Despite Dalal Street having a turbulent year, several lesser-known shares gave investors enormous profits. These equities, which were primarily penny stocks, have become multibaggers in 2022.
According to Ace Equity’s research, more than 50 penny stocks have increased in value by more than double and by as much as two thousand percent so far this year. Seven of them had gains of at least 1,000%, and another six saw gains of at least 500%.
There is no established theoretical definition of penny stocks. Stocks with a value of one or less than ten rupees are included in this group, nevertheless. Companies with a market valuation of less than Rs 1,000 crore by the end of 2021 have been taken into consideration in this analysis.
Kaiser Corporation, a trade and distribution company, is at the top of the list after increasing 1,923% so far this year. The stock increased from its closing of Rs 2.79 on December 31, 2021 to Rs 56.45 on December 14, 2022.
Another trading microcap, Hemang Resources, which increased 1,622% throughout the time frame, comes behind it. During the specified time, the stock’s price increased from Rs 3.09 to Rs 53.20.
Alliance Integrated Metaliks, a small-cap metal company, saw a 1,538% increase in value as its stock price rose from Rs 2.71 to Rs 44.30 over the time period under consideration.
Other penny companies that have so far produced returns of up to 10 times in 2022 include Beekay Niryat (997% up), KBS India (1,127% up), Sonal Adhesives (1,087% up), and Ashnisha Industries (1,230% up).
In other words, a one lakh rupee investment made in any of these counters at the end of the previous calendar year would have yielded between 10.97 lakh and 20.32 lakh rupees.
In the past year, the stock prices of Variman Global Enterprises, Madhusudan Securities, Global Capital Markets, Sadhna Broadcast, Shanti Educational Initiatives, and Axita Cotton have increased by 500–700%.
Penny stock performance for the year
Stocks with less than Rs 10 and mcap below Rs 1,000 crore on Dec 31, 2021
Kaiser Corporation Ltd. | 1,923 |
---|---|
Hemang Resources Ltd. | 1,622 |
Alliance Integrated Metaliks Ltd. | 1,538 |
Ashnisha Industries Ltd. | 1,229 |
KBS India Ltd. | 1,127 |
Sonal Adhesives Ltd. | 1,087 |
Beekay Niryat Ltd. | 997 |
Variman Global Enterprises Ltd. | 706 |
Madhusudan Securities Ltd. | 698 |
Global Capital Markets Ltd. | 696 |
Sadhna Broadcast Ltd. | 655 |
Shanti Educational Initiatives Ltd. | 624 |
Axita Cotton Ltd. | 517 |
Aside from Swiss Military, other companies that have Game Changer include Yarn Syndicate, Standard Capital, Gallops Enterprises, BLS Infotech, Golechha Global, Infronics Systems, Swadeshi Polytex, United Leasing, Toyam Sports, Cressanda Solutions, Kore Foods, Khoobsurat, Tirupati Tyres, Mid India, Diligent Industries, Greencrest Financial, Adcon Capital, Mefcom Capital, Triveni Glass,
Penny stock performance for the year
(Stocks less than Rs 10 and mcap below Rs 1,000 crore on Dec 31, 2021)
Yarn Syndicate Ltd. | 469 |
---|---|
Standard Capital Markets Ltd. | 449 |
Gallops Enterprises Ltd. | 413 |
BLS Infotech Ltd. | 408 |
Golechha Global Finance Ltd. | 386 |
Infronics Systems Ltd. | 383 |
Swadeshi Polytex Ltd. | 382 |
United Leasing & Industries Ltd. | 343 |
Toyam Sports Ltd. | 336 |
Cressanda Solutions Ltd. | 314 |
Kore Foods Ltd. | 285 |
Khoobsurat Ltd. | 264 |
Tirupati Tyres Ltd. | 251 |
Diligent Industries Ltd. | 249 |
Mid India Industries Ltd. | 248 |
Greencrest Financial Services Ltd. | 234 |
Adcon Capital Services Ltd. | 218 |
Mefcom Capital Markets Ltd. | 196 |
Triveni Glass Ltd. | 195 |
Swiss Military Consumer Goods Ltd. | 191 |
Filatex Fashions Ltd. | 187 |
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Maximus International Ltd. | 166 |
Dynamic Portfolio Management & Services Ltd. | 165 |
Gilada Finance & Investments Ltd. | 162 |
Arihant Tournesol Ltd. | 148 |
Symbiox Investment & Trading Co Ltd. | 138 |
Colorchips New Media Ltd. | 137 |
Mayur Floorings Ltd. | 133 |
SC Agrotech Ltd. | 125 |
PAOS Industries Ltd | 118 |
SBC Exports Ltd. | 115 |
IL&FS Engineering and Construction Company Ltd. | 113 |
Maharashtra Corporation Ltd. | 112 |
MPS Infotecnics Ltd. | 110 |
Mehta Integrated Finance Ltd. | 110 |
Picturehouse Media Ltd. | 109 |
Minolta Finance Ltd. | 104 |
Magnum Ventures Ltd. | 101 |
Novateor Research Laboratories Ltd. | 100 |
Regency Trust Ltd. | 100 |
Penny stocks often have a low market value and little investor interest, which results in a small number of trades and large price movements.
If the company is founded on weak fundamentals, the volatility “may be a dampener for investors,” she added. “Such stocks are frequently the subject of circular trading, which results in an artificial price increase that may crash suddenly when the trader departs.”