Penny shares mint 12 multibaggers even in 2025’s wild swings. Are they secure bets within the present market?

India’s penny shares have delivered wholesome returns to buyers even in a risky 2025, which has seen Trump’s flip-flops, valuation led correction and India Pakistan tensions. Names like Srichakra Cement, Omansh Enterprises, and Swadeshi Industries soared over 250–400%, in response to Ace Fairness information.

Penny shares are usually priced beneath Rs 20 and belong to small or micro-cap corporations with restricted enterprise historical past, liquidity, or analyst protection. These shares typically commerce on hypothesis and momentum slightly than basic energy.

Regardless of the opaque nature of those shares, they nonetheless draw retail curiosity, given their potential to multiply wealth if all the pieces goes proper. For example, Srichakra Cement alone has returned over 429% because the begin of 2025.

Omansh Enterprises, one other penny inventory darling, soared 344% in the identical interval, with its inventory worth rising from Rs 4.20 to Rs 18.65. The corporate operates within the textile and buying and selling house however has lengthy remained off the radar of institutional buyers.

Another prime gainers embody Swadeshi Industries and Leasing, which clocked a 260% acquire. Yuvraaj Hygiene and Navkar Urbanstructure surged 182% and 162%, respectively this yr.

Social media affect is without doubt one of the largest drivers to penny shares as influencer-driven suggestions and FOMO narratives popularize the funding. That is in contrast to the standard funding method constructed on long-term fundamentals and in addition comes with loads of dangers concerned.Most corporations on this class function in unorganised sectors, have weak monetary disclosures, and undergo from poor liquidity. Whereas some could be turnarounds within the making, the bulk are speculative performs.

Is the present market appropriate for penny shares?

In a risky atmosphere — such because the one Indian markets have witnessed this yr, specialists stated the chance of sudden crashes in these shares multiplies considerably.

“The Indian inventory market has skilled vital volatility, pushed by world macroeconomic uncertainty, fluctuating rates of interest, and combined company earnings. On this atmosphere, penny shares stay extraordinarily high-risk investments,” stated Trivesh D, Chief Working Officer at Tradejini, a Bengaluru-based low cost brokerage.

Trivesh stated that regardless of the staggering returns of some names, the broader technique of betting on penny shares is unsustainable for many buyers.

“As an alternative of chasing speculative rallies, retail buyers could be much better off shopping for essentially robust, undervalued corporations during times of market correction. Even large-cap names, if chosen correctly, provide higher risk-adjusted returns in the long term,” he added.

(Information inputs: Ritesh Presswala)

(Disclaimer: Suggestions, strategies, views and opinions given by the specialists are their very own. These don’t symbolize the views of Financial Instances)