6 penny stocks I’d buy for my Stocks and Shares ISA!

I’m searching for the best penny stocks to buy before early April’s Stocks and Shares ISA deadline. Here are six I’d happily snap up with the remainder of my annual £20k allowance.

Agronomics

The rate at which the lab-grown meat market is growing demands serious attention. According to Allied Market Research, the industry will be worth around $2.8bn by 2030. That’s a whopping lift from the $1.6m that it’s currently estimated to be worth. As a consequence I’m considering adding cultured meat specialist Agronomics (LSE: ANIC) to my shares portfolio. 

Agronomics is an investment company that provides the seed money for small companies to develop lab-grown products. Competition in the industry is likely to be cutthroat as people cut animals from their diets on ethical and environmental grounds and the market grows rapidly. But Agronomics has invested in more than a dozen companies to bolster its chances of success.

Some of the companies Agronomics has in its portfolio include cultivated fish maker BlueNalu, lab-grown beef specialist Mosa Meat and egg protein manufacturer Onego Bio. As the public becomes more attuned to animal-free diets, I think profits at this penny stock could soar.

Foresight Sustainable Forestry Company

I already have exposure to the building materials industry through my investment in brickmaker Ibstock. And I’m thinking of bulking up my position in this area by snapping up penny stock Foresight Sustainable Forestry Company (LSE: FSF).

Not only is this UK share also set to benefit from rising homebuilding rates over the next decade. It’s also set to exploit the growing use of timber frames in house construction. Rising concerns over sustainability are boosting demand for wood products over alternatives. Using timber also has other practical benefits for developers like reducing build times and cutting costs.

Foresight Sustainable Forestry Company owns 27 sites in total across Scotland, Wales, and England as of today. I think it will have an important part to play in the government’s quest to hit both its housebuilding and its net zero targets. I’d buy the business even though demand for its products could sink during future economic downturns.

Kropz

You might not have heard of Kropz (LSE: KRPZ) before. However, as a miner and processor of rock phosphate it will likely have a vital role to play in feeding a growing global population. The material it produces in Africa play a vital role in fertiliser manufacturing.

Kropz’s flagship project of Elandsfontein in South Africa is the country’s second-biggest phosphate deposit. Mining here started in October and first ore was delivered to the site in December. A steady ramping-up of operations is now set for the coming months. Kropz has also carried out feasibility studies at its Hinda project in the Republic of Congo, an asset the business has described as “one of the world’s largest undeveloped sedimentary-hosted phosphate reserves”.

Kropz is a mining stock whose world-class assets give it plenty of investment potential, then. I’d buy the business even though problems with getting Elandsfontein production firing nicely could derail earnings forecasts.

Likewise Group

The floor coverings and matting industry in the UK is highly fragmented and operators like Likewise Group (LSE: LIKE) have a lot of rowing to do to keep up. It is in particular danger from larger operators that enjoy significant economies of scale.

However, Likewise has been building its position in the market rapidly thanks to a series of acquisitions. And the company has wasted no time in sating its appetite for growth following its IPO last summer and acquired Valley Wholesale Carpets at the turn of 2022.

I believe this penny stock could prove a lucrative stock to own as construction activity picks up following Covid-19. Likewise supplies flooring products for commercial, industrial, and residential spaces. And I’m particularly excited by the possibility of soaring sales to homebuilders as build rates of residential properties heat up.

Old Mutual

A number of shares in my portfolio give me access to fast-growing emerging markets. But I feel my exposure to Africa and its soaring populations could be lacking. The number of people living in Sub-Saharan Africa has been growing by around 2.7% a year in the past decade, for example. This is much higher than the growth rates in Asia and Latin America.

I’d aim to capitalise on this trend by investing in Old Mutual (LSE: OML). Wealth levels are also rising rapidly in Africa and as a consequence so is demand for financial services, an area in which product penetration remains extremely low. Old Mutual’s main market is South Africa but it also trades in other major continental economies like Nigeria, Kenya, and Ghana.

Now competition in these fast-growing markets is expanding rapidly. And this could take a huge bite out of Old Mutual’s profits. However, I think the company’s strong brand name and history (it’s been trading since 1845) could help limit the damage.

Atlantic Lithium

Buying mining shares usually involves a large degree of risk and in this respect Atlantic Lithium (LSE: ALL) is no exception. A host of disappointments during the exploration, development, and production stages can occur. These can hit profits hard and send a share’s price sinking. And in this case there’s a long way to go before Atlantic Lithium gets production firing at its Ewoyaa project in Ghana.

Still, it’s my opinion that the potential rewards of owning this penny stock makes it very exciting today. Lithium is a critical component in electric vehicles, so consumption of the metal is tipped to take off in the years ahead. Statista analysts, for example, think lithium demand will soar almost 280% between now and 2030.

Drilling work at Ewoyaa reveals massive mining potential and Atlantic Lithium recently hiked its resource estimates for the project to a huge 21.3m tonnes. I think the business could be a great way to capitalise on the green transport revolution.