5 Penny Stocks that Turned Multibaggers in 2022

Penny stocks, as their name suggests, refer to stocks that are traded at very low prices on the stock market. While there is no well-defined cut-off for classifying shares as penny stocks, usually shares that are priced below Rs. 50 will be considered penny stocks.

Penny stocks are mostly illiquid, with inadequate information about their fundamentals. Yet, despite the increased risks, many investors choose to trade in penny stocks for the massive returns that these stocks may offer. 

We list the top multibagger penny stocks 2022 below.

Overview of 2022’s Multibagger Penny Stocks

Shanti Educational Initiatives (SEIL)

Founded in 2009, Shanti Educational Initiatives (SEIL), is a venture of the Chiripal Group based in Ahmedabad. SEIL is engaged in the business of providing school management solutions. 

SEIL’s revenue has been growing at 25.88% CAGR. Yet, the net profit margins have been decreasing both annually and quarterly, which is a cause of concern. The company has low debt levels and has been attracting FII’s interest.

Below, we have tabulated the SEIL share price trends. 

 At Rs. 69.25, the stock is trading over 40% below its 52-week high. Yet, SEIL has generated multibagger returns of over 600% on a YTD basis. Its 1-yr return at over 455% far surpasses Nifty50’s return of 2% for the same period. 

Check out the share price of Shanti Educational Initiatives on Angel One before investing.

Cressanda Solutions

Incorporated in 1985, Cressanda Solutions is an India-based small-cap company engaged in providing IT, digital media, and IT-enabled services (ITES).

Cressanda has been improving its return on assets (ROA) for the past 2 years. The lack of debt on its books is an added advantage. However, the promoters have been reducing their stake in Cressanda Solutions.

Below, we have tabulated the Cressanda Solutions share price trends. 

At Rs. 38.70, the stock is trading over 2,000% above its 52-week low. Its 1-yr return at over 1,780% far surpasses Nifty50’s return of 2% for the same period. The SEIL share price has zoomed almost 500% YTD. 

Track the share price of Cressanda Solutions on Angel One before investing.

Swiss Military Consumer Goods

Established in 1989, Swiss Military Consumer Goods is a small cap company listed on BSE. The company is engaged in multiple businesses, including men’s wear, home appliances, and RFID.

This company has been growing annually at 963%, far outperforming its 3-year CAGR of 121%. The company has been debt-free in the last 5 years but has recently undertaken some debt obligations. The company has been experiencing steady growth in net profits for the past 2 years.

The Swiss Military share price has been gaining for the last 2 days and has risen by 6.43%. Below, we have tabulated the Swiss Military share price trends. 

The Swiss Military share price touched the lower circuit 4 times in September’22. At Rs. 22.35, the share price has fallen over 41% from its 52-week high. Yet, the Swiss Military has generated multibagger returns of over 260% on a YTD basis. It generated a 1-yr return of over 384%. 

Check out the share price of Swiss Military Consumer Goods on Angel One before investing.

Eros International Media 

Founded by Arjun and Kishore Lulla, Eros International Media, also known as Eros India, is a motion picture production and distribution company. 

The company continues to be a multibagger penny stock, earning more than 30% in the past month itself on the back of improving operating profitability. However, it has reported a negative ROE for 3 successive years. This penny stock continues to be risky as it has high debt levels but is low on liquidity.

Eros International has recently come under fire as SEBI has launched an investigation into Eros’s financial statements for FY18-19 to FY20-21.

Below, we have tabulated the Eros International Media share price trends. 

The Eros International Media share price has given a 3-year return of over 101% versus Nifty Smallcap 100’s 79%. At Rs. 38.40, the Eros International Media share price has gained over 123% from its 52-week low. 

Eros International Media is a multibagger share, which has returned over 100% on a YTD basis. 

Check out the share price of Eros International Media on Angel One before investing.

MPS Infotecnics

Listed on NSE in 2000 as Visesh Infotecnics, MPS Infotecnics is an IT company. It owns state-of-the-art development facilities in Bengaluru and Gurgaon. It also provides infrastructure services, web services, and consulting.

The company’s Return on equity (ROE) has been negative for the last 3 years consecutively. It has been posting quarterly losses successively for the last 4 quarters. The company carries no debt and continues to be heavily traded on D-street.

Below, we have tabulated the MPS Infotecnics share price trends. 

At Rs. 0.70, the MPS share price has fallen over 60% from its 52-week high. Its 1-yr return at over 250% far surpasses Nifty50’s return of 2% for the same period. 

Keep an eye out on the share price of MPS Infotecnics on Angel One before investing.

Conclusion

As you can see, such high returns on penny stocks are usually accompanied by high risks. While penny stocks have the potential to turn into multibaggers when their company fundamentals improve, fortunes can easily reverse in case of adverse events. You must conduct adequate research before falling down the rabbit hole of the ‘best penny stocks to buy now.’ To invest in the ‘best penny stocks to buy’, you can open a Demat account with Angel One.

Disclaimer: This blog is exclusively for educational purposes. The securities quoted are exemplary and are not recommendatory.