Penny stocks are known to be wealth creators. 30 penny stocks have delivered up to 6,000% return in 2021. According to an analysis in the ET, as many as 30 penny stocks have delivered more than 1,000 per cent in 2021, whereas 90 of them have surged over 500 per cent in the current year, suggest data compiled from Ace Equity.
Textile player Digjam has topped the list with a rise of over 5,935 per cent in 2021. The stock has rallied to Rs 247.45 on December 31, 2021, after settling at Rs 4.1 on the corresponding day of the previous year. An investment of Rs 1 lakh in Digjam on the last day of the previous calendar year would have become Rs 59.35 lakh today.
Another textile player, Adinath Textiles, has rallied over 4,800 per cent as the scrip rallied to Rs 84.5 from Rs 0.86 during the period under review. It was followed by the little-known microcap NBFC, TTI Enterprises, which zoomed about 4,570 per cent to Rs 62.1 on December 31.
Gita Renewable Energy, Radhe Developers (India), Chennai Ferrous Industries, Brightcom Group, Rohit Ferro Tech, Indian Infotech & Software, Ushdev International, Cressanda Solutions, NCL Research, Pan India Corporation, MIC Electronics are the other names with have delivered 2,000-3,500 per cent returns.
Kreon Financial Services, Lloyds Steel Industries, Banas Finance, Globus Power Generation and Sawaca Business Machines have delivered 15-20 times returns to the investors.
SEL Manufacturing, Baroda Extrusion, Tantia Constructions, PMC Fincorp, Sharp Investments, Visagar Financial Services, Clio Infotech, Texel Industries, Smiths & Founders (India) and Felix Global Venture advanced more than 1,000 per cent.
However, not all penny stocks rewarded investors in 2021. About three dozen of them eroded the wealth of investors, with 10 of them sliding over 20 per cent.
Sagar Productions destroyed about 63 per cent of the investor's wealth, followed by Sun Retail, which tanked over 45 per cent. Trio Mercantile, Innovative Ideals and Services and Chandrima Mercantiles dropped up to 40 per cent each.