₹40.45 to ₹5590: Multibagger stock turns ₹1 lakh into ₹1.38 crore in 16 years

Multibagger stock: Investing in the stock market may seem easy, but patience is the key in achieving significant returns. Investors constantly seek stocks with the high potential to generate substantial profits.

One must look at the journey of chemicals company Atul Ltd, which has been a wealth creating machine for its long-term investors.

Atul Ltd share price, which is currently trading at ₹5,590 on National Stock Exchange (NSE), has skyrocketed nearly 13,720 per cent in 16 years, rising from ₹40.45 apiece, translating into over 138 times returns during the period.

To put it in perspective, an investment of ₹1 lakh made 16 years ago and held over time would have grown significantly to ₹1.38 crore.

Atul Ltd share price history

Despite market crash, Atul Ltd share price was trading 3.35 per cent higher on March 3, touching an intraday high to ₹5,637.55 apiece on National Stock Exchange (NSE). The stock has recorded nearly 8.16 per cent gain in last five years.

Atul Ltd stock has remained volatile in the last one year. The stock may have rewarded its long-term investors with multibagger returns but has failed to impress short-term investors.

The stock has descended over 9.32 per cent in the last one year and over 30.45 per cent in last six months. In terms of year-to-date (YTD), the stock has plunged 20.21 per cent, falling from ₹6,909.70.

Atul Ltd financial overview

On January 24, chemicals company posted a net profit of ₹108.74 crore for the October-December quarter of the 2024-25 financial year, marking a 53 per cent year-on-year increase from ₹71 crore recorded in the same quarter of the previous fiscal year.

Revenue saw a 24.5 per cent year-on-year increase, reaching ₹1,416.83 crore compared to ₹1,137.80 crore in the same period last year.

Atul Ltd.'s Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) surged by 47 per cent year-on-year to ₹224 crore, up from ₹152 crore in the previous year.

The EBITDA margin also improved to 16 per cent, rising from 13.4 per cent on a year-on-year basis.

Atul Ltd is an integrated chemical company founded by Kasturbhai Lalbhai on September 5, 1947 in India. The company manufactures 900 products and 400 formulations and owns 140 retail brands.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.