Penny stock under ₹10 rockets 78% in 5 sessions, poised for first yearly gain since 2021

Stretching its bull momentum for the fifth straight day on Thursday, November 27, shares of SVP Global Textiles were locked in another 10% upper circuit limit at ₹6.27 apiece, the highest level seen since December 2024.

With today's rally, the stock's 5-day cumulative return rose by a massive 78%, marking one of its best sustained runs in recent times and boosting November returns to 72.3% so far.

If the stock closes the month with similar returns, it will mark its biggest monthly jump since December 2017, when it delivered a return of 59%. After touching a 10-year low in March, the stock staged a solid comeback, closing six out of seven subsequent months higher, resulting in a phenomenal surge of 152%.

SVP Global Textiles is an integrated textile company, manufacturing compact yarn (count range 20 to 60) and open-end yarn in Rajasthan and blended yarn with a count range of 20 to 60 in Tamil Nadu.

On track to post first yearly jump in 3 years

The recent rally has also turned the stock positive for the year with a gain of 21%, and if it closes 2025 with a positive return, it will mark its first yearly gain in three years. The last time it had registered positive returns was in 2021, when it gained 38%.

Between 2019 and 2021, the stock enjoyed a sustained bull run, closing all three years higher. However, continued weak financial performance and rising debt levels caused the stock to lose its sheen on the Indian stock market, resulting in prolonged underperformance over the next three years.

Although the stock has made a solid rebound lately, it still trades at a sharp discount of 96.5% from its all-time high of ₹164.80 apiece, touched in January 2017.

Investors should exercise caution

For the September quarter (Q2FY26), the company generated nil revenue, as per its earnings filing, and reported a net loss of ₹51 crore. The company has been struggling to turn profitable since March 2023. According to the most recent available data, the company last recorded a net profit of ₹71 crore in FY22.

Investors should exercise caution with penny stocks, as they are highly volatile and prone to sharp price swings due to low trading volumes.

According to shareholding data, retail investors own a 47.25% stake in the company, with 24,759 investors holding capital above ₹2 lakh owning a 26.89% stake. The remaining 52.8% stake is owned by the promoters.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.