₹15 to ₹11800: Multibagger penny stock turns ₹1 lakh into ₹7.87 crore in five years

Multibagger penny stock: Investing in the stock market needs patience to earn good rewards, especially from penny stocks. There are several multibagger stocks which have multiplied investors' wealth in the long term. One such stock is Hitachi Energy India.

Hitachi Energy India share price, which is currently trading above ₹11,800 on the National Stock Exchange (NSE), has skyrocketed nearly 78,566 per cent in five years from ₹15 apiece, translating into over 787 times returns during the period.

Looking at Hitachi Energy India's share price history, the stock has remained a wealth-creating counter for its shareholders. To put it in perspective, an investment of ₹1 lakh made five years ago and held over time would have grown significantly to ₹7.87 crore.

Hitachi Energy India stock movement

Hitach Energy India share price was trading 2.34 per cent higher at ₹11,837.40 on NSE, despite the stock market crash on Monday, February 24.

In terms of recent performance, Hitachi Energy India's stock has experienced some volatility. Over the past six months, the stock has fallen over 1.22 per cent, while over the past month, it has gained 4.34 per cent.

On a year-to-date (YTD) basis, Hitachi Energy India share price has plunged from ₹15,428.50 to ₹11,897 per share, losing over 23 per cent of its value. The stock had reached an all-time high of 16,534.50 on October 11 last year.

Hitachi Energy India financial overview

The company reported a Profit After Tax (PAT) of ₹137.4 crore, marking a 498.1 per cent year-on-year increase for the quarter ending on December 31, 2024. Meanwhile, operating EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) surged 108.5 per cent YoY to ₹168.9 crore.

The operating EBITDA margin improved to 10.1 per cent, compared to 6.3% in the same period last year.

For the nine-month period from April to December 2024, the company's revenue rose to ₹4,520.3 crore from ₹3,547.6 crore in the corresponding period of the previous fiscal. Meanwhile, PAT stood at ₹200.1 crore, significantly higher than ₹50.1 crore in the prior year.

While releasing its earnings, the company stated that the increase was mainly driven by a significant high-voltage direct current (HVDC) order for transmitting renewable energy from Khavda, Gujarat, to Nagpur, Maharashtra. Additionally, the transmission segment, excluding the HVDC order, contributed to the order book growth through power quality and substation projects.

About the company

Previously known as ABB Power Products and Systems India, Hitachi Energy India was established in February 2019 after ABB India’s power grid business was demerged, with Hitachi acquiring an 80.1 per cent stake in the newly formed entity.

Currently, its promoter, Zurich-based Hitachi Energy Ltd., holds a 75 per cent stake, while public shareholders own 11 per cent. Among institutional investors, foreign institutional investors (FIIs) hold between 4 per cent and 5.2 per cent, and mutual funds have a 6.74 per cent stake as of the December 2024 quarter.

In November 2024, state-owned Power Grid Corporation of India Ltd. selected Hitachi Energy’s HVDC technology to facilitate the transmission of renewable energy from Khavda, Gujarat, to the industrial hub of Nagpur, Maharashtra.

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