Penny stocks under Re 1 that gave multibagger returns up to 200 per cent in just 1 year – Do you own any?

The indices in the broader markets were trading mixed with the BSE Mid-Cap index up 0.63 per cent and the BSE Small-Cap index down 0.09 per cent.

Today, the benchmark indices made an all-time high with the BSE Sensex Index up 0.79 per cent at a level of 76,009.68 and the NSE Nifty-50 Index up 0.26 per cent at a level of 23,026.40. At the closing bell, the Sensex plunged 0.03 per cent and the Nifty-50 plunged 0.11 per cent. The indices in the broader markets were trading mixed with the BSE Mid-Cap index up 0.63 per cent and the BSE Small-Cap index down 0.09 per cent.

What are Penny Stocks?

Penny stocks, priced at bargain-basement levels are shares of small companies that tempt investors with the potential for explosive growth due to their dramatic price swings. However, this volatility cuts both ways, as it also carries a high risk of significant losses. These stocks are often illiquid, meaning it can be challenging to sell them when you want, and because the companies are small, there might be limited information available to assess their financial health and future prospects.

Following are the 2 penny stocks that gave multibagger returns of up to 200 per cent in just 1 year: -

Monotype India Ltd

Monotype India Ltd, established in 1974, is a financial and investment company that offers a variety of services including providing financing (excluding insurance and pension funding), investing in stocks, bonds and other securities, financing industrial or other businesses, and acting as financial advisors for companies and other organizations.

The company has a market cap of Rs 57.7 crore with a 3-year stock price CAGR of 61 per cent. From Rs 0.32 to Rs 0.82 per share, the stock gave multibagger returns of 156 per cent in just 1 year. In March 2015, shares of the company ex-traded stock split of equity shares from a face value of Rs 10 to a face value of Rs 1. The shares of the company are trading above 50 DMA and 200 DMA as of May 27, 2024.

Also Read: Promoters bought 6,18,19,504 shares & FIIs bought 2.57 per cent stake: Auto components company bags orders worth Rs 60 crore & announce positive results!

Avance Technologies Ltd

Avance Technologies Ltd, founded in 1985, is an Indian company dealing in IT products and services. They offer a variety of solutions, including hardware and software sales, and can develop and implement custom technology based on client needs. Avance Technologies also goes beyond basic sales, identifying growth opportunities and crafting data-driven strategies through market trend analysis. Their extensive service list includes digital marketing (search engine optimization, social media management, content creation), marketing automation, software testing, cloud services, and even emerging technologies like artificial intelligence and blockchain. With a clientele that includes Tata Tele, FDC, and Reliance, Avance Technologies appears to be a well-established provider of IT solutions in India.

The company has a market cap of Rs 184.3 crore with a 3-year stock price CAGR of 61 per cent. The company's shares underwent several transformations: first, a stock split on August 3, 2009, reducing the share price from Rs 10 to Rs 1. This was followed by a 4:1 bonus issue on the same date, essentially increasing the number of shares an investor held for every one they previously owned. On April 24, 2017, a consolidation of shares occurred. Then, more recently, on March 31, 2023, another stock split took place, reducing the share price from Rs 10 to Rs 5. Finally, on November 10, 2023, there was a final stock split that brought the share price down to Rs 1. From Rs 0.30 to Rs 0.95 per share, the stock gave multibagger returns of 216 per cent in just 1 year. The shares of the company are trading above 50 DMA and below 200 DMA as of May 27, 2024.

Disclaimer: The article is for informational purposes only and not investment advice.