₹3 to ₹66: Multibagger stock turns ₹1 lakh to ₹22 lakh in YTD

Multibagger stock: Hemang Resources shares are one of those stocks on Dalal Street that has outperformed investors' expectations by a huge margin. This small-cap multibagger stock has delivered 21-bagger return after surging from around ₹3 to ₹66 apiece levels. The small-cap stock has delivered such a whopping return in a year which is highly tumultuous for equity investors due to rising global inflation, geopolitical tension and hawkish central banks across world.

Hemang Resources share price history

Shares of Hemang Resources, which was formerly known as Bhatia Industries & Infrastructure Ltd, surged around 20 per cent in last one month. The small-cap stock has delivered lip-smacking return to its shareholders in last six months as it has risen from near 51 to ₹66 apiece levels, giving near 30 per cent return to its shareholders. In year-to-date (YTD) time, this multibagger stock of 2022 has risen from around ₹3 to ₹66 apiece levels, delivering around 2100 per cent return to its investors in YTD time.

Impact on investment

Taking cue from Hemang Resources share price history, if an investor had invested ₹1 lakh in this small-cap multibagger stock one month ago, its ₹1 lakh would have turned to ₹1.20 lakh today. If an investor had invested ₹1 lakh in this stock six months ago, its ₹1 lakh would have turned to ₹1.30 lakh today. However, if an investor had invested in this multibagger stock in the beginning of 2022, one's ₹1 lakh would have turned to ₹22 lakh today.

Bonus share impact

However, the stock is one of the bonus paying shares as well. It traded ex-bonus in July 2011 paying 3 bonus shares for each share held by its shareholders. So, if an investor had invested ₹1 lakh in this stock during correction in this stock in April 2011, then he or she would have got this share at around ₹12.25 apiece levels. This means, the investor would have got 8,163 company shares. After 3:1 bonus shares, these 8,163 shares would have surged to 32,652 shares. If the investor had remained invested in this stock throughout this period, one's ₹1 lakh today would have turned to around ₹22 lakh.

So, this multibagger stock has delivered YTD return to its shareholders that a long term investor has mustered in 12 years.