2 penny stocks under 99p that I’d buy in April

Penny stocks have the potential to deliver exceptional returns. Here are two that I think could outperform the market over the long term.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Stacks of coins

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

I’ve been considering which penny stocks to add to my ISA and two stand out to me right now. Admittedly they’re very different businesses, but I think that could prove useful in diversifying my portfolio.


The small position I started in Sosandar (LSE: SOS) shares two months ago is down 12%, but I’m ready to top it up soon.

This company is one of the fastest growing women’s fashion brands in the UK. Its revenue rose 30% year on year to £11.6m in the three months to 31 December.

There was growth across all its sales channels and, importantly, it was also the group’s fifth consecutive quarter of profitability.

Following this, the retailer announced a deal with Sainsbury’s to sell its clothes through the supermarket’s website as well as being stocked in some of its stores.

Sosandar already has existing online partnerships with Marks & Spencer, John Lewis, and Next. The sales mix is broadly split between its own website and third-party channels.

Source: Sosandar Investor Presentation

While the retailer’s customers are relatively affluent, they’re probably still not immune to the continuing cost-of-living crisis. So sales growth could be impacted if inflation remains elevated. And small fashion businesses have a lot of hurdles to jump before they turn into big fashion businesses.

However, I think a recent £4.5m fundraise by the company should enable it to bolster its product range and pursue additional growth initiatives. The opportunity to grow overseas, for example, looks sizeable to me.

Overall, I think the shares are attractively priced at 23p. The market cap is currently just £58m.


Steppe Cement (LSE:STCM) is a leading low-cost cement manufacturer in Kazakhstan, where it has been operating since the 1950s.

Whilst cement isn’t an investment to get the heart racing, it’s still indispensable for modern construction. This makes it appealing to me.

The main competitive advantage this firm enjoys is the strategic location of its plant, in a former Soviet Union coal mining hub. This area has well-developed infrastructure that enables rapid and reliable delivery to its customers.

Its annual production capacity has steadily increased to 2m tonnes over the last few years. And the firm grew its net income from $1.28m in 2017 to $17.1m in 2021.

Yet, while it achieved record revenue growth last year, profits are expected to fall when the firm reports its audited full-year results in May. The reason for this was that production costs were higher as inflation soared 20% last year in Kazakhstan.

However, I expect earnings to grow steadily again once inflation normalises.

The stock carries a huge 11.7% dividend yield, though the payout could be cut as it’s only covered once by earnings. A reduction could cause short-term volatility in the share price.

Still, I like the long-term growth story here. Kazakhstan is the richest country in Central Asia, with vast natural resources. And according to the World Bank, its GDP growth in 2023-24 will accelerate to between 3.5% and 4%.

More specifically, the government has committed billions to modernising the country’s roads, railways, ports, airports, and IT infrastructure. This should keep cement demand robust and underpin the company’s growth.

Meanwhile, with a price-to-earnings (P/E) ratio of just 5.5, the stock looks dirt-cheap. If I had spare cash to invest, I’d buy some shares today.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Ben McPoland has positions in Sosandar Plc. The Motley Fool UK has recommended J Sainsbury Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Investing Articles

The National Grid share price nosedived 21% in 2 days! Is it time to take advantage?

The National Grid share price tumbled after the company surprised shareholders by revealing plans to raise more money via a…

Read more »

Mature Caucasian woman sat at a table with coffee and laptop while making notes on paper
Dividend Shares

How I’d try to ironclad my second income before interest rates fall

Jon Smith explains a couple of tactics he's looking to implement in his dividend portfolio to try and protect his…

Read more »

Investing Articles

The FTSE 100 still looks cheap to me. But don’t just take my word for it!

The FTSE 100 (INDEXFTSE:UKX) has increased 7.5% since the start of 2024. But I think there’s evidence to suggest that…

Read more »

Investing Articles

What should the Vodafone share price be? Here are 3 possible answers

Our writer uses a number of popular financial measures to come up with an estimate of a fair value for…

Read more »

Investing Articles

Here’s how much I’d have if I’d bought 1,000 shares in this FTSE 100 defence stock 5 years ago

I could have made a pretty penny investing in this leading FTSE 100 defence stock. Now I’m looking at a…

Read more »

Investing Articles

1 potential millionaire-maker UK stock I’d like to buy for the long haul

For long-term investors, here’s 1 UK stock to consider buying right now with the potential to help power a growth…

Read more »

Man writing 'now' having crossed out 'later', 'tomorrow' and 'next week'
Investing Articles

These cheap UK shares look way too good to ignore right now

With the UK stock market reaching new highs recently, this Fool plans to grab these two remaining cheap shares before…

Read more »

Young Woman Drives Car With Dog in Back Seat
Investing Articles

This unloved UK stock could rise 120%, according to a City broker

Some City analysts reckon a once-popular UK stock can recover from its massive recent decline and go on to more…

Read more »