These penny stocks filled the treasury in just one year
From last Diwali till this Diwali, the big players of the stock market i.e. Nifty may have been moving sluggishly, but during this period, some unknown and small stocks have made the investors richer than expected. When big and famous stocks were looking tired, then 25 penny stocks i.e. ‘Chavanni stocks’ created such a stir that even the onlookers were surprised. According to the data till October 13, these small shares have given stormy returns ranging from 100% to 540% in the last one year, that is, investors’ money increased from double to five and a half times.
Anonymous shares created a stir
At the forefront of this spectacular bullish race was a stock named G-Tech Info Training, which gave an incredible profit of 540% to its investors. Close behind, Yuvraj Hygiene Products jumped 530%, and Kashyap Tele-Medicines also wowed investors with a return of 384%. The list does not end here. Many other stocks like Pro Fin Capital Services (358%), Atvo Enterprises (267%), Saptak Chem & Business (245%), and Avance Technologies (240%) also increased investors’ wealth multi-fold in the last 12 months. Interestingly, the price of most of these stocks is less than Rs 20, but they belong to important sectors like infrastructure, finance, chemical, and technology.
big stocks sluggish
Where nifty 50 Just like the big indexes gave barely 6% returns in the last one year, these microcap stocks completely ignored the market trend and created a world of their own. Market experts believe that when big institutional investors were lagging in the market, small and retail investors showed great interest in these stocks with low prices and high volatility. They were looking for opportunities to make big profits in a short period of time, and these stocks gave them that opportunity.
The shares of G-Tech Info Training, a company with a market cap of only Rs 3.9 crore, increased more than five times, whereas on an average only 1,500 shares were bought and sold in a day. At the same time, the shares of Avance Technologies, which has a market cap of Rs 600 crore, which has slightly higher turnover, also saw a tremendous rise of 240%. Stocks like Gayatri Highways, Magnus Steel, and Kati Patang Lifestyle have also given profits of more than 170% since last Diwali.
Do small stocks still have power?
Experts believe that this rally in the smallcap and microcap segments is not over yet and there is scope for further growth, provided the companies’ earnings continue to justify their high valuations. According to Sunil Singhania, Founder, Abacus Asset Managers, “India’s mid- and small-cap companies will lead the next equity market rally. It will be powered by new age sectors like renewables, semiconductors and digital platforms.”
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsh advises its readers and viewers to consult their financial advisors before taking any money-related decisions.