From ₹2.7 to ₹59.17: Once a penny stock, Cinerad Communications soared 2051% in just 1 year
Cinerad Communications (CINC), which was a penny stock till last year, has given extraordinary multibagger returns to its investors in the last 1 year. This penny stock has skyrocketed over 2,051 percent in this period, from ₹2.75 in March 2023 to currently trade at ₹59.17.
Cinerad Communications (CINC), which was a penny stock till last year, has given extraordinary multibagger returns to its investors in the last 1 year. This penny stock has skyrocketed over 2,051 percent in this period, from ₹2.75 in March 2023 to currently trade at ₹59.17. Meanwhile, in the last 3 years, since March 2021, the stock has also given multifold returns, soaring 3,133 percent from ₹1.83.
However, in 2024 year-to-date (YTD), the stock has surged over 276 percent, giving positive returns in all 4 months so far. It jumped over 17 percent in April so far extending gains for the sixth straight month since November 2023. Between November 2023 and April 2024, the stock rallied over 916 percent.
Meanwhile, in 2024, it rose 41 percent in March 2024, 51 percent in February as well as in January.
Read here: Multibagger: This penny stock surged 1,011% in just one year; should you invest?
The stock hit its record high of ₹59.17 in the previous session, April 10, 2024. It has now skyrocketed over 2,873 percent from its 52-week low of ₹1.99, hit on May 31, 2023.
Cinerad Communications Limited engages in the production of advertising and promotional films, documentaries, and feature films in India. It also provides digital video editing and computer graphics; and studio and HD cameras on hire for shooting, as well as produces TV serials and reality shows. The company was incorporated in 1986 and is based in Kolkata, India.
Read here: Multibagger: This penny stock surged 307% in last 1 year, 1215% since March 2020
Earnings
In the December quarter, Cinerad Communications posted a net loss of ₹1 lakh, narrowed from a net loss of ₹2 lakh during the previous quarter ended December 2022. However, it did not report its revenue for the quarter ended December 2023 or for the corresponding quarter last year.
Brokerage view
According to ICICI Direct, CINC portrays several strengths, like it hit a new high in the previous session as well as rising net cash flow and cash from operating activity. Additionally, the stock has demonstrated strong momentum, with its price above short, medium and long-term moving averages. These strengths underscore the company's ability to generate profits, optimise capital utilisation, and deliver value to its shareholders.
Read here: ₹1.50 to ₹87: Penny stock turns multibagger in 10 years. Shares rise 5700%
Meanwhile, its weaknesses, as per the brokerage, are:
- Inefficient use of capital to generate profits - RoCE declining in the last 2 years
- Inefficient use of shareholder funds - ROE declining in the last 2 years
- Inefficient use of assets to generate profits - ROA declining in the last 2 years
About penny stocks
Investing in penny stocks can be tempting for the allure of high returns, but it's crucial to recognize the significant risks involved. These stocks may not suit everyone, especially risk-averse individuals. Only those comfortable with high-risk investments and willing to allocate a small portion of their portfolio should consider them. Seeking advice from a financial advisor before deciding is strongly advised.
Read here: Multibagger! Penny stock Blue Chip India soared 2600% in 4 years, 671% in 1 year
Penny stocks pose several challenges. They often represent small, lesser-known companies with minimal analyst coverage and limited publicly available information. Additionally, the lack of transparency and access to management insights complicates investment decisions.
Moreover, penny stocks are vulnerable to various risks such as illiquidity, high-impact costs, and difficulties associated with low trading volumes. Without compelling reasons supported by thorough research, investing in penny stocks is generally not advisable for serious, long-term investors seeking stability and growth in their portfolios.
Disclaimer: This story is for educational purposes only. Please speak to an investment advisor before making any investment decisions.
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