Among the biggest gainers, G-Tech Info Training led the pack with a 540% jump, followed closely by Yuvraaj Hygiene Products (up 530%) and Kashyap Tele-Medicines (up 384%). Other notable names include Pro Fin Capital Services (up 358%), Atvo Enterprises (267%), Saptak Chem and Business (245%), and Avance Technologies (240%). Each of these counters, though low in liquidity and market cap, have multiplied investors’ wealth several times over the past 12 months.
Market data shows that most of these stocks trade below Rs 20 but belong to sectors tied to infrastructure, financial services, chemicals, consumer products, and technology, reflecting a broad-based rally in microcap names.
Penny stocks deliver where big caps paused
While large-cap indices like the Nifty 50 gained just about 6% over the last year, several microcap stocks defied gravity. Investor interest in low-float, high-volatility counters intensified as traders looked for short-term momentum plays amid subdued institutional activity.
For instance, G-Tech Info Training, with a market cap of just Rs 3.9 crore, surged more than five-fold, even as its daily traded volume averaged barely 1,500 shares. Avance Technologies, one of the more actively traded names with a market cap of Rs 600 crore, saw its shares climb 240%. Meanwhile, Gayatri Highways, Magnus Steel, and Kati Patang Lifestyle also saw over 170% appreciation from last Diwali levels.
Such rallies in penny stocks are often attributed to speculative retail participation, turnaround expectations, and low free-float.
Smallcaps setting up for the next leg
Experts believe the broader rally in small and microcap segments still has room to run, provided earnings justify valuations.
According to Sunil Singhania, founder of Abakkus Asset Manager, “India’s mid- and small-cap companies will lead the next leg of equity market gains, fuelled by growth in new-age sectors such as renewables, semiconductors, and digital platforms.”
This optimism comes even as foreign investors pulled out nearly $17.6 billion from Indian equities this year, marking the second-highest outflow for a January–September period. Domestic retail and SIP flows, however, have provided steady support to broader markets.
Data from HDFC Mutual Fund shows that while profits of Nifty Smallcap 250 firms grew 6% year-on-year in the June quarter — the slowest in nine quarters — earnings growth in the broader market still outpaced that of Nifty companies.
Outlook: selective approach crucial
Analysts caution that while penny stocks can offer exponential returns, they also carry high liquidity and governance risks. Investors should look for improving fundamentals, not just price action as several stocks from the list have minimal public disclosures or operate in cyclical sectors.
Despite that, optimism in the broader market remains intact. Many expect the Diwali–March 2026 period to bring fresh retail participation as rate cuts and GST-related reforms revive consumer demand and industrial capex.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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