Radhakishan Damani
Investors generally do not pay much attention to penny stocks, because they do not have the transparency and strength of corporate governance like big companies. But when a penny stock meets parameters like strong balance sheet, zero debt, high ROCE and good dividend yield, then it becomes difficult to ignore. Especially when one of those shares is part of the portfolio of India’s veteran investor Radhakishan Damani.
Damani’s shining share worth Rs 55
Advani Hotels and Resorts India Ltd., established in 1987. Operates Caravela Beach Resort—a 201-acre, 5-star deluxe property in Goa. The company’s balance sheet is almost zero debt, due to which it does not have to bear interest expenses and gets complete freedom to return the profits directly to the investors in the form of dividends. The company’s ROCE is 45%, while the hotel industry average is only around 12%. Damani has been invested in this company since 2015 and currently his stake is 4.2% (about Rs 21 crore).
In the last five years, the company’s sales have increased from Rs 70 crore to Rs 107 crore. Net profit also increased from Rs 11 crore in FY20 to Rs 26 crore in FY25. However, EBITDA and profit have declined slightly in H1FY26, which is believed to be the effect of seasonal demand in Goa market. The share has also increased from Rs 28 in 2020 to Rs 55 in December 2025. However, it is still trading 40% below its all-time high of Rs 92.
Cash machine with zero debt and 4.5% yield
Bhansali Engineering Polymers Ltd., a maker of ABS and other resins. It is also shining in the penny stock category with strong fundamentals. The company’s ROCE is 25% and dividend yield is around 4.5%, which is much better than the industry average of 0.3%. In the last five years, the company’s profits increased from Rs 67 crore to Rs 180 crore. However, the share is currently at Rs 88 and is trading almost 50% below its high of Rs 177.
Opportunity or risk?
Both companies show solid fundamentals with zero debt, good yields and strong ROCE. But the cyclical nature of the hotel sector and the impact of crude oil prices may affect their performance. It would be wise to keep these stocks in the watchlist for now. This article is for informational purposes only and does not provide investment advice.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.