According to a SundayET analysis of all 55 penny stocks on BSE which were trading below Re 1 in April 2003— when the last bullrun actually began— 26 of them, constituting about half of that amount, are now trading in positive territory.

Of course, only 30 of the 55 penny stock companies are currently traded, while the rest no longer feature on BSE. And out of the 26 top performers, four actually gave a massive return of more than 1,000% and as many as 14 companies are trading with a price appreciation of more than 100%. Stocks such as Pennar Industries and Entegra are now trading at a price appreciation of 2,290% and 1,739% respectively.

According to Motilal Oswal, chairman & managing director of Motilal Oswal Financial Services, it does not matter whether an investor keeps his money in blue-chips or penny stocks. "One can make money in both and also lose in both. Moreover, it is difficult to find several multibaggers— stocks that can multiply several times in value— in the segment of large cap companies, while they are relatively easier to find in the penny stock category," he said.

The last bear phase between 1998 and 2002, pushed several top performing stocks into the bracket of penny stocks. Sectors such as IT and metals were battered in that period. But in the consequent bull-phase , stocks from these sectors picked up and started selling like hot cakes.