5 Best Shares to Buy Today | Invest now

The Unlisted market, seen as a less conventional option in the investment world, provides investors with a special opportunity to invest in companies that have not yet gone public. Unlisted shares are not listed on a stock exchange that offers a chance to invest in a company's potential growth in its early phase.

Investing in unlisted shares involves direct investment in private companies or accessing them through alternative investment platforms is usually how individuals invest in unlisted shares. A prevalent approach involves private placements, where shareholders purchase stocks directly from the company. Another option is to use AIF funds, which gather funds from various investors to invest in a portfolio of private companies.

Investing in Unlisted stocks offers the potential for higher returns. Yet, investing in these stocks requires maneuvering through a market with less regulations that requires more due diligence and risk evaluation. Investors having a detailed knowledge of market dynamics and the skill to pinpoint companies with solid fundamentals and growth potential is essential for investing in this sector. 

Let's explore the top 5 stocks to purchase today, as listed below;

1.   VCI Chemicals 

VCI Chemicals is a well-known company in the specialty chemicals industry, especially recognized for its manufacturing of Coal Tar Pitch (CTP) and premium distillates. The company's main priority is creating superior chemical products, resulting in a strong revenue growth with 87% assurance. The Orissa-based state-of-the-art 1.1 LTPA distillation plant of the company showcases its dedication to innovation and quality.

Marquee Clientele and Long-Term Agreements

VCI Chemicals has signed extended contracts with key organizations in the Gulf Cooperation Council (GCC), such as EGA, Sohar Aluminum, ALBA, Qatalum, and Ma'aden. These 8 year contracts, worth ₹2,200 crore highlight the company's robust market position and trustworthiness.

Financial Performance

Having annual contracts totaling ₹300 crore, VCI Chemicals is on track to reach a revenue of ₹383 crore and a post-tax profit of ₹38 crore by FY31.

Investment Highlight: Share Price &  Growth Potential

Investors should pay attention to the company's strong potential for growth, as it is projected to experience a 243.3% rise in net income by fiscal year 2028. The company's growth outlook is indicated by a forward P/E ratio of 8x in FY28, indicating potential undervaluation relative to the sector's average P/E of 25x. VCI Chemical has been making progress with a Share price of ₹41.

2.    Proxgy

Proxgy, a pioneering deep-tech startup under Everywhere as a Service Pvt Ltd, specializes in IoT and AI/MI-driven hardware solutions. The company's emphasis on improving the welfare of manual laborers is in line with both the China+1 strategy and RBI regulations for data management.

The smart helmets,sleefe, audiocube, airhat, and lockator (GPS e-Lock) are all part of the company's product range. Proxgy aims to enhance workplace safety and productivity by utilizing its industry-tailored SaaS pipeline and on-ground intelligence coordination & analytics, with a market capitalization of ₹186.72 Cr.

Advantage of being the first mover and having a strong patent portfolio:

Proxgy's early market advantage is strengthened by its ownership of 26 patents for headgear in the US, India, and Europe. This collection of intellectual property establishes Proxgy as a top player in the industry.

Order Book and Market Traction

Proxgy shows strong market traction with a remarkable order book value of ₹80 crore, which includes substantial orders from Bank of Baroda and Bank of India. The company's IoT products like Audio Cube and Lockator are becoming popular, offering tailored solutions to key clients such as Airtel and Bharat Pay.

Stock Price and Future Growth Potential

Proxgy's innovative strategy and increasing experimentation with top industry players such as Adani and Vedanta groups indicate its promising prospects for expansion.

The anticipated increase in the company's stock value and the robust competitive benefits of its products, such as cutting-edge technology and Internet of Things features, present an attractive investment prospect. The company's present share price stands at ₹13,000.

3.  Urban Tots

Deepak Houseware and Toys (DH&T) is mainly focused on producing and selling a wide range of toys, including plastic toys (such as Mercedes and BMW bikes), electronic toys, and role-playing toys. DH&T markets its product using the brand name "Urban Tots". Urban Tots has established a manufacturing facility covering 36,000 sq.yd. in Bhiwadi, Rajasthan, eligible for the PLI scheme by the Indian government.

Financial Performance

Urban Tots experienced a significant increase in revenue, jumping by 67.3% from ₹ 49.2 Cr in FY23 to ₹ 80 Cr in FY24, and also saw an improvement in profitability due to a solid book value, acquiring new customers, and expanding their product range. The company's net profit margin has increased by 138% to 12.2% from ₹ 4.2 Cr in FY23 to ₹10.15 in FY24. The effective use of labor and fixed assets led to a 3.2% increase in the company's net profit margin from 9% in FY23 to 12.2% in FY24.

This growth is fueled by a wide-ranging retail and online presence, including exclusive partnerships with big retailers and a solid online presence on platforms such as Amazon and Flipkart.

Future Expansion

The business advantages from advantageous government policies, such as receiving a subsidy through the DIC scheme and the Government of India's Production Linked Incentive (PLI) scheme. Urban Tots offers a promising investment opportunity with ambitious retail expansion and marketing plans, predicting substantial returns and aiming for an IPO in five years.

The current share price of Urban Tots is around  ₹100 per share, indicating the company's strong financial performance and growth potential within India's toy industry sector. Investors seeking involvement in the toy industry may be interested in Urban Tots as a promising investment option.

Furthermore, Ongoing BJP Manifesto focuses on toys and talks about  making toy export hubs that transform India the global hub for toy manufacturing, leveraging skilled workforce and rich cultural heritage to produce high quality toys during this,   who would be the biggest beneficiaries in toy manufacturing once BJP comes into power - Urban Tots. 

4.    Studds Accessories 

Studds Accessories founded in 1983, The Company distributes helmets under two labels, Studds and SMK. The brands target both the mass-market commuter (Studds) and premium (SMK) segments. Studds is the top-selling two-wheeler helmet brand in India in terms of volume, selling 6.41 million helmets with a market share of 25.66%, and also exporting to 50 countries.

Financial Performance

The company experienced a strong increase in EBITDA, rising from ₹57.05 crore in FY22 to ₹64.42 crore in FY23, indicating a growth rate of 12.92%. The company has achieved a Compound Annual Growth Rate (CAGR) of 15.38% over the past eight years. The company's return on equity is expected to increase to 9.7% in FY23 from 9% in FY22. Similarly, the profit after tax (PAT) rose from ₹28.64 in fiscal year 2022 to ₹33.51 in fiscal year 2023, reflecting a growth of 17.03%.

In addition to helmets, Studds offers a variety of motorcycle accessories like goggles, gloves, and riding jackets that aim to improve the riding experience with focus on comfort and protection. Studds Accessories has a share price of ₹1,050.

5.  Experiential Etc. 

Experiential Etc is a content curation platform designed to transform advertising by incorporating augmented reality, virtual reality, artificial intelligence, and projection mapping. The company's unique method of experiential marketing results in increased customer involvement and strong brand-customer connections.

Financial Performance

Investors need to pay attention to the strong growth story of Experiential Etc. Presently, with a cumulative revenue of ₹5.81 crore and a market value of ₹111.0 crore, the company's finances show a positive trend. In the past two years, the company's earnings grew from ₹0.37 Cr in FY21 to ₹5.81 Cr in FY23, showcasing a Compound Annual Growth Rate (CAGR) of 297%.

There has been an 80% year-on-year increase in revenue for the financial year 2023. During FY24, Experiential Etc generated a revenue of ₹5.81 Cr, showcasing strong business activities. The firm's market value was a hefty ₹104.8 Cr, showing robust investor trust. Thecurrent value of the company's share price  is  ₹110.

Experiential Etc's effective strategy and robust brand alliances set it up for success in expanding. Monitor this emerging company as it challenges conventional marketing norms and consistently delivers outstanding client experiences.

The company has collaborated with over 120 brands such as Amazon Prime Video, Ajio, KPMG, Sony Pix, MPL, NDA, IRCTC, Mastercard, and Zillionaire. The company is currently in negotiations to finalize agreements with HyperSpace, Shell, Jeep, TataPlay, MAC Cosmetics, Flipkart, Godrej, and DM Developers.

To summarize, the unlisted market offers investors a special chance to invest in companies before they become publicly traded. Nevertheless, it is crucial to thoroughly research and investigate before investing in this sector. Despite the potential dangers, the private market continues to be an appealing choice for investors seeking to expand their portfolios and take advantage of business opportunities in their early stages.

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