₹8 to ₹82: Multibagger penny stock turns ₹1 lakh into ₹10 lakh in 3 years
Multibagger penny stock: One of the golden rules of stock investing is to buy stocks at reasonable valuations and hold them for the long term. Top financial experts say that sticking with one’s convictions and holding a stock as long as possible is the simplest and easiest way to create wealth in the long term. Patience is the key.
There is no dearth of examples to prove how a long-term investor can create wealth by picking stocks and holding them for a longer period, enduring market volatility and mastering the lure of pocketing quick gains. For example, take a look at a penny stock-Alfa Transformers.
About three years ago, the penny stock was available at ₹8.01. On the previous session (April 11), it closed at ₹81.73.
If someone had bought Alfa Transformers shares at ₹8.01 on April 11, 2022, and continued holding it till today, the absolute value of her investment would have grown by 920 per cent in three years. Alfa Transformers is one of the wealth-creating multibagger penny stocks the Indian stock market has delivered in recent decades.
Alfa Transformers share price history
After witnessing some selling pressure in the last one year, the stock has witnessed fresh buying of late. Over the last month, Alfa Transformers share price has gained 20 per cent. Against its last year’s value, the stock is still down 9 per cent.
However, if we consider the bigger timeframe, the stock has surged 920 per cent in the last three years.
The stock hit a 52-week high of ₹162.95 on November 11 last year and a 52-week low of ₹59.93 on April 7 this year.
Impact on investment
Considering Alfa Transformers share price history, if an investor had invested ₹1 lakh in the stock one month ago, its ₹1 lakh would have turned to ₹1.20 lakh.
However, if the investor had invested ₹1 lakh in this multibagger stock over a year ago, the investment have declined to ₹91,000.
On the other hand, in the last three years, an investor’s ₹1 lakh would have turned into ₹10.20 lakh today.
As mentioned, returns were possible only when the investor had remained invested in this multibagger stock throughout the periods mentioned.
Alfa Transformers shares ended 10 per cent higher at ₹81.73 on Friday, with a trade volume of 60,207. The current market cap of Alfa Transformers shares is ₹74.79 crore.
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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, as market conditions can change rapidly, and circumstances may vary.
