Penny stocks, with their rock-bottom share prices, continue to captivate the imagination of retail investors across India. The allure of buying thousands of shares for a small sum and the dream of explosive, multibagger returns make these sub-₹10 securities a constant point of discussion. However, this segment is a classic high-risk, high-reward playground, characterized by extreme volatility and speculative trading.
The Double-Edged Sword of Penny Stock Investing
The primary draw for penny stocks is their sheer affordability. For many new market participants, owning a large quantity of shares feels more tangible and promising than holding just a few units of a high-priced blue-chip company. This affordability bias is powerful. Furthermore, even a small absolute price increase can translate into massive percentage gains, fueling hopes of quick wealth creation.
Yet, the risks are equally pronounced. These stocks often suffer from low trading volumes, weak financial fundamentals, and minimal corporate transparency. Price swings are frequently driven by market sentiment and speculation rather than solid business performance, making them susceptible to sharp downturns and potential manipulation. Exiting a position during a market slump can be challenging due to poor liquidity.
Top Performers: A Month of Stellar Gains
Despite the inherent risks, data from Capitaline reveals a notable trend. Over the past month, a select group of penny stocks has delivered impressive returns. A Mint study, considering only stocks with trading volumes exceeding 50,000 shares, identified 10 penny stocks priced under ₹10 that rallied more than 20% on the BSE. Some standout performers generated returns as high as 68%.
Leading the pack is Mangalam Industrial Finance. Its share price catapulted by 68% in one month, moving from ₹0.9 to ₹1.51. Trading activity in the stock surged over sixfold during this period. The company commands a market valuation of ₹215 crore.
In second place, Pulsar International witnessed a sharp 57% ascent. Its stock price climbed from ₹1.49 to ₹2.34 between December 9, 2025, and January 9, 2026. With a market cap of just ₹100 crore, the stock closed nearly 5% higher on the latest Friday of the period.
Avance Technologies secured a solid 46% return in a month, with its share price rising from ₹1.23 to ₹1.79. This stock has been a phenomenal multibagger, delivering a 118% return over one year and an astounding 4,375% gain over three years. The company recently announced signing a non-binding term sheet to acquire up to 100% equity in Pushpak AI, a Hyderabad-based Computer Vision and Edge AI platform.
Other Notable Gainers
The list of winners extends further. Satvik Sukun Lifecare saw its stock rise 37% from ₹0.51 to ₹0.70. Starlineps Enterprises followed with a 35% monthly gain, closing at ₹4.68. This company executed a Memorandum of Understanding (MoU) to acquire a 12.15% stake in Tobias Amines from its promoters and exiting shareholders.
The roster of top penny stock performers over the last month also includes:
- Bluegod Entertainment
- MSR India
- Shah Metacorp
- Teamo Production
- PMC Fincorp
These stocks registered gains ranging between 21% and 35% over the one-month period, rewarding their shareholders with significant returns.
Disclaimer: This analysis is strictly for educational purposes. The Indian stock market is dynamic and unpredictable. We strongly advise investors to conduct thorough research and consult with SEBI-certified financial experts before making any investment decisions, as individual circumstances and market conditions vary widely.
