Multibagger stock returned Rs 1.40 crore in 21 years on an investment of Rs 1 lakh: Do you own it?

Can you believe it? An investment of Rs 1 lakh made in this stock 21 years ago would now be worth Rs 1.40 crore!

Can you believe it? An investment of Rs 1 lakh made in this stock 21 years ago would now be worth Rs 1.40 crore! 

The stock price increased from Rs 7.21 on July 6, 2001, to its current price, registering a multi-bagger return and an all-time increase of 13,924.27 per cent. In the last year alone, it had increased by 24.58 per cent.   

The stock's 52-week high on NSE stood at Rs 1,225.00 on April 21, 2022, while its 52-week low was Rs 758.00 on August 30, 2021. It means that the stock is currently trading 17.95 per cent below its 52-week high and 32.59 per cent above its 52-week low.  

Blue Star's Q1FY23 consolidated revenue was in line with our projections but its net profit exceeded our expectations, boosted by greater other income and a reduced tax rate.  

Revenues were reported at Rs 1,970 crore, up by 87 per cent year-over-year. Its operating profit increased by 192 per cent YoY to Rs 123 crore. Due to the high cost of raw materials, its gross margin decreased YoY by 330 bps to 21.1 per cent.  

An operating margin of 6.3per cent was achieved through strict control of labour costs and other expenses (up by 224 bps YoY). The net profit increased more than 5 times to Rs 74 crore in addition to the excellent operational profit growth and increasing other income. Notably, compared to Q1FY20, the regular quarter prior to the pandemic, the increase in the AC business was 24 per cent greater.   

Blue Star Ltd is a mid-sized business in the consumer durables sector with a market cap of Rs 9,679.55 crore. India's largest commercial refrigeration & air conditioning company, Blue Star has 7,500 outlets for room air conditioners, packaged air conditioners, chillers, cold rooms, and refrigeration goods & systems. 

The shares of Blue Star Ltd ended today’s trading session at Rs 1,011.15, up by 1.42 per cent from its previous closing price of Rs 990.95. 

Keep an eye on this stock in the upcoming sessions.