From ₹11 to ₹164: Penny stock turns multibagger, rises over 1,300% in 4 years

Blue Cloud Softech Solutions has emerged as a remarkable success story on Dalal Street. The stock has transformed from a penny stock to a multibagger, delivering impressive returns to investors. Its performance highlights the potential for penny stocks to generate significant value, although it also underscores the associated risks involved in such investments.

Over the last four years, Blue Cloud’s stock price has seen a staggering rise of 1,335 per cent, climbing from ₹11.4 in October 2020 to ₹163.7 today. This impressive growth has demonstrated the stock’s consistent value appreciation, establishing it as a standout performer in the penny stock space. Meanwhile, in the past three years, the stock has surged 1,244 per cent.

In the short term, too, Blue Cloud’s stock performance has been impressive. Over the past year, the penny stock has rallied 99 per cent, and in 2024 year-to-date, it has surged 180 per cent. Despite experiencing losses in five of the ten months this year, the overall trend remains positive.

The stock is down 1 per cent in October so far after two straight months of losses. It shed 23 per cent in September and 11 per cent in August. However, it previously gained for four straight months, rising 11 per cent in July, an impressive 142.6 per cent in June, 0.7 per cent in May and 67.3 per cent in April. March, however, was a challenging month, with the stock falling 11.5 per cent. In February, it lost 5 per cent while it rose 8 per cent in January.

The multibagger stock reached a record high of ₹261 in July 2024. From today’s closing price of ₹163.7, it is 37 per cent off its peak but still boasts an impressive 251.5 per cent surge from its 52-week low of ₹46.08, which it hit in March 2024.

This upward trajectory demonstrates the lucrative potential for investors willing to take on the risks associated with penny stocks.

Blue Cloud news

Blue Cloud Softech launched four AI-powered products—BluHealth, Blura, EduGenie, and Bioster—on October 7, 2024. The event, held in Hyderabad, was attended by Telangana’s IT Minister Duddilla Sridhar Babu and Former Special Chief Secretary Ajay Mishra. The company chairman Janaki Yarlagadda emphasised the company’s commitment to innovation and the positive impact of these products.

Sridhar Babu highlighted the role of AI in healthcare, emphasising its potential to enhance diagnostics and personalise treatments. Product demos showcased the cutting-edge technologies behind these solutions, marking a major step in the company’s mission to address real-world challenges using AI.

BluHealth, an AI-driven mobile app, focuses on proactive health management by offering non-invasive screenings and telehealth integration. It tracks vital signs, including blood pressure and pulse rate, through advanced remote photo plethysmography, ensuring user convenience and safety. The app complies with HIPAA and GDPR standards, offering real-time health alerts and personalized recommendations with a user-friendly interface, making it accessible to all.

Apart from this, the company’s board is slated to meet on October 16 to consider a proposal for the sub-division of equity shares. 

Penny stocks can attract investors as they can generate significant returns from a modest investment. However, this high-reward opportunity comes with considerable risks. To manage the inherent volatility of penny stocks, thorough research and strong risk management are essential. Investors should carefully examine the company’s fundamentals, review its financial stability, and assess its position within the market. By taking these steps, investors can make informed decisions and mitigate potential losses while pursuing gains in this high-risk market segment.

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