This Rs 1 lakh turned into WHOPPING Rs 1.31 crore! 13,285% profit; this is what made it possible
That investor made a killing with this investment would be an understatement! However, the point is, it still has the potential to make more money for investors.
If you want to become rich at a faster rate then the direct stock market investment is an alluring option. However, share market investment is highly risky and hence investors are advised to pick their stocks wisely. According to stock market experts, when Dalal Street indices are behaving erratically, one should choose to adopt a stock-specific strategy. This is especially so for the small-cap shares that have strong fundamentals and can give a higher contribution to the industry they belong to. One should also look at the outlook of the industry the company belongs to while stock picking.
One stock that emerges on top from such an analysis is Berger Paints. It at Rs 3.72 per stock levels in November 2003 and in November 2019, it has scaled up to Rs 490 per stock levels - means one's Re 1 investment in Berger Paints in November 2003 would have become Rs 131.72. So, if a stock market investor had invested Rs 1 lakh in the Berger Paints shares, his or her investment would have turned into Rs 1,31,72,043 today — leaving aside the dividends that Berger Paint management announced during this period.
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Elaborating upon how to choose shares that can give such a whopping return in long-term, Prakash Pandey, MD & CEO at Plutus Advisors said, "We advise stock market traders to adopt stock-specific strategy when the popular indices at Dalal Street are topsy-turvy. If major indices are volatile, being a smart investor, one should move to mid-cap and small-cap stocks and choose those stocks whose fundamentals are strong and the industry they belong to are also expected to perform better."
See last three years performance of Berger Paints shares:
On Berger Paints whopping returns, Pandey said that the paints industry is related to chemical, real estate and some other industries. In this period of sixteen years, the real estate industry had a good run in the first 10 years and the chemical industry is an evergreen industry whose benefits trickled into Berger Paints, causing share price to surge.
On the future outlook for the Berger Paints share price, Sumeet Bagadia, Executive Director at Choice Broking said, "Berger Paints share price is still bullish and showing an upside movement. Currently, it is oscillating around Rs 485 per stock levels. The Berger Paints stock price has strong resistance at Rs 500 levels once it breaks it down then it would soon showcase Rs 630 per stock levels." However, Bagadia advised stock market investors to maintain the stop loss at Rs 460 if someone takes a buy position in the Berger Paints counter.
Asked about other such stock that an also give better returns Pandey said that Polycab is another such mid-cap stock that can give around 100 times return in the next fifteen years. He said that Polycab has strong fundamentals and the industry it belongs, it has emerged major competitor to Havells India and currently, Polycab has one third market volume in comparison to the Havells India.
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