₹2 to ₹362: Multibagger stock turns ₹1 lakh to ₹1.81 crore in 19 years

Multibagger stock: Investing in stocks is like investing in a business. According to Charlie Munger, one should buy and hold a stock as long as one can. From this stock investment tip, the business partner of Warren Buffett probably tried to make investors understand that long term stocks give high return on total investment. This long term shareholding includes other benefits like periodic dividend payment. According to stock market experts, long term shareholding helps an investor minimize one's risk factor as well.

To understand how long term shareholding can benefit a shareholder, one needs to look at Rama Phosphates shares. This fertilize maker stock is one of the multibagger stocks in 2021 as it has delivered around 235 per cent return to its shareholders in this period. However, this is not the first year, when this multibagger stock has delivered whopping return to its shareholders. It has a history of generating alpha return beating key benchmark return by big margin. So, if an investor had invested in this stock decade or more than a decade ago, its money would have grown many folds.

Rama Phosphates share price history

In last one month, this multibagger stock has been under selloff heat. Rama Phosphates share price has dipped from ₹near ₹400 to ₹361 levels, dipping around 10 per cent in this period. The stock has remained sideways for last 6 months yielding mere 8 per cent return to its shareholders. However, in last one year, this multibagger stock has generated alpha return of staggering 235 per cent after surging from ₹108 to ₹361 levels. Likewise, in last 5 years, Rama Phosphates share price has appreciated from ₹75.95 to ₹362 levels, logging near 380 per cent rise in this period.

In last 10 years, this multibagger share's price has shot up from around ₹51 to ₹362, appreciating to the tune of 610 per cent in this period. However, in last 19 years, this stock has ascended from ₹2 (close price on BSE on 13th March 2003) to ₹362 levels today, logging near 18000 per cent rise in this period.

Multibagger penny stock: ₹1 lakh turns to ₹1.81 crore

Taking cue from Rama Phosphates share price history, if an investor had invested ₹1 lakh in this multibagger stock, one year ago, its ₹1 lakh would have turned to ₹3.35 lakh today whereas it would have turned to ₹4.80 lakh in 5 years. If an investor had invested in this stock 10 years ago, its ₹1 lakh would have turned to ₹7.10 lakh today.

Similarly, if an investor had invested in this multibagger penny stock 19 years ago and had remained invested in this scrip throughout this period, its ₹1 lakh would have turned to ₹1.81 crore today.

Rama Phosphates share price outlook

However, stock market experts are still bullish on the counter. They are of the opinion that the stock is currently trading sideways with positive bias. They expected this multibagger stock to hit ₹550 per share levels in short to medium term.

Speaking on this multibagger share price outlook; Anuj Gupta, Vice President at IIFL Securities said, "Rama Phosphates share is trading between ₹300 to ₹400 range from last 8 month. Trading either side may trigger a momentum in the stock. As the long term trend of this multibagger stock is positive, we are recommending buy on a dips levels maintaining stop loss at ₹274 for short term target of ₹400 to ₹450. Trading and closing above ₹400 levels on weekly basis may lead the targets towards ₹500 to ₹550 levels in medium term."

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.