Multibagger: This penny stock has skyrocketed over 29,000% in 3 years
Once a penny stock Eyantra Ventures has given multifold returns to its investors in the last 3 years. The stock has skyrocketed over 29,287 percent in this period, from ₹3.28 in March 2021 to currently trade at ₹963.90. Meanwhile, it rose over 216 percent in the last 1 year.
Once a penny stock Eyantra Ventures has given multifold returns to its investors in the last 3 years. The stock has skyrocketed over 29,287 percent in this period, from ₹3.28 in March 2021 to currently trade at ₹963.90. Meanwhile, it rose over 216 percent in the last 1 year, rising from ₹305.20.
However, in 2024 year-to-date (YTD), the stock has surged over 67 percent, giving positive returns in 2 of the 4 months so far. The stock has not given any returns in April so far and March but rose over 63 percent in February and 2.2 percent in January.
Before March 2024, the stock had given positive returns in 5 straight months between October 2023 and February 2024. It had risen 172 percent in these 5 months.
The stock hit its record high of ₹963.90 on February 26, 2024, skyrocketing almost 216 percent from its 52-week low of ₹305.25, hit on May 29, 2023.
Eyantra Ventures Limited engages in the provision of information technology (IT) and IT-enabled services. The company was formerly known as Punit Commercials Limited. Eyantra Ventures Limited was incorporated in 1984 and is based in Hyderabad, India.
One must note that the stock is under Enhanced Surveillance Measure (ESM)- stage 1.
SEBI and Exchanges have collaboratively introduced an Enhanced Surveillance Measure (ESM) framework specifically tailored for Micro-Small Companies, defined as those with a market capitalization of less than 500 crores. The NSE circular outlines the criteria that apply to companies falling under ESM. This initiative is designed to enhance transparency and ensure that investors have access to crucial information before making investment decisions in these stocks.
The ESM comprises two stages. In Stage 1, the trade settlement for a stock will adhere to a Trade for Trade mechanism, with a price band of 5 percent. However, if the instrument already operates within a 2 percent price band, that narrower band will be applicable instead.
Earnings
In the December quarter, Eyantra Ventures posted a net profit of ₹27 lakh, up from ₹23 lakh during the previous quarter ended December 2022. However, its revenue for the quarter ended December 2023 came in at 4.5 crore, surging almost 248 percent versus ₹1.32 crore in the corresponding quarter last year.
Brokerage view
As per ICICI Direct, Eyantra has experienced strong annual earnings per share (EPS) growth. Furthermore, the stock has exhibited strong momentum, evidenced by its price consistently surpassing short-, medium-, and long-term moving averages. These indicators highlight the company's proficiency in profit generation, efficient capital utilization, and commitment to delivering shareholder value.
About penny stocks
Investing in penny stocks can seem enticing due to the potential for high returns, but it's important to understand the significant risks involved. These stocks may not be suitable for everyone, particularly those who are risk-averse. Only individuals comfortable with high-risk investments and who are willing to allocate a small portion of their portfolio should consider them. It's highly recommended to seek advice from a financial advisor before making any decisions.
Penny stocks present numerous challenges. They often represent small, lesser-known companies with limited analyst coverage and minimal publicly available information. Additionally, the lack of transparency and access to management insights complicates investment decisions.
Furthermore, penny stocks are susceptible 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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