Multibagger stock: Up 955%, Mazagon Dock shares turned ₹10,000 into ₹1 lakh in 3 years; should you buy?

livemint.com:

Mazagon Dock Shipbuilders have given exceptional returns to their investors in the last 3 years. The stock surged from ₹218 in January 2021 to around ₹2,300 currently, rallying almost 955 percent in 3 years. This implies that an investment of ₹10,000 in this penny stock in January 2021 would have turned into ₹1.05 lakh this year.

The stock has been flat in January so far, up just half a percent, but extended gains for the third straight month. Before this, it rose over 13 percent in December 2023. In 2023, the stock gave positive returns in eight months and was in the red in 4 months (February, March, August and October).

It gave double-digit returns in 5 of those 8 months it was positive in. The stock rallied the most in June, up over 54 percent, followed by July, up over 52 percent and September, up 18.5 percent. Meanwhile, it shed the most in October, down 10.3 percent, followed by February, down 9.3 percent, and March, down 7.8 percent.

Currently trading around ₹2,300, the stock is over 7 percent away from its record high of ₹2,483, hit on September 8, 2023. Meanwhile, it has skyrocketed over 275 percent from its 52-week low of ₹612.80, hit on March 27, 2023. Meanwhile, in the last 1 year, it has surged 175 percent.

Amid the Indian government's concerted efforts to bolster self-reliance in defence, particularly through initiatives like 'Make in India,' the defence sector has become a focal point of heightened market interest. Notably, Mazagon Dock, a key player in the sector, has emerged as a standout performer, garnering attention for its role in advancing indigenous manufacturing and contributing to the country's defence capabilities. The government's emphasis on domestic production and self-sufficiency has spurred