₹14 to ₹189: Multibagger stock turns ₹1 lakh to ₹21 lakh in 3 years

Market


Gujarat Containers Ltd., an industrial firm with a market valuation of Rs. 114.89 crore, is a small-cap corporation. The company is India’s top and exclusive manufacturer of a wide range of specialty Barrels. 1500 barrels each day is a good capability for the company. Among the multibagger stocks that have made investors lakhpati in a period of three to five years are the shares of Gujarat Containers.

Share price history of Gujarat Containers Ltd

The shares of Gujarat Containers Ltd on the BSE closed at 189.90 apiece, up by 3.40% to the upper circuit limit. In contrast to the 20-day average volume of 2,335 shares, the stock had a total volume of 2,300 shares on Friday. The stock price has increased dramatically since it was 14.21 on September 7th, 2012, to the current market price, representing a multibagger return and an all-time high of 1,236.38%. Therefore, a 1 lakh investment made in the company ten years ago would today be worth 13.36 lakh. 

The stock price has risen dramatically over the past five years, rising from 11.41 on September 22, 2017, to the current market price, which represents a multibagger return of 1,564.33% and an approximate CAGR of 76.61%. As a result, an investment of 1 lakh made in the stock five years ago would now be worth 16.64 lakh. The stock price has accelerated sharply over the past three years, rising from 9 on November 4, 2019, to the current price level, logging a multibagger return of 2010% and a CAGR of 175.89%. As a result, an investment of 1 lakh made in the stock three years ago would have now grown to 21.10 lakh. 

In the last 1 year, the stock has generated a multibagger return of 276.04% which also represents a CAGR of 278.00% approx, hence an investment of 1 lakh made in the stock 1 year ago would now have turned to 3.76 lakh. On a YTD basis, the stock has generated a multibagger return of 134.44% and in the last 6 months, the stock has gained 99.79%. On the BSE, the stock had touched a 52-week-high of 197.30 on (08/09/2022) and a 52-week-low of 44.15 on (16/09/2021), indicating that at the current market price the stock is trading 3.75% below the high and 330% above the low.

Key takeaways of Gujarat Containers Ltd

For the quarter ended June 2022, the company recorded a net income of 41.96Cr compared to 37.43 Cr recorded in Q1FY22 representing a YoY growth of 12.10%. The company’s profit before tax (PBT) jumped from 3.73 Cr in Q1FY22 to 5.49 Cr in Q1FY23 representing a YoY growth of 47% and the company’s profit after tax (PAT) grew by 55% YoY from 2.65 Cr in Q1FY22 to 4.11 Cr in Q1FY23. 

At Friday’s closing the shares of the company were seen trading above 5 days, 10 days, 20 days, 50 days, 100 days, and 200 days Exponential Moving Average (EMA). However, since the RSI price index of Rs. 75.5 is in the overbought zone potential investors should exercise caution as Gujarat Containers Ltd.’s price may be anticipated to rise slightly in the near future resulting from the scrip being in a quasi segment. 

The corporation reported a promoter shareholding of 59.76% for the quarter that ended in June 2022, a growth of 1.77% from the prior quarter, and a public shareholding of 40.24%. At its most recent price, the stock had a P/B ratio of 4.58, a PE of 8.98x, and an EV/EBITDA ratio of 6.77x. Although the company has a high ROE of 47.49% and has been rising for the past three years, the fact that its shares crossed its positive breakout second resistance level at the last traded price, may indicate an opportunity. 

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