Over the past three months, seven penny stocks have seen significant declines, each losing more than 50% of their value. These laggards were identified using a focused screening method that selected stocks with a market capitalization below Rs 1,000 crore, a share price under Rs 20, and a minimum trading volume of 5 lakh shares in recent sessions. The aim was to spotlight low-priced, actively traded penny stocks that have undergone substantial corrections. (Data Source: ACE Equity)
While penny stocks often attract investors due to their low prices and the potential for quick gains, they carry considerable risk. With low liquidity, high volatility, and limited transparency, such stocks are vulnerable to manipulation and sharp downturns. Without a disciplined strategy and robust risk management, investors are more likely to incur losses than profits.