From Rs 24.6 to Rs 99.90: This Rakesh Jhunjhunwal multibagger has given 306 per cent returns in six months
The stock has hit the upper circuit today!
If you had invested Rs 1 lakh in this multibagger real estate stock six months ago, it would have turned to Rs 4.06 lakh today.
DB Realty Ltd which is a part of the ace investor Rakesh Jhunjhunwala’s portfolio has turned multibagger in the recent past. The company has given investors stellar returns of 306 per cent over the last year. The share price of the company stood at Rs 24.6 on September 2, 2021, and since then, it has increased investors’ wealth more than four times.
Rs 1 lakh to Rs 4.06 lakh
Despite the weak fundamental quarter, the share price has gained momentum in the past three months. Chasing momentum stock is considered a risky investment but investors with high-risk appetites prefer to invest in such stocks as it gives high returns. DB Realty Ltd is a glaring example of it. If you had invested Rs 1 lakh in this stock six months ago and had remained invested throughout this period, it would have turned to Rs 4.06 lakh today.
Reason behind momentum in last month
The company gained momentum in February after the announcement of DB realty that it will allot 5 crore warrants to investors, including Rakesh Jhunjhunwala and his wife. This came within days of Godrej Properties cancelling its plans to invest Rs 700 crore in the company to pick up a 10 per cent stake and set up a joint platform. The company will raise Rs 1,575 crore through the issue of warrants in multiple tranches to the promoter group and other investors, as part of its plan to become debt-free. The company proposes to allot 1 crore warrants each to Rekha Jhunjhunwala, Rakesh Jhunjhunwala's RARE Investments, Abhay Chandak and Aditya Chandak. It will also allot 50 lakh warrants each to Lotus Family Trust and KIFS Dealers.
Why the rise today?
The share of the company halted trading after hitting the upper circuit of 4.99 per cent in the early trading session of March 2, 2022. The reason behind this rally is the favourable ruling by Supreme Court. The matter which was under the review of The Supreme Court through public interest litigation (PIL) was cleared by the apex court on February 28 in favour of the real estate developer. The company has won the title vacant land of approximately 22,000 square meters situated in Andheri (East) Mumbai. The company intends to develop the subject land into a 2 million square feet (leasable area) grade A office space in the next 3 years.
At 12:41 pm on Wednesday, the stock of DB Realty Ltd was trading at Rs 99.9, up by 4.99 per cent or Rs 4.75 per share on BSE. The 52-week high of the scrip is recorded at Rs 133.85 and the 52-week low at Rs 16.85 on the BSE.