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Penny Stocks That Makes Investor Millionaire…!!

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Penny stocks that makes Investor millionaire...!!

Multi bagger stocks with having a strong fundamental are hard to find. Investors consider themselves quite lucky if the penny stocks they picked made them super rich. People have the perception that a quality product comes with a better price tag. But everything which is cheap is not necessarily bad and anything which is costly is not always good. Similarly, in the case with stocks, undervalued stocks which are available very cheap not necessarily bad stocks. There are numerous instances, where undervalued stocks have outperformed the industry leaders sometimes. Most investors looked down the penny stocks due to their inherent risk. So, let’s first know about Penny stocks.

Penny stocks are basically defined as those stocks which are trading at very low price such as RS 5, Rs 10 and so forth. These companies have very low market capitalizations. They have a low trading volume with low liquidity or lack of liquidity. But there are many stocks which have become multi bagger with time. Here’s a list of stocks which has become multi bagger in Indian market, according to economic times:

  • Eicher Motors

Eicher Motors is the parent company of the Royal Enfield, which offers middleweight motorcycles in India and across 40 countries across the world. The company is engaged in manufacturing automobile products and related components. The company operates in business verticals including motorcycles, commercial vehicle and personal utility vehicle.  Any investor who has brought the share of Eicher in 1998, it was trading around Rs 9. But currently it’s trading around Rs 20,100. It has become 2233 times from their initial IPO.

2) Kotak Mahindra Bank:

Kotak Mahindra Bank is second biggest gainer in the list. The bank proves to be one of the best banking stocks among their industry.  But currently the share of the bank is trading at 1486. It has provided 825 times more returns than their initial investment.

3) UPL:

UPL is known as United Phosphorus Limited is an Indian multinational company which manufactures agriculture chemicals, industrial chemicals and chemical intermediates. Its share has jumped from Rs 0.90 on July 13, 1998 to Rs 1020 till 12th June 2019. It has multiplied investor wealth by 1133 times in last 21 years. The net sales and net profits have jumped manifold.

4)  Bajaj Finance:

Bajaj Finance is a subsidiary of the Bajaj FinServ. It mainly focuses on lending, asset management, wealth management and insurance. It’s mainly a Non-Banking Finance Corporation. The stock was trading at Rs 2.8 share in 2000 and currently trading at 3,507. It has multiplied 1252 times the investor wealth in just a span of 19 years.

5) LUPIN:

Lupin is one of the biggest names in the Pharmaceutical industry. It’s a market leader in the 51 out of 158 product it sells in the US Generic Market. 18 years back the stock of Lupin was trading at Rs 2 and currently it is trading at 725. It has increased the investor wealth at 362 times from their initial investment. It is planning to launch 30 more products in the US.

Investing in penny stocks could be very attractive. One of the things that needs to understand is that the basic rules of investing in undervalued stocks are to consider ‘value not price’. The potential of low-priced stocks becoming multibagger is quite high, when the company is managed by a capable management. So, always track the management of such companies before investing in any penny stock.

Looking for some investment advice? Hop on to www.gulaq.com and talk to the experts.

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