Multibaggers: 6 Penny Stocks Give Over 100% Returns In 1 Month; 5 Of Them Hit New Highs On December 11

Amidst record-high market performance, a total of six penny stocks trading up to Rs 50 per share, have emerged as multi-bagger in 2023. In a month, these stocks have given more than 100% returns. On December 11th alone, five of these stocks touched yet another new 52-week high. They are, Shukra Jewellery, Jhandewala Foods, Kay Power and Paper, Coastal Roadways, RLF, and Educomp Solutions.

In general terms, penny stocks are shares of companies offering low market valuation, and lower price levels, and are typically labelled as below Rs 10. However, some of these penny stocks are also valued at up to Rs 50 per share and more. The risk factor among penny stocks is its sharp highs and lows.

1. Shukra Jewellery:

On BSE, Shukra Jewellery's share price has rallied to hit a 5% upper circuit and a new 52-week high of Rs 11.18 apiece on December 11th. There were several buyers in the stock but no sellers during the day.

In one month, the stock has zoomed by 121.39% on BSE. But from its 52-week low of Rs 3.15 apiece, the stock has gained multi-fold by 255%.

Shukra Jewellery Ltd. (formerly known as Shukra Diamond Exports Ltd) was incorporated in December 1991. The Company was promoted by Chandrakant Shah, who was made the proprietor of Clean Diamond Exports. The company's products range from manufacturing and selling gems, diamonds, plain and studded gold and silver jewellery.

2. Jhandewala Foods:

On BSE, Jhandewala's share price touched a new 52-week high of Rs 18.08 apiece. This was also its upper circuit limit.

The stock's monthly upside is massive by 127.71%. From its 52-week low of Rs 6.87 apiece, the stock climbed by a whopping over 163%.

FSSAI-approved Jhandewalas is committed to international standards of product quality. The product portfolio includes Desi Ghee, poha, mangodi, papad, kesar, daliya, poha & chai masala, chutney under the brand name Naman's and Cow Ghee under the brand name Godhenu.

3. Kay Power and Paper:

Paper products maker Kay Power also touched a new 52-week high and 2% upper price band to Rs 18.06 apiece on BSE.

In the last month, Kay Power's share price zoomed by nearly 108% on BSE. Compared to its 52-week low of Rs 5.15 apiece, the stock has jumped by nearly 251%.

Kay Power is engaged in the manufacturing of MG Kraft Paper. It has an annual capacity of 21000 tonnes. The Company also has a Power Plant having a generation capacity of 6 M.W.

4. Coastal Roadways:

On Monday, Coastal Roadways share price hit a fresh 52-week high of Rs 50.40 apiece. Overall, the day's gain was about 5%.

The company's stock price has surged by nearly 118% in a month. Furthermore, the stock is up by 164% from its 52-week low of Rs 19.10 apiece.

Coastal Roadways helps customers leverage the strategic benefits of Logistics Management. Its logistics professionals complete a comprehensive customized SRS (System Requirement Study) and Workflow Assessment before designing and executing a simple, economical and efficient logistics model. We imbibe effective inventory management practices to bring about inventory control thereby reducing carrying costs.

5. RLF:

RLF's share price ended at Rs 14.33 apiece, up by 4.98% on BSE. This was also its new 52-week high level and 5% upper circuit

This textile company's stock soared by nearly 135% in a month. While compared to its 52-week low of Rs 5.34 apiece, the stock price has shot up by over 168%.

RLF Limited was incorporated as Raksons Leasing & Finance Private Limited in 1979. Initially, it was engaged in the business of Hire Purchase financing and leasing. Later on, it diversified full-fledged into financing business, as an NBFC.

However, the company entered into a Joint Venture with Potencier Broderies of France for incorporation of a Joint Venture Company in France. Potencier Broderies is a leader in the embroidery industry in France, specialising in lingerie-corsetery. The JV company operates to carry out all activities concerning textile products and the company shall earn precious foreign exchange.

6. Educomp Solutions:

Unlike the above-mentioned stocks, this education solutions provider touched its 2% lower circuit to end at Rs 4.34 apiece on BSE. That meant that Educomp share had many sellers but no buyers.

But Educomp shares monthly performance is robust with gains of nearly 109% on BSE. From its 52-week low of Rs 1.25 apiece, the stock has soared by over 247%.

Educomp is a leader in several of the market segments it operates in. It has created and owns the largest content library for K-12. It is the largest Professional Development Company, a leading ICT Solutions Company, and the pioneer in education process outsourcing in India.

Should you buy penny stocks?

According to Angel ONE's blog, while evaluating stocks, analysing their price behaviour is a valuable approach to assess their strength. However, when it comes to identifying promising penny stocks, relying solely on price behaviour is not sufficient.

Hence, Angel One suggests to consider other factors as well. Such as, investors should assess the risks involved and check various parameters, such as the potential transformation of the company's stock price, sales growth, profit growth, shareholding pattern, operational cash flow, and management analysis. Additionally, taking some time to explore the company's official website can provide valuable insights. This examination helps in assessing the legitimacy of the company and aids in distinguishing between genuine companies and shell companies, which might only create a facade of existence.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author or Greynium Information Technologies. The author, the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.