These multibagger penny stocks surged up to 9,113% in just 1 year
Despite the high risk, some penny stocks have managed to generate exorbitant returns for investors in the last 1 year. Let's take a look at some such stocks
PremiumGenerating massive returns in the markets means taking some risks. Investing in penny stocks in one of them. Penny stocks, as the name suggests, are stocks which are very cheap and have low market capitalisation. These stocks are generally priced below ₹25, making them very attractive to investors but the risk is equally high.
These are the stocks which are very illiquid and are not very popular among investors. Very little knowledge about their fundamentals is available on such stocks so researching and analysing them is quite difficult. However, such stocks can have great potential to turn multibaggers giving enormous returns to investors in a short time.
These stocks are also traded in very less quantity and hence it is easier for them to hit higher circuits in their trade frequently. However, the same is true for lower circuits as well. If an investor is able to find a penny stock with good fundamentals and is able to buy the stock at extremely low valuations, he can make an enormous fortune.
Investment in penny stocks is not very common due to high risks associated. Only investors with a very high risk appetite are advised to do so. While the potential is very high, the probability of such stocks going bust is also excessive. Even if you are a high risk investor, not more than 2 to 3 percent of your portfolio should comprise of penny stocks. Also, one should not have a buy and hold approach with such stocks. If you have received a decent return from the stock, selling is more advisable than holding.
Despite the high risk, some penny stocks have managed to generate exorbitant returns for investors in the last 1 year. Let's take a look at some such stocks:
Flomic Global Logistics - 9,113%
The stock has jumped from around ₹1.24 in October 2020 to around ₹114 currently, giving a return of over 9,100 percent to its investors in just 1 year. Flomic Global Logistics offers ocean freight services, which include documentation, palletization, fumigation, cargo supervision and loading, onward transportation, cargo tracking, and other services.
Adinath Textiles - 4,717%
The stock has jumped from around ₹1.48 in October 2020 to around ₹71 currently, giving a return of 4,717 percent to its investors in just 1 year. Adinath Textiles Limited manufactures and sells blended acrylic and worsted yarns in India. It also trades in unstitched suiting, shirting, and dress materials. Adinath Textiles Limited was incorporated in 1979 and is based in Ludhiana, India.
Tata Teleservices - 1,223%
The stock has jumped from around ₹3 in October 2020 to around ₹40 currently, giving a return of 1,223 percent to its investors in just 1 year. Tata Teleservices (Maharashtra) Limited provides basic and cellular telecommunication services. The company is engaged in wired and wireless telecommunications activities. The company holds approximately two unified access (basic and cellular) service licenses, one for the Mumbai service area and another for Maharashtra and Goa.
Brightcom Group - 1,186%
The stock has jumped from around ₹5.5 in October 2020 to around ₹71 currently, giving a return of 1,186 percent to its investors in just 1 year. Brightcom Group Ltd., formerly Lycos Internet Limited, is an India-based service company engaged in providing digital marketing services, and development of computer software and services. The company operates through two segments: Digital Marketing Segment and Software Development Segment. It is also a global information technology implementation and outsourcing services provider.
Waaree Renewable Technologies - 938%
The stock has jumped from around ₹17.8 in October 2020 to around ₹185 currently, giving a return of 938 percent to its investors in just 1 year. Waaree Renewables Technology Limited (WRTL), formerly Sangam Renewables Limited, is an India-based renewable energy company. The Company is engaged in the business of generation of power through renewable energy sources. It also provides advisory and consultancy services in solar specific vertical.
RattanIndia Infrastructure - 697%
The stock has jumped from around ₹5 in October 2020 to around ₹42 currently, giving a return of nearly 700 percent to its investors in just 1 year. RattanIndia Enterprises Limited engages in the human resource consultancy and manpower business in India. The company provides payroll management and other related services. The company was formerly known as RattanIndia Infrastructure Limited and changed its name to RattanIndia Enterprises Limited in March 2021. RattanIndia Enterprises Limited was incorporated in 2010 and is based in New Delhi, India.
Ganesh Housing - 629%
The stock has jumped from around ₹25 in October 2020 to around ₹182 currently, giving a return of nearly 629 percent to its investors in just 1 year. Ganesh Housing Corporation Limited engages in the real estate and construction businesses in India. It is involved in the promotion and development of residential, commercial, retail, and township projects. As of March 31, 2021, the company had a land bank of approximately 639.13 acres. Ganesh Housing Corporation Limited was founded in 1969 and is headquartered in Ahmedabad, India.
Reliance Power - 405%
The stock has jumped from around ₹3 in October 2020 to around ₹14 currently, giving a return of over 400 percent to its investors in just 1 year. Reliance Power Limited, together with its subsidiaries, engages in the generation of power in India. Its portfolio of power projects is based on coal, gas, hydro, wind, and solar energy. The company has an operational power generation capacity of 5,945 megawatts (MW). The company was incorporated in 1995 and is based in Mumbai, India.
HFCL - 379%
The stock has jumped from around ₹16 in October 2020 to around ₹79 currently, giving a return of 379 percent to its investors in just 1 year. HFCL Limited manufactures and sells telecom products in India and internationally. The company operates through Telecom Products and Turnkey Contracts and Services segments. The company was formerly known as Himachal Futuristic Communications Limited and changed its name to HFCL Limited in October 2019. HFCL Limited was incorporated in 1987 and is based in New Delhi, India.
CG Power - 378%
The stock has jumped from around ₹24 in October 2020 to around ₹115 currently, giving a return of 378 percent to its investors in just 1 year. CG Power And Industrial Solutions Limited, formerly Crompton Greaves Limited, is engaged in the business of power transformers and reactors, low tension motors and switchgears. The company provides end-to-end solutions to utilities, industries and consumers. It also manufactures a range of power and distribution transformers, extra high voltage (EHV), medium voltage (MV) circuit breakers, lightning arrestors, isolators and vacuum interrupters.
These are some penny stocks that have turned multibagger giving robust returns to its investors. However, one must always be cautious and research as much as possible before investing in a penny stock. Investors with low risk appetite should prefer mutual funds or other safe large cap stocks instead of penny stocks.
"Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!
