Biggest multibaggers of indian stock markets

share the history of biggest multibaggers in the indian stock markets. thread for an inspiration for forum members.

 

Wipro:

https://www.storypick.com/investment-myth-or-reality/
I heard a lot about above story. Not sure about authenticity .

https://www.siliconinvestor.com/readmsg.aspx?msgid=11775965

 

INFOSYS 1993
Infosys has been one of the most successful and commendable indian business venture of our times. This company needs no introduction. It will very difficult to find some one, who may not have heard of this company, or come across any anecdotes about this stupendous entrepreneurial success.

Co-founded by seven software professionals in 1981, the company was incorporated as "Infosys consultants Pvt. Ltd." in Pune with rs. 10,000 as its initial capital. In 1992 it became a public limited company with the name "Infosys Technologies Ltd". Over the next 2 decades this company went on the become the second largest IT services company in India, and one of the top 10 publicly traded company in the India.

A one-time investment of Rs.1,00,00 by buying 1000 shares of Infosys during its IPO would now be worth approximately 25 crores (Twenty Five crore rupees). That makes it at the least, a 2500-bagger.
Mind boggling!!

Even assuming one lakh rupees was a lot of money in at that time, even an investment of 10,000 rs. which a lot of people could have surely managed, could have transformed into around 2.5 crores now. Yes, that is 2,50,00,000 rupees!!

 

Even ITC is big bagger over 25 years.

 

@ Mr kharb@Mr Fun_Da_ Mentalist et al --As I have read, in the journey of big multibagger returns stock selection is not as important as is conviction &grit required to hold on to it in face many severe fluctuations in the stock price during 10- 20- 30 years long period. Some of the senior members must be having that experience . I will request for their feed back from behavioural finance perspective ,which will be educating and inspiring.

 

People are always busy in finding multibaggers in small cap or mid cap.99% of small cap or mid cap remains as small cap or mid cap for ever with out going any where or even destroying wealth of investers..From my experience,I have feeling that it is realy very difficult to figure out from that list.So it is better to keep a watch on emerging sector mid caps and we must bet only those mid caps which are sector leaders or are fast catching or have growth run rate to displace the segment leaders. So I am now more focussed towards emerging or present sector leaders and always keep watch on other compnies which are challenging and continously reducing gap with sector leaders.All big multibaggers stories has happened like that.Compnies keep on multiplying money for decades even after becoming leaders of sector.After having sector leaders or challengers to established leaders in your portfolio,just keep on shunting out those compnies which are falling from Grace.You can also observe those falling leaders that these compnies will also be thrown out of Sensex or BSE 200 index etc or their rank in market cap is going down.You can also keep watch on market cap ranking of top 500 compnies every year.You can keep watch on compnies which are improving ranking or at least maintaining their ranking.And you should keep only such compnies in portfolio.I am trying to do this now.

 

Will you be kind enough to explain what you said by giving examples from your long experience? I think this exercise ,of finding sector leader or emerging sector leader which is off the radar hence not at elevated price ,is very difficult and in my view low price has to be an important factor in this exercise for high multiple price returns.. In addition , when you refer to growth ,do you mean growth in the sales or stock price because many times these are not directly. proportional .Kindly elaborate .

 

The search for multibagger stocks is a dangerous one for various reasons.

To begin with it distorts your expectation from the stock market. One has to approach it as a possibility of creating sustainable delta over a risk free return. This whole obsession about multibaggers starts distorting this sober perspective. Notions of acceptable levels of risk, and hence returns, get adjusted dangerously.

Second, you can only hope to unearth good businesses which, if you are lucky, you can own at a good price. These may or may not go on to be multibaggers. The story always starts with a search of a good company, not a multibagger.

I don't think people bought into an Infosys or a HDFC thinking it was a multibagger. They bought into it because they saw an excellent business, an outstanding management and an ability to sustain their differentiated business model.

 

Eicher Motors!!! If one had invested Rs 50,000/- in the stock rather than buying a Royal Enfield Bullet back in 2005...the returns would today be mind boggling! Guess timing & luck also plays a major part along with conviction & patience...Wishing & hoping that all of us in this forum make that once in a lifetime fortune from that hidden multibagger in our portfolio!!

 

Once Upon a time,Unitech was a Great Multibagger (what i recall the stock have reached Rs 20,000 levels). The latest I know I have seen its only decline (from Rs 500) and nothing else.Debt Issues.

 

PI Industries stock posts 121,597% return over five years

Meet PI Industries Ltd, an agrichemicals maker ranked 175th by market value among listed companies in India. Or the stock that would have multiplied your capital more than 1,200 times in the 13 years through the end of December.

The Gurgaon-based company has delivered positive returns every year since 2003, the longest streak in Asia, transforming itself from another penny stock into an enterprise with multiple manufacturing plants and a research-and-development (R&D) center, employing nearly 1,600 people. Now, managing director Mayank Singhal plans to take the growth story further.

PI, which develops and makes pesticides by licensing patents owned by its global partners such as BASF SE, Syngenta AG and Dow Chemical Co., expects earnings to grow about 20% annually for the next five years, according to Singhal. While the demand for chemicals used to protect crops is dependent on agricultural output and fickle weather, an expanding product portfolio has boosted PI’s order book to $650 million, more than twice its sales in the fiscal year ended March 2015.

“We are confident that we will be able to grow our order book from $650 million at a steady clip,” Singhal, 42, who’s also a member of PI’s controlling shareholder family, said in an interview. “We are focusing on expanding our knowledge and technology capabilities. This will enhance our operating leverage and margins.”

PI’s shares closed at Rs.649.05 on 31 December compared with Rs.0.53 on the same date in 2002, capping a 13-year streak of annual gains. That’s the longest for Asian firms with more than $250 million in capitalization and matches an equally long stretch by Nestle Malaysia Bhd, whose stock climbed 267% during the period.

PI reported record net income of Rs.246 crore in the year ended 31 March. The stock is valued at 25.5 times its projected 12-month earnings, compared with 17.1 times for the S&P BSE MidCap index. Among its industry peers, India’s UPL Ltd trades at a multiple of 11.5 and shares of Switzerland’s Lonza Group AG are priced at 20.5 times.

While PI is “one of the best plays” in the agrichemicals industry because of its capital efficiency, a balance sheet with little debt and robust growth outlook, the company is exposed to risks from the vagaries of Indian monsoon rains and a decline in farmers’ incomes, according to Niket Shah, an analyst at Indian brokerage Motilal Oswal Securities Ltd.

Shah has a buy rating on the stock with a price target of Rs.800.

PI Industries’s net debt was about 10% of its shareholders’ equity as of 31 March compared with 112% five years earlier, according to data compiled by Bloomberg.

Intellectual property

Incorporated in 1947 as Mewar Oil and General Mills, PI began exporting agrichemicals in the 1970s before taking on its current name a couple of decades later. It currently earns more than half its revenue from overseas markets.

PI’s rapid growth over the past decade was helped by its strategy of steering clear of copycat versions of pesticides and focusing instead on specialty chemicals by partnering global companies while respecting their intellectual property, according to Singhal. The company now plans to develop two to three new products acquired via patent licenses each year, he said.

“In the complex intellectual property business, the key differentiator is technology and knowledge. We also have cost competitiveness,” he said

From : https://www.livemint.com/Money/jUQ4...tock-posts-121597-return-over-five-years.html

 

thats amazing @Farhan Ghumra 1200 times. unthinkable returns

 

indian stock market highest multi baggier is " wipro " at that time of IPO invested Rs.10000 /- . now 486 Cr.

 

those who invested in wipro ipo are the most luckiest investors in india. anybody in this forum invested in wipro ipo???

 

that is the point @w4wealth... which stock is going to multibagger from here ? I am sure nobody can definitely pick a stock which is going to appreciate even 20 times in the next 20 years. And that too when information is more easily and readily available. If I am not mistaken Wipro has hardly moved anywhere in the last 5 years. It was around Rs. 400, made a high of 650 odd and is trading at 550 levels. So a investor who timed his entry and exit well, would probably have made around 50% return without dividends. A bank deposit in the last 5 years would have more than doubled his money. But yes, it has comfortably beaten Infosys and many other leaders in the returns.

Also if you have hold a stock for 35 years, you know, you really cannot make great use of the stock value. Maybe you can pass it on to your next generation, maybe you can donate it to charity, but you personally can not do anything with that wealth.

 

How would've a bank deposit more than doubled in the last 5 years? Assuming 10%, it'd take ~ 7 years to double. And you say a deposit more than doubled in 5 years!

 

I agree with you and stand corrected. I was under the assumption that bank FD rates during the period were higher in certain years. I thought they were around 11-12% for some years during the period. As I checked and understand they were not. Interest rates on FDs were for the major period at 9-10 % which would give 70% absolute returns for the period. But the main point I made about bank FDs giving more return than Wipro shares during the period still holds. We should try and find the next "Wipro".

 

To find next multibagger we have to tap new and emerging area. Like at the time of Infosys, Wipro they were from the new sector i.e. IT, ITeS and outsourcing

 

Well nothing wrong with that. I thought if rates were that high (not including additional % for senior citizens), I missed on a good savings opportunity.

Regarding your Wipro observation - have you considered the demerger of its non IT divisions into Wipro Enterprises in 2012?

Nevertheless, I see the hunt for multi-baggers is real. I'm seeing unicorns!

 

Actually I did consider the best case. Exactly five years ago Wipro Ltd closing price was 428 and the last traded price 558. The returns appreciation in price is 30%. You can add another 12% for the demerged business. Wipro gave many options to share holders but this was the best-case scenario return. Add another Rs. 42 dividend during the period or another 10%. That is exactly 52% return if you held it continuously. If you had invested the money in FD, exactly after 5 years your return would have been 70%.
Investing in stocks and depositing money in FDs are completely different in many ways. Stocks go up and down, hence timing is key whereas in FDs you do not have to worry about volatility. There is virtually no risk in investing in a FD. Hence I technically took the most fair comparison .when calculating returns.
If they knew what would happen after 5 years I am sure everybody (including you) would have preferred putting the money in FD than buying a Wipro stock. That is point I was making. Past performance is no guarantee, and the challenge is to predict the returns for the future.