- Date : 12/09/2022
- Read: 4 mins
Return on investment is good, but what about multiple returns on the same investment? Multiple returns on the same investment are possible and easier than you think. Keep reading to find out how!
In this time and age, investing your money instead of just leaving your finances to the will of the almighty is something that most people prefer. Of course, some old-fashioned people still believe the best way to save money is by shoving it into a wooden chest and hiding it under your bed.
Investing in penny stocks has been considered the most reliable way to accrue loads of returns in the short term. But first, let's take a brief look at what penny stocks are:
What are Penny Stocks?
Penny stocks stand for stocks that have a value below 100 INR/per share. The characteristics associated with these stocks are - low promoter holding, huge debt, etc. The appeal of these stocks is not just their low prices but also the fact that they are brought down to these prices in the face of crisis. This means they indicate when you should invest in penny stocks because we all know the best time to buy shares is when the market is in crisis. The stock market in 2022 is an example of that.
They are also multibagger stocks, giving you returns beyond 100%. These are the kind of stocks that offer you multiple returns on a single stock. As per the data from Ace Equity, a certain number of stocks have sailed through the crises and gained around 725% this year. The financial performance of certain multi-bagger stocks in India and their share prices have made them more than desirable to buyers. The net profit provided by these penny stocks is immense.
Let's take a look at the companies that turned multi-bagger in 2021
1. Orchid Pharma- Current Stock Price: 359.70
Returns in 2021 - 163.74
Orchid Pharma Ltd is a Small Cap company that was incorporated in 1992. It operates in the pharmaceutical sector. They mainly deal in pharmaceutical products and other materials, alongside other operating revenue as of 2021. As of Dec 2021, the company had an outstanding total of 4.08 Crore shares. For the quarter ended 31-12-2021, the company has reported a Consolidated Total Income of Rs 163.74 Crore, up 26.44 % from last quarter's Total Income of Rs 129.50 Crore and up 56.66 % from last year's same quarter. They have a market cap of 1468.17 crores. There have been talks about the regulations and operation concerns highlighted by SEBI.
2. CG Power and Industrial Solutions Ltd - Current Stock Price – 197.90
Returns in 2021 - 251.49
This is a Small Cap company incorporated in 1937 operating in the electronics sector. They provide electrical equipment and take Engineering construction contracts and Scrap sales. The company recorded (last quarter of 2021) 1558.89 crore, up 6.15% from 2020’s last quarter. Total Income is about 1468.56 crore. CG Power & Industrial Solutions Ltd is running strong on growth; with dynamic leadership, it can sustain itself for the long term.
3. Jaykay Enterprise - Current Stock Price: 76.90
Returns in 2021 - 484.43
Jaykay Enterprises Ltd was established in 1961. It is a Small Cap company that operates in the Financial Services sector. They have annual revenue of 126.60 Million and a Net Income of 260.21 Million. They offer services like registrars and share transfer services. Jaykay enterprises is trading higher than 20, 50, and 100-day moving averages. There is no dividend history so far.
4. Subex - Current Share Price: 35.55
Returns in 2021 - 88.43
Subex Ltd is a Small Cap company and was incorporated in 1994. It is a software production and service provider used mainly by communication service providers. The company earns about 39% from managed services and the rest from support services, implementation, and licensing. They work with companies like Airtel, AT&T, Tech Mahindra, etc. For the quarter ended 31-12-2021, the company has reported a Consolidated Total Income of Rs 88.43 Crore, up 1.33 % from last quarter. They have reduced their debt over time and have a 0% promoter holding. Its growth plan is to the expansion of 5G Technology.
5. Digispice Technologies Ltd - Current Share Price: 32.50
Returns in 2021 - 251.49
They are a Small Cap company, incorporated in 1986, operating in telecommunications. They provide telecommunications services and equipment. Total income for Dec 2021 is recorded at 251.49 crores. The company has lowered debt over time but has had low equity for the last 3 years. But considering the overall growth factor, we could see positive quarter results.
All the above-mentioned companies are great options for investing in multibagger penny stocks. A general preview is that these stocks have growth potential as they are all small-cap multibaggers.
Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.
In this time and age, investing your money instead of just leaving your finances to the will of the almighty is something that most people prefer. Of course, some old-fashioned people still believe the best way to save money is by shoving it into a wooden chest and hiding it under your bed.
Investing in penny stocks has been considered the most reliable way to accrue loads of returns in the short term. But first, let's take a brief look at what penny stocks are:
What are Penny Stocks?
Penny stocks stand for stocks that have a value below 100 INR/per share. The characteristics associated with these stocks are - low promoter holding, huge debt, etc. The appeal of these stocks is not just their low prices but also the fact that they are brought down to these prices in the face of crisis. This means they indicate when you should invest in penny stocks because we all know the best time to buy shares is when the market is in crisis. The stock market in 2022 is an example of that.
They are also multibagger stocks, giving you returns beyond 100%. These are the kind of stocks that offer you multiple returns on a single stock. As per the data from Ace Equity, a certain number of stocks have sailed through the crises and gained around 725% this year. The financial performance of certain multi-bagger stocks in India and their share prices have made them more than desirable to buyers. The net profit provided by these penny stocks is immense.
Let's take a look at the companies that turned multi-bagger in 2021
1. Orchid Pharma- Current Stock Price: 359.70
Returns in 2021 - 163.74
Orchid Pharma Ltd is a Small Cap company that was incorporated in 1992. It operates in the pharmaceutical sector. They mainly deal in pharmaceutical products and other materials, alongside other operating revenue as of 2021. As of Dec 2021, the company had an outstanding total of 4.08 Crore shares. For the quarter ended 31-12-2021, the company has reported a Consolidated Total Income of Rs 163.74 Crore, up 26.44 % from last quarter's Total Income of Rs 129.50 Crore and up 56.66 % from last year's same quarter. They have a market cap of 1468.17 crores. There have been talks about the regulations and operation concerns highlighted by SEBI.
2. CG Power and Industrial Solutions Ltd - Current Stock Price – 197.90
Returns in 2021 - 251.49
This is a Small Cap company incorporated in 1937 operating in the electronics sector. They provide electrical equipment and take Engineering construction contracts and Scrap sales. The company recorded (last quarter of 2021) 1558.89 crore, up 6.15% from 2020’s last quarter. Total Income is about 1468.56 crore. CG Power & Industrial Solutions Ltd is running strong on growth; with dynamic leadership, it can sustain itself for the long term.
3. Jaykay Enterprise - Current Stock Price: 76.90
Returns in 2021 - 484.43
Jaykay Enterprises Ltd was established in 1961. It is a Small Cap company that operates in the Financial Services sector. They have annual revenue of 126.60 Million and a Net Income of 260.21 Million. They offer services like registrars and share transfer services. Jaykay enterprises is trading higher than 20, 50, and 100-day moving averages. There is no dividend history so far.
4. Subex - Current Share Price: 35.55
Returns in 2021 - 88.43
Subex Ltd is a Small Cap company and was incorporated in 1994. It is a software production and service provider used mainly by communication service providers. The company earns about 39% from managed services and the rest from support services, implementation, and licensing. They work with companies like Airtel, AT&T, Tech Mahindra, etc. For the quarter ended 31-12-2021, the company has reported a Consolidated Total Income of Rs 88.43 Crore, up 1.33 % from last quarter. They have reduced their debt over time and have a 0% promoter holding. Its growth plan is to the expansion of 5G Technology.
5. Digispice Technologies Ltd - Current Share Price: 32.50
Returns in 2021 - 251.49
They are a Small Cap company, incorporated in 1986, operating in telecommunications. They provide telecommunications services and equipment. Total income for Dec 2021 is recorded at 251.49 crores. The company has lowered debt over time but has had low equity for the last 3 years. But considering the overall growth factor, we could see positive quarter results.
All the above-mentioned companies are great options for investing in multibagger penny stocks. A general preview is that these stocks have growth potential as they are all small-cap multibaggers.
Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.
