Looking for multibaggers? This mid-cap auto stock gained 1100% in last 5 years! May return up to 50% more

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Published: July 3, 2018 1:40:50 PM

Interestingly, there have been numerous multi-baggers which have posted multi-fold gains over last five years. We take a look at a mid-cap auto stock that has returned more than 1100% in last five years.

The stock of CEAT has jumped 1113% to Rs 1,259.2 from a share price level of Rs 103.8 as on 3 July 2018 on NSE. (Image: PTI)

The domestic share markets have emerged as one of the best gainers in the last five years at least compared to the big three equity markets of America, China and Japan. In the corresponding time, the benchmark indices Sensex and Nifty have outperformed the headline global indices such as America’s Dow Jones Industrial Average, China’s Shanghai Composite Index and Japan’s Nikkei 225. In the same time Sensex and Nifty have logged a gain of about 81 and 82%, respectively with shares of many blue-chip companies such as RIL, Maruti Suzuki, TCS, and HDFC Bank.

Interestingly, there have been numerous multi-baggers which have posted multi-fold gains over last five years. We take a look at a mid-cap auto stock that has returned more than 1100% in last five years.

Shares of tyre maker and rubber products manufacturer CEAT Ltd have risen like a rocket in the last five years. The stock of CEAT has jumped 1113% to Rs 1,259.2 from a share price level of Rs 103.8 as on 3 July 2018 on NSE. With such a steep appreciation in share prices of CEAT Ltd, the company’s market cap has swollen to nearly Rs 5088 crore. The domestic research and brokerage firm Motilal Oswal Securities has a ‘buy’ rating on CEAT with a target price of Rs 1,845 which implies an upside of 47% from the current market price of Rs 1,258.

Shares of CEAT are categorised in the ‘A’ group on BSE and are a component of S&P BSE 500 and Nifty Auto indices, among others. CEAT Ltd is all set to convene its 59th annual general meeting later this month. The 59th annual general meeting of the company scheduled to be held on Friday, 20 July 2018 at 3.30 pm at The Auditorium, Textile Committee, next to Trade Plaza (TATA Press), P. Balu Road, Prabhadevi Chowk, Prabhadevi, Mumbai 400 025, CEAT informed in an exchange filing.

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