It is well known that penny stocks can give multibagger gains.
There are many cases where investors have taken home gains of upto 37,000%.
There is also the inspiring story of 20 multibagger stocks which cost less than Rs 10 give gains of up to 750% in 2017.
Some people specialize in recommending penny stocks.
There is a group of investors whose only task is to analyze the best which are worthy of a buy now.
Porinju Veliyath recommendation
Porinju Veliyath is a specialist in multibagger penny stocks.
On twitter, Porinju has recommended stocks like Kitex Garments, Amrutanjan, Forbes Gokak, Munjal Showa, Jyothy Labs, Murudeshwar Ceramic, Fresh fruit Trop, yantra natural (sree ghanesh spinners, Nitin Spinners, MIC Electronics, Sterlight Technologies, Patel Engineering, Anik Industries, Marksans Pharma, Orient Cement, Aadhar Ventures India ltd etc when they were penny stocks.
Don’t trust the 'experts' advising you, ’never buy penny stocks & bad companies’ – many of them are Industry leaders: pic.twitter.com/9UqMOjZz3R
— Porinju Veliyath (@porinju) August 5, 2015
He also recommended a buy of five stocks being Balaji Telefilms@31, Orient Paper@5, Orient Cement@32, KRBL@23, Mirza Intl@20 when they were quoting at the valuations of penny stocks even though they were not penny businesses.
Balaji Telefilms@31, Orient Paper@5, Orient Cement@32, KRBL@23, Mirza Intl@20 – all looking penny stocks, but not penny business. BUY
— Porinju Veliyath (@porinju) August 29, 2013
PORINJU VELIYATH EQUITY INTELLIGENCE : Season to look at select penny stocks in India
— ET NOW (@ETNOWlive) May 11, 2017
Porinju also recommended a stock named Orient Paper when it was quoting at only Rs. 6.75.
He pointed out that Orient Paper is a market leader in fans, paper business turned around.
It has impressive growth, corporate governance and sound and healthy balance sheet with low debt.
Buy Orient Paper@ 6.75 – mkt leader in fans, paper business turned around. Impressive growth, corporate governance & balance sheet.
— Porinju Veliyath (@porinju) September 13, 2013
In the period from September 2013 to January 2018, Orient Paper share price has surged from Rs. 6 to Rs. 170.
This means that the penny stock became a multibagger and delivered gains of 2700%.
From Rs.6 to 170 – no change in fundamentals. Equity investing is all about basic arithmetics, commonsense & wisdom! India still has many mkt leaders, traded like penny stocks. Not holding Orient Paper now. https://t.co/W2KcfhkONe
— Porinju Veliyath (@porinju) January 8, 2018
Best penny stocks to buy now
There is a long list of stocks which can be considered as being a good buy now.
These have a proven track record.
Of course, the risk is high and investors should ensure that the amount invested does not exceed the risk tolerance levels.
The names that come to mind include Rollatainers, Gujarat Natural Resources, Maximaa Systems and Kwality Diary, which were below Rs 2 then, gave good returns.
Globus Corporation and Flawless Diamonds, which were around Rs 10, are now below Re 1.
Lanco Infratech and Sunil Hi-Tech are also names that have to be kept on the watch list.
Vikas WSP is a stellar example of a multibagger penny stock. The stock surged from Rs 13 to Rs 43.
Shree Digvijay Cement is also a good example because it has the wherewithal to deliver multibagger returns. The price shot up from Rs 5 to Rs 20, giving a gain of 300 per cent.
Shares of SR Industries have quadrupled the investors’ money in the 1 year only. The stock of SR Industries had risen as much as 346% to Rs 27.9 from a share price level of Rs 6.25 as on 27 April 2017.
SR Industries shares are categorised in ‘XT’ group on BSE. SR Industries shares have a security code 513515 and an ISIN (International Security Identification Number) INE329C01011. SR Industries commands a market capitalisation of Rs 39 crore on BSE.
Shalimar Wires Industries
Shares of Shalimar Wires Industries have also grown by more than 4 times in the last year. The stock of Shalimar Wires Industries has gained 342% to Rs 21.5 from a share price level of Rs 4.86 as on 27 April 2018. Shalimar Wires Industries shares are categorised in ‘X’ group on BSE. Shalimar Wires Industries have a security code 532455 and an ISIN INE655D01025. Shalimar Wires Industries holds a market capitalisation of Rs 80 crore on BSE.
Confidence Petroleum India
Shares of Confidence Petroleum India have also surged similarly as the aforementioned stocks. The stock of Confidence Petroleum India has advanced 363% to Rs 44.75 from a share price level of Rs 9.66 as on 27 April 2018. Confidence Petroleum India shares are categorised in the ‘X’ group on BSE.
Confidence Petroleum India shares have a security code 526829 and an ISIN INE552D01024. Confidence Petroleum India commands a market capitalisation of Rs 1,158.29 crore on BSE.