Over the past two months, 14 penny stocks have witnessed sharp corrections, declining between 15% and 55%. These underperformers were identified through a 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. The screen highlights low-priced, relatively liquid penny stocks that have come under significant selling pressure during the period. (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.

Padam Cotton Yarns

2-month performance: -55% | Previous close: Rs 0.96

Sylph Industries

2-month performance: -54% | Previous close: Rs 0.32

Pulsar International Ltd.

2-month performance: -49% | Previous close: Rs 0.69

A 1

2-month performance: -48% | Previous close: Rs 8.63

Sampre Nutrition

2-month performance: -28% | Previous close: Rs 13.09

Advik Capital

2-month performance: -25% | Previous close: Rs 1.33

Silverline Technologies

2-month performance: -23% | Previous close: Rs 6.94

Biogen Pharmachem Industries

2-month performance: -21% | Previous close: Rs 0.36

GV Films

2-month performance: -17% | Previous close: Rs 0.29

SVS Ventures

2-month performance: -17% | Previous close: Rs 9.04

Vipul

2-month performance: -16% | Previous close: Rs 8.86

Garment Mantra Lifestyle

2-month performance: -15% | Previous close: Rs 1.21

AVI Polymers

2-month performance: -14% | Previous close: Rs 15.21

Kesar Petroproducts

2-month performance: -13% | Previous close: Rs 19.18