2 potentially exciting penny stocks this Fool likes!

Two penny shares I plan to purchase after I subsequent have some spare money are DP Poland (LSE: DPP) and Revolution Magnificence Group (LSE: REVB).

Right here’s why!

DP Poland

The enterprise franchises the well-known Domino’s Pizza model in rising markets Poland and Croatia.

DP Poland shares are up 50% over a 12-month interval from 8p right now final yr, to present ranges of 12p.

From a bullish view, demand for quick meals in Poland and Croatia is hovering. Rising markets current a chance for the agency to capitalise on rising private earnings ranges, in addition to present low market penetration.

The enterprise has recorded wonderful efficiency in latest occasions. In truth, it recorded its greatest ever quarter, the ultimate quarter for 2023. Like-for-like gross sales on this interval elevated a whopping 27.5%.

For the yr as an entire, the enterprise posted an replace in January. Like-for-like gross sales in Poland and Croatia rose by a powerful 19.4% and 16.4%.

From a bearish view, the quick meals trade is extremely aggressive. I’m certain others shall be trying to capitalise on this probably profitable rising territory. Plus, present inflationary pressures are an ongoing danger as they might take a chew out of revenue margins.

General, the DP Poland continues to open new areas. Moreover, it’s investing closely in advertising and expertise to zero in on a dominant market place. A wholesome trying steadiness sheet ought to stand it in good stead. Certainly one of my largest worries with small cap shares is an absence of money, which might typically result in hassle.

Revolution Magnificence Group

Private care and sweetness enterprise Revolution Magnificence Group has been on a fantastic development journey, and went public again in 2021. The enterprise sells plenty of manufacturers direct to customers through e-commerce, in addition to in retail shops.

The shares are up simply over 12% throughout a 12-month interval from 24p right now final yr, to present ranges of 27p.

In accordance with knowledge revealed by Statista, the sweetness and private care market is barely set to proceed to develop at a fast price. This could possibly be excellent news for the enterprise.

Revolution has a lofty intention of hitting £1bn value of gross sales by 2030. A brand new administration crew, introduced in because of an accounting and reporting scandal, wish to ship recent impetus to the enterprise to hit this goal.

Final month’s buying and selling replace shed additional mild on latest buying and selling, and full-year expectations. The enterprise mentioned EBITDA development ought to are available at low double-digit figures, which is an improve on the earlier forecast. It appears to be like just like the agency’s strategic overview to drive efficiencies, margins, and profitability is already working.

From a bearish view, I’m going to regulate beleaguered quick vogue agency boohoo‘s rising affect on the enterprise. It at present holds near 30% value of shares within the enterprise. boohoo’s properly documented struggles are one thing I’m hoping that Revolution can keep away from sooner or later.

General, a optimistic journey thus far, recent impetus, and strategic overview trying prefer it’s bearing fruit. These, together with a burgeoning market place assist construct my funding case.