Stock market is turning out as one of the best investment options among all. Sensex has touched 50000 in 2021 and expected to touch new heights in the future. Many penny stocks turned into multibagger stocks in 2021. As a stock market investor, you must be aware of penny stocks and multibagger stocks.
Penny stocks are stocks that are available at low price below Rs.10. Penny stocks are affordable for the investors. However, penny stocks are like two edge sword. You can earn as well as lose money from the penny stocks. There are even chances that penny stocks can become multibagger stocks. Multibagger stocks are one that generate multiple times returns compared to investment cost.
We have discussed a lot about penny stocks and multibagger stocks in our earlier posts. In this post, we will look at 5 Penny stocks that become multibagger in 2021.
5 Penny Stocks that become Multibagger in 2021
Jaykay Enterprises Ltd
Jaykay Enterprises Ltd is small cap company dealing in manufacturing of synthetic yarn, fiber, stainless steel sheet, cement etc. Jaykay Enterprise Ltd is first in the list of penny stock that become mutlibagger in 2021. On 1st Jan 2021 the stock of Jaykay Enterprise was trading at Rs.10 and in four month of time frame stock has turned out as multibagger. The stock is trading at Rs.42 in the April 2021. This means stock has given four bagger returns to investors in four months.
Orchid Pharma is pharmaceutical company. Orchid pharma was defaulter company and unable to pay debt. Dhanuka Laboratories has taken over Orchid Pharma. Relisting of Orchid Pharma was done in Nov 2020 at the price of Rs.18. The price of Orchid Pharma share is continuously growing. The stock has touched Rs.2000 in April 2021. The stock of Orchid Pharma has generated more than 7000% returns for the investors.
Subex is Bangalore based Software Company that provide digital products to communication service providers. The focus area of this company is Internet of Things. Subex has become multibagger from penny stock. In January 2020, the stock of Subex was trading at Rs.6. The stock is trading at Rs.45 in April 2021. This means Subex has generated six baggers returns for the investors in 1 year.
Digispice Technologies is IT digital based company involved in analytics, automation and other value added services. The stock of Digispice Technologies was trading at nearly Rs.10 in December 2020. In the April 2021 the stock of Digispice Technologies is trading at Rs.45. The stock of Digispice Technologies have generated four bagger returns for the investors in 1 year.
CG Power and Industrial Solution
CG Power and Industrial Solution is in the manufacturing of products related to power generation, transmission and distribution. The stock of CG Power and Industrial solution was trading at Rs.8 in 2020 and within 1 year time frame this penny stock have become multibagger by giving seven bagger returns. In April 2021, this stock is trading at Rs.78.
Things to consider before investing in penny stocks
Please note that investing in penny stock is risky affair you should be aware of following before investing in penny stocks.
Low volume and Less Liquidity – The trading volume of penny stock is very low. Liquidity in penny stock is very low. This means you may not get buyer when you try to sell it.
Unpredictable – Penny stocks are unpredictable. The price of these stocks may not go up in short term. You may end up making losses in penny stocks.
Lake of Information – Very limited information is available about these companies. Due to lack of information, it is very difficult to select penny stock for the investment.
Higher Chance of Fraud – Penny stock trade at lower price and volumes. It is easy to manipulate pricing of these stocks with very low capital. Thus, chance of the fraud in penny stock is very high.
Over to you
Do you invest in penny stocks? Which method you use in order to identify penny stocks? Share with us in the comment section.
Please note that purpose of above post is to show that penny stock can also become multibagger. You should not consider this post as advice of buying any mention stocks.