Finding the right stock is crucial for success in the equity market. This includes identifying potential opportunities, even among micro-cap stocks that are generally considered highly risky. Investing in this category comes with the risk of losing all your wealth. However, a single quality stock from this segment could also be the key to changing your fortunes in the long run.
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Data showed that at least 12 stocks, which were traded below Rs 1 in April 2013, have surged up to 208 times in the last 10 years, with Shukra Pharmaceuticals leading the pack with a rally of 20,744 per cent.
The company’s shares have soared from just Rs 0.25 in April 2013 to Rs 52.93 on April 6, 2023, resulting in an investment of Rs 1,00,000 turning into more than Rs 2 crore at present. The top line of Shukra Pharmaceuticals has grown manifold in the past decade, with gross sales spiking to Rs 20.49 crore in FY22 from Rs 6.64 crore in FY12, and net profit climbing to Rs 0.75 crore from a loss of Rs 1.27 crore in FY22.
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Raj Rayon Industries is the next big gainer on the list, with shares soaring 7,338 per cent to Rs 60.99 on April 6, 2023, from Rs 0.82 per cent in April 2013. It was followed by Trident (up 3,225 per cent), Equippp Social Impact Technologies (up 2,990 per cent), XT Global Infotech (up 2,923 per cent), and Mid India Industries (up 2,375 per cent).
However, market watchers caution against investing in penny stocks and advise investors to focus on good promoters, scalable business models and companies with some competitive advantage over their peers.
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Other companies that saw significant gains in the past 10 years include Adroit Infotech, Radhe Developers (India), Bampsl Securities, Vista Pharmaceuticals, Ducon Infratechnologies, and BLS Infotech, which all jumped somewhere between 1,000 per cent and 2,268 per cent. In comparison, the benchmark equity index BSE Sensex advanced 225 per cent during the same period, while broader indices such as the BSE Midcap and BSE Smallcap gained 297 per cent and 369 per cent, respectively.
