Multibagger Stocks: Just like Rome wasn’t built in a day, stock market investors can’t get rich overnight. It is often said that the money is not in buying and selling stocks, but in waiting. To understand how long-term investors enjoy wealth creation, we have to look at the performance of Transformers & Rectifiers (India) stock. The small-cap stock has appreciated from Rs 6.50 to Rs 680 per share since April 9, 2020. This means that the small-cap penny stock has become one of the multibagger stocks in the Indian stock market in the last nearly four years. This is one of the 100 baggers that the Indian stock market has offered in recent years.
Transformers and rectifiers Stock price trends in India
This small-cap multibagger penny stock remained in base-building mode for the month, down about 7%. However, over the past six months, the multibagger stock has soared from about 4,656 pounds to 680 pounds a piece on the BSE, registering a rise of nearly 45 per cent. Year-to-date, the multibagger penny stock has risen from about ₹238.70 to ₹680 per share, registering an increase of 185% in this period. Similarly, this multibagger stock soared from ₹172 to ₹680 per share in one year, registering an increase of around 300%.
On April 9, 2020, this small-cap multibagger penny stock was available at around ₹6.50 per share on BSE. This means that this penny stock has soared from ₹6.50 to ₹680 per share in about 4 years, giving its shareholders a return of about 10,350%.
Impact on investors
Taking a cue from Transformers and Rectifiers India’s share price history, if an investor had invested Rs 100,000 in this small-cap stock a month ago, that Rs 100,000 would have turned into Rs 93,000 during this period. If an investor had invested Rs 100,000 in this small-cap multibagger stock six months ago, that Rs 100,000 would have turned into Rs 1.45 lakh today. Similarly, if an investor had invested Rs 100,000 in this multibagger penny stock a year ago, that Rs 100,000 would have turned into Rs 400,000 today.
But if an investor bottom-fished in this multibagger penny stock during the April 2020 COVID-19 crash and invested Rs 100,000 in this small-cap stock, that Rs 100,000 would have been It would have changed to Rs 1,040 crore. However, this was only possible if the investor remained invested throughout the period mentioned above.
Shares of Transformers and Rectifiers India can be traded on BSE and NSE. The current market capitalization is Rs 8,958 crore. The trading volume on Friday ended at 1,31,520. The 52-week high price on BSE is ₹845.70 per share and the 52-week low price is ₹142.10 per share.
Disclaimer: The views and recommendations provided in this analysis are those of the individual analysts or brokerage firms and not of Mint. Because market conditions can change rapidly and individual circumstances may vary, investors are strongly encouraged to consult a certified professional before making any investment decisions.
