Ten Penny Stocks Give Multibagger Gains

Penny Stock Multibagger

Ten Penny Stocks Give Multibagger Gains
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Penny stocks are famous for giving multibagger gains to investors in short periods of time.

This is proved by ten penny stocks which have given a gain of up to 72 per cent in just 10 sessions.

The return given by these stocks compares very favourably with the fact that in the same period, the BSE Smallcap index lost 5 per cent.

Roto Pumps – 72% gain in 11 sessions

Roto Pumps surged 72 per cent in just 11 sessions till today.

The shares of Roto Pumps are being bought heavily by some unknown investors.

Qoppa Trading sold 89,077 shares of Roto Pumps in a bulk deal on BSE.

The shares were sold for Rs 97.62 each. The total sale value was Rs 87 lakh.

Indosolar – 64% gain in 10 sessions

Indosolar has also put up a spectacular show with a gain of 64 per cent in just ten trading sessions.

The reason for the heavy buying of the penny stock is because the Q4FY17 results were good.

The losses were reduced to Rs 19.11 crore from Rs 38.31 crore on a YoY basis, signaling that a turnaround is imminent.

Also, there is progress with regard to asset reconstruction which has sparked home of a revival.

(How to Become a Penny Stock Millionaire in 2017)




Padmalaya Telefilms – 62% gain in 10 sessions

Padmalaya Telefilms has also given a spectacular gain of 62 per cent in just 10 sessions.

It appears that some HNIs are aggressively buying the multibagger penny stock.

The total gain from Padmalaya Telefilms is Rs. 830 crore since December 2016.

TPI India – 61 per cent gain

TPI India is next on the list of multibagger stocks with 61 per cent gain.

The reason for the steep rise in TPI India’s stock price is not known.

The BSE is believed to be examining whether there is some disconnect between the stock price and the fundamentals.

Shalimar Wires – 55% gain

Shalimar Wires has given a gain of 55 per cent because of its blockbuster Q4FY17 results.

The net profit of Shalimar Wires surged to Rs 22.16 crore as compared to a paltry Rs 0.67 crore on a YoY basis.

The sales increased to Rs 27.18 crore during the quarter.

Other penny stocks

Several other stocks such as HOV Services, Birla Transasia Carpets, Modern Dairies, AF Enterprises and Contil India gave magnificent gains in excess of 50 per cent during the same period.

More gains expected?

After such steep gains, whether any more gain can be expected from these stocks is difficult to ascertain.

Penny stocks can be very dangerous for investment because they can be easily manipulated by unscrupulous operators.

So, investors have to be very, very careful with such stocks.

These business prospects of these stocks coupled with the integrity and reliability of the management has to be examined minutely before any investment decision is taken.

In fact, it is better to err on the side of caution and to buy good quality small-cap and mid-cap stocks instead of penny stocks.




Comments (7)

  1. Neamat

    Kindly advise on National Steel Industry, Sanwaria Agro, Castex Technology and Federrer Lloyd.

    Reply
  2. Kunal nitin

    I have investors heavily in Subex ltd, but even after 1.5 years it is at my buy price. Shouk I exit . And put the money in Suzlon?

    Please guide.

    Thanks,
    Kunal nitin
    Rsnchi

    Reply
    1. michael (Post author)

      Most Infotech stocks have disappointed. The entire sentiment towards these stocks has become negative. It is a good idea to move with the sectoral trends. Suzlon reported good Q4FY17 results which indicates that its fortunes are changing for the better. Most brokerages are also bullish about the stock. It may be sensible to shift from Subex to Suzlon.

      Reply
  3. Anilkumar Karimbanakkal

    Hello Michael, Thanks for your research!
    Currently few of the good names hovering lower level, especially in Pharma sector. i.e Aurobinda, Divis lab, Glenmarks etc. Recently I bought small batch of Aurobinda @ 547. Are you expecting more downside or should I accumulate more at current market price?

    Also I have bought Mandhana Retail Ventures @ 196, Ujjivan Financial @ 315, PTC India Fin @ 48, Dmart @ 696, Prozone @ 42.70.

    And I am in huge loss of Coal India & Cipla. Coal is almost bottom out.. Should I add more or wait?

    Please let me know your suggestions… Thanks in advance!

    Reply
    1. michael (Post author)

      Pharma stocks are per se a good investment because they have high RoEs, free cash flows, low debt etc. Unfortunately, the entire sector has been written off by investors owing to the US FDA problems.

      This is the message sent by Amar Ambani of IIFL:

      “We reiterate our Underweight stance on the Indian Pharma sector.

      Steep price erosion in simple generics in USA, tough stand by US FDA on compliance and non-approval to new filings and the appreciating INR are major headwinds for the industry.

      The shift to complex generics will be a long process, which will require change in top level mindset, capital commitment and R&D focus. In the interim, companies will have to build scale of business outside of US to deliver modest revenue growth.

      Valuations are still elevated and can correct further.

      No pharma stock is part of our Model Portfolio.”

      However, the tide is likely to turn some day or the other. So, these stocks may be excellent contrarian buys for investors who are willing to buy and hold.

      Coal India appears to be a safe stock at this stage. Its valuations are rock-bottom and the chance of a downside is low. It also offers an attractive dividend yield of 8.5%. So, it is an attractive investment opportunity for a patient investor.

      Reply
      1. Anilkumar Karimbanakkal

        Thanks a lot for your detailed reply.. it’s make sense!
        Appreciated.. Hope you have a wonderful week end ahead!

        Reply
  4. Arun Kaul

    Kindly advise on lyco internet and allied computer shares

    Reply

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