₹3.85 to ₹1680: Multibagger penny stock turns ₹1 lakh into ₹6.96 crore in 16 years

Multibagger penny stock: Making significant profits in the stock market is not an easy task, as it demands thorough research and patience. Investors constantly seek multibagger stocks that can deliver substantial returns. With that in mind, let's explore the share price journey of one such stock – Stylam Industries.

The multibagger stock - Stylam Industries - once priced at ₹3.85 in 2009, is now trading at ₹1,680 apiece on the NSE, which is the adjusted share price after the stock split. The stock split benefit to the long term investor has not been taken into account.

Stylam Industries' shares had undergone a stock split in a 1:2 ratio on April 12, 2021, reducing the face value of its shares from ₹10 to ₹5, and the stock has been trading on an ex-split basis since then.

To put it in perspective, an investment of ₹1 lakh made 16 years ago in the stock and held over time would have grown significantly to ₹6.96 crore (we have taken adjusted stock price post-split without adding post-split benefit).

Stylam Industries share price movement

Stylam Industries share price was up nearly 1 per cent on Tuesday, March 26 on the NSE.

The stock has proven to be a wealth-creating machine for its long-term investors as it has surged as much as 1,081 per cent in the past five years on the BSE. This means that an investment of ₹1 lakh made five years ago would have grown to ₹11.9 lakh over time.

Meanwhile, the stock has failed to impress short-term investors. In the last one year, Stylam Industries shares have grown just 8.07 per cent. However, they have fallen by over 16.52 per cent in six months.

It is interesting to note that the share has gained nearly 3 per cent in one month despite weak market sentiments. On a year-to-date (YTD) basis, the stock has descended 25.27 per cent, from ₹2,217 to the current market price.

Stylam Industries' financial overview

In the third quarter, Stylam Industries recorded an 18.6 per cent year-on-year revenue growth, reaching ₹2,500 crore, driven by increased sales volumes and improved blended realizations.

Despite a contraction in gross margins, strong revenue growth led to a 9.3 per cent rise in gross profit year-on-year, totaling ₹1,200 crore. However, EBITDA fell by 3.8 per cent year-on-year to ₹46 crore due to higher operating expenses.

Stylam Industries is a manufacturer and exporter of high-pressure laminates, solid surface panels, and allied products, with a strong presence in both national and international markets, known for its diverse product portfolio and quality.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.