This Penny Stock's Share Price Gains 40% In 1 Week

Penny stocks, with their appeal of potentially massive returns, have always captured the attention of common investors in the stock market. Priced at Rs 5-10 or even less, these shares often become magnets for those seeking quick gains. Over the past few years, penny stocks have indeed delivered astonishing returns, with some witnessing meteoric rises from just Rs 2 to Rs 30-40.

In recent times, one such penny stock has been making waves in the market, attracting considerable investor interest. Kenvi Jewels Limited, a company trading in gold and gold jewellery, has seen a remarkable surge in its stock price, with returns soaring by a whopping 40 per cent in just one week. The momentum continued as the stock surged by 18 per cent over two days on March 21 and 22. As of today, share prices of Kenvi Jewels stand at Rs 7.13 after the market closed, opening at Rs 7.40. The returns for the stock have seen a rise of around 20 per cent over the past year, apart from the 40 per cent rise in the last week and a 5.94 per cent rise over the last month.

What sets Kenvi Jewels apart is its recent revival after a period of decline. Despite facing several days of downward movement, the stock witnessed a significant uptick, closing at Rs 7.19 on March 22. Notably, in June last year, the company’s shares had reached a high of Rs 15.70, indicating the potential for substantial growth.

Delving into the business model of Kenvi Jewels Limited primarily focuses on the trading, manufacturing, wholesale, and retail sale of gold and gold jewellery. This diverse approach positions the company within a lucrative segment of the market, tapping into the enduring appeal of precious metals.

Examining the shareholding pattern of the company reveals that 64.72 per cent stake is held by the promoters, while the remaining 35 per cent is in the hands of the public. This distribution underscores the confidence of the promoters in the company’s prospects and adds a layer of assurance for potential investors.

The journey of Kenvi Jewels’ shares reflects the dynamic nature of the stock market. From trading at Re 1 in 2018 to witnessing a low of 40 paise, the stock has experienced its fair share of fluctuations. However, by June 2023, it had surged to the impressive level of Rs 15, demonstrating a remarkable growth trajectory.