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stocks to buy: These 18 penny stocks rose up to 170% in first month of FY23

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stocks to buy: These 18 penny stocks rose up to 170% in first month of FY23

New Delhi: It was not a very enthusiastic start for the financial year 2022-23 as benchmark indices dropped about 3 per cent in the first month itself. However, midcap and smallcap indices showed some strength during the month of April.

Interestingly, against all odds, a handful of retail favourite penny stocks delivered multibagger returns in April 2022. According to the data from Ace Equity, as many as 18 stocks rallied up to 170 per cent in the recently concluded month.

There is no theoretical definition for penny stocks. However, stocks in single-digit prices or below Rs 10 are bracketed in this club. ETMarkets has considered companies that had a market capitalisation of less than Rs 1,000 crore as at March 31, 2022.

The current market sentiments are dented by factors such as rising inflation, aggressive monetary tightening, Russia-Ukraine war, rising cases of Covid-19 and boiling in the crude price are hurting the market sentiments.

The global scenario with the triple issues of war, interest rates and Covid in China are the three big things which are holding our markets back, said Independent market expert Ajay Bagga in an interview with ET Now.

Polyester texturised yarn (PTY) manufacturer

has topped the list with a rise of 170 per cent in April itself. The scrip settled at Rs 2.24 on March 31 and ended the month high above at Rs 6.04. It is followed by another textile firm Mid India Industries, which has gained 151 per cent to Rs 21.49 on April 30, 2022, from Rs 8.56 on March 31, 2022.

Sylph Technologies, MPL Plastics, Sankhya Infotech,

(India) and Madhuveer Com 18 Network are other penny stocks to rally 150 per cent or more in the period under review.

Gujarat Cotex, Impex Ferro Tech, Zenith Steel Pipes, Ramchandra Leasing, Quadrant Televentures, Gold Line International Finvest, Orient Tradelink are some of the other companies which have rallied 110-150 per cent in April 2022.


Nexus Surgical And Medicare, , , Swadeshi Polytex are some of the other penny stocks which have delivered multibagger returns in the recently concluded month.

Investors should be wary of penny stocks owing to a couple of factors, warned Neha Khanna, Director, Valpro. “Retail investors often get hurt if they get caught in the loop,” she cautioned.

Usually, a rise in the stock price is a result of sound fundamental factors such as experience management, robust financial performance and growth of the business. However, this is not a case in penny stocks.

Low promoter holding, high debt, constant loss and muted financials are some typical characteristics of penny stocks. Investors could get trapped in the low hanging fruits as they can degrade the quality of investments.

Penny stocks are more subjective to high volatility as most of them move frequently to upper or lower circuits, leading to liquidity challenges, said Divam Sharma, founder, Green Portfolio, a Sebi Registered Portfolio Management Service provider.

“Rather than looking at the price of the stock and investing, investors should look at the underlying business and potential of growth in the business to generate wealth from investing in stock markets,” he advised.

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