Top Performing Penny Stocks of November 2023

Penny stocks are famous for generating extremely fast returns. On the other hand, they are infamous for falling just as fast as they go up.

In a market crash, or God forbid, a bear market, these socks could be the worst hit. They tend to rise the most and fall the quickest.

Though they are quite volatile, penny stocks can be good investments, provided they are fundamentally strong penny stocks and have good growth prospects.

In today's article, we're going to look at the best-performing penny stocks of November 2023.

#1 Unitech

First on the list is Unitech.

Unitech is an India-based real estate developer. The company is primarily engaged in the business of real estate development and related activities, including construction, consultancy, and rentals.

This penny stock has risen from around Rs 2.5 apiece levels to Rs 6.6 per share levels, logging around 150% gains in November 2023.

150% gains in less than a month... think about that.

Unitech shares are one of the multibagger stocks that the Indian stock market delivered in the previous month.

Since the Supreme Court's directive on 3 November, the stock has experienced an upward trajectory. Unitech management extended a decision deadline for homebuyers until 15 December, providing them the choice between accepting a refund or taking possession of their flats.

This resolution plan has substantial implications for the fate of the company's delayed housing projects in Noida.

The optimism among investors, fuelled by the potential progress and resolution of prolonged projects, has contributed to the rising share price. Moving forward, the company is focused on resolving its ongoing legal challenges.

For more details, see the Unitech company fact sheet and quarterly results.

#2 BMW Industries

Second on the list is BMW Industries.

BMW Industries is an India-based company engaged in the manufacturing, processing, and selling of steel products comprising engineering, and other products, services and activities related to the same.

For November 2023, the stock has risen around 62% from Rs 37.2 to Rs 60.1.

This can be attributed to the Odisha government approving industrial projects on 24 November 2023.

Notably, in the Steel (Downstream) sector, BMW Industries Limited received HLCA approval for an investment totalling INR 10.9 billion (bn).

The approval is for establishing a production plant in Kalinganagar, Jajpur, with capacities including ERW Pipe (1,000,000 metric tons), HR Pickled Oiled Coil (500,000 metric tons), TMT Bars (500,000 metric tons), and Slitting & Cut to Length (500,000 metric tons).

Going forward, the company plans to expand its product portfolio to include new and innovative steel products.

For more details, see the BMW Industries company fact sheet and quarterly results.

#3 AGS Transact Technologies

Third on the list is AGS Transact Technologies.

AGS Transact Technologies is one of India's leading omnichannel payment solution providers.

It is the second largest company in India in terms of revenue from ATM-managed services and also the largest deployer of POS terminals at petroleum outlets in India.

After losing 63% of its value in 2022, the company's shares saw a notable recovery in November 2023, surging by 60% and reaching Rs 96 from Rs 60.

AGS Transact Technologies, on 17 November 2023, won an order of Rs 11 bn over seven years for deploying 2,500+ ATMs under the Outsourced/Managed Services portfolio from the State Bank of India (SBI).

AGS Transact Technologies will deploy these ATMs on a transaction fee basis under the Total Outsourcing Model. The company will begin the deployment of these new ATMs in the next calendar year.

Further, Securevalue India, AGS Transact's cash management subsidiary, will be servicing several ATMs under this order.

This order win comes just a week after the company announced that it bagged an order to supply 1,350 ATMs for SBI under its banking automation solutions portfolio.

Going forward, the company plans on expanding its omnichannel payment solutions to include new channels, such as social commerce and wearable devices.

For more details, see the AGS Transact Technologies company fact sheet and quarterly results.

#4 Jyoti structures

Fourth on the list is Jyoti Structures.

Jyoti Structures is an Indian power transmission company.

It undertakes power transmission, distribution, and substation turnkey projects on a global scale.

Jyoti Structures is also among very few companies that have the capabilities to execute turnkey projects in the power transmission business.

In November 2023, its shares climbed 57%, from Rs 11.3 to Rs 17.7.

The surge in the company's stock can be linked to its decision to propose fundraising through a rights issue, utilising equity shares or other securities as permitted by applicable law.

Additionally, the robust performance in Q2, with net sales witnessing a notable 487% increase to Rs 815 million compared to Q2FY23, has contributed to the positive momentum.

The company achieved a remarkable turnaround, posting a net profit of Rs 112 million in Q2FY24 after incurring a net loss of Rs 40.3 million in the previous quarter.

Going forward, the company plans on expanding its power transmission business by focusing on high-voltage transmission lines and substations.

For more details, see the Jyoti Structure company fact sheet and quarterly results.

#5 Navkar Corporation

Last on the list is Navkar Corporation.

Navkar Corporation is an India-based company engaged in the development, operation, and maintenance of container freight stations (CFS) and inland container depots (ICDs).

The company also provides value-added services such as cargo handling, customs clearance, and transportation.

In November 2023, shares of the company have rallied 55% from Rs 60.5 to Rs 93.9.

The rise is linked to the optimistic forecast for the logistics sector.

According to reports, the Indian road logistics industry is anticipated to exhibit growth in 2024, with a projected year-on-year revenue increase of 6-9%.

This growth will be fuelled by heightened demand from key sectors such as e-commerce, FMCG, retail, chemicals, pharmaceuticals, and industrial goods.

The industry's shift towards logistics players post-GST implementation and the adoption of e-way bills have further contributed to this positive trajectory.

Looking ahead, the company aims to extend its footprint into new geographical markets, both domestically and internationally.

For more details, see the Navkar Corporation company fact sheet and quarterly results.

Conclusion

Investing in penny stocks presents an opportunity for early investment in emerging companies with the prospect of rapid growth.

Additionally, for those looking to diversify their portfolios, penny stocks offer exposure to different sectors and industries.

Investing in the best-performing penny stocks can be tempting as there's a good chance that the winners will continue to rise more, given the momentum factor.

However, penny stocks are also known for their volatility, lack of liquidity, and susceptibility to manipulation.

Their low market capitalisation and limited available information make them speculative and challenging to assess.

Therefore, one should do thorough research and assess one's risk tolerance before considering an investment in penny stocks.

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...