Some domestic penny stocks have outperformed several large-cap and mid-cap companies’ stocks in 2021.
Penny stocks are those whose share price is very low — typically in single digit numbers — and have high volatility associated with them.
On the other hand, multibagger stocks are those whose share prices rise exponentially over a short period of time.
Investors who had put their money in stocks such as Samtex Fashions, Pan India Corporation, Shree Bhawani Paper, Sharp Investments, and Supremex Shine Steels have bagged huge capital gains so far in 2021.
Stocks of Pan India Corporation, which deals in software, rose 800 per cent in 2021, while Sharp Investments gained 632 per cent during the period. The company provides financial services to the consumers.
Besides, Samtex Fashions, Shree Bhawani paper, and Supremex Shine Steels have rallied 453 per cent, 95 per cent and 147 per cent in 2021, respectively.
Notably, the benchmark indices, which represent the broader equity market, too have done reasonably well in 2021.
Sensex and Nifty rose a healthy 19 per cent and 21 per cent, respectively, in the year-to-date period in 2021.