Penny stocks may not be an ideal investment but they do tend to attract investors’ fancy given the lower cost of investments. In general, stocks trading below Rs 10 per share are often considered as penny stocks.
These stocks are shares of smaller companies with lower market capitalisation; thus prone to irrational market behaviour. However, because of the low stock price, select stocks among these at times turn into multi-baggers.
Investors dealing in such stocks should always be aware of the associated risks while dealing in such shares.
So far in the calendar year 2024, the NSE Nifty 50 index has surged 15 per cent to levels of 25,000. Similarly among the broader indices – the Nifty MidCap has rallied 28 per cent to 21,850, and the SmallCap index has jumped 30 per cent to 18,260.
Among frontline stocks, Godfrey Phillips, Rail Vikas Nigam (RVNL), Jubilant Industries and Transformers & Rectifiers (India) are the major movers – up over 200 per cent thus far this year. Among others, Oil India, Wockhardt and Aegis Logistics have zoomed up to 150 per cent each.
Out of 2,300-odd stocks traded on the NSE, a total of 200 stocks have more than doubled investors wealth thus far in 2024; i.e. nearly 1 out of 10 stocks traded on the NSE has zoomed over 100 per cent so far.
Amidst these, there are 12 penny stocks, out of which one has quadrupled investors’ wealth so far this year.
Tarapur Transformers with a gain of 308 per cent tops the list. The stock has zoomed from levels of Rs 5.15 at the end of December 2023 to Rs 21 at present.
LCC Infotech, TV Vision and Supreme Engineering are the 3 penny stocks that have zoomed over 200 per cent so far this calendar year. Supreme Engineering has jumped from Rs 1.05 to Rs 3.14. Similarly, LLC Infotech and TV Vision have surged from Rs 2.25 and Rs 3.90, respectively, to Rs 7.72 and Rs 12.66.
The other eight stocks have more-than-doubled investors wealth – prominent among these are DCM Financial Services, Vardhman Polytex and Sarveshwar Foods.
First Published: Sep 12 2024 | 10:15 AM IST
Read More: These 12 penny stocks have zoomed up to 300% in 2024; do you own any? | News on Markets