₹3.90 to ₹524: THIS multibagger penny stock turns ₹1 lakh into ₹1.34 crore in 11 years; do you own? | Stock Market News
Source: Live Mint
Identifying a multibagger stock in the making is tricky. Experts and market veterans say strong earnings growth visibility, growth potential of the industry, strong financials and reasonable valuation are some of the key factors that determine the growth trajectory of the stock. However, despite all these, there is no guarantee that a stock will turn multibagger.
A thumb rule of investing is to buy a good stock at a reasonable price and wait patiently. This rule seems to have worked for investors in a Hyderabad-based CPaaS (Communications Platform as a Service) company. Once a penny stock just over a decade ago, it has surged by more than 13,000 per cent in a remarkable rally.
The stock in discussion is Tanla Platforms.
Tanla Platforms share price trend
Tanla Platforms’ share price has surged a whopping 13,340 per cent over the last 11 years, rising from ₹3.90 to ₹524.15. Over the last five years, the stock has gained nearly 550 per cent.
However, the last few years have been rocky for the stock. Over the last three years, the small-cap stock has declined 64 per cent, while over the last year, it has dropped 46 per cent.
Tanla Platforms stock hit its 52-week high of ₹1,086.05 on July 15 last year and a 52-week low of ₹515.90 on February 12 this year.
₹1 lakh into ₹1.34 crore
A 13,340% gain over the last 11 years means that an investment of ₹1 lakh in February 2014 would have grown to ₹1.34 crore today. However, the same ₹1 lakh invested five years ago would have only grown to ₹6.5 lakh, highlighting that long-term investors reaped significantly higher rewards than those with a shorter investment horizon.
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