Penny stocks are actually low cost stocks say those priced between Rs. 5- Rs. 25 and hence low market capitalization usually under Rs. 500 crores. The trading in them for gains is merely speculative and one when engaging in them should purpose it nothing more than a lottery. Another noteworthy feature of these penny stocks is because of low interest in them despite ultra-low rates, there is low liquidity.
These are typically thus micro cap stocks listed on both the NSE and BSE
Multi-bagger penny stocks
|Penny Stock||Sector||1-Year gains|
|Flomic Global Logistics||Logistics||6960%|
|Waaree Renewable Technologies||Solar module and EPC services||1093%|
The textile company scrip has run up sharply from the price of Rs. 1.45 as on September 14 to currently Rs. 59.70. The return on a 1-year basis is a whopping 4017%.
The Shreyans Group company is a worsted spinning mill. . The Company has an installed capacity of 4800 spindles. The Company has installed state of the art machinery from (SAVIO) Italy, NSC (France). The interesting facet to look upon about the company is that it has recorded zero sales for the last few quarters. And profit has been on the rise in the latest quarter owing to other income.
Flomic Global Logistics
The stock in a year's time has moved from Rs. 0.82 just a year back to Rs. 57.9, implying gains of whopping 6960%.
M-cap of the firm is Rs. 41.7 crore
TTM P/E- 43.8
Formerly known as Flomic Freight Services Pvt. Ltd. / Vinaditya Trading Co Limited is a global player in the multi-cargo, multi-surface logistics business. The company down the line wish to extend its service to exporters and importers who will be capitalizing on government's Make In India initiative.
Waaree Renewable Technologies:
It is a solar energy or EPC company in India commanding the latest m-cap of Rs. 390.1 crore. The scrip in a year's time has moved from Rs. 15.7 to currently quote at Rs. 187.4, implying gains of a good 1093%.
Talking about the company, it has India's largest Solar PV Module manufacturing capacity of 2 GW's at its plants in Surat and Umbergaon in Gujarat. Waaree Energies is amongst the top player in India in providing EPC services, project development, rooftop solutions, and solar water pumps and also as an Independent Power Producer. Waaree has its presence in over 350 locations nationally and 68 countries internationally..
Should you be investing in penny stocks for such mind-boggling gains?
Note the number of other scrips or penny stocks here have generated phenomenal gains such as Majesco, Natraj Protein, Rama Steel, Nyssa, Hexa Tradex to name some and to chalk the good one that can yield you multibagger return cannot be everyone's cup of tea. The right approach to picking a good penny stock may be to study its financials, growth rate, management, debt status etc.
For quick returns, you can pay consideration to factors such as momentum, RSI, moving averages etc. Promoter shareholding and pledge is another important criteria that need not be overlooked.
So, only if you can stomach in high risk and have the ability to judge a good penny stock, you can go for it, else it should be strictly avoided by new or conservative investor category.
The information is collated just to enable you to understand the potential of the stock markets that though come with high risk. Nonetheless, it should not be construed for investment advice.