From ₹3.8 to 21.68: This multibagger penny stock soared 470% in over 2 months; check here

Investing in Healthy Life Agritec has demonstrated remarkable value for its shareholders. The stock has given multifold returns to its investors, skyrocketing 470 percent in a little over 2 months, since April 2024, from ₹3.80 in March 2024 end.

Overall, in 2024 YTD, the stock has rallied 309 percent, while, in the last 1 year, it has soared 190 percent.

It has advanced 19.5 percent in June so far after a 159.5 percent surge in May and an 84 percent jump in April. However, the stock fell 22.45 percent in March and 3.3 percent in February. Before that, in January, the stock gained 19 percent.

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In the long-term as well, in the last 2 years, the scrip surged 148.6 percent. The stock hit its record high of ₹21.68 in intra-day deals today. It has soared 525 percent from its 52-week low of ₹3.47, hit on March 15, 2024.

It is important to note that the stock is currently trading under ASM LT: Stage 1

What is ASM?

The ASM LT Stage 1, initiated by the Securities and Exchange Board of India (SEBI) and stock exchanges, is a regulatory framework designed to oversee and regulate trading activities. When a stock enters ASM Stage 1, it signals that the stock has displayed unusual trading patterns or volatility warranting closer scrutiny. Criteria for inclusion in ASM Stage 1 include high price variation, client concentration, price fluctuation, and other indicators of potential market manipulation or speculative activity.

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Stocks in ASM Stage 1 face stricter margin requirements, necessitating higher collateral for traders, thus reducing speculative trading. They may also encounter trading restrictions like limitations on intraday trading or mandatory delivery-based trading to curb excessive volatility and speculative transactions. Additionally, these stocks may be subject to narrower price bands, restricting their price movements within a single trading session to prevent abrupt and significant market disruptions.

Periodic reviews assess whether stocks should remain under surveillance or return to normal trading status based on their trading behaviour and compliance with surveillance measures.

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About the firm

Healthy Life Agritec Ltd. is engaged in the business of trading raw milk in Maharashtra and live chicken and agro products in Karnataka and Maharashtra. The company was incorporated in November 2019, with its headquarters in Thane, Maharashtra. During the March 2022 quarter, the company’s revenue from operations was ₹26.16 crore, up 534.95 percent against ₹4.12 crore in the March 2021 quarter.

Brokerage view

According to ICICI Direct, Healthy Life exhibits notable strengths, including strong momentum, with its price consistently exceeding short, medium, and long-term moving averages. Additionally, the company demonstrates an uptrend in net cash flow and cash from operating activities.

Meanwhile, it's only weakness, as per the brokerage is Low Piotroski Score: Companies with weak financials.

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Investing in small-cap stocks with lower market capitalization can promise considerable gains owing to their affordable stock prices. Yet, this avenue entails notable risks. Small-cap stocks often suffer from limited liquidity, leading to fewer transactions compared to larger firms. Moreover, they commonly lack stringent financial reporting and oversight, rendering them susceptible to price manipulation and fraud. 

Due to their restricted liquidity and oversight, small-cap stocks frequently showcase heightened volatility, amplifying risks for investors. Hence, conducting comprehensive research and implementing prudent risk management strategies are crucial to navigate the uncertainties linked with these stocks and minimise potential losses.

Disclaimer: This story is for educational purposes only. Please speak to an investment advisor before making any investment decisions.