Four penny stocks priced under Rs 8 have delivered robust returns to investors in the last 1 year. These penny stocks are Virgo Global Ltd, RO Jewels Ltd, Pressure Sensitive Systems, and Jai Mata Glass.
The stock priced under Rs 2 has more than quadrupled investors' money in the last 1 year. The stocks have rallied 280% in 12 months, and 517% in the last 5 years. The last trading price of Jai Mata Glass is Rs 1.79 apiece with an intra-day gain of 4.68%.
Virgo Global is among the penny stocks that have delivered more than 700% return in the last 12 months. This Rs 5 stock has rallied 1272% in the last 5 years. The last trading price of the stock is Rs 5.90 apiece on BSE with an intra-day gain of 4.98%.
This Rs 6 stock has surged more than 700% in the last one year. While the stock has plunged 79% in the last 5 days, it has still increased investors' wealth 4x in the last 5 years.
This penny stock has surged 469% in the last one year increasing investors' wealth 8x. The stock was last trading at Rs 7.2, down 3.32% on BSE. In the past 5 years, the stock has rallied 373%.
Penny stocks are those that are traded at a very low price and have very low market capitalisation. They are usually listed on a smaller exchange. Penny stocks in the Indian stock market can have prices below Rs 10.
Penny stocks, because of their low price, are often used by new traders to get trading experience. These stocks are very low priced, and it is almost risk-free to test your trading knowledge with penny stock trading.
Penny stocks are quite popular because of their potential for huge gains. The gains sometimes range from 300% to 700% or even higher. Even if you have a small investment of say Rs 100, you can gain up to Rs 500 profit.
Penny stocks are often thinly traded, and artificially inflated share prices may result in false statements about the company's status, often known as the "pump and dump" strategy. So, conduct extensive due diligence and research the company well before investing in any penny stock.
Experts advise avoiding pump-and-dump stocks, and penny stocks with low liquidity. Know when to sell your penny stock so you can make quick money. Trade penny stocks only with money you can afford to lose, analysts say.
The content in the story is for information purposes only. Investors or market participants should consult their financial advisors before taking any position.