.14

4.15

4

25/8/04

Organic Coat

B2

25.25

26.28

-0.29

N.A.

Negative

3.29

29/7/04

Filmcity Medi

B2

10.59

0.68

0.05

0.85

12.46

1.17

13/8/04

Zenith Comp

B1

35.25

281.59

4.71

3.04

11.59

18.5

29/3/05

ABG Heavy Ind

B1

141.05

72.34

10.04

8.87

15.9

22.3

2/8/2004

SMR Unisoft

T

4.39

1.05

-6.46

N.A.

Negative

1.01

18/8/04

Dujod Paper Co

S

20.6

14.5

0.48

0.9

22.89

5.7

20/7/04

Govind Rubber

TS

40

16.27

2.6

0.12

333.33

7.05

13/7/04

Note: N.A.: Not available. Price as on last Friday
S and TS group stocks are traded on the IndoNext platform of BSE

 There is no doubt that many a small investors have reaped benefits on their investments in small stocks during the recent protracted bull run. But a change in the situation can prove to be disastrous.  The risk is that when the sentiment turns for the worse, penny stocks tend to depreciate giving no time to investor to even think. Lack of liquidity in small-cap stocks also means that investors may not be able to exit as easily.