Time Is Money - Proof That MULTIBAGGER STOCKS Really Works
A MULTIBAGGER stock is an equity stock which gives a return of more than 100%. The term was coined by Peter Lynch in his 1988 book One Up on Wall Street.
Let Us Understand what is the definition of Multibagger stocks,
Tata Steel Limited is an Indian multinational steel-making company based in Jamshedpur, Jharkhand, and is headquartered in Mumbai, Maharashtra, India. It is a subsidiary of the Tata Group.
Formerly known as Tata Iron and Steel Company Limited (TISCO), Tata Steel is among the top steel producing companies in the world with an annual crude steel capacity of 34 million tonnes per annum. It is one of the world's most geographically-diversified steel producers, with operations and commercial presence across the world.
Definition: Stocks that give returns that are several times their costs are called multibaggers. Thus, multibaggers are stocks whose prices have risen multiple times their initial investment values.
Indian Stock Market has seen several multibagger stocks in past 20 years of time span. and in this article we will discuss about only 4 stocks that have given multiple times return. and will understand how staying invested in fundamentally good stocks makes money for you over the time.
For comparing returns we will consider time frame from Year 2002 to 2021
TATA STEEL LIMITED
Formerly known as Tata Iron and Steel Company Limited (TISCO), Tata Steel is among the top steel producing companies in the world with an annual crude steel capacity of 34 million tonnes per annum. It is one of the world's most geographically-diversified steel producers, with operations and commercial presence across the world.
Source : Tata steel wikipedia
Bajaj Finserv Limited, a part of Bajaj Holdings & Investments Limited, is an Indian financial services company focused on lending, asset management, wealth management and insurance.
In the year 2002 Tata Steel share price was Rs. 56/- per share. If a Person has brought 1,000 shares then he might have Invested Rs. 56,000/-.
The stock price of Tata steel in the year 2021 is around Rs.1,440/- per share. This means the corpus invested in year 2002 was multiplied by approx 26 times.
Rs. 56,000 have became Rs. 14,40,000/-
BAJAJ FINANCE LIMITED
The company employs over 20,154 employees at 1,409 locations and is engaged in consumer finace businesses, life insurance, and general insurance. Apart from financial services, Bajaj Finserv is also active in wind energy generation with an installed capacity of 65.2 MW.
Dr. Reddy's Laboratories is an Indian multinational pharmaceutical company located in Hyderabad, Telangana, India. The company was founded by Anji Reddy, who previously worked in the mentor institute Indian Drugs and Pharmaceuticals Limited.
Source : Bajaj Finserv wikipedia
In the year 2002 Bajaj Finance share price was Rs. 5/- per share. If a Person has brought 1,000 shares then he might have Invested only Rs. 5,000/-.
The stock price of Bajaj Finance in the year 2021 is around Rs. 7,500/- per share. This means the corpus invested in year 2002 was multiplied by approx 1,500 times.
Rs. 5,000 have became Rs. 75,00,000/-
Kotak Mahindra Bank
Kotak Mahindra Bank Limited is an Indian banking & financial services company headquartered in the city of Mumbai, India. It offers banking products and financial services for corporate and retail customers in the areas of personal finance, investment banking, life insurance, and wealth management.
Source : wikipedia
In the year 2002 Kotak Mahindra Bank share price was Rs. 3.5/- per share. If a Person has brought 1,000 shares then he might have Invested only Rs. 3,500/-.
The stock price of Kotak Mahindra bank in the year 2021 is around Rs. 1,760/- per share. This means the corpus invested in year 2002 was multiplied by approx 502 times.
Rs. 3,500 have became Rs. 17,60,000/-
Dr. Reddy's Laboratories Limited
Dr. Reddy's maunufactures and markets a wide range of pharmaceuticals in India and overseas. The company has over 190 medications, 60 active pharmaceuticals ingredients (API's) for drug manufacture, diagnostic kits, critical care, and biotechnology products.
Source : wikipedia
In the year 2002 Dr. Reddy's share price was Rs. 470/- per share. If a Person has brought 1,000 shares then he might have Invested only Rs. 47,000/-.
The stock price of Dr. Reddy's in the year 2021 is around Rs. 4,900/- per share. This means the corpus invested in year 2002 was multiplied by approx 10.4 times.
Rs. 47,000 have became Rs. 49,00,000/-
So, Always try to invest for long time horizon and you can see Time is Money.
Note: The earning is calculated on direct stock value, all parameters like Bonus, Splits and Dividends were excluded.
Disclaimer: This article is for educational purpose only and does not provide any buy or sell recommendation
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