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  1. Looking for multibaggers? This mid-cap stock gained 727% in 27 months; buy now and earn up to 83%

Looking for multibaggers? This mid-cap stock gained 727% in 27 months; buy now and earn up to 83%

In the last two years, there were many stocks that have grown more than 500%. We take a look at one such mid-cap share that has gained 727% in just 27 months.

By: | Published: June 12, 2018 2:37 PM
Shares of the Hyderabad-based cement manufacturer Rain Industries have returned more than 700% in the span on 27 months.

The domestic share markets have been on a cyclical trend especially in the last two years with many stocks vastly outperforming the benchmarks and several stocks destroying value. In the corresponding period, the key equity indices Sensex and Nifty have touched their respective all-time highs breaking the previous records. The rally in the headline indices is primarily because of sharp uptick in the heavyweight shares such as HDFC Bank, Reliance Industries (RIL), Maruti Suzuki and HUL.

In the beginning of this year only, Nifty 50 index crossed 11,000 mark after breaching the five-digit figure of 10,000 in August 2017 following the macroeconomic reforms such as implementation of nation-wide tax reform GST by Narendra Modi government and economic boosters such as Moody’s sovereign credit rating upgrade, World Bank Ease of Doing Business ranking upgrade and PSU bank recap plan of Rs 2.11 lakh crore.

In the last two years, there were many stocks that have grown more than 500%. We take a look at one such mid-cap share that has gained 727% in just 27 months.

Shares of the Hyderabad-based cement manufacturer Rain Industries have returned more than 700% in the span on 27 months. The stock of Rain Industries has surged 727% to Rs 232.7 from a share price level of Rs 28.15 as on 16 March 2018 on NSE. Following the massive spike in the share prices, the market capitalisation of Rain Industries has moved nearly to Rs 7,835 crore from Rs 950 crore (approx) in the 27 months.

The domestic research and brokerage firm Motilal Oswal Securities has given a buy with an upside of 83% to a target price of Rs 426 from the current levels. Rain Industries shares has an EPS (earnings per share) of Rs 23.7 and Motilal Oswal Securities has estimated an EPS of Rs 35.2 and Rs 39.8 by the end of in FY19 and FY20, respectively.

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.

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