“Penny Stock Royal India Corporation Surges 2474% in Three Years, Trading Under ESM and GSM: What Investors Need to Know”
Royal India Corporation, a penny stock, has been making headlines with its remarkable performance in the stock market. Over the last three years, the stock has seen an incredible surge of 2474%, starting from ₹0.93 in May 2021 to its current trading price of ₹23.95, hitting its 52-week high.
The stock has been on a winning streak, consistently hitting its 2 percent upper circuit since March 14, 2024. This year alone, the stock has only seen negative returns in 12 sessions, with all five months of the calendar year showing positive growth. In May, the stock jumped 45%, following a 47.5% rise in April, 39% in March, 49% in February, and 35.6% in January.
Looking back over the last five years, Royal India Corporation has delivered multibagger returns, rallying 1518% from ₹1.48 in May 2019. In the past year, the stock has surged 508%, with a 502% rise in 2024 year-to-date.
However, it is important to note that the stock is currently trading under ESM: Stage 2 and GSM Stage 0. The Enhanced Surveillance Measure (ESM) and Graded Surveillance Measures (GSM) are regulatory frameworks implemented by the National Stock Exchange (NSE) to monitor and control trading activities for investor protection and market integrity.
Royal India Corporation Limited, based in Mumbai, is engaged in the wholesale trading of gold bullion, plain gold jewelry, gold coins, and medallions. Despite its impressive stock performance, the company reported a net loss of ₹3.74 crore in the December quarter (Q3FY24), with a decline in total income.
According to brokerage house ICICI Direct, Royal India Corporation has shown strong momentum, with its stock price consistently above short, medium, and long-term moving averages. The company has also managed its assets efficiently, leading to an improving Return on Assets (ROA) over the past two years.
While investing in penny stocks like Royal India Corporation can offer significant gains, it also comes with risks due to limited liquidity and potential price manipulation. Investors are advised to conduct thorough research and seek advice from investment advisors before making any investment decisions.
Disclaimer: This story is for educational purposes only. Please speak to an investment advisor before making any investment decisions.
