Over the past six months, 11 penny stocks have surged sharply, delivering returns ranging from 120% to as high as 600%. These standout performers were selected based on specific criteria: a market capitalisation below Rs 1,000 crore, a share price under Rs 20, and a minimum recent trading volume of 5 lakh shares. This strategy focuses on identifying low-priced, actively traded micro-cap stocks demonstrating strong upward momentum. (Data Source: ACE Equity).
Penny stocks often attract attention due to their low entry price and the potential for explosive growth. But while the rewards can be impressive, the risks are equally high. These stocks typically carry low liquidity, high volatility, and limited financial transparency. Investors should proceed with caution —success in penny stocks requires not just luck, but a clear strategy and strong risk management.