The magic of penny stocks in the stock market often surprises investors. One such name which is in discussion these days is Aayush Wellness. This smallcap stock has made its investors rich in the last few years. This stock, which started at just ₹2, is now trading above ₹45, which shows its tremendous growth.
Mathematics of Returns: Investors’ Silver
Ayush Wellness shares have given multibagger returns in the last few years:
1800% jump: Within the last 2 to 3 years this stock has given returns of about 1800%. That means, if someone had invested ₹1 lakh in it two years ago, its value would have increased manifold today.
Price below ₹50: Despite such a huge rally, the share price still remains below the psychological level of ₹50, which is attracting retail investors.
Recent Performance: In the last few months too, ‘upper circuits’ have been seen continuously in the stock, due to which its demand has increased in the market.
Why is this stock running away?
Some of the main reasons behind this growth of AYUSH Wellness are believed to be:
Business Expansion: The company is expanding its footprint in the wellness and healthcare sector. The company is benefiting from the increasing demand for AYUSH products.
Better quarterly results: The company’s revenue and profit margins have seen improvement in the last few financial results.
Boom in wellness sector: Since the Corona period, people’s inclination has increased towards preventive healthcare and Ayurveda, which has given a boost to the companies in this sector.
What is your advice for investors?
Market experts believe that the faster money is made in penny stocks, the greater the risk.
Circuit Games: Such stocks often have upper and lower circuits, which can make it difficult to exit.
Examining the Fundamentals: Before investing, it is important to closely study the company’s debt, promoter holding and future plans.
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