Multibaggers are stocks that give multifold returns. When picked for investment, these stocks are usually undervalued, have strong fundamentals and have the potential to scale quickly. To be able to make wealth, investors have to buy a substantial amount of multi-bagger stocks and stay invested for a certain amount of time.
Here are two multibagger stocks that multiplied investor wealth by more than 15 times in the past year:
Remedium Lifecare Limited
Remedium Lifecare Limited is in the business of trading in Advanced Pharmaceutical Intermediates (APIs) and other pharma products.
The company is listed on the Bombay Stock Exchange (BSE) and its share price increased by a whopping 3086 percent in the past year. Its share price increased from ₹ 49 apiece to ₹ 1,570.15. Thus, if an investor had invested ₹ 1 lakh in its shares a year ago, the value of their holdings would have been ₹ 31.86 lakhs today! This means that investors’ wealth has been multiplied by more than 30 times. The company is trading ex-bonus today and the same is issued in the ratio of 9:5.
With a market capitalization of ₹ 1,508 crores, Remedium Lifecare is a small-cap company. It has a very high return on equity of 70.92 percent. Its shares were trading at a price-to-earnings ratio (P/E) of 278.08. Retail investors hold a 98.85 percent stake in the company, followed by promoters with 1.11 percent and foreign institutions with 0.04 percent.
K&R Rail Engineering Limited
K&R Rail Engineering is a railway infrastructure company that lays private railway sidings on a turnkey basis. Moreover, it offers services like signaling, electrification and telecommunication in the railway industry.
The company is listed on the Bombay Stock Exchange (BSE) and its share price increased by a whopping 1480 percent in the past year. Its share price increased from ₹ 36.05 apiece to ₹ 569. Thus, if an investor had invested ₹ 1 lakh in its shares a year ago, the value of their holdings would have been ₹ 15.80 lakhs today! This means that investors’ wealth has been multiplied by more than 15 times.
With a market capitalization of ₹ 1,080 crores, K&R Rail Engineering is a small-cap company. It has a low return on equity of 8.30 percent. Its shares were trading at a price-to-earnings ratio (P/E) of 140.28. The company’s promoters hold a 61.42 percent stake in it, followed by retail investors with a 38.58 percent stake.
Written by Simran Bafna
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