Investing in the stock market has long been recognised as a pathway to potential wealth creation. One of the fundamental principles of investing in the stock market is the importance of time. The ability to identify and hold onto promising stocks over an extended period can yield significant returns.
Permanent Magnets was one such stock in this regard that produced a whopping return of over 27000%. From a trading price of just ₹5.75 apiece eight years ago, the stock has seen a remarkable rise of 27620% to trade at the current level of ₹1,594.
If an investor invested ₹1 lakh in the shares during this period and remained invested until the present day, the wealth would have grown to a staggering ₹2.77 crore.
What makes this achievement even more remarkable is the consistent annual performance of the stock. In every year since CY15, the stock has gained over 50%. Notably, in CY15, CY17, and CY21, the stock generated multibagger returns of 191.67%, 275.81%, and 158%, respectively.
So far in the current year, the stock is up by 144%, jumping in value from ₹651.85 to ₹1,594. In today's trade, the stock soared 6.1% to register a new historic high of Rs. 1,689.
After being listed in 2003, the stock took almost 15 years to surpass the significant milestone of reaching a value of ₹100. However, from that point on, the stock began achieving noteworthy milestones year after year.
Permanent Magnets is one of the first magnet manufacturers in India. It offers a wide range of industrial application magnetic devices, such as magnetic separators & filters.
The company magnets are extensively utilised in key business sectors like electronics, power meters, automobile industries, telecommunications, defence, space research, aeronautics, rail transport, and power generation.
Looking at the company's fundamentals, its net profit has shown a steady growth trend over the past four fiscal years. In FY20, the company recorded a net profit of ₹14 crore, and in the subsequent fiscal years of FY21 and FY22, it demonstrated even better performance, achieving net profits of ₹16 crore and ₹19 crore, respectively.
In FY23, the company recorded a net profit of ₹30 crore, with a 41% rise in total revenues to ₹183 crore. Its EPS during FY23 increased to ₹34.60, a significant increase from ₹22.14 in FY22.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.
