From multibaggers to penny stocks: Microcap shares hit hard, leave retail investors poorer in 2025

'Multibaggers', 'penny stocks' and 'microcaps' were buzz words for retail investors a few months ago, but no more. With earnings growth moderating for micro and smallcap stocks and concerns over their relative valuations reaching exorbitant levels vis-a-vis largecaps rising, fortunes changed pretty fast. 

The number of penny stocks on BSE jumped to 517 today compared with 409 at the end of December 2024 end, as party for many narrative stocks got over, with their prices falling up to 80 per cent.

A stock TV Vision Ltd has lost 78 per cent of its market value in 2025 alone. It last quoted at Rs 4.49 a piece against Rs 21.24 on December 31, 2024. Between 2023 and 2024, this stock delivered a multibagger return of 850 per cent, only to see a slide later. Individual investors held 14.45 per cent stake in this micro cap company at the end of December quarter.

Another microcap multibagger stock SAB Events & Governance Now Media Ltd saw nearly 600 per cent from mid-March 2023, before seeing its shares plunging. Now again a penny stock, this stock at Rs 5.04 is down 72.93 per cent in 2025 alone. 

Microcap multibagger Noida Toll Bridge Company Ltd jumped 166 per cent between 2023 and 2024, only to sank 69 per cent in 2025. Williamson Financial Services Ltd also surged over 150 per cent between 2023 and 2024, but fell 69 per cent year-to-date. The list is long. Retail ownership in the three stocks stood 15-20 per cent at the end of December quarter. 

Ashika Stock Broking in a monthly note said in a stark sign of the ongoing market turmoil, the NSE’s microcap and small-cap indices officially entered bear market territory last month, after tumbling over 20 per cent from their peaks in 2024. As of date, the Nifty Smallcap 250 and Microcap 250 indices had fallen by 21.4 per cent and 20.2 per cent, respectively, it noted.

"Since then, over 100 stocks from the Smallcap and Microcap indices have seen declines of 10-30 per cent. Alarmingly, 79 stocks from the Smallcap index and 80 from the Microcap index have experienced a 30-50 per cent drop, the brokerage noted. 

RattanIndia Power Ltd, Salasar Techno Engineering Ltd, Dish TV India Ltd, Rama Steel Tubes Ltd and Steel Exchange India Ltd are some of the smallcap stocks that enjoyed up to Rs 7,000 crore in m-cap at the end of December quarter, but have seen their shares sliding 17-38 per cent, weighing on investor sentiment. Retail holding in these stocks stood at 8-40 per cent.