Top 5 Multibagger Penny Stocks of 2023 So Far. Take a Look...

In February 2023, when we were just a month into the new year, we wrote about the best performing penny stocks of 2023. Within a month, several small companies had rallied up to 300%.

Well, what about now? How does the penny stocks market look like, now that we're six months into 2023?

After running a query to see what kind of gains these little minnows have delivered, we have to say...the gains are pretty spectacular.

Some companies have rallied up to 700% while gains ranging 200-400% has become the norm.

Let's take a look at some of the top performing penny stocks of 2023 so far. We've only considered the stocks that started the year 2023 with a stock price of less than Rs 100 per share and even currently, they're trading below the same levels.

Whether these are high quality penny stocks or poison stocks, we'll let you decide.

Before you jump on the bandwagon, it's important to approach these stocks with caution. All these companies have a very low liquidity and they could continue to rally or continue to fall for days...or even months.

With that disclaimer out of the way, let's get started...

#1 Jhaveri Credits & Capital

First on the list of top performing penny stocks of 2023 so far is Jhaveri Credits & Capital.

The firm is engaged in the business of leasing, hiring, purchasing, intercorporate deposits, investments in primary and secondary market business.

In 2023 so far, shares of the company have rallied over 750%. It started the year at Rs 10.3 and currently, the shares trade at around Rs 89 per share.

The company has a marketcap of Rs 577 million (m).

The primary reason behind the rally in this low liquid stock could be the increased participation of investors in the commodity market and stock markets in general.

It's a broking member of National Commodity and Derivatives Exchange (NCDEX) and Multi Commodity Exchange (MCX).

The company primarily derives revenue from the income it generates from interest on loans and advances and the commission income on mutual funds.

In the March 2023 quarter, the company reported sales of Rs 113 m and a net profit of Rs 9 m. Prior to this, it had almost zero revenues and a string of losses.

In financial year 2023, the company reduced its debt and is now almost debt free.

Last year, it decided to consider financing, investment & broking advisory business as a future venture based on favourable market conditions.

Promoters of the company own 62.3% stake in the company while the rest is owned by individuals. Mutual funds and foreign investors have stayed away from the stock for a long time.

To know more, check out its financial factsheet and its latest quarterly results.

#2 SVP Housing

Second on this list is SVP Housing.

Incorporated in 2003, the company is engaged in the marketing and distribution of steel products.

In 2023 so far, shares of the company have rallied over 500%. It started the year at Rs 15.5 and currently, the shares trade at around Rs 92 per share.

Even though the company has a history of reporting losses and has big fluctuations in its sales, it comes as a surprise to us why Mr Market has factored in such a sharp rally in its share price.

Maybe because there's a big management change in the company. Maybe not. The March 2023 shareholding pattern of SVP Housing shows that promoters offloaded a massive 20% stake in the company.

It even reported the highest loss of Rs 23.2 million in as many as 10 years.

To know more, check out SVP Housing's financial factsheet and its latest quarterly results.

#3 Regis Industries

Third on the list is Regis Industries.

Erstwhile known as Bhartia Bachat, the company's core business includes manufacturing and supply of heavy engineered process equipment including heat exchangers, centrifuges, pressure vessels, and other fabricated components in India and abroad.

In 2023 so far, shares of the company have rallied around 376%. It started the year at Rs 19 per share and currently, the shares trade at around Rs 91 per share.

The rally in the stock price comes at a time when the company has informed exchanges it's not able to perform any business activities due to scarcity of working capital funds.

To make it operational, the company is now trying to implement cost reduction measures.

In financial year 2023, the company more than doubled its revenues to Rs 296.2 m while losses narrowed to Rs 3.3 m compared to Rs 9 m a year ago.

It's also a zero promoter holding company.

To know more, check out Regis Industries financial factsheet and its latest quarterly results.

#4 Kenvi Jewels

Fourth on this list is Kenvi Jewels.

The company is engaged in the business of manufacturing, wholesaling and retailing of jewellery. The designing of jewellery is done in house which is manufactured at its manufacturing unit.

The company also gets its jewellery designed by third party designers as and when required.

In 2023 so far, shares of the company have rallied around 361%. It started the year at Rs 3 per share and currently, the shares trade at around Rs 16 per share.

One key reason behind the company's stock price rally could be its migration from SME board to the mainboard section.

Apart from the above three stocks discussed above, where the rally is primarily driven by low liquidity, Kenvi Jewels has some reasons to back its share price gains.

In May this year, Kenvi Jewels traded ex-bonus with a ratio of 1:4 and ex-split, reducing the face value from Rs 10 per share to Rs 1 per share. Ever since the issuance of bonus shares and the stock split, shares of the company have been on a roll.

The company has also reduced debt this year and is now almost debt free.

Its financials have been steadily improving since the past seven years. In FY23, it reported the highest ever sales and net profit of Rs 882.6 m and Rs 5.4 m, respectively.

To know more, check out its financial factsheet and its latest quarterly results.

#5 Blue Cloud Softech Solutions

Last on the list is Blue Cloud Softech Solutions.

The company is involved in designing and developing computer software and providing data processing services.

It also develops software products, solutions, customisation, provides technical support and training.

In 2023 so far, shares of the company have rallied around 347%. It started the year at Rs 13 per share and currently, the shares trade at around Rs 60 per share.

The company has a marketcap of Rs 3.5 billion.

Ever since then company increased its liquidity back in 2022, shares have been on an upward trajectory.

There are other reasons behind the rally too including reducing debt, improving returning equity and a significant improvement in its net cash flows.

In FY23, the company reported a 100x increase in its sales to Rs 290 m from less than Rs 2 m a year ago in FY22. Profit after tax rose more than 5x to Rs 7 m.

The company has low debt on its books and its net profit has been improving for the past couple of years.

To know more, check out its financial factsheet and its latest quarterly results.

Which other penny stocks have rallied the most in 2023 so far?

Apart from the above, here's a table showing the best performing penny stocks of 2023 so far.

Top Performing Penny Stocks in 2023

Company	Current Price	Marketcap (Rs m)	Price on 2 Jan 2023	Gains (%)
Softrak Venture Investment Ltd.	5.9	266.0	1.5	307%
Sterling Guaranty & Finance Ltd.	20.5	134.2	5.3	287%
Classic Filaments Ltd.	25.5	155.6	6.6	284%
Vivanta Industries Ltd.	7.3	730.0	1.9	276%
Sheetal Diamonds Ltd.	18.0	180.0	4.9	270%
VCK Capital Market Services Ltd.	37.9	433.6	10.4	263%
Mediaone Global Entertainment Ltd.	54.2	798.0	15.1	260%
Beryl Securities Ltd.	34.9	169.0	10.3	238%
Aerpace Industries Ltd.	16.8	529.9	5.1	231%
Madhuveer Com 18 Network Ltd.	34.4	326.5	10.9	216%
Soma Textiles & Industries Ltd.	28.9	953.7	9.2	215%
Trivikrama Industries Ltd.	30.8	219.3	10.5	195%
Alfa Transformers Ltd.	34.9	319.2	12.1	188%
Standard Capital Markets Ltd.	59.7	2,924.8	20.8	187%
Chemtech Industrial Valves Ltd.	46.1	529.3	17.4	165%
Artemis Electricals And Projects Ltd.	16.7	4,179.8	6.4	159%
Vardhman Polytex Ltd.	50.5	1,125.5	19.5	159%
Abirami Financial Services (India) Ltd.	37.1	200.1	14.7	152%
Vikalp Securities Ltd.	17.7	54.1	7.3	143%
Virgo Global Ltd.	15.0	157.7	6.3	140%
Futuristic Securities Ltd.	18.4	35.9	8.0	130%
Mercury Ev-Tech Ltd.	26.9	4,485.4	11.9	126%
Aastamangalam Finance Ltd.	33.1	212.9	15.0	121%
UY Fincorp Ltd.	26.5	5,045.1	12.1	120%
Aplab Ltd.	46.2	511.8	21.0	120%
Harmony Capital Services Ltd.	15.3	45.8	7.1	117%
KMG Milk Food Ltd.	45.0	238.7	20.9	115%
Le Lavoir Ltd.	65.7	212.9	30.7	114%
Tirupati Tyres Ltd.	45.0	1,099.5	21.0	114%
Asian Petroproducts & Exports Ltd.	46.9	406.2	22.0	113%
Kiran Print-Pack Ltd.	8.7	43.3	4.1	112%
Rose Merc. Ltd.	50.2	141.3	23.8	111%
JMD Ventures Ltd.	24.4	703.0	11.5	111%
Essar Securities Ltd.	10.0	142.4	4.8	110%
Parshwanath Corporation Ltd.	54.3	170.0	26.0	109%
Baid Finserv Ltd.	41.2	4,944.4	19.9	107%
Titan Intech Ltd.	50.4	375.4	24.6	105%
Rungta Irrigation Ltd.	53.9	1,073.2	26.4	104%
Aryavan Enterprise Ltd.	26.4	101.8	13.0	104%
Vintron Informatics Ltd.	5.5	433.3	2.7	104%
Hindustan Bio Sciences Ltd.	7.7	78.8	3.8	103%
Mishka Exim Ltd.	72.5	1,047.6	35.8	103%
Jyoti Ltd.	37.7	871.5	18.7	102%

Data Source: Ace Equity

As can be seen from the table above, most of these stocks have a very low marketcap and chances are that the rally in most of their stock prices has been due to low liquidity.

Since multibagger penny stocks interest you, check out the below screener that highlights the top performing penny stocks from the past three years.

Please note that these parameters can be changed according to your selection criteria.

This will help you identify and eliminate stocks not meeting your requirements and emphasise those stocks well inside the metrics.

Before leaving, do watch the video below, where the Co-head of Research at Equitymaster shares his strategy for penny stock investing and three low-risk penny stocks for 2023.

Happy Investing!

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...