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Business News/ Markets / Stock Markets/  Multibagger Stock: Jhandewalas Foods surged over 1,900% in 1 year, 310% in 2024 YTD
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Multibagger Stock: Jhandewalas Foods surged over 1,900% in 1 year, 310% in 2024 YTD

Once a penny stock, Jhandewalas Foods has given multifold returns to its investors in the last 1 year. The stock has skyrocketed over 1,932% in this period to currently trade at ₹139.31. Meanwhile, in 2024 year-to-date (YTD), the stock has also given multibagger returns, rallying 310%.

Once a penny stock, Jhandewalas Foods has given multifold returns to its investors in the last 1 year. The stock has skyrocketed over 1,932% in this period to currently trade at ₹139.31. Meanwhile, in 2024 year-to-date (YTD), the stock has also given multibagger returns, rallying 310%. (Pixabay)Premium
Once a penny stock, Jhandewalas Foods has given multifold returns to its investors in the last 1 year. The stock has skyrocketed over 1,932% in this period to currently trade at 139.31. Meanwhile, in 2024 year-to-date (YTD), the stock has also given multibagger returns, rallying 310%. (Pixabay)

Once a penny stock, Jhandewalas Foods has given multifold returns to its investors in the last 1 year. The stock has skyrocketed over 1,932 percent in this period to currently trade at 139.31.

Meanwhile, in 2024 year-to-date (YTD), the stock has also given multibagger returns, rallying 310 percent. This year so far, the scrip has given positive returns in 3 of the 4 months till date. The stock has jumped 79 percent in April so far after a 20 percent decline in March. However, it rose 73 percent in February and over 65 percent in January 2024.

Before January 2024, the stock gave multibagger returns in 2 straight months, soaring over 151 percent in December 2023 and over 106 percent in November 2023.

The stock also hit its record high of 139.31 in intra-day deals today, April 18, 2024, surging 1,928 percent from its 52-week low of 6.87, hit on November 2, 2023.

Read here: Multibagger: This penny stock jumped over 6,000% in 3 years; should you invest?

Jhandewalas Foods Limited manufactures and sells dairy and food products in India. It manufactures buffalo and cow ghee, kesar, poha, mangodi, papad, refined groundnut oil, pasta, chai and poha masala, spice mix, ready-to-eat, chutneys, Indian spice, chilla premix, rava idli mix, and other products. 

The company markets its products under the Naman, Godhenu, Nutri Flakes, Sweet Bites, Yumm Yoo, and Polki brands, as well as markets its products online. Jhandewalas Foods Limited was founded in 1895 and is based in Jaipur, India.

One must note that the stock is under Additional Surveillance Measure (ASM)- stage II.

What is ASM?

The Additional Surveillance Mechanism (ASM) serves as a regulatory tool deployed by stock exchanges to closely oversee and regulate the trading activities of certain securities. Its primary objective is to bolster market integrity, minimise risks, and safeguard the interests of investors.

Read here: Multibagger: This stock has skyrocketed over 29,000% in 3 years

Within the ASM framework, stock exchanges pinpoint specific securities based on predetermined criteria such as price volatility, trading volumes, and market capitalization. These identified securities undergo additional surveillance measures, including intensified monitoring, heightened margin requirements, and augmented disclosure obligations.

ASM endeavours to uphold market stability by identifying and thwarting potential manipulative activities, price distortions, or excessive speculation in the designated securities. Through the implementation of stringent regulations, ASM assists in restraining exaggerated price fluctuations and mitigating risks associated with particular stocks.

It's crucial for investors to keep track of a stock's ASM status before making investment decisions. Staying informed about any alterations or developments in the ASM framework is vital, as it can have a notable impact on trading activities and investment strategies.

Read here: Once a penny stock, Cinerad Communications soared 2051% in just 1 year

Brokerage view

As per ICICI Direct, Jhandewalas Foods has demonstrated proficiency in leveraging its assets to generate profits, as evidenced by its improving Return on Assets (ROA) over the past two years. Furthermore, the stock achieved a new peak in intra-day trading today. Additionally, it has exhibited robust momentum, consistently surpassing short-, medium-, and long-term moving averages. These indicators highlight the company's skill in profit generation, efficient capital utilisation, and commitment to enhancing shareholder value.

Meanwhile, its weakness, as per the brokerage, is:

- Inefficient use of capital to generate profits - RoCE declining in the last 2 years

- Low Piotroski Score: Companies with weak financials

- Declining Net Cash Flow: Companies not able to generate net cash.

Read here: Multibagger: This penny stock surged 1,011% in just one year; should you invest?

About penny stocks

Investing in penny stocks can promise high returns, but it comes with significant risks. These stocks are often not suitable for risk-averse investors. 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 investing is crucial due to the challenges associated with penny stocks. They typically represent small, lesser-known companies with limited analyst coverage and minimal publicly available information.

Moreover, the lack of transparency and access to management insights complicates investment decisions. Penny stocks also face risks such as illiquidity, high-impact costs, and difficulties with low trading volumes. Without compelling reasons supported by thorough research, serious, long-term investors seeking stability and growth in their portfolios should avoid investing in penny stocks.

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

 

 

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Published: 18 Apr 2024, 02:29 PM IST
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