90,000
% return on your equity investment in 10 years! What a multibagger stock this is!
We know, that will leave you
agape! But it's true. Look around you, some people around you might be among
the luckiest investors who have made this happened. An analysis of stock prices
revealed that five stocks of BSE have soared between 10,000 and 91,000
per cent since December 2006.
Symphony Limited:
Among the biggest winners shares of Symphony Limited proved to be a true multibagger stock which climbed 90,677% to Rs
1,180 on December 5, 2016 from the price of a chocolate caramel to Rs 1.30 as the
stock quoted on December 29, 2006 (NSE, India). Thus, an investment of Rs 10,000 in stock in
December 2006 would have been Rs 90.77 lakh today; A 3-BHK apartment at the
price of a caramel!
Symphony’s
net income has increased at a CAGR of over 50% over the past 10 years. The net
profit of the Symphony rose from Rs 2,20 crore in 2006-2007 to Rs 123 crore in
2015-16.
Ajanta Pharma:
Ajanta Pharma is another stock in the
list, which has jumped 19,057 % over the past 10 years. The company's
adjusted share price increased from Rs 9.85 in December 2006 to Rs 1,886.95
this December. For the year ended March 31, 2016, the company reported a net
profit of Rs 410.90 crore versus Rs 309.86 crore, Rs 233.88 crore, Rs 112.11
crore and Rs 77.26 crore reported for FY15, FY14, FY13 and FY12, respectively.
Read also;
Other BSE wealth creators include;
DFM Foods: DFM Foods increased by 14,997
%, rose from Rs 10.59 on December 29, 2006 to Rs 1.598 over the past 10
years.
Caplin
Point : Increased by 14,076 %, Caplin
Point over the past 10 years rose from Rs 2.52 to Rs 357.
Labs
and Vinati Organics: Increased by 13,073%
Labs and Vinati Organics rose from Rs 4.38 to Rs 577 over the past 10
years.
Among
other things, Relaxo, Mayur Uniquoters, Tasty Bite, Opala RG, Manappuram
Finance, Capital Trust and Eicher Motors climbed between 6,000 and 10,000
percent during this period.
Eicher Motors
Eicher
Motors is always discussed by investors especially when it comes to a
multi-bagger stock. The shares of Eicher Motors have given a magnificent return
to investors. The money invested in the stock of Multibagger Eicher Motor has
increased multifold by 11,827% over the past 7 years.
Let
us try to understand this calculation by an example. Suppose 7 years before in
2009 you needed a vehicle and you bought Royal Enfield Bullet for Rs 1,35,000 whose
parent company is Eicher Motors. On same day one of your friends who was also
in need of a two-wheeler, decided to postpone his requirement and invested his
money of Rs 1,35,000 in the shares of Eicher Motors when the shares of Eicher Motors was trading at just Rs.216, so
he got 625 shares of multibagger Eicher Motors in its portfolio.
Now
let’s see what happens when he sold his entire holding when the shares of Eicher
Motors were trading at its all time high. The shares of Eicher Motors made high
of Rs. 25,763 on
7th October 2016.
YOUR
POSITION
- Cost of the Royal Enfield Bullet (Eicher Motors) in 2009 = Rs.1 Lac
- Current Showroom price of Royal Enfield - Bullet = Rs.1.40 (approximate)
- Current market value of your old and used Royal Enfield = 40,000 (after depreciation)
- Capital erosion = 1 lac (Yes you lost one lac and this does not include repair and maintenance cost incurred by you)
YOUR
FRIEND’S POSITION
- Investment in 625 shares of Eicher Motors in 2009 = 1.35 Lac
- Market value of shares of Eicher Motors on 7th October, 2016 = 625 x Rs. 25,763
=
Rs 1.61 Crore
Capital
appreciation = 1.5 Crore (approximate)
In
addition, there are 124 shares on the stock exchange that have grown between
1,000 and 5,000 percent since December 2006.
Most frustrating Stocks
At
the same time there are certain stocks in BSE and NSE whose performance was quite disappointing during this period; stocks of Green Fire, Winsome Diamonds, Lok Housing, Ramsarup
Industries, Cranes Software and Subex have decreased up to 99 percent
over the past 10 years.
Upcoming posts on Money n Business;
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Like, Share & Comment
Greate article as usual. Just to say I m a big fan of you sir. Your personalised advice helped me alot.
ReplyDeleteThanking you.
Thanks :) and Keep in touch. By the way you have not disclosed your name.
ReplyDeleteshh...top secret?? Ahhah..
2017 can be the golden years for sycom formulations,one should hold these share for long term in the portfolio,it have the potential to generate massive returns in coming years.
ReplyDelete