Five shares that turned Rs 1 lakh into Rs 1 crore

For many investors looking for stocks that can multiply their original investment cost is commonly referred to as a multibagger.

But in order to find and hold such shares, it must be remembered that the money is not in buying and selling, but in holding.

Well-known investor and billionaire Warren Buffett has been quoted as saying,

If you’re not thinking about owning a stock for ten years, don’t even think about owning it for ten minutes.

He firmly believes that one should hold his investment for a long time so that he can taste it compounding.

Over the past decade, the stock market has given investors many opportunities to become a millionaire or billionaire.

Those who sat tight to high quality stocks during tough times would have earned huge returns on their investments.

Let’s take a look at the list of stocks that have turned upside down ₹Investment of more than 1 lakh ₹1 crore in the last 11 years.

1. Avanti Feeds

Avanti Feeds (AFL) has forayed into aquaculture sector by engaging in manufacturing of high quality feed for prawns, operating Vannamei hatchery and processing and exporting shrimp.

In April 2010, the share price of Avanti Feeds was ₹1.6 per share and is currently trading at the share ₹562. The company has given a return of 35,019% in the last 11 years.

One lakh would have been invested in the year 2010. ₹3.5 crores.

The company’s mutual fund holdings have grown by 1.28% to 4.28% in the last 3 months, while the company’s foreign institutional holdings have remained almost constant over the same period.

On the financial front, Avanti Feeds June 2021 quarter results disappointed on profitability. The company’s profits were impacted by the increase in raw material cost in the shrimp feed division.

In FY 2021, the consumption of shrimp feed in India has declined as compared to the previous year.

On a positive note, the company managed to maintain its market share in the shrimp feed business at 48-50%, despite the disruption caused by the Covid-19 led lockdown.

Avanti Feeds is a Smallcap company whose market capitalization is ₹76.4 billion

2. Bajaj Finance

Bajaj Finance is primarily engaged in the business of Lending.

It has a diversified loan portfolio across retail, small and medium enterprises (SMEs) and commercial clients with a significant presence in urban and rural India.

It also accepts public and corporate deposits and offers a variety of financial services products to its clients.

The company’s value has increased from ₹33 per share to ₹7,508 so far, registering an increase of about 22,652% in the last 11 years.

if you had invested ₹1 lakh in the company, becomes ₹2.3 crores at the current valuation.

In fact, in the last one year, Bajaj Finance has given a return of 108 per cent on BSE. The company has been growing at a Compound Annual Growth Rate (CAGR) of 61% over the last 10 years.

For the June 2021 quarter, the company’s net profit grew marginally at 4% year-on-year (YoY). Its asset quality remained under pressure due to increase in gross non-performing assets (NPAs) and net NPAs during the quarter.

Bajaj Finance belongs to the largecap sector and has been a hit recently ₹4 tons in market capitalization.

3. Atul Limited

Atul is a diversified and integrated Indian chemical company (a part of Lalbhai Group, Gujarat).

The company’s products are used in various industries and mainly fall under 9 businesses under two segments, Life Sciences Chemicals & Performance & Other Chemicals.

The company has given an impressive return of 10,097% in the last 11 years. In 2010, the stock price was ₹91.3. it is trading now ₹9,309 on BSE.

If an investor had invested in this counter after the global recession in 2009 or about 11 years ago, ₹must have been around 1 lakh ₹1 crore.

The company is growing at 45% CAGR since last 10 years.

There are multi-year tailwinds in the domestic chemical industry with global companies relocating to India for sourcing raw materials as well as initiatives taken by the government to boost the domestic industry.

This will help strong companies like Atul to show consistent and profitable growth in this space.

Midcap space correlates with the market cap of the company ₹272.7 billion

4. PI Industry

PI Industries is a leading player in the agro-chemicals sector with a strong presence in both domestic and export markets.

It has state-of-the-art facilities in Gujarat, with integrated process development teams with in-house engineering capabilities.

The company’s shares have given returns of more than 10,900% in the last 11 years. The share price of PI Industries which stood at ₹Extended on 31st April 2010 ₹3,410 during this period.

an investment of ₹1 lakh in this stock in 2010 would have changed now ₹1.1 crores.

Last year has been an especially good one for PI industries as the stock has gained 82%. In comparison, the benchmark Sensex has gained 51 per cent in the past one year.

The company’s mutual fund and foreign institutional holdings have remained almost stagnant for the past few months.

PI Industries is a large cap company. At present, its market capitalization is ₹519 billion

5. Astral Poly Technique

Astral Poly Technic is engaged in the production of Plastic Products. The company and its subsidiaries are engaged in manufacturing and trading of Pipes, Fittings and Adhesive Solutions.

The Stock of Astral Poly Technik has given excellent returns to its investors during the last 11 years.

The company’s share price has increased by ₹12.6 From April 2010 ₹2,117 on BSE. Over the years, it has managed to deliver a return of 16,701%.

investment of ₹Astral Polytechnic stock 1 lakh in 2010, would be back ₹1.7 crores today.

In the last 5 years, the market share of the company has increased from 5.1% to 6.39%.

On the financial front, Astral Poly posted a net profit of ₹739 m for the period ended 30 June 2021, an increase of 271.4% ₹199 m for the same period last year.

Astral Poly Technic’s Market Cap Is Related To Midcap Space ₹422 billion

How to Identify Multi Bagger Stocks

As a retail investor, if you Looking for multi badger stock In India, you should weigh all the pros and cons before investing in any company.

An investor’s goal should be to look for a good investment and not a multibagger. This is because you should have a complete process for investing that meets all your criteria.

If you go in with the assumption that every stock you invest in will be a multibagger, you will be disappointed. It won’t work that way.

the future is unwritten. Your reasoning for buying a stock may change and you need to pay attention to it.

The idea should be to buy a good quality stock of a company, look for a business that has a solid foundation, good growth strategy, attractive valuations, ethical business practices and exceptional management team.

As long as these factors are present, you should stay invested for the long term rather than getting agitated by short term market volatility and price fluctuations.

Happy investment!

(This article is syndicated from) equitymaster.com)