How Rs 10,000 in these 21 stocks turned to over Rs 10 lakh in 10 years

Nearly two dozen companies have shown a remarkable surge in their share price in the domestic equity market, turning a small investment of Rs 10,000 to more than Rs 10 lakh in a decade.

The return came when the benchmark BSE Sensex gained more than 3 times to 79,986 on July 3, 2024 against 25,823 on the same day in 2014.

Meanwhile, the 30-share Sensex also scaled Mt 80K for the first time on July 3, 2024. Most of these companies have also shown robust growth in their top and bottom lines and analysts see more upside in selected stocks going ahead.

Coming back to companies that made investors millionaires in the past 10 years, shares of chemical firm Jyoti Resins & Adhesives have rallied the most 381 times to Rs 1,420.90 during the same period.

The rise shows that the Jyoti Resins & Adhesives has turned an investment of Rs 10,000 to more than Rs 38 lakh at present. Gross sales of the company jumped to Rs 257.30 crore in FY24 against Rs 15.26 crore in FY14. Meanwhile, net profit increased to Rs 67.12 crore from Rs 0.24 crore during the same period.

With a rally of 249 times, IT company Dynacons Systems & Solutions is next on the list. Of late, the company reported gross sales of Rs 1024.44 crore for the year ended March 2024. The figure stood at Rs 77.32 crore a decade ago. On the other hand, net profit of the company jumped to Rs 53.96 crore from Rs 0.58 crore during the same period.

Data further highlighted that Danlaw Technologies India, Cupid, Refex Industries, Olectra Greentech and Sadhana Nitro Chem also rallied somewhere between 150 times to 180 times during the same period.

Brokerage Geojit Financial Services has a ‘Buy’ rating on Olectra Greentech with a 12-month target price of Rs 2,086. Shares of the company traded at Rs 1,811 on July 3.

Olectra Greentech is a subsidiary of Megha Engineering and Infrastructures Ltd. (MEIL). It is primarily engaged in the manufacturing of electric buses and composite polymer insulators.

“With the formation of a JV with BYD (Build Your Design) China for electric buses, the company is expanding its product line in the e-mobility segment with electric truck tippers and hydrogen bus project.

Given the strong order book, capacity expansion, and scalability of multiple powertrains, we value Olectra Greentech at 55 times FY26E EPS and upgrade our rating from ‘Accumulate’ to ‘Buy’,”Geojit Financial Services said in a report.

3B Blackbio Dx, Avantel, KEI Industries, Shivalik Bimetal Controls, Shilchar Technologies, Zen Technologies, Ceenik Exports (India), Apollo Finvest (India), Hazoor Multi Projects, Gujarat Themis Biosyn, Lloyds Metals & Energy, RIR Power Electronics, Stylam Industries and UNO Minda also gained more than 100 times during the same period.

JM Financial has ‘Buy’ call on Shivalik Bimetal Controls with a target price of Rs 730. “Shivalik Bimetal Controls, predominantly a bimetal/electrical contacts manufacturer, has from 2014-15 also ventured into the shunt resistor business. It has gained dominance in the domestic market and is now ready to further expand the export opportunity with capex already done and capacity in place.”

Shivalik is a simultaneous play in three opportunities--switchgear industry, smart metering and EVs. It also aims to increase its revenue contribution from electrical contacts from current around 10/11% by inorganic expansion and opening up of the global opportunity.

Additionally, SBCL has PLI (product-linked incentive) in shunts and is constantly exploring newer industries for its shunt applications, which may include mobile, telecom, renewables, etc. Overall, we expect revenue, EBITDA and PAT CAGR of 25%, 29% and 29% over FY24-26E, with RoCE and RoE 30.4% and 24.1% in FY26,” JM Financial said.

Commenting on Shilchar Technologies, Anand Rathi Share and Stock Brokerages said, “Shilchar has capability to manufacture transformers of up to 132kV, though most of its production is of 66kV and below. 50% of its revenue comes from exports, with realisation of Rs 1m/MVA.

The company is ramping up capacity by 3,500MVA, from 4000MVA now, to meet more demand from domestic/international renewable energy markets. We believe it is set to benefit from the ongoing capex push in renewables.” For FY26, Shilchar had in the past guided to Rs 800-900 revenue, while largely maintaining the current full-year margin of around 28%.