17,000% gain! Multibagger smallcap stock turns Rs 10,000 to Rs 17 lakh in just 10 years
Shivalik Bimetal Controls have rallied by a massive 17,600% in the last 10 years, offering jaw-dropping returns to investors. If one would have invested about Rs 10,000 in stock a decade ago, the amount could have swelled to over Rs 17 lakh, according to an analysis by ET Markets.
The shares have delivered solid returns in the last three years, too, with a 2150% rise, and gained about 400% in the same period.
Shivalik Bimetal Controls is a company specialised in the joining of material through various methods such as diffusion bonding, electron beam welding, solder reflow and resistance welding.
It has a market capitalisation of about Rs 3,204 crore and an EPS of 13.22 on a trailing twelve month (TTM) basis.
The stock is currently trading at a PB of 12.57.
According to the shareholding pattern available with the exchanges, promoters own majority of the stake at 60.61%, while the remianing 39.39% lies with the public shareholders.
Among the public shareholders, mutual funds and foreign portfolio investors don't have any stake, while retail investors, with 25% stake, are betting big on the company.
Shivalik Bimetals reported an 18% jump in first-quarter profit to Rs 20.23 crore, while revenue from operations jumped 16% to Rs 113.07 crore.
What should investors do?
Analysts advise existing investors to hold the stock, while fresh buys can be made until the stock is above Rs 510.
«On the daily chart, the stock saw a sharp correction after reaching a high of Rs 750 in mid July. It almost tested the 200-day SMA (Rs 496) by making a low of Rs 501 and has bounced to the current level of Rs 558.
The stock is still outperforming the benchmark indices. However, the momentum indicators viz RSI do not show any positive pattern.
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