Long-term investing is definitely one of the best ways to make stupendous wealth. There was an era when Demat accounts did not exist and people held share certificates. These certificates would often find their way into drawers, only to be found years later, with an increase in the share price.
One such stock is Kajaria Ceramics. It is engaged in the manufacturing of ceramic/ vitrified tiles, wall tiles, kitchen tiles, sanitaryware and faucets. It has eight manufacturing plants in India. In fact, it is the largest manufacturer of ceramic/ vitrified tiles in India and the eighth largest in the world.
The company’s share price increased from ₹ 0.55 apiece to ₹ 1257.00 apiece, giving multibagger returns of a massive 228445 percent! Therefore, if an investor had invested ₹ 1 lakh in the company’s shares twenty years ago, the value of their holdings would have been ₹ 22,85,45,000 (22.85 crores)!
With a market capitalization of ₹ 20,190 crores, Kajaria Ceramics is a mid-cap stock. It has an ideal return on equity of 15.49 percent and an ideal debt-to-equity ratio of 0.11. Its revenue increased by 33.24 percent to ₹ 3705.19 crores in FY23, as compared to ₹ 2780.9 crores in FY22. Similarly, its net profit increased by 22.38 percent to ₹ 376.98 crores in FY23, as compared to ₹ 308.05 crores in FY22.
Kajaria Ceramics’ promoters hold a 47.49 percent stake in it followed by mutual funds with 23.11 percent, foreign institutions with 16.90 percent, retail investors with 9.81 percent and other domestic institutions with 2.69 percent.
Written By Simran Bafna
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