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Penny stocks make the most of market rally

Most counters have risen on 'punting' and lack intrinsic value

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Nikhil Lohade Mumbai
Last Updated : Feb 06 2013 | 5:33 PM IST
The current market rally has seen steep gains in heavyweights but the true sizzlers have been the penny counters, according to retail brokers.
 
Data show that small value scrips have far outshone their more recognised peers in terms of meteoric gains in their prices.
 
Rajesh Kamdar, dealer at K G Vora Securities, said, "The current rally has been driven by liquidity, mostly foreign, in frontline stocks. But retail participation has been huge in smaller stocks." 
 

Penny wise

Company

24-11-04

24-12-04

%Chng

Capman Financials

0.19

2.86

1405.30

SGN Telecoms

0.42

2.06

390.50

Howard Hotels

1.72

8.16

374.40

Yashraj Containeurs

4.00

18.52

363.00

Polymechplast Machines

0.76

3.40

347.40

Sanjivani Paranteral

4.79

18.48

285.80

Vasparr Fischer

1.24

4.63

273.40

Radhe Devlopers

1.15

4.24

268.70

Sharda Ispat

5.95

21.75

265.50

Shloka Info

1.60

5.71

256.90

Intensive Air Systems

1.33

4.25

219.50

Hariyana Ship Breakers

7.25

23.00

217.20

Rander Corporation

1.50

4.74

216.00

Alpha Hi-tech

4.55

14.00

207.70

Consortex Karl Doelitzch

0.72

2.20

205.60

Arvind Intl

4.97

14.96

201.00

Overseas Cables

2.65

7.97

200.80

Cosboard Ind

2.08

6.17

196.60

Irplast Adhesives India

0.68

2.00

194.10

Vijay Shanthi Builders

2.73

8.02

193.80

 
He added that this was not limited to only mid-caps but also in really small 'penny' scrips.
 
Brokers said that reason these stocks have shown such huge gains is because of their low value base.
 
"In a broad-based rally, most players are positive and, hence, buying is seen in most counters. Players tend to latch on to almost all scrips that show some activity and, hence, the interest in small value scrips."
 
But brokers warned that many of these are counters have risen only because of 'punting' and there is no real intrinsic value in these companies.
 
A look at data in the last one month throws up some big 'performers' on the bourses. Capman Financials was the biggest gainer, surging 1405.30 per cent from Rs 0.19 on 24 November to Rs 2.86 on Friday.
 
SGN Telecoms rose 390.50 per cent from Rs 0.42 to Rs 2.06 in the same period. Howard Hotels was up 374.40 per cent from Rs 1.72 to Rs 8.16, Yashraj Containers gained 363 per cent to Rs 18.52, Polymechplast Machines surged 347 per cent to Rs 3.40, Sanjivani Paranteral gained 286 per cent to Rs close at Rs 18.48and Vasparr Fischer was up 273 per cent to Rs 4.63.
 
The top 20 gainers in the last one month have seen their cumulative market capitalisation grow from Rs 29.02 to Rs 101.45, a rise of almost 250 per cent (Rs 72.43). Not surprisingly most of these companies are in the B2 or the Z groups of the Bombay Stock Exchange.

 

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First Published: Dec 25 2004 | 12:00 AM IST

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