Multibagger stock: ₹1 lakh becomes ₹85 lakh in this stock in 10 years

Multibagger stock: Finding a stock that can give multibagger return is not easy, but after some hard work one can find a company that has a strong business model and an able and honest management. Once such company is found, then the stock market investor needs to remember that money is not in buying and selling of stocks, but in wait. So, after finding a good quality company with strong business outlook, one needs to believe in one's conviction and remain invested as long as he or she can. To understand the benefit of long-term investment, one needs to look at Aarti Industries share price history.

This Chemical stock has given around 47 per cent upside movement in year to date (YTD) i.e. in 2021. This much of return in near 8 months might lure an investor to book profit and move to another stock of the same quality that Aarti Industries had when the investor chose this stock. However, if we look at the stock performance in last one year, it has delivered around 70 per cent return to its shareholders. So, booking 70 per cent profit in one year is also not bad for an investor's perspective. To understand what we want to convey, let's have a look at the chemical stock's yield in last 5 years. Aarti industries last 5 year yield is around 500 per cent. However, if we look at the decadal return of this stock, the chemical manufacturing company share price had closed at ₹10.83 per equity share on 26th August 2011 while it closed at ₹926.80 on 27th August 2021 — rising around 85 times in this period. So, the stock has delivered better return to those who could hold this stock as long as they could.

Impact on investment

Taking cue from Aarti Industries share price history — if an investor had invested ₹1 lakh in this stock 6 months ago and had remained invested till date, its ₹1 lakh would have become ₹1.46 lakh today. Similarly, if an investor had invested ₹1 lakh one year ago, its ₹1 lakh would have turned to ₹1.70 lakh today. If an investor had invested ₹1 lakh in this chemical stock 5 years ago, its ₹1 lakh would have become ₹6 lakh today. However, if an investor had invested ₹1 lakh in this stock, 10 years ago, and had remained invested in this stock throughout this period, its ₹1 lakh would have become ₹85 lakh today.