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From Rs 10,000 to Rs 2.53 crore in 16 years! That’s what stock market can do to your wealth! And there is not one but many live examples. Read on. This consumer electronics company is an air-cooler manufacturer, and makes a variety of them, including evaporative air coolers, desert coolers, room coolers, personal coolers and portable air coolers. It has a legacy of over 75 years. The Ahmedabad-based company has global presence across 60 countries in the Americas, Europe, Asia and Africa and has operations in Mexico through a subsidiary called Impco and in China through Keruilai Air Coolers. Symphony went public in 1994, by getting listed on stock exchanges in Bombay, Ahmedabad and Delhi. But its journey this century has been way beyond spectacular: a staggering 2,53,000 per cent return in 16 years! While investors cheered the Nifty50’s journey from sub-1,000 level in the late 2001 to 10,000 level on Tuesday, this BSE500 stock has outpaced every other stock to make fortunes for its shareholders. The stock, priced at Re 0.58 way back in 2001, traded in Rs 1,455-1,466 range on Friday.
Another stock that shone through this period was Eicher Motors, which has grown 1,46,171 per cent from just Rs 19.40 a share to trade around Rs 28,400-odd level on Friday. Balkrishna Industries is another example. What was the opportunity cost of buying that stock in 2001? Rs 1.3, the cost of a toffee. The stock is worth Rs 1,661 today. If you invest in quality companies in India and stay invested for a long period, it would be very difficult to not make a great deal of money. Do not focus too much on what is happening to a company this quarter or this earnings season or where the PE multiple stands. If you have done proper analysis before buying then you can hold it for longer duration for excellent returns. Quality, sustainability and growth are said to be the three important matrixes an investor should look at before investing in a stock. If one finds such stocks at reasonable valuations, they run a good chance of becoming multibaggers. The analyst noted that companies whose revenues have grown at least 10 per cent for 10 consecutive years and have offered 15 per cent return on capital employed every single year for the past 10 years have a good chance of outshining the benchmark indies.