5.5 to 1564: Multibagger stock turns 1 lakh to 2.8 crore in 23 years

Multibagger stock: If an investor had invested  ₹1 lakh in this bank shares 10 years ago, its  ₹1 lakh would have become  ₹7.27 lakh today (REUTERS)
Multibagger stock: If an investor had invested 1 lakh in this bank shares 10 years ago, its 1 lakh would have become 7.27 lakh today (REUTERS)

Summary

  • Multibagger stock: If an investor had invested in this Bank Nifty shares 5 years ago, its 1 lakh would have turned to 2.6 lakh today

Multibagger stocks: Market magnet Warren Buffett had once said that all there is to investing is picking good stocks at good times and staying with them as long as they remain good companies. Advising stock market investors to hold a stock as long as one can, the veteran investor said that money is not in buying or selling of stocks, but in waiting.

Those who believe in the 'buy, hold and forget' strategy, go on to make a whopping amount with the passé of time. This Bank Nifty share is a perfect example of it. The banking stock price has risen from 5.52 (close price on NSE on 1st January 1999) to 1564 (intraday high on 5th January 2022 on NSE), rising around 283 times in 23 years.

Share price history

The Nifty Bank stock we are talking about is HDFC Bank. In the last one month, HDFC Bank share price has shot up around 4 per cent whereas in the last one year, it could register only around 10 per cent gain, as like any other banking stock, HDFC Bank has been under pandemic heat for the last one year.

In the last 5 years, HDFC Bank share price has shot up from around 596 to 1564 apiece levels, logging around 160 per cent rise in this period. Similarly, in the last 10 years, HDFC Bank share price has appreciated from around 215 to 1564, registering a nearly 7.27 times jump in this period. The bank scrip has risen to the tune of nearly 71 times in the last two decades.

Coming to its rally in the last 23 years, the multibagger bank stock has risen from 5.52 to 1564, delivering around 28,250 per cent return to its shareholders during this period.

Impact on investment

Taking cue from the lender's share price history, if an investor had invested 1 lakh in HDFC Bank shares 5 years ago, its 1 lakh would have turned to 2.6 lakh today. Similarly, the same investment made 10 years ago would have become 7.27 lakh today and 71 lakh if invested 20 years ago.

Likewise, if an investor had bought the stock at 5.52 levels 23 years ago and had remained invested till date, the investment of 1 lakh would have turned to 2.83 crore.

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