Multibagger Stock: , The stock market investor is often reminded that Rome was not built in a day, but that Hiroshima and Nagasaki were destroyed in a day. Market experts and investment advisors always tell equity investors to invest instead of trading because when you trade its the broker who makes money. According to the latest SEBI data, only 11 per cent people could make money from intraday trading in FY22, which means the money is not in buying and selling stocks but in waiting.
According to value investor Manish Goyal, one should try to hold a stock as long as possible. To know what Manish Goel means by advising an investor to go long, one needs to look at the Manish Goel stocks that he recommended many years ago.
One such Manish Goyal portfolio stock is KPR Mills. This BSE and NSE listed stock is one of the multibagger stocks indian stock market given over a long period of time. However, a long term investor gets some additional benefits like bonus shares, stock splits, buy back Long-term investors of this multibagger stock also saw such gains in the form of two stock splits that the company announced in the last 10 years. Reasons for these two stock splits announced by KPR Mills Ltd. to an investor 1 lakh done 6 crores in the last 11 years.
kpr mill share price history
Shares of KPR Mills have been in the sell zone for the last one year. The long term multibagger stock is in base building mode since Jan 2022. However, in the last five years, the stock has given 270 per cent return to its shareholders. Over the past 11 years, this multibagger is one of the penny stocks as it has grown from all around 8.85 for each level (BSE closing price on February 3, 2012) 533.45 per share level, giving almost 5,900 per cent return to its positional investors.
kpr mill stock split history
However, there is a catch. This Manish Goyal stock has announced stock split twice in the last 11 years. As per information available on the official website of BSE, shares of KPR Mills traded ex-split for the first time on November 29, 2016 after its Board of Directors approved stock sub-division in the ratio 1:2. Means, one KPR mill share of face value 10 was sub-divided into two shares with a face value of 5 per equity share. After that, on Sep 24, 2021, this multibagger penny stock once again underwent ex-split trade for sub-division of shares in the ratio of 1:5.
Impact on long term investor
If someone had invested in this multibagger stock 11 years back, his stake in the stock would have doubled after 1:2 stock split in 2016 and this double share again after the stock was sub-divided in 1:5 ratio. It would have happened 5 times. So, after the split of these two stocks, a long term investor Who Had invested in this multibagger stock 11 years ago, its shareholding has increased by 10 times due to the two above mentioned stock sub-divisions.
becomes 1 lakh 6 crores
If an investor had invested in this Manish Goyal stock 11 years back, he would have got approx. 8.85 each. So, the total shares received after making the investment would be Rs 1 lakh in this stock would have been around 11,300. After the two stocks were split in the ratio of 1:2 and 1:5 respectively, the total shares in the company today would have been 1.13 lakh.
kpr mill share price today 533.45 per share on BSE. so, someone’s 1 Lakh invested in this multibagger penny stock 11 years ago would have been gone 6 crores today ( 533.45 x 1,13,000), provided the investor has been invested in this multibagger stock for these 11 years.
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