₹5.60 to ₹4132: Multibagger penny stock turns ₹1 lakh into ₹7.37 crore in 21 years

Multibagger penny stock: Investing in the stock market comes with risks, but patience is the key to achieving significant gains, especially in multibagger stocks. A stock is known as a multibagger stock if it offers a return of more than 100 per cent.

One such stock that has delivered multibagger returns to investors is Vadilal Industries. The company has emerged as a wealth-creating machine for its long-term investors.

Vadilal Industries share price, which is currently trading at ₹4,132 on the BSE, has skyrocketed nearly 73,686 per cent in 21 years, rising from ₹5.60 apiece, translating into over 738 times returns during the period.

To put it in perspective, an investment of ₹1 lakh made 21 years ago in Vadilal Industries and held over time would have grown significantly to ₹7.37 crore.

Vadilal Industries share price history

Despite weakness in the Indian stock market, Vadilal Industries share price was trading over 10.55 per cent higher on Tuesday, touching an intraday high of ₹4,255 apiece on BSE.

The stock has rewarded its long-term investors with multibagger returns as it has surged over 479.76 per cent in the last five years, rising from ₹721.85 to the current market price.

However, the stock has remained volatile in the short-term. The stock has ascended over 16.49 per cent in the last one year and nearly a per cent in the last six months. On a year-to-date (YTD) basis, the stock has gained 3.68 per cent, rising from ₹4,036.55 to its current level.

Vadilal Industries financial overview

Vadilal Industries, India's second-largest ice cream manufacturer, recorded a 29 per cent rise in net profit for the third quarter ended December 31, 2024.

The Ahmedabad-based company, with a daily ice cream production capacity exceeding 6.25 lakh litres, reported a consolidated net profit of ₹11.93 crore. Additionally, its revenue from operations saw a 17 per cent increase, reaching nearly ₹204 crore for the October- December quarter.

Over the past nine months of this financial year, the company's PAT has increased by 8.5 per cent to ₹128 crore, while its revenue has grown by over 10 per cent to ₹963 crore. With a daily production capacity of 13 lakh cones, Vadilal is among the leading players in the cones, cups, and candy segments. The brand currently operates ice cream production facilities in Pundhra, located in Gujarat's Gandhinagar district, and Bareilly in Uttar Pradesh.

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