Top Performing Penny Stocks of 2024

When you hear the word penny stocks, do you imagine a high-stakes game of risk and reward where small investments can transform into towering fortunes overnight?

If so, you're not alone.

Here's an example that could relate with the concept better... the next time you hear penny stocks, think about this for a while...

Not many people knew about Elon Musk's SpaceX before 2015... it came in limelight once it achieved the first landing of the Orbital booster in 2015.

What most people don't know is that Musk started the company in 2002 with his proceeds from the sale of PayPal.

The company initially struggled for the first 7 years with a string of failures and was near bankruptcy.

Skip forward to present, SpaceX is now wildly one of the most successful companies.

Similarly, in the world of penny stocks, there are numerous hidden gems that, much like SpaceX, start small and unnoticed, facing their share of challenges and setbacks.

But with the right approach and the right strategies, these stocks eventually emerge into the spotlight.

We're only a month into 2024 and few of these modestly priced stocks have quietly outperformed their flashier counterparts.

In this article, we'll look at the best performing penny stocks of 2024 so far.

#1 Unitech

First on the list of top performing penny stocks of 2024 is a name that may surprise many investors - Unitech Ltd.

There was a time when the realty company was at the top of the list of wealth destroying stocks, but in recent times, shares have made a strong comeback by surging from single digit levels of Rs 6.8 to Rs 17.44 within a month.

The rally started last year in November 2023 when it surged from around Rs 2.5 apiece levels to Rs 6.6 per share levels, logging around 150% gains in a month.

When asked about the sharp upmove, Unitech said that it has not withheld any material information.

So basically, the upward trajectory in the stock we're seeing could be due to the Supreme Court's directive.

This resolution plan has substantial implications for the fate of the company's delayed housing projects in Noida.

The optimism among investors, fuelled by the potential progress and resolution of prolonged projects, has contributed to the rising share price.

Recently, the company's ex-promoters were granted bail in a case for which they were accused in swindling home buyers.

Moving forward, the company is focused on resolving its ongoing legal challenges.

For more details, see the Unitech company fact sheet and quarterly results.

#2 Salasar Techno Engineering

Next on this list is Salasar Techno Engineering.

Shares of the company hit an upper circuit yesterday as the stock traded ex-bonus during the session.

In 2024 so far, shares of the company have rallied 113%.

The company recently announced a bonus issue along with raising funds from its existing lenders including SBI, HDFC Bank, Yes Bank, and IndusInd Bank.

It also bagged an EPC contract worth Rs 3.6 billion (bn) from Tamil Nadu Generation and Distribution corporation (TANGEDCO).

Under the contract, the company is entrusted with the supply, erection, and installation of feeder segregation, high-voltage distribution system, separation of double distribution transformer, and augmentation of 33KV lines.

The company is a key player in the railways and power sectors having executed contracts for transmission lines, sub-stations and distribution lines awarded by various prestigious power sector PSUs and Indian railways.

It has taken the order book to new highs and it's currently in advance stages of completing additional contracts worth Rs 25 bn from Indian Railways and various power sector PSUs.

The momentum could continue for the next few sessions as the company's board meet on Saturday, 3 February 2024 to approve its Q3 results.

#3 IFCI

Third on this list is IFCI.

Erstwhile known as Industrial Finance Corporation of India, this state-owned company has become the talk of town.

The company operates as a NBFC, established to meet the long-term finance requirements of the industrial sector.

In 2024 so far, IFCI share price has zoomed 113%.

IFCI Share Price in 2024

The steep rally could be attributed to investors lapping shares ahead of the company's Q3 results. IFCI will announce its earnings for the quarter ended December 2023 on 9 February 2024.

In the quarter ended September 2023, IFCI returned to black and posted a net profit of Rs 1.7 bn compared to a loss of Rs 1.3 bn and Rs 2.4 bn in the subsequent quarters.

It also posted the highest ever operating margin and highest ever revenue since December 2020.

Due to liquidity constraints, IFCI halted its lending operations since FY22. But in 2023, IFCI's net losses reduced driven by recoveries and impairment reversal.

The company needs capital infusion from the Government of India (GoI) for a possible turnaround.

Apart from managing more than 10 of the government's production-linked incentives (PLI) schemes, IFCI also manages and helps streamline the Rs 100 billion (bn) FAME-II scheme.

#4 Ansal Housing

Fourth on this list is Ansal Housing.

The company is part of the Ansal Housing group and develops residential as well as commercial real estate properties.

Ansal Housing has completed various projects encompassing an area of about 76 million square feet in Delhi, Mumbai, Meerut, Lucknow and Ghaziabad, among others, and currently has more than 26.8 million square feet area under development.

Coming to its stock performance, in 2024 so far, shares of the company have rallied over 100%.

The main reason why shares of the company have spiked is because the company was recently removed from the Enhanced Surveillance Measure (ESM) list.

The very next day after it came out of the ESM list, shares spiked 10% and it's been one way rally since then.

The company is working on multiple projects in Tier 2 cities and looking at landbank in various areas.

One of its recent projects is Ansals Estella which has a land size of 15.7 acres and it's located 30 minutes from Delhi Airport.

According to industry experts, this project alone could fetch good profit and the company is expected to announce more projects in the upcoming quarter.

Promoters of the company took their stake up to 25% in March 2023 from 12% earlier. Promoter holding has stayed at 25% since then.

#5 Infibeam Avenues

Last on this list is a popular name in the fintech space - Infibeam Avenues.

The company is in the business of software development services, maintenance, web development, payment gateway services, ecommerce and other ancillary services.

In 2024 so far, shares of the company have gained over 70%.

The sharp rally in recent days comes after the release of its Q3FY24 earnings report on 23 January 2024, where it posted a strong set of numbers.

In the quarter ended December 2023, the company achieved its highest-ever quarterly profit of Rs 421 million, up 64% compared to last year's Rs 257 million.

Revenue jumped 33% reaching Rs 1.1 bn and the company attributed this stellar numbers to the synergy of the festive season and the growing adoption of the CCAvenue payment solution by merchants.

Infibeam added over 200,000 merchants in CCAvenue.

The company has guided for a revenue of Rs 4.2 bn and profit of Rs 1.5 bn for FY24.

The fintech company also recently acquired 49% stake in Primid Fintech.

The buzzword AI seems to be working for Infibeam as it has launched an AI hub at GIFT City, Gandhinagar.

It also has an MoU with Gujarat government worth Rs 20 bn for building and developing the AI hub.

To know more, check out Infibeam's financial factsheet and its latest quarterly results.

Which Other Penny Stocks have Rallied the Most in 2024?

Apart from the stocks above, here are some other best performing penny stocks of 2024 so far.

Company	Current Price (Rs)	Gains in 2024 (%)
Manaksia Steels Ltd.	90.7	106%
Bharat Road Network Ltd.	93	90%
Integra Essentia Ltd.	6.4	87%
Advik Capital Ltd.	3.8	84%
Dhanlaxmi Bank Ltd.	54	75%
Malu Paper Mills Ltd.	65.3	64%
Kanani Industries Ltd.	6.1	63%
Steel Exchange India Ltd.	17.1	63%
Hindustan Construction Company Ltd.	45.9	61%
Rajshree Sugars & Chemicals Ltd.	89.9	60%
Rathi Steel & Power Ltd.	48.1	57%
IRB Infrastructure Developers Ltd.	65.2	57%
Parsvnath Developers Ltd.	17	57%
Rathi Bars Ltd.	49.7	57%
Bhandari Hosiery Exports Ltd.	9.5	56%

Data Source: Equitymaster

In Conclusion

The recent rally in these penny stocks in 2024 has attracted attention from investors.

You see, when the times are good, it's easy to look at risky investments generating high returns.

But, only during the difficult times do we realize how robust our portfolio is and what our actual risk tolerances are.

While short-term gains may be attractive, it is crucial to carefully assess the potential risks and long-term viability of these investments before deciding.

Investing always involves a certain degree of risk, and it's crucial to weigh the pros and cons before taking the plunge.

Since penny stocks interest you, check out Equitymaster's YouTube channel that has a separate playlist for penny stocks.

Happy investing!

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...