These are stocks that are too liquid and not very popular among investors. There is little information available on such stocks regarding their fundamentals, so it is quite difficult to research and analyze them. However, such stocks may have a lot of upside potential. multibagger Providing huge returns to the investors in a short span of time.
These stocks are also traded in very low volumes and hence it is easy for them to hit the high circuit repeatedly in their trading. However, the same is true for the lower circuit. If an investor is able to find a penny stock with good fundamentals and is able to buy the stock at extremely low valuations, he can make a huge fortune.
Investing in penny stocks is not very common due to the high risk involved. Only investors with high risk appetite are advised to do so. While the chances are high, the chances of such stocks breaking down are also high. Even if you are a high-risk investor, no more than 2 to 3 percent of your portfolio should consist of penny stocks. Also, buy and hold method should not be adopted with such shares. If you have got a good return from the stock, it is more advisable to sell than to hold.
Despite the high risk, some penny stocks have managed to generate exorbitant returns for investors over the past year. Let’s take a look at some such stocks:
Flomik Global Logistics – 9,113%
the stock has jumped around ₹1.24 in October 2020 approx ₹114 at present, is giving returns of more than 9,100 percent to its investors in just 1 year. Flomik Global Logistics provides sea freight services, including documentation, palletization, fumigation, cargo supervision and loading, onward transportation, cargo tracking and other services.
Adinath Textiles – 4,717%
the stock has jumped around ₹1.48 in October 2020 approx ₹71 Currently, is giving returns of 4,717 per cent to its investors in just 1 year. Adinath Textiles Ltd. manufactures and sells blended acrylic and worsted yarns in India. It also deals in unstitched suiting, shirting and dress material. Adinath Textiles Limited was incorporated in 1979 and is based in Ludhiana, India.
Tata Teleservices – 1,223%
the stock has jumped around ₹From 3rd October 2020 approx ₹40 Currently, is giving returns of 1,223 per cent to its investors in just 1 year. Tata Teleservices (Maharashtra) Limited provides basic and cellular telecommunication services. The company is engaged in wired and wireless telecommunication activities. The company has about two integrated access (basic and cellular) service licenses, one for the Mumbai service area and the other for Maharashtra and Goa.
Brightcom Group – 1,186%
the stock has jumped around ₹Around 5.5 in October 2020 ₹71 Currently, is giving a return of 1,186 per cent to its investors in just 1 year. Brightcom Group Limited, formerly Lycos Internet Limited, is an India-based services company engaged in providing digital marketing services and development of computer software and services. The company operates through two segments: Digital Marketing Segment and Software Development Segment. It is also a global information technology implementation and outsourcing service provider.
Vari Renewable Technologies – 938%
the stock has jumped around ₹17.8 in October 2020 approx ₹185 Currently, is giving returns of 938 percent to its investors in just 1 year. Vari Renewables Technology Limited (WRTL), formerly Sangam Renewables Limited, is an India-based renewable energy company. The company is engaged in the business of generation of electricity through renewable energy sources. It also provides advisory and consultancy services in solar specific verticals.
RatanIndia Infrastructure – 697%
the stock has jumped around ₹From 5th October 2020 approx ₹42 Currently, is giving returns of around 700 per cent to its investors in just 1 year. RatanIndia Enterprises Limited is engaged in HR Consultancy and Manpower business in India. The company provides payroll management and other related services. The company was earlier known as RatanIndia Infrastructure Limited and was renamed as RatanIndia Enterprises Limited in March 2021. RatanIndia Enterprises Limited was incorporated in 2010 and is based in New Delhi, India.
Ganesh Housing – 629%
the stock has jumped around ₹Around 25 October 2020 ₹182 is currently, giving returns of around 629 per cent to its investors in just 1 year. Ganesh Housing Corporation Limited is engaged in real estate and construction businesses in India. It is involved in the promotion and development of residential, commercial, retail and township projects. The company had a land bank of about 639.13 acres as on March 31, 2021. Ganesh Housing Corporation Limited was established in 1969 and is headquartered in Ahmedabad, India.
Reliance Power – 405%
the stock has jumped around ₹From 3rd October 2020 approx ₹14 Currently, is giving returns of more than 400 per cent to its investors in just 1 year. Reliance Power Limited, along with its subsidiaries, is engaged in power generation in India. Its portfolio of power projects is based on coal, gas, hydro, wind and solar power. The company has an operational power generation capacity of 5,945 megawatts (MW). The company was incorporated in 1995 and is based in Mumbai, India.
HFCL – 379%
the stock has jumped around ₹From 16 October 2020 approx ₹79 at present, is giving returns of 379 per cent to its investors in just 1 year. HFCL Limited manufactures and sells telecom products in India and internationally. The company operates through the telecom products and turnkey contracts and services segment. The company was earlier known as Himachal Futuristic Communications Limited and was renamed as HFCL Limited in October 2019. HFCL Limited was incorporated in 1987 and is based in New Delhi, India.
CG Power – 378%
the stock has jumped around ₹from 24 october 2020 approx ₹115 Currently, is giving returns of 378 per cent to its investors in just 1 year. CG Power & Industrial Solutions Limited, formerly Crompton Greaves Limited, is engaged in the business of power transformers and reactors, low tension motors and switchgears. The company provides end-to-end solutions to utilities, industries and consumers. It manufactures a range of power and distribution transformers, extra high voltage (EHV), medium voltage (MV) circuit breakers, lightning arresters, isolators and vacuum interrupters.
These are some of the penny stocks that have become multibaggers giving strong returns to their investors. However, one should always be cautious and do as much research as possible before investing in penny stocks. Investors with less risk should prefer mutual funds or other safe large cap stocks over penny stocks.
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