One Point One Solutions has proven to be a standout performer, evolving from a penny stock into a major success story that offers investors impressive returns. This development highlights the potential of penny stocks to create significant value, albeit with the associated risks.

Over the past four years, One Point One’s share price has risen by an astonishing 4,328 percent, from ₹1.75 in August 2020 to ₹Currently 77.5. This incredible growth shows the steady increase in value of the stock and makes it a lucrative opportunity in the penny stock segment.

In August 2021, the share was trading at ₹5.08 and has since increased by 1,425.5 percent, reflecting the company’s ability to generate significant profits over the long term.

One Point One has continued to impress in the short term, with shares up 161 percent over the past year and on track to gain 53 percent year to date, despite posting losses in three of eight months.

August was a strong month for the stock, rising over 7 percent, building on gains of 16.7 percent in July and 10.4 percent in June. Despite a decline of over 2.4 percent in May, the stock rose 4.7 percent in April. Before that too, it corrected, losing 13 percent in March, after a 3 percent decline in February. Earlier in the year, there was a sharp recovery of over 24 percent in January.

In intraday trading today, August 27, 2024, Multibagger shares reached an all-time high of ₹77.5, an increase of 178 percent from the 52-week low of ₹27.85 in September 2023. This development underscores One Point One’s ability to generate significant returns and maintain investor confidence despite market fluctuations.

About the company

One Point One Solutions Limited, based in Navi Mumbai, specializes in customer lifecycle management, business process management and technology services in India. The company provides customer care, debt management, sales, lead generation, back office support and social media management. It also offers business solutions such as workflow management, speech analytics and IT infrastructure services. One Point One Solutions serves industries such as banking, telecom, insurance and e-commerce and supports clients with services such as KYC, fraud detection and technical help desk operations. The company was founded in 2008.

revenue

In the June quarter (Q1FY25), One Point One Solutions reported a net profit of ₹22.37 crore, a multiple of ₹4.3 crore in the same period last year. Meanwhile, the company recorded a total turnover of ₹166 Crore for the quarter under review, an increase of over 312 percent over ₹40.23 crore in the same period last year.

Brokerage Views

ICICI Direct highlights the key strengths of One Point One Solutions, noting that the stock meets the majority of CANSLIM investment criteria. Among its strengths, the company has strong momentum, with its share price trading above the short, medium and long-term moving averages. In addition, One Point One Solutions boasts of high trailing twelve month (TTM) EPS growth, which further strengthens its attractiveness as an investment.

However, the brokerage house also points out some weaknesses:

– The organizers have increased the number of shares promised compared to the previous quarter

– Promoter participation decreased by more than -2 percent QoQ

– Declining net cash flow: The company was unable to generate net cash flow

Investing in penny stocks like One Point One can be attractive because of the potential for high returns on a modest initial investment. However, this segment carries significant risks.

To navigate the volatile world of penny stocks, investors must conduct thorough research and implement sound risk management strategies. Key steps include understanding the company’s fundamentals, evaluating its market position, and examining its financial health. By taking a disciplined approach to investing and setting realistic expectations, investors can manage potential losses while capitalizing on opportunities, all while protecting their investments from excessive risk.

Disclaimer: This story is for educational purposes only. Please speak with an investment advisor before making any investment decisions.