Best Multibagger Penny Stocks in India 2022
Investors invest in stocks to get profits with a good margin. People always search for those stocks which give them 40% or 50% returns in a quick time. But big cap stocks does not move or give that much of return so quickly, they an give you 10% in a long term investment. People also trust o those stocks more because of their sustainability.
On the other hand, many investors are getting a good return which is multi time more than other stocks within a short time period. The stocks need a low amount of capital. These stocks are called Penny Stocks.
In this article I will discuss about the best multibagger penny stocks in India 2022. You will be confused about the term “multibagger”. I will explain it below in this article.
What are Penny Stocks?
Penny stocks are described which are traded at a low price and their market cap is under 100 cr. Most of the penny stock’s market price trades in single or double digits.
There is no specific definition for penny stocks. But we can define them by their low pricing. Although we can identify them to their low capitalization. In the Indian stock market scenario, the penny stocks are available within 20 to 30 RS. or more even 50 to 60 RS. The penny stocks owe low capitalization in stock markets, they are frequently traded and usually illiquid.
Penny stocks can give you double returns because it has highly volatile potential. This nature makes it so risky.
How it can give double return also it may cause for a downfall. The best way to invest in the best penny stocks for a short time period. If you don’t know the term Swing Trading then go through this What is Swing Trading?
You can also look for the best penny stocks in India in 2022.
What are Multibagger Stocks?
The term “Multibagger” is first used by Peter Lynch in his book “Upon Up on Wall Street”. Multibagger Stocks are the equity share that gives multiple time double returns.
Multibagger stocks are provided by those companies which has a great growth potential, good skilled management and marketing of the products. It also implies the development of the company and the marketing strategy. These allowing the products for a high demand.
Making all the sectors perfectly productive makes the company stock for high demand and returns multiple times higher.
To invest in stocks you need to open a Demat account.
Buy Low Value Penny Stocks
Penny stocks are already low valued stocks. They are very volatile. But they move according to their CMP. Many stocks in the Indian share are under 1 re. and they are the most risky stocks to invest in. Stocks with price above 5 re. and has a strong fundamental has the more reliability and good return potential, although penny stocks always is the riskiest stocks. But investing in those you will get more profit margins.
Best Multibagger Penny Stocks in India 2022
Now let’s know which penny stocks are doing great this year and have the potential to become multibagger stocks in 2022.
Best Penny Stocks
|SL No.||COMPANY NAME||MARKET CAP|
|1||SUZLON ENERGY LTD.||8420 cr.|
|2||JAIPRAKASH POWER VENTURES LTD.||5550 cr.|
|3||VODAFONE IDEA||27140 cr.|
|4||SOUTH INDIAN BANK||1674 cr.|
|5||SHREE GOPAL TRADEFIN LTD.||689 cr.|
|7||JCT LTD.||309 cr.|
|8||MANGLAM INDUSTRIAL FINANCIANCA LTD.||465 cr.|
|9||PRISMX GLOBAL VENTURES LTD.||196 cr.|
|10||IL & FS INVESTMENT MANAGERS LTD.||208 cr.|
These listed penny stocks are the best penny stocks in India in 2022 which gave a higher return in their recent performances. Many traders have gained a good profit from these penny stocks. But before investing in penny stocks you should always keep in mind that penny stocks are likely lucky draw tickets. The prices of these stocks can shoot up or down in a very short time of the positive or negative impact of the market.
Things To Know Before Buying Penny Stocks
Before buying penny stocks keep some points in mind that the prices of the stocks are very volatile. So keep it very low in quantity and do not invest a huge capital in penny stocks. Do well research and find out the best penny stocks in India. The most important point is , never invest all your capital in a single penny stock. You can use your ¼ of your capital or invest in multiple stocks. Most of the investors are coveted in the short time with huge returns. Never get trapped in this situation.
One more important thing, people often think to invest all the capital in one stock, that is extremely risky. You can buy in big volume of a penny stock but don’t put your all eggs in one basket.
Before investing in any stock make sure it is fundamentally strong and has a good return potential in the future. Also you can analyze using the charting method.
Though trade on penny stocks is very risky, you can earn a good profit from it if you go with the right strategy. As it has the higher profit potential also very risky. You can earn investing in penny stocks, if you invest for a short period. That will be a good method to invest and run for long term race.
If you need any advice or have doubts you can reach out to us through mail: [email protected]
Thank You for reading this article and wish you safe and profitable trading.
To trade in the stock market open a Demat account through an online discount broker. Open your account on India’s no 1 stock broker Zerodha.