Penny stocks have always turned out to be multibaggers in bear markets.

While the benchmark indices have registered a fall during each of the last three years, several penny stocks have appreciated anything between 100 and 5000 per cent.

In fiscal 2003, as many as 53 stocks increased in price between 100 and 5000 per cent while 70 others over 50 per cent in price.

However, investors were more cautious in buying penny stocks during fiscal 2003.

In the previous financial year, as many as 81 companies ended the year multibaggers while there were 31 multibaggers in fiscal 2001.

But as all good things must come to an end, so also the whopping price appreciation in penny stocks could not sustained for long.

Of the 81 companies which showed more than 100 per cent appreciation in fiscal 2002, as many as 38 companies have recorded price depreciation of over 50 per cent in the subsequent period.

As many as 12 companies have not been  traded at all, while another 31 have recorded a modest appreciation.

Of the 31 winners of the fiscal 2001, 14 have depreciated in price by over 50 per cent and 13 were not traded even once in fiscal 2003.

There are three multibaggers in fiscal 2003. Blue Chip India has appreciated a whopping 5000 per cent and rightfully, heads the list.

But the stock has poor fundamentals. Its market price has moved up from Rs 0.30 on March 31, 2002, to Rs 15.20 as on March 31, 2003.

Jindal Iron & Steel, the second in the gainers list, is a turnaround case. Last year, the company registered a net loss of Rs 68.54 crore.

As a result, the market price declined from around Rs 25-30 to an all-time low of Rs 4.50 in the course of the year.

During the first nine months of the fiscal 2003 - for which financial results are available - favourable steel prices saw the company turn around with a net profit of Rs 55 crore. As a result, the market price zoomed up 1080 per cent from Rs 6.25 to Rs 73.65 in the last one year.

In fiscal 2003, the gainers list was crowded with steel and textile companies.

The improved performance by steel companies saw  Steelco Gujarat, Ispat Industries, National Steel, Essar Steel, Tata Sponge Iron and many other steel companies recording price appreciation of over 100 per cent in the course of the last financial year.

Firm yarn prices increased the profitability of man made fibre yarn companies, and correspondingly textiles sector stocks zoomed on the bourses.

Indo Rama Synthetics with a 213 per cent price appreciation, JBF Industries (172 per cent), NRC (up 155 per cent) and Recron Synthetics (up 107 per cent) were the stocks that enhanced investors' fortunes by over 100 per cent in the span of one year.

In fiscal 2003, the sensex declined 12.9 per cent or 451 points, but the aggregate market capitalisation of these stocks increased over 100 per cent.

Other major gainers in the list includes, Tariff Cine & Finance (stock price up by 708 per cent), Silicon Valley (427 per cent), SWIL (374 per cent), Wimco (340 per cent), Ester Inds (335 per cent), Vimta Labs (323 per cent), Orient Abrasives (317 per cent), Medicorp Technologies (301 per cent), Ispat Inds (273 per cent) and National Steel Inds (268 per cent).