In the past three months, 14 penny stocks have seen sharp declines, falling between 40% and 75%. These underperformers were identified using a targeted screening approach that focused on stocks with a market capitalisation below Rs 1,000 crore, a share price under Rs 20, and a minimum recent trading volume of 5 lakh shares. This strategy highlights low-priced, actively traded penny stocks that have experienced significant downside. (Data Source: ACE Equity)
Although penny stocks often attract investors with their low entry prices and potential for rapid gains, they come with substantial risks. Due to low liquidity, high volatility, and limited transparency, they are prone to manipulation and sudden price drops. Without a clear strategy and strong risk controls, investors may face more losses than gains.