This multibagger stock has given 85316 percent returns and ICICI Securities sees further upside in it. Staying invested in shares for a long period of time has investors make fortunes, especially when the fundamentals are strong. Sometimes the share price of companies increases gradually, as a result, patient investors reap multibagger returns.
Havells India’s shares were available at ₹ 1.44 apiece, twenty years ago. Since then, its share price has increased gradually and has reached ₹ 1232.00 apiece.
Therefore, its shares have given multibagger returns of 85455 percent over a period of twenty years. If an investor would have invested ₹ 1 lakh in the shares of the company twenty years ago, the value of their holdings would have been ₹ 8.55 crores today!
The company is a leading Fast Moving Electrical Goods (FMEG) Company and a major power distribution equipment manufacturer with a strong global presence. It owns and operates five brands: Havells, Crabtree, Lloyd, Standard and REO.
ICICI Securities has a ‘buy’ call on the shares of Havells India with a target price of ₹ 1650.00. This translates to an upside of 33.92 per cent as compared to its current share price of ₹ 1232.00 apiece.
Havells India is a large-cap stock with a market capitalization of ₹ 77,209 crores. It has an ideal return on equity of 21.41 per cent and an ideal debt-to-equity ratio of 0.03. Its shares are currently trading at a price-to-equity ratio of 70.98, which is significantly higher than the industry PE of 40.75, therefore the stock might be overvalued.
The company has a high promoter holding of 59.45 per cent. Further, 23.3 per cent of its shares are held by Foreign Institutional Investors (FIIs), 8.61 per cent is held by retail investors, Domestic Institutional Investors (DIIs) hold 4.93 per cent and mutual funds have a 3.71 per cent stake in it.
Written by Simran Bafna
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