Multibagger! Penny stock Hardwyn India surged 6592% in 5 years, up 955% in 3 years; should you invest?

Hardwyn India, a penny stock, has shown exceptional long-term performance with a growth of 6592% in 5 years. Despite recent corrections, the stock surged by 955% in 3 years and has potential for high returns within the penny stock category.

Pranati Deva
First Published14 Jun 2024, 04:55 PM IST
Hardwyn India, a penny stock, has shown exceptional long-term performance with a growth of 6592% in 5 years. Despite recent corrections, the stock surged by 955% in 3 years and has potential for high returns within the penny stock category.
Hardwyn India, a penny stock, has shown exceptional long-term performance with a growth of 6592% in 5 years. Despite recent corrections, the stock surged by 955% in 3 years and has potential for high returns within the penny stock category.

Penny stock Hardwyn India has demonstrated exceptional performance for long-term investors. Looking back over 5 years, Hardwyn India has shown remarkable growth, increasing by a staggering 6592 percent from 0.50 in June 2019. Such substantial gains highlight its consistent and substantial value appreciation trajectory over the years, reflecting its potential as a high-return investment within the penny stock category.

Meanwhile, over the span of 3 years, starting from June 2021 when it traded at 3.17, the stock has surged by an impressive 955 percent.

Read here: Penny stock below 5 hits lifetime high after 55% rally in one month

However, the stock witnessed some correction in the last 1 year.  Over the past year, it has fallen 37 percent, while the stock has lost almost 18 percent year-to-date. It has given negative returns in 4 of the 6 months so far. The scrip rose 16 percent in June so far, snapping after 4 straight months of losses since February 2024. It fell 35 percent in this period, declining 5 percent in May, 9 percent in April, 24 percent in March, and 1 percent in February. Meanwhile, it advanced 9 percent in January 2024.

The stock hit its record high of 51.77 on January 15, 2024 and 52-week low of 26.10 on June 5, 2024. Currently trading at 33.5, the stock is 35 percent away from the peak but has jumped over 28 percent from its 52-week low.

Read here: 5 small-cap stocks gave returns up to 12000% in last 5 years

About the firm

Hardwyn India Limited manufactures and trades in architectural hardware and glass fittings for residential and commercial structures under the Hardwyn brand in India. The company offers door closers, floor springs, glass patch fittings, point fixed architectural fittings, shower enclosure fittings, shower hinges, plastic profiles, mortise handles and locks, spider fittings, shower sliding systems, motion gate series, automatic and shower doors, stainless steel railings and balustrades, brass and zinc handles, cylindrical and furniture locks, telescopic channels, and electronic safes, as well as bathroom accessories and aluminum profile products. The company was formerly known as Garv Industries Limited and changed its name to Hardwyn India Limited in January 2020. Hardwyn India Limited was founded in 1965 and is based in New Delhi, India.

Read here: Multibagger! Suncity Synthetics gives over 280% returns in less than 3 months

Earnings

In the March quarter (Q4FY24), the net profit of the firm fell 12 percent year-on-year (YoY) to 3.29 crore from 3.73 crore in the same quarter last year. It also declined on a sequential basis from 4.1 crore in the December quarter.

Meanwhile, its total income rose 21 percent YoY to 37 crore in the quarter under review as against 30.5 crore in the same quarter last year. Meanwhile, in the previous quarter, its total income was 35.1 crore.

Overall for the financial year FY24, the company's net profit rose 8 percent to 9.75 crore from 9.03 crore in FY23. Its total income also grew 8 percent to 136 crore in FY24 from 125.77 crore in FY23.

Read here: This multibagger penny stock soared 470% in over 2 months; check here

Brokerage view

ICICI Direct pointed out several strengths of Hardwyn India. The company operates with minimal debt, which ensures financial stability and flexibility. Over the past two years, Hardwyn India has consistently improved its annual net profits, reflecting effective operational management and increasing profitability. Another notable aspect is the absence of any promoter pledge, underscoring strong corporate governance and alignment of interests between stakeholders and shareholders. These factors collectively bolster Hardwyn India's position in the market, laying a solid foundation for potential growth and sustainable business operations.

Meanwhile, its only weakness, as per the brokerage, is declining net cash flow. The company is not able to generate net cash, it said.

Read here: Multibagger stock: Magellanic Cloud soars 8166% in 5 years, 4078% in 3 years

Investing in stocks, that boast lower market capitalisation, offers the potential for significant gains due to their affordability. However, this comes with inherent risks. Small-cap stocks often suffer from limited liquidity, resulting in fewer transactions compared to larger firms. Moreover, they frequently lack stringent financial reporting and oversight, making them susceptible to price manipulation and fraud.

Due to their liquidity constraints and oversight issues, small-cap stocks typically exhibit heightened volatility, amplifying investor risks. Therefore, conducting thorough research and implementing sound risk management strategies is crucial. This approach helps navigate the uncertainties associated with small-cap stocks effectively and minimise potential losses.

 

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

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News in Numbers

Numbers that help you understand news better
$5 M

394,000

$112 B

12.1%

₹133.50 Cr

₹12,300 Cr

$136 M

First Published:14 Jun 2024, 04:55 PM IST
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