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Over the past three months, 11 penny stocks have plunged between 50% and 80%. These underperformers were identified using a targeted screen 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, highlighting low-priced, actively traded stocks that have seen sharp declines. (Data source: ACE Equity)
While penny stocks often attract investors with low entry prices and the lure of speedy gains, they carry notable risks. Low liquidity, high volatility and limited clarity make them prone to manipulation and sudden price swings. Without a clear strategy and strong risk controls, losses can quickly outweigh gains.
