According to a blog named “smart money goal”, around 25% of the Bombay Stock Exchange and 10% of the National Stock Exchange are penny stocks
Rana Sugar, owned by Rana Group, was the best-performing penny stock of 2016.
The agro-based company’s stock was trading at Rs 3.9 per share, on December 28, 2015, and touched a 52-week high at Rs 17.67 per share in 2016, giving return of 353% to investors.
MPS Infotecnics followed Rana Sugar in giving highest returns to investors in one year.
The IT solution-providing company’s shares were trading at Rs 0.08 per piece on December 28, 2015 and touched a 52-week high at Rs 0.34 in 2016, giving returns of 325% to its investors.
Stocks of aluminium extrusion manufacturer Century Extrusions Ltd, on December 28, 2015 were trading at Rs 2.82 per share and touched a high at Rs 10.38 per share in 2016 giving returns of 268.05% to the investors.
Additionally, oil refining and petrochemical company, Cals Refineries’ also stands among the top five penny stocks of the previous year. On December 28, 2015, shares were trading at Rs 0.07. In 2016, the company stocks touched a 52-week high at Rs 0.29 giving returns of 314.2% to investors.
Moreover, shares of textile company, Spentex Industries, on December 28, 2015 were trading at Rs 3.78. In 2016, the shares touched a 52-week high at Rs 8.39, giving returns of 121% to investors in a span of one year.
The aforementioned five companies gave the highest amount of returns in 2016, as per Raghu Kumar, director, Upstox.
“While the performance of a number of penny stocks was very well in 2016 in terms of percent change, it is best to filter out the ones whose market cap is not sufficiently high,” Kumar said.
“One filter to use is to ensure that the market cap of the company is at least Rs 50 crore,” he added.
According to a blog named “smart money goal”, around 25% of the Bombay Stock Exchange and 10% of the National Stock Exchange are penny stocks.
Penny stocks are the stocks that trade at a very low price. They often come with a high level of risk and are considered to be highly speculative because of their lack of liquidity, large bid-ask spreads, small capitalisation and limited following and disclosure.
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