From Rs 20 to Rs 2,000 in 15 years of stock market trading! This blue-chip stock can gain 12% more

By: |
Updated: August 2, 2018 12:31:52 PM

A blue-chip stock has moved from to Rs 2,000 from a share price level of about Rs 20. This large-cap share has returned more than 9900% in the last 15 years of stock market trading.

In the last 15 years of stock market trading, this bank stock has returned over 9900%. (Image: PTI)

In stock market investing, patience is one of the most crucial things one has to trump on while selecting the stocks as value creation doesn’t happen in a quick pinch. Indian equity markets have gone through a number of downturns in the last 15 years such, some of the notable ones include the 2008’s global financial crisis, domestic economic activity slowdown (201the 1-2013), Grexit, Chinese meltdown in 2015, Brexit, sell-offs, trade wars, etc. Despite these many repercussions, the benchmark Sensex has returned a little more than 900% to a level above 37,000 from the mark of nearly 3,700 in the same time.

In the corresponding time, a blue-chip stock has moved from to Rs 2,000 from a share price level of about Rs 20. The appreciation in the share price translates into a whopping return of more than 9900% in 15 years.

Shares of India’s sixth-largest private sector bank by assets and the country’s sixth-biggest bank by market capitalisation or stock market value IndusInd Bank have written a multi-bagger story. The stock of IndusInd Bank has gained 9949% to an all-time high of Rs 2,024.95 from a share price level of Rs 20.15 in the last 15 years of stock market trading. Today itself, IndusInd Bank shares rose as much as 1.18% to hit a record high of Rs 2,024.95 on NSE. According to the historical data available with National Stock Exchange (NSE), IndusInd Bank stock was quoted at Rs 20.15 on 11 July 2013.

The domestic brokerage and research firm Motilal Oswal Securities has given a buy to IndusInd Bank shares with a target price of Rs 2,250 which implies an upside of 12% from the current market price of Rs 2,001.35. Motilal Oswal Securities has projected the ROE (return on equity) of IndusInd Bank at 19.4% (second-highest among all major private banks).

15 years ago, IndusInd Bank stock was neither a part of BSE Sensex nor it was included in Nifty 50 index. Earlier in 2013, the scrip of IndusInd Bank was included in NSE Nifty 50 and last year only, the stock got a place in the benchmark Sensex index along with shares of India’s fifth-largest private sector bank by assets Yes Bank. In the current year 2018 so far, IndusInd Bank shares have returned 21% to Rs 2,001.35 from a share price level of Rs 1,648.9 as on 29 December 2017. IndusInd Bank commands a market capitalisation of Rs 1.2 lakh crore on Bombay Stock Exchange (BSE).

Disclaimer: Views and recommendations given in this section are the brokerage firms’ own and do not represent those of www.financialexpress.com. Please consult your financial adviser before taking any position in the stock/s mentioned.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.