3 ASX Penny Stocks With Market Caps Under A$400M To Consider

The Australian market is experiencing a cautious phase, with traders pausing to assess recent volatility and upcoming significant earnings reports. For investors willing to explore beyond well-known stocks, penny stocks—typically representing smaller or newer companies—can offer intriguing opportunities. Despite the term's outdated connotations, these stocks can provide substantial value when they possess strong financial foundations and potential for growth.

Top 10 Penny Stocks In Australia

Click here to see the full list of 411 stocks from our ASX Penny Stocks screener.

Here's a peek at a few of the choices from the screener.

Cobre (ASX:CBE)

Simply Wall St Financial Health Rating: ★★★★★☆

Overview: Cobre Limited is involved in the exploration and evaluation of mineral properties in Australia and Botswana, with a market cap of A$49.18 million.

Operations: The company's revenue segment is solely derived from exploration activities, amounting to A$0.35 million.

Market Cap: A$49.18M

Cobre Limited, focused on mineral exploration in Australia and Botswana, remains pre-revenue with A$0.35 million from exploration activities. The company is debt-free but faces challenges with a net loss of A$2.12 million for the year ending June 30, 2025. Despite reducing losses by 7.9% annually over five years, Cobre's financial stability is questioned by its auditors regarding its ability to continue as a going concern. Recent capital raises totaling A$7 million through equity offerings may provide short-term relief but highlight ongoing liquidity pressures and shareholder dilution concerns amidst an experienced management team.

• Click to explore a detailed breakdown of our findings in Cobre's financial health report.
• Gain insights into Cobre's historical outcomes by reviewing our past performance report.

SKS Technologies Group (ASX:SKS)

Simply Wall St Financial Health Rating: ★★★★★★

Overview: SKS Technologies Group Limited operates in Australia, focusing on the design, supply, and installation of audio visual, electrical, and communication products and services with a market cap of A$388.86 million.

Operations: The company generates revenue of A$261.66 million from its operations in the lighting and audio-visual markets.

Market Cap: A$388.86M

SKS Technologies Group has demonstrated strong financial performance, with earnings growing 111.8% over the past year, surpassing industry averages. The company is debt-free and maintains a healthy balance sheet, with short-term assets exceeding both short- and long-term liabilities. SKS's return on equity is outstanding at 57.2%, reflecting efficient management of shareholder funds. However, significant insider selling in recent months could be a concern for potential investors. Despite this, SKS declared a dividend of A$0.05 per share for the year ended June 30, 2025, indicating confidence in its ongoing profitability and cash flow generation capabilities amidst stable weekly volatility.

• Unlock comprehensive insights into our analysis of SKS Technologies Group stock in this financial health report.
• Review our growth performance report to gain insights into SKS Technologies Group's future.

Starpharma Holdings (ASX:SPL)

Simply Wall St Financial Health Rating: ★★★★★☆

Overview: Starpharma Holdings Limited is a biopharmaceutical company focused on the research, development, and commercialization of dendrimer technology for pharmaceutical and healthcare applications globally, with a market cap of A$175.65 million.

Operations: The company generates revenue of A$5.85 million from the discovery, development, and commercialization of dendrimers.

Market Cap: A$175.65M

Starpharma Holdings, with a market cap of A$175.65 million, is navigating the biopharmaceutical landscape with its dendrimer technology. Despite being unprofitable and having volatile share prices, Starpharma's short-term assets surpass its liabilities, providing some financial stability. Recent collaborations with Genentech and Radiopharm highlight strategic partnerships that could enhance future revenue streams through milestone payments and royalties, although current revenues are limited at A$6 million. The management team has a relatively short average tenure of 1.8 years, suggesting recent leadership changes which might influence strategic direction moving forward in this high-risk sector.

• Navigate through the intricacies of Starpharma Holdings with our comprehensive balance sheet health report here.
• Gain insights into Starpharma Holdings' outlook and expected performance with our report on the company's earnings estimates.

Seize The Opportunity

• Access the full spectrum of 411 ASX Penny Stocks by clicking on this link.
• Interested In Other Possibilities? Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.