Over the last five years, the Indian stock market has produced many multi-bagger stocks, underscoring its rapid growth. The BSE Sensex has surged from approximately 35,000 points in early 2019 to over 82,000 points in October 2024, marking an impressive 134.29% growth. In the past year alone, the index climbed from around 63,000 to 85,000 points, showing a robust growth of over 30%. This bull run has been driven by India’s resilient economy, rising corporate earnings, and increasing foreign investment.
Many stocks have delivered exceptional returns, skyrocketing from ₹40-₹50 to ₹2,000-₹3,000 in just a short period. These remarkable multi-bagger returns highlight the growth potential of both the Indian stock market and the companies listed on it. Let’s explore some of the stocks that have delivered over 1000% returns in the last five years.
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Highest Multi-Bagger stocks in last 5 years
| Stock | Sector | 52-week Low | 52-week High | Return (%) | PE Ratio |
|---|---|---|---|---|---|
| Sensex | BSE Index | 63,092.98 | 85,978.25 | 36.27% | 24.04 |
| Sri Adhikari Brothers Television Network Ltd | TV Broadcasting & Software Production | ₹ 1.50 | ₹ 1,038 | 69,100% | -163.51 |
| Ujaas Energy Ltd | Electric Equipment | ₹ 5.76 | ₹ 675 | 11,607% | 230.11 |
| Eraaya Lifespaces Ltd | 2/3 Wheelers | ₹ 42.5 | ₹ 3,169 | 7,358% | 4,300 |
| Bharat Global Developers Ltd | Computers – Hardware | ₹ 14.6 | ₹ 970 | 6,541% | 1,721 |
| Marsons Ltd | Electrical Equipment | ₹ 5.60 | ₹ 356 | 6,221% | 862 |
| Ceenik Exports (India) Ltd | Textiles – Products | ₹ 41.1 | ₹ 1,432 | 3,383% | 55.5 |
| Spright Agro Ltd | Trading of Agriculture products | ₹ 2.83 | ₹ 89.3 | 3,054% | 35.7 |
| Diamond Power Infrastructure Ltd | Cables – Power | ₹ 57.7 | ₹ 1,659 | 2,774% | 504 |
| TechNVision Ventures Ltd | Software Products | ₹ 189 | ₹ 4,799 | 2,439.15% | 105.46 |
| Kaycee Industries Ltd | Electrical Equipment | ₹ 208 | ₹ 4,897 | 2,250% | 296.91 |
| Kody Technolab Ltd | Computers – Software & Consulting | ₹ 215 | ₹ 4,175 | 1,840% | Null |
| Dolphin Offshore Enterprises (India) Ltd | Offshore Support Solution Drilling | ₹ 47.8 | ₹ 949 | 1,886% | 165.86 |
Let’s discuss a few facts about these Multi-Bagger stocks
Sri Adhikari Brothers Television Network Ltd
Sri Adhikari Brothers Television Network Ltd. is a small-cap company established in 1994. It operates in the Media & Entertainment sector and has a market capitalization of ₹2,603.66 crore.
For the quarter ending June 30, 2024, the company reported a consolidated total income of ₹1.09 crore. This is a decrease of 62.88% compared to the previous quarter, which had an income of ₹2.94 crore. It remains unchanged from the same quarter last year, where the total income was ₹0.00 crore.
The company also reported a net profit after tax of ₹0.05 crore for the latest quarter. Currently, Sri Adhikari has a PE ratio of -163.51 and a PB ratio of 221.0.
Ujaas Energy Ltd
Ujaas Energy Ltd. is a mid-cap company founded in 1999. It operates in the Electric/Electronics sector, with a market capitalization of ₹8,888.74 crore.
For the quarter ending June 30, 2024, Ujaas Energy reported a standalone total income of ₹10.72 crore. This is a decrease of 66.51% compared to the previous quarter’s income of ₹31.99 crore. However, it shows an increase of 43.20% from the same quarter last year, where the total income was ₹7.48 crore.
The company also achieved a net profit after tax of ₹3.82 crore for the latest quarter. Currently, Ujaas Energy has a PE ratio of 230.11 and a PB ratio of 79.78.
Marsons Ltd
Marsons Ltd. has a market capitalization of ₹5,156.98 crore. For the quarter ending June 30, 2024, the company reported a standalone total income of ₹30.24 crore and a profit of ₹5.24 crore.
For the year ending March 31, 2024, Marsons recorded a total income of ₹6.62 crore and a profit of ₹0.63 crore. Currently, the company has a PE ratio of 862.89 and a PB ratio of 310.52.
TechNVision Ventures Ltd
TechNVision Ventures Ltd. is a small-cap company founded in 1980, operating in the IT Software sector. It has a market capitalization of ₹2,376.34 crore.
For the quarter ending June 30, 2024, the company reported a consolidated total income of ₹52.53 crore. This marks a slight increase of 0.56% from the previous quarter’s income of ₹52.24 crore and a significant rise of 68.19% compared to the same quarter last year, where the total income was ₹31.23 crore.
TechNVision also achieved a net profit after tax of ₹2.16 crore for the latest quarter. The company’s PE ratio stands at 105.46, and its PB ratio is 349.47.
Kaycee Industries Ltd
Kaycee Industries Ltd. is a small-cap company established in 1942, operating in the Electric/Electronics sector. It has a market capitalization of ₹1,523.04 crore.
For the quarter ending June 30, 2024, the company reported a standalone total income of ₹12.81 crore. This represents a decrease of 6.06% from the previous quarter’s income of ₹13.64 crore. However, it shows an increase of 11.77% compared to the same quarter last year, where the total income was ₹11.46 crore.
Kaycee Industries also reported a net profit after tax of ₹1.50 crore for the latest quarter. The company’s PE ratio stands at 296.91, while the PB ratio is 1.28.
Trends in Young Investor Participation in the Indian Stock Market
Source: The Economic Times
The incredible returns from multi-bagger stocks over the last 1 to 5 years are attracting young investors to the market. Since 2021, the number of retail investors has surged nearly fourfold. In 2024, the total number of demat accounts grew from 4 crore in 2020 to 14 crore. (The Economic Times)
As of July 15, 2024, there were 18,11,67,457 registered investors on the BSE, reflecting a year-on-year increase of 33.28%. Additionally, the share of domestic mutual funds in companies listed on the NSE reached a record high of 8.64% in June 2023. In May 2024, PE-VC funds invested US$ 6.9 billion in India-based companies, a significant rise from US$ 4.5 billion in May 2023. (IBEF)
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Should you Invest in these stocks at the current market price?
The allure of multi-bagger returns can be tempting for young investors, but basing your investment decisions solely on past performance is not wise. Many stocks, such as Spright Agro and TechNVision Ventures Ltd., have fallen below their 52-week highs. These stocks are highly overvalued, with PE ratios skyrocketing alongside their returns.
When PE ratios are this high, there is a significant risk of a downturn if the companies fail to meet market expectations for revenue and profit.
While including such stocks in your portfolio can enhance its appeal, it’s essential to limit their proportion. A value investor focuses on long-term wealth generation and capital appreciation through disciplined investing. Instead of chasing high short-term returns, prioritize strategies that foster sustainable growth over time.
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Conclusion
The Indian stock market has experienced remarkable growth, showcasing numerous multi-bagger stocks that have delivered exceptional returns over the past five years. This surge has attracted a new wave of retail investors, significantly increasing participation in the market. However, while the potential for high returns is enticing, it’s crucial to approach investing with caution. Relying solely on past performance can lead to overvaluation and increased risk. Instead, investors should focus on long-term strategies that prioritize value and sustainable wealth generation. By doing so, they can navigate the market more effectively and build a robust investment portfolio.
That’s all for today’s post. Hope you get some valuable insights from here.
Happy reading!
Disclaimer
The blog is meant for informational purposes and serves the general analysis of the stocks. The contents provided here are based on careful research and analysis utilizing the fundamental and technical indicators over some time. The post does not consist any direct recommendation about Investing or trading in the securities market. Thorough research and careful consideration are necessary for individuals to fulfil their responsibility in making financial decisions. Seeking professional advice before making any financial decisions is always advisable.
