The stock market is full of opportunities that investors use to grow their wealth. There are a huge number of companies listed on the stock exchange whose shares are traded daily. Different investors have different investment strategies based on which they pick stocks for their portfolios. Some like to remain safe because of their low-risk appetite and limited knowledge about the companies in which they are investing, while some prefer extending their boundaries with their high-risk bearing ability and fundamental knowledge about companies in which they are investing. Among the pool of stocks available for investors on the stock market, do you know that there are shares below 1 rupee as well, called penny stocks?
Penny stocks, as the name suggests, are shares that have a very low price. These are small companies with a low market capitalization but their shares have the potential to turn multi-baggers in the future. Such shares below 1 rupee have a history of making many investors rich, precisely the reason why many investors prefer to include these penny stocks in their portfolios. In this article, we will learn about similar shares under 1 rs that turned out to be multi-bagger in 2021 and offered over 500% return to the investors.
Top penny stocks have offered exponential returns to investors in 2021
Top 5 Shares Below 1 Rupee that Offered over 500% returns to Investors in 2021
The first pick in the list of shares below 1 rupee that delivered over 500% return in 2021 is Adinath Textiles. Although not exactly a part of shares below 1 rupee, Adinath textile was still a penny stock until the middle of 2021. The stock was trading around Rs 2.5 in May 2021 but made a 52 week high of Rs 101.7 in less than 8 months. This is over 3920% return in less than a year. Adinath Textiles is engaged in the manufacturing of blended acrylic yarn and also trades in unstitched shirting, suitings, and other dress materials. The current market cap of the company is 29 crores. As of December 2021, the company’s shareholding pattern included around 56.5% retail and other investors, and the remaining 43.5% was with promoters. Although the company suffered greatly by COVID-19 in 2020, it quickly recovered and registered a 557.1% rise in the bottom line by the end of the first quarter of 2021.
Flomic Global Logistics
The next in our list of top shares below 1 rupee to deliver over 500% return in 2021 is Flomic Global Logistics. A few months before the start of 2021, the company’s shares were being traded below Rs 1. However, after mid- 2021, the share price started increasing further until it made an all-time high of Rs 216 in October 2021. By the end of the year, the company’s share price was around Rs 188, which is an increase of over 800% in a year. The company was earlier named Flomic Freight Services until November 2020 when it amalgamated with Vinaditya Trading and got its new name Flomic Global Logistics. It is engaged in activities related to financial intermediation. The company has a growing demand for customers and wants to expand its warehousing operations for the same. As of December 2022, retail and other investors held around 72.5% of the shares, while the remaining 27.5% was held by the promoters. Flomic Global Logistics’ current market capitalization is Sr 106 crores.
NMS Resources Global
Trading at below Rs 3 at the start of 2021, NMS Resources Global made its ATH of Rs 41.4 in the August month of the same year. The stock ended the year with a price of almost Rs 30, which is around a 900% gain in 1 year. NMS Resources Global started with the food processing and commodity supply business. However, it later expanded its business ventures into civil constructions, financial consultancy services, skill development, and others. By December 2021, the company had almost equal shareholding between retail investors and promoters and its current market capitalization stands at Rs 10 crores.
The next stock in the category of best shares below Rupee 1 in 2021 is Nyssa Corporation. The share entered 2021 with a price of almost Re 1 and ended the year by crossing Rs 10. The stock made its all-time high of Rs 14.94 in the first month of 2022. In 2021, the share delivered over 900% return to the investors. Going through the fundamentals of the company, we get a market capitalization of Rs 27 crores and a P/E ratio of 47.94. The company also tripled its profit in 2021 as compared to the year 2020. The revenue generation of Rs 10.45 crores in the same year was also the highest ever in the company’s history. Nyssa Corporation is mainly involved in the real estate business. Founded in 1981, the company has operations in the Realty and Investment segment. As of December 2021, the company had 73.5% of the retail shareholding and 26.5% of promoters’ shareholding.
Last but not least stock in our list of the year 2021’s top shares below 1 rupee is HB Stockholdings. In April 2021, the company’s shares were being traded almost at Re 1. However, the stock took a sharp jump in July and made its all-time high in November 2021. The share ended the year at Rs 13.35, which is over a 1000% increase in 2021. The current market capitalization of the company is Rs 17 crores, and the shareholding pattern was distributed among retail investors, promoters, and other domestic institutions by 54.3%, 45.46%, and 0.24% respectively, as of December 2021.
With proper research and analysis, you can also find the best penny stocks for your portfolio.
Many similar shares below 1 rupee performed exceptionally well in 2021 and made investors rich by over 500%. As an investor, you should also include some top penny stocks in your portfolio as per your risk appetite. Penny stocks have a very high potential to give high returns in a short period. However, picking such high-quality penny stocks that can perform well in the future requires the investment of time and proper research. Do not miss out on the opportunity to invest in shares below 1 rupee and give yourself the chance to earn from a potential multi-bagger stock.