Multibagger stock: Investing in a penny stock is full of risk because such stocks become highly volatile on small news. According to stock market experts, this high volatility is due to the small market capital of such companies. However, if a company has strong business model and sustainable market fundamentals, then it is bound to succeed in long term. A stock market investor is advised to look at the business model and possible profit making ability of the company while choosing a stock. According to ace stock market investors, after investing in a stock, it is important to keep patience as patience is one of the most important virtues for stock market investors.
To understand how patience pays to a stock market investor in long term, one should look at the performance of Aarti Industries shares. This chemical stock is one of those multibagger stocks, which has been giving stellar returns to its shareholders for years. The stock has surged from ₹1.51 (close price on 28th November 2001 on NSE) to ₹972.20 per share levels (close price on 18th November 2021 on NSE), rising around 650 times in this period. From a penny stock in 2001, today Aarti Industries share has become a quality small-cap stock.
Aarti Industries share price history
As per the share price history of this multibager stock, it has been under sell off pressure for the last one month. In last one month, Aarti Industries shares have fallen from around ₹1021 to ₹972.20 per share levels, losing around 5 per cent in this period. In last 6 months, Aarti Industries shares have risen from around ₹832 to ₹972.20 per share levels, logging around 16 per cent surge in this period. In year-to-date time, this stock has risen from around ₹630 to ₹972.20 levels, giving around 55 per cent return to its shareholders.
Similarly, in last one year, this chemical stock has surged from ₹567 to ₹972 levels, yielding near 71 per cent return to its shareholders. In last 5 years, Aarti Industries shares have given multibagger returns as it has risen from ₹181.28 to ₹972.20 per stock levels, registering near 435 per cent rise in this period.
Likewise, in last 20 years, this multibagger stock has risen from ₹1.51 to ₹972.20, giving around 65,000 per cent return in this period.
Impact on investment
Taking cue from Aarti Industries share price history, if an investor had invested ₹1 lakh in this stock one month ago, its ₹1 lakh would have turned to ₹95,000 today. If an investor had invested ₹1 lakh in this multibagger stock 6 months ago, its ₹1 lakh would have become ₹1.16 lakh today. If the investor had invested ₹1 lakh in this counter one year ago, its ₹1 lakh would have turned to ₹1.71 lakh today.
Similarly, if an investor had invested ₹1 lakh in this multibagger stock 5 years ago, its ₹1 lakh would have turned to ₹5.35 lakh today. However, if the investor had invested ₹1 lakh in Aarti Industries shares 20 years ago, buying one share at ₹1.51 levels, and he or she had remained invested in this counter throughout this period, its ₹1 lakh would have turned to around ₹6.50 crore today.
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