multibagger stocks
Every investor’s dream in the stock market is to find a stock which, over time, can turn an ordinary investment into an extraordinary one. In the last few years, one such name has become a topic of discussion among investors. Diamond Power Infrastructure Ltd. This stock has done that, which comes in the category of not only multibagger but super multibagger. It has given excellent returns of 111844% to investors in 5 years.
The electrical equipment sector is growing at a fast pace across the world. The size of this sector was about 1.66 trillion dollars in the year 2024, which will increase to about 1.75 trillion dollars by 2025. Due to continuously increasing electricity demand, infrastructure development and industrial growth, this sector is expected to remain strong in the coming years. It is estimated that by 2029 this industry can touch the level of 2.2 trillion dollars.
Big bang from small stock
Diamond Power Infrastructure is a company related to this sector in the Indian market, which has surprised the investors. The current market cap of the company is around Rs 7,375 crore. In the recent trading session, the stock closed with a slight fall at around Rs 140, but this small fall seems very minor in comparison to its long journey.
Money rain in 2 years
If we talk only about the last two years, Diamond Power has given tremendous returns to investors. Two years ago this share was available at a price of around Rs 3, which has now increased to around Rs 140. That means a jump of about 5,200 percent. If an investor had invested only Rs 1 lakh at that time, then today its value would be more than Rs 52 lakh. However, the pace of the stock has slowed down a bit in recent months, but after such a fast run, a slight stagnation is considered common in the market.
Made Rs 10 crore in 5 years
The most surprising story of this stock is visible in the long term. In the last 5 years, Diamond Power has given returns of approximately 1,11,844 percent. If you understand in simple words then Rs 1 lakh invested 5 years ago would have grown to more than Rs 10 crore today. Such examples are rarely seen in the stock market.
At present the valuation of Diamond Power is quite high. The P/E ratio of the company is many times higher than the industry average. This means that the market has high expectations from the future of the company. However, investors should also understand that with high expectations the risk also increases.
Confidence increased due to strong results
The recent financial results of the company have further strengthened the confidence of investors. In the last one year, both the revenue and profit of the company have increased rapidly. There has been a tremendous jump in sales and profits have increased manifold, which supports the company’s turnaround story. Diamond Power has proven that with the right time and patience, big earnings can be made in the stock market, but it is equally important to understand the risks hidden behind high returns. It is always better to take financial advice before investing.
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