The first half of 2024 (1 January to 14 June) saw the Sensex register a modest return of 6.5%. However, a surprising group of stocks defied expectations and witnessed impressive gains ranging from 100% to a remarkable 285%. These were the multibagger penny stocks.. If you wonder what these are, here’s a lowdown and market insights on the top names for you:
What are Multibagger Penny Stocks?
Penny stocks are shares of companies trading at a very low price, often below Rs 10 per share. These investments can be high-risk, offering the potential for significant growth but also carrying a substantial chance of loss. On the other hand, multibagger stocks are any stocks that experience a substantial price increase, frequently exceeding 100% or even 200% within a specific timeframe.
Also Read: Penny Stocks in India Below 1 Rupee
Therefore, a multibagger penny stock is essentially a low-priced stock that experiences an exceptional rise in value. If you have been deterred by the high price of some shares, you must note that you can even check for multibagger penny stocks for 2025 under 5, which means you can get shares for as low as Rs 5 that may turn out to be multibaggers.
Multibagger Penny Stocks for 2025
If you are considering investing in the stock market in the near future, here are the top players you may consider:
- Hindusthan National Glass & Industries Ltd
- Sobhagya Mercant
- Nova Iron &Steel
- Inter Globe Fin
- Ind-Swift
- Winsome Textile
- Mangalam Alloys
- Riba Textiles
- Riddhi Steel
- Deem Roll
- Hindusthan National Glass & Industries Ltd
| Market Cap (Cr)Rs 202.21 | CMP (Rs) as of 22 July 202422.58 | All-Time High Rs 278.50 | PE Ratio1.24 | 5 Yr CAGR Return-2% | ROCE (FY24)19.9 % |
One of the frontrunners in multibagger penny stocks is Hindusthan National Glass & Industries Ltd, a leading manufacturer of glass containers in India, with a history dating back to 1946. The company has a production capacity of over 1,500 tons per day and supplies to various industries such as pharmaceuticals, food, and beverages.
As of 31 March 2023, the company clocked in a total income of Rs 2457.35 crores, up from Rs 2087.14 crores in FY22. It also recorded an EBITDA loss of Rs. 99.26 crore in the same period. The company’s sales rose from Rs 2,457 crores in FY2023 to Rs 2,552 crores in FY2024.
2. Sobhagya Mercantile:
| Market Cap (Cr)Rs 34.03 | CMP (Rs)40.52 | All-Time High 40.52 | PE Ratio2.94 | 5 Yr CAGR Return NA | ROCE (FY24)33.79 |
Sobhagya Mercantile can also be an option to consider in the multibagger penny stocks for 2025 list. It’s a trading company engaged in the business of iron and steel products, including mild steel ingots, billets, and rolled products. The company was incorporated in 2005 and has since expanded its operations to become a significant player in the steel trading industry.
The company’s financial performance underscores its growth trajectory as a leading multibagger penny stock name. Its total income surged from Rs 71.61 crores in FY22 to Rs 112.08 crores by the end of FY23. Moreover, its EBITDA stood at Rs 15.77 crore during the same period. The company further consolidated its position with a PAT of Rs 10.72 crores.
3. Nova Iron & Steel
| Market Cap (Cr)Rs 77.67 | CMP (Rs)21.49 | All-Time High 45.35 | PE Ratio6.54 | 5 Yr CAGR Return23% | ROCE (FY24)7.21 |
Incorporated in 1989, Nova Iron & Steel is a manufacturer of steel products that stands out as the next multibagger penny stock in the stock market in India. Its profile includes TMT bars, billets, and structural steel. The company was incorporated in 2003 and has a production capacity of over 3,00,000 tons per annum.
Its financial performance is indicative of robust growth, which puts it in the list of multibagger penny stocks for 2025. Its Gross Revenue escalated from Rs 613.82 crores in FY22 to a substantial Rs 703.08 crores in FY23. The EBITDA for the year was Rs 30.57 crores as against Rs 24.06 crores in the previous year, up by 27.09% over. After providing for interest, depreciation and tax, the company minimized the losses to Rs 1.79 crore as compared to previous year Rs 14.78 crore.
4. Inter Globe Finance:
| Market Cap (Cr)Rs 63.41 | CMP (Rs)Rs 92.97 | All-Time High 91.22 | PE Ratio7.51 | 5 Yr CAGR Return48.5% | ROCE (FY24)13.90 |
Inter Globe Finance is a non-banking financial company (NBFC) that provides financial services, including loans and investments. Founded in 1992, it has expanded its operations to become a significant player in the NBFC sector.
A key player in the multibagger penny stocks for 2025 category, its financial metrics showcase impressive growth. The company’s total income climbed from Rs 21.05 crores in FY22 to Rs 21.39 crores in FY23. During the current financial year ended 31.03.2023, the total interest earned was Rs.6.07 Crores compared to Rs. 6.12 Crores in FY 2021-2022. Inter Globe also earned a profit of Rs 2.42 crores. In FY24, its total profit stood at Rs 8.44 crores.
5. Ind-Swift:
| Market Cap (Cr)Rs 114.59 | CMP (Rs)Rs 21.00 | All-Time High Rs 82 | PE Ratio8.05 | 5 Yr CAGR Return22.6% | ROCE (FY24)25.99 |
Ind-Swift is a pharmaceutical company that manufactures active pharmaceutical ingredients (APIs) and formulations. Founded in 1986, it has expanded its operations to become a significant player in the industry.
The company has demonstrated strong growth, solidifying its position as a prominent multibagger penny stock. It earned total revenues (Consolidated) of Rs. 410.96 crores in FY23 against Rs. 397.71 crores in the previous financial year. The growth was driven by the momentum of their new launches and the robust performance of their best-selling products. Its total income was Rs 406.97 crore in Q4FY24 as opposed to Rs 283.39 crore in the previous quarter that ended 31 December 2023.
6. Winsome Textile Industries:
| Market Cap (Cr)Rs 172.77 | CMP (Rs)Rs 87.17 | All-Time High Rs 101.15 | PE Ratio9.25 | 5 Yr CAGR Return38% | ROCE (FY24)12.50 |
Winsome Textile Industries is a company that manufactures cotton yarn, fabric, and garments. It was incorporated in 1980 and has since expanded its operations to become a significant player in the textile industry.
Its journey as a multibagger penny stock entails the profit rising to Rs 25.01 crores in Q4FY2024 from Rs 20.46 crores in the previous year’s corresponding period. The company stands at a net worth of Rs 256.23 crores and has a total revenue of Rs 876.03 crores in FY2023. While Winsome’s EBITDA reached Rs 93.05 cores, the company solidified its position with Profit After Tax (PAT) of Rs 24.52 crores in FY23.
7. Mangalam Alloys
| Market Cap (Cr)Rs 106.03 | CMP (Rs)42.95 | All-Time High Rs 76 | PE Ratio9.24 | 5 Yr CAGR ReturnNA | ROCE (FY24)11.31 |
Mangalam Alloys is another name that has emerged as a standout performer in the multibagger penny stock segment. This manufacturer of steel products—including stainless steel billets, blooms, and slabs—was incorporated in 1988 and has since expanded its operations to become a significant player in the steel industry. The compay made a net profit of Rs 11.47 core in FY2024 to Rs 10.12 crore in FY2023, representing a growth of 13.27%.
8. Riba Textiles:
| Market Cap (Cr)Rs 78.17 | CMP (Rs)81.00 | All-Time High Rs 134.20 | PE Ratio9.87 | 5 Yr CAGR Return9% | ROCE (FY24)10.19 |
Riba Textiles is a company that manufactures cotton yarn, fabric, and garments. It was incorporated in 1989 and has since expanded its operations to become a significant player in the textile industry. The company boasts a fully integrated facility in Haryana, equipped to handle dyeing, weaving, finishing, sublimation, shearing, embroidery, and tufting, with an annual production capacity of approximately 9,000 tons.
The company has showcased remarkable growth, positioning itself as a prominent multibagger penny stock, with its total revenue surging from Rs 242.69 crores in FY22 to Rs 234.60 crores in FY23. Riba Textile’s PAT also increased significantly from Rs 4.89 crores to Rs 7.40 crores in a year. The company’s strong run continues in FY2024, as its total revenue increased from Rs 56.41 crore in December 2023 to Rs 74.02 crores in March 2024.
9. Riddhi Steel and Tube
| Market Cap (Cr)Rs 48.08 | CMP (Rs)Rs 58.00 | All-Time High Rs 90.30 | PE Ratio10.02 | 5 Yr CAGR Return23% | ROCE (FY24)10.44 |
Riddhi Steel and Tube is a manufacturer of steel products, including mild steel pipes, tubes, and structural steel. The company was incorporated in 2002 and has since expanded its operations to become a significant player in the steel industry.
The company’s financial performance indicates its status as a multibagger penny stock. Its Profit after taxation stood at Rs 3.40 crores in FY203 compared to Rs. 2.42 crores in the previous year. Riddhi Steel’s sales also saw an upward tick from Rs 303 crores in March 2023 to Rs 328 crores in March 2024.
10. Deem Roll
| Market Cap (Cr)Rs 82.00 | CMP (Rs)Rs 98.35 | All-Time High Rs 209.70 | PE Ratio10.50 | 5 Yr CAGR ReturnNA | ROCE (FY24)19.13 |
Deem Roll is a manufacturer of steel rolls and other steel products. The company was incorporated in 2005 and has since expanded its operations to become a significant player in the steel industry. The has demonstrated positive growth, reinforcing its position as a multibagger penny stock. Its operating profit increased from Rs 12 crore in March 2023 to Rs 14 crore in March 2024. While considering a future multibagger penny stock, you must remember to do thorough research on the companies. If in doubt, contact financial advisory services and consultants to avoid missteps.
FAQs on Multibagger Penny Stocks
How to find multibagger penny stocks?
The answer to how to find multibagger penny stocks lies in diligent research and analysis. Start by scrutinizing a company’s fundamentals, including financial health, business model, and management prowess. Technical analysis can also offer insights into potential price movements. Stay informed about industry trends, news, and economic indicators. Remember, penny stocks are inherently risky, so diversification and risk management are crucial.
How to choose penny stock which will become multibaggers?
After identifying promising companies, one of the basic rules to pick multibagger penny stocks is focusing on its fundamentals, including consistent revenue growth and improving profitability. Look for companies operating in high-growth sectors with a clear competitive advantage. A competent and ethical management team is essential. Valuation is also crucial; compare the stock price to intrinsic value using metrics like PE and PB ratios. However, always remember that past performance is not indicative of future results.
How to identify potential multibagger penny stocks?
Recognizing potential multibagger penny stocks combining research, analysis, and patience. Unusual volume activity without apparent news can signal institutional interest. Technical analysis can help identify potential breakout patterns. The presence of large institutional investors in a penny stock is often seen as a positive sign. New product launches or contract wins can trigger price appreciation. Focusing on high-growth sectors can also increase the chances of finding potential multibaggers. Nevertheless, thorough research and due diligence remain indispensable for making informed investment decisions.
*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
love to write on equity investing, retirement, managing money, and more.
