New Delhi: In a classic example of a penny stock transforming into a multibagger one, the shares of Simplex Papers have delivered over 6,700 per cent returns till now in 2021.
Till late 2020, the company’s shares were priced below Re 1.
Shares of the company hit a 52-week high of Rs 63 per share Thursday.
It also hit the five per cent upper circuit during the day’s trade.
Stock prices ranging in single digit are known as penny stocks, and they typically have high volatility associated with them.
On the other hand, multibagger stocks are those whose share prices rise exponentially over a short period of time.
The Centre in 2017 amended the Indian Forest Act, 1927 excluding bamboo produced in non-forest areas from the definition of tree, thereby, easing its transportation from growing belts to processing plants in big cities. Bamboo is a key component in the manufacturing of paper.
Besides, the Centre plans to promote domestic paper manufacturing as India is a major importer of paper.
According to the company’s website, Simplex Papers is one of the oldest paper units in Maharashtra, established in the year 1983-84 on the agri-based raw material mix, and located in Gondia, Maharashtra.
The market capitalisation of the company is worth Rs 18 crore.
IANS