Money doubled in a month: Top 8 penny stocks that rallied over 100%

If you are a stock market participant, you have likely heard about the term ‘penny stocks’ floating around. It may also be possible you may have invested in them, but whether you’ve generated a profit or ended up losing your capital is a different matter. Penny stocks refer to stocks with a remarkably low market price and a small market capitalisation. In the Indian stock market context, these stocks tend to have limited liquidity and are often subject to speculation.

Investors in the stock market are sometimes drawn to penny stocks due to their low cost, with the hope that the prices could potentially double. These are the shares from companies with low share prices and market capitalisation. However, not all low-priced stocks qualify as penny stocks; their market capitalisation must also be small. For example, Vodafone Idea Ltd trades at around Rs 12.88 per share, but it’s not a penny stock due to its market capitalisation of around Rs 62,699 crore.

In this article, our objective is not to educate on identifying good penny stocks but to explore those stocks that have generated an impressive return of over 100% within a month. For selecting these stocks, we have used specific metrics: a return exceeding 100%, a stock price below Rs 50 per share, and a promoter holding of over 30%, as per the most recent update.

The following stocks have provided an impressive return of over 100% in a month: 

While evaluating stocks, analysing their price behaviour is a valuable approach to assess their strength. However, when it comes to identifying promising penny stocks, relying solely on price behaviour is not sufficient. Other factors, as discussed below, should also be considered.

Investors should assess the risks involved and check various parameters, such as the potential transformation of the company’s stock price, sales growth, profit growth, shareholding pattern, operational cash flow, and management analysis. Additionally, taking some time to explore the company’s official website can provide valuable insights. This examination helps in assessing the legitimacy of the company and aids in distinguishing between genuine companies and shell companies, which might only create a facade of existence.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.