Multibagger stock: ₹1 lakh turns to ₹4.56 crore in 19 years. Do you own?
Premium- Multibagger stock: If an investor had invested ₹1 lakh in this pharma stock one year ago, its ₹1 lakh would have turned to ₹1.16 lakh today
Multibagger stock: Investment in a business pays the most in long-term as it helps an investor get compounding benefit on income one earns with the passé of time. Since, stock market investment is also like investing in a business; one should try holding a stock as long as one can because patience is one of the most important virtues for equity market investors.
Divi's Lab shares are glaring example of how patience pays to a share market investor. Divi's Lab share price has surged from ₹9 per share levels (close price on 13th March 2003 on NSE) to ₹4105 apiece levels on NSE on 1st February 2022, logging around 456 time rise in this period of near 19 years.
Divi's Lab share price history
In last 6 months, Divi's Lab share price has been under selloff pressure. In last one month, Divi's Lab share price has lost around 12 per cent whereas in last 6 months, it has shed around 17 per cent. In last one year, the pharma stock has surged from around ₹3550 to ₹4105 levels, logging around 16 per cent rise in this period. In last 5 years, the stock has given multibagger return to its shareholders as it shot up from around ₹760 to ₹4105 levels, logging near 440 per cent rise in this period.
In last 10 years, this multibagger pharma stock has risen from around ₹390 to ₹4105 levels, clocking near 950 per cent gain in this period. Similarly, in last 15 years, Divi's Lab share price has shot up from ₹160 to ₹4105 levels, appreciating to the tune of 2340 per cent in this period. Likewise, in last 19 years, this multibagger stock has surged from ₹9 to ₹4105, logging around 45,500 per cent rise in this period.
Impact on investment
If an investor had invested ₹1 lakh in this multibagger pharma stock one year ago, its ₹1 lakh would have turned to ₹1.16 lakh today whereas in last 5 years it would have turned to ₹5.40 lakh. If an investor had invested ₹1 lakh in this pharma stock 10 years ago and it had remained invested in the stock throughout this period, its ₹1 lakh would have turned to ₹10.50 lakh while in 15 years, it would have turned to ₹2.44 crore.
Similarly, if an investor had invested ₹1 lakh in this stock 19 years ago buying one share at ₹9 apiece levels, it would have turned to ₹4.56 crore today, if the investor had remained invested in the counter till date.
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Divi's Lab share price target
However, stock market experts are still bullish on the counter and they believe that it may go up to ₹4300 per share levels in short term.
Advising positional investors to add this multibagger stock in portfolio; Sumeet Bagadia, Executive Director at Choice Broking said, "The stock looks positive on chart pattern and one can initiate momentum buy in the counter and keep on accumulating till it is above ₹4000 per share levels." Bagadia advised investors to maintain stop loss at below ₹4000 and book profit around ₹4250 to ₹4300 per share levels.
More about Divi's Lab shares
Current market capital of Divi's Laboratories is ₹1,09,845 crore and its P/E ration is 51.4, which is much higher from the sector P/E ratio of 36.88. Divi's Lab share price 52-week high is ₹5425.10 while its 52-week low is ₹3153.30 per shares on NSE. Its 20 days average volume is 5,47,383 and its book value per share is around ₹350.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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