Penny stocks are known to deliver high returns in a shorter time period as these stocks tend to hit circuits more often. Penny stocks have a market capitalization of less than Rs 200 Crore and have a share price lesser than Rs 100. These companies tend to have zero or negative sales and profits and thus are high-risk investments.
Jai Mata Glass, categorized as a penny stock, hit an upper circuit of 5 percent on Monday’s session and closed at Rs 2.28 levels. The stock has been trading circuit to circuit for almost 2 months and has delivered a multibagger return of 347 percent in the period.
Jai Mata Glass Ltd is engaged in the glass business and procuring orders as a sales agent in India’s eastern and northern regions. The company sells Patterned Glass, EFG-Elegant Frosted Glass, and the K Series which includes Karishma, Kartier, Kasumi, Kemistry, Kingstar, Kohinoor, and Kretive.
In Q3FY23, the company reported total revenue of operations of Rs 4.92 lakhs which declined by more than 87 percent Year on Year from Rs 38.63 lakhs. Their net profit in the period stood at Rs 10.75 lakhs which increased 27 percent from Rs 8.5 lakhs in Q3FY22.
The stock price has risen from Rs 0.46 in July 2022 around the same time up to the current levels logging a multibagger return of 395 percent in just six months. An investment of Rs 1 lakh then would be worth Rs 4.96 lakhs today.
The scrip started trading on BSE in December 2021 at Rs 0.29 a piece. Since then it has delivered a multibagger return of 686 percent, turning an investment of Rs 1 lakhs to 7.87 lakhs in just 13 months.
The penny stock has a market capitalization of Rs 22 Crore. The promoters of the company hold a 44.53 percent stake while the remaining 55.47 percent is held by the public.
Written by Anoushka Roy
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