How to become rich fast: This crorepati stock turned Rs 10 lakh into Rs 1 crore in just 3 years
This long-time multibagger stock, that has returned over 1120 per cent in the last 3 years, and over 1600 per cent in the last 10 years. So, if you had invested Rs 10 lakh in Graphite India just three years ago, you would have made Rs 1.2 crore by now!
Making money in equity market is indeed a tough job, but spot the right stock, and you can become crorepati in just a couple of years! Yes, you read that right! This is what has happened with investors in Graphite India, a long-time multibagger stock, that has returned over 1120 per cent in the last 3 years, and over 1600 per cent in the last 10 years.
So, if you had invested Rs 10 lakh in Graphite India just three years ago, you would have made Rs 1.2 crore by now!
Wondering, if you should enter into this stock at current levels? Well, going by latest brokerage reports, you definitely should as the stock still holds potential to rally up to Rs 1260 from the current levels of Rs 1000.
Brokerage ICICI Securities values the stock at 10x FY20E EPS of Rs 125 thereby arriving at a target price of Rs 1250, maintaining BUY recommendation.
"Graphite India has a robust balance sheet, net cash status and healthy cash flow generation, which augurs well. Currently, the company’s net cash balance was at Rs 991 crore as on March 31, 2018, which is likely to increase to Rs 3053 crore in FY20E reflecting a cash per share of Rs 156/share (in FY20E)," said brokerage in a report dated July 9, 2018.
ICICI Securities expects Graphite India’s topline, EBITDA and PAT to grow at a CAGR of 46 per cent, 55 per cent and 54 per cent, respectively in FY18-20E on the back of favourable operating environment.
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Just last month, global brokerage Macquarie initiated coverage on Graphite with an Outperform rating and a target price of Rs 1260.
"This is the third largest GE producer in the world, with a 12 per cent global market share. It has 98ktpa GE capacity (80kt India, 18kt Germany), supplies >50% of its production in the domestic market and had higher legacy contracts in FY18," Macquarie said.
"We forecast FY19 EPS +267 per cent YoY (+50 per cent consensus). A 25 per cent payout implies a 5 per cent div yield. TP at 7.5x PER FY20E has re-rating and earnings upside," it added.