Penny Stock Rains Profits Amid Falling Market, Upper Circuit Triggered for Sub-₹3 Share

New Delhi: The stock market experienced a sharp decline on Friday, with the Sensex falling over 600 points during early trading. The Nifty 50 also saw a significant drop, and within the first 15 minutes, investors lost nearly ₹4 lakh crore. While many stocks traded in the red, a few delivered substantial gains and hit the upper circuit—most notably Paras Petrofils Ltd, a penny stock.

Paras Petrofils Hits Upper Circuit
Paras Petrofils’ stock surged to ₹2.70, hitting the 20% upper circuit mark. This means a share trading below ₹3 delivered impressive returns even as the broader market fell. The stock has been trending upward in recent sessions, though it has historically not been a strong long-term performer.

One-Month Gains
In just one month, the stock has given investors over 50% returns—rising from ₹1.79 to ₹2.70, a gain of 50.84%. The stock also jumped 63% in the past five trading days, reflecting strong short-term momentum.

Long-Term Performance
Over the long term, however, the stock has disappointed. In the past year, it fell 5.63%, and its five-year return stands at around 79%. The stock had peaked at ₹4.49 in June 2024, but subsequently declined.

Company Background and Future Plans
Originally, Paras Petrofils manufactured nylon and polyester yarn and was involved in the textile trade, offering commission-based services in the sector. Due to the market downturn, the company halted its operations. With shareholder approval, it plans to sell its yarn manufacturing units and pivot into construction activities. According to the BSE official website, the company’s market capitalization stands at ₹90.24 crore.

Disclaimer: The analysis and opinions presented here are based on individual analysts or brokerage reports, not Navbharat Times. Investors are advised to consult certified financial experts before making any investment decisions, as market conditions can change rapidly.