A stock whose price ranges anywhere between Rs 1 to Rs 80 and has a market capitalization of less than Rs 500 crore is categorized as a Penny stock in India. These stocks are illiquid in nature as the trading volume is generally less and thus have a higher risk. These companies are microcaps and thus have a smaller scale of business.
Here are 3 penny stocks that not only have delivered multibagger returns but also have zero debt on their balance sheet:
Swadeshi Polytex Ltd
The shares of Swadeshi Polytex traded at Rs 5 a piece on BSE in December 2020. On Monday, the shares were trading at Rs 28 levels logging a multibagger return of 462 percent in just a year. So far this year, it has scaled by 334 percent.
Swadeshi Polytex Limited is engaged in carrying the business of transacting in, owning, purchasing, selling, leasing, sub-leasing, letting, subletting, renting and developing, and other related activities of any type of real estate in India.
In Q2FY23, the company reported a total revenue of Rs 4.48 Crore and a net profit of Rs 3.63 Crore. In addition to that, they have a debt-to-equity ratio of 0. The penny stock has a market capitalization of Rs 110 Crore.
Jmd Ventures Ltd
The shares of Jmd Ventures were locked in an upper circuit of 2 percent at Rs 10.35 levels on Monday. The shares have zoomed from Rs 1.9 in December last year to the current levels, registering a multibagger return of 445 percent in a year. In the past six months, the stock has scaled by 346 percent.
JMD is an Indian business conglomerate having a diversified business portfolio spanning across entertainment, digital, eCommerce, education, distribution, retail, investment, infrastructure, media, trading & services sectors.
In Q2FY23, the company reported net sales of Rs 43 Lakhs and other income of Rs 54 lakhs. Their net profit in the period stood at Rs 56 lakhs. The company has zero debt on its balance sheet and its market capitalization is at Rs 28 Crore.
Mercury Metals Ltd
The shares of Mercury Metals used to trade at Rs 0.85 a piece on BSE in December 2020. On Monday, the stock hit an upper circuit of 5 percent and its shares were locked at Rs 11.48, thereby logging a multibagger return of 1,251 percent in a year.
Mercury Metals Ltd is engaged in carrying on the activities of Manufacturing Electric Vehicles and Spare Parts for Electric Vehicles. The company owns the brand Thunderbolt and has also started production of 2W with the brand name “Thunderbolt EZ” and “Thunderbolt Smart”.
In Q2FY23, the company reported a total revenue of Rs 2.91 crore and a net profit of Rs 6 lakhs. The company has a debt-to-equity ratio of zero and a market capitalization of Rs 173 Crore.
Written by Anoushka Roy
Disclaimer
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