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 chairman and CEO of Berkshire Hathaway said that money is not in buying or selling of stocks but in wait. Those who believe in ‘buy, hold and forget’ strategy, goes on to make whopping amount with the passé of time. HDFC Bank share is a perfect example of it. This banking stock price has risen from ₹5.52 (close price on NSE on 1st January 1999) to ₹1481 (close price on NSE on 31st December 2021), rising around 268 times in these 23 years.
HDFC Bank share price history
The banking major has been under sell off pressure for last six months. In last one month, HDFC Bank share price has dipped around 1.50 per cent whereas in last one year, it could register only around 4 per cent gain. But, it doesn’t mean HDFC Bank is a bad company and one should shy away from investing in this business. Like any other banking stock, HDFC Bank has been under pandemic heat for last one year.
HDFC Bank shares are one of the multibagger stocks in India. In last 5 years, HDFC Bank share price has shot up from around ₹596 to ₹1481 apiece levels, logging around 150 per cent rise in this period. Similarly, in last 10 years, HDFC Bank share price has appreciated from around ₹215 to ₹1481, registering 7 times in this period. Likewise, in last 20 years, HDFC Bank share price has risen from around ₹22 apiece levels to ₹1481, rising to the tune of near 67 times in last two decades.
However, in last 23 years, HDFC Bank share have risen from ₹5.52 to ₹1481, delivering around 26,725 per cent return to its shareholders during this period.
Impact on investment
Taking cue from HDFC Bank share price history, if an investor had invested in HDFC Bank shares 5 years ago, its ₹1 lakh would have turned to ₹2.5 lakh today. If an investor had invested ₹1 lakh in this multibagger counter 10 years ago, its ₹1 lakh would have become ₹7 lakh today whereas same ₹1 lakh would have turned to ₹67 lakh in 20 years.
Similarly, if an investor had invested ₹1 lakh in HDFC Bank shares 23 years ago buying one stock at ₹5.52 levels and the investor had remained invested in this banking stock till date, its ₹1 lakh would have turned to ₹2.68 crore today.
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