Home / Markets / News / No sales but stock price of Indian firm rises 4,300% amid penny stock boom

No sales but stock price of Indian firm rises 4,300% amid penny stock boom

The prospect of risky investments turning sour raises concerns that any sudden withdrawals by small traders could wind up hurting the broader market as well

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Shares of some tiny companies have skyrocketed this year.

3 min read Last Updated : Aug 27 2020 | 10:14 PM IST

Retail investors’ frenzy over small stocks in India has reached such extremes that shares of some companies that aren’t booking any sales, let alone profits, are going through the roof.

These include Transglobe Foods Ltd., a fruit-jam maker that has skyrocketed more than 4,300% this year, and real-estate services firm Shree Precoated Steels Ltd., which has jumped over 1,300%. Both companies booked losses on no sales in the latest fiscal year.

The prospect of risky investments turning sour raises concerns that any sudden withdrawals by small traders could wind up hurting the broader market as well. That’s due to the

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