₹13.5 to ₹8840: ₹1 lakh turns to ₹13 cr in 27 years as IT stock gave one bonus share
After the first wave of the Covid-19 sell-off, the Tata Elxsi share has been rising.
Tata Elxsi’s share price has increased from about 640 to 8,840 per piece (from April 2020 to the present) during the post-Covid recovery, giving its shareholders an approximate 130% return over these two and a half years.
It is therefore one of the multibagger stocks that the post-Covid bounce in the Indian stock market has created.
But this IT stock has a reputation for providing outstanding returns to its stockholders.
Since September 1995, the price of this Tata Group stock has increased from roughly $13.50 to $8,840 per share, yielding a return of around 65,380 percent over the last 27 years.
There is a catch, however. This multibagger IT company gave a long-term investor a 1:1 bonus share in September 2017, doubling their holdings.
Tata Elxsi share price history
This multibagger IT stock has seen base building over the last month, falling from levels of roughly $9,860 to $8,840 per share, a drop of close to 10%.
This Tata Group stock has increased by around 16 percent during the last six months, going from from 7,600 to 8,840 rupees per share.
This IT share has grown significantly year-to-date (YTD) from around 5,900 to 8,840 per unit, increasing by 50% over this time.
Tata Elxsi’s share price increased from around $5,850 to $8,840 during the course of the last year, giving its owners a return of almost 50%.
Tata Elxsi shares have increased from around $815 to $8,840 over the last five years, representing a return of almost 1,000%.
Similar to that, during the last 27 years, this multibagger IT company has rocketed from roughly 13.50 to 8.840 per share, generating a 655 times increase in shareholder wealth.
Impact on investors’ money
An investor might have become a crorepati if he had invested one lakh in this stock 27 years ago and had continued to hold it during that time, according to the price history of Tata Elxsi.
The investor would have received 7,407 firm shares if it had invested one lakh rupees in this counter 27 years prior by purchasing one Tata Elxsi share at a price of 13.50.
Since the corporation handed out one bonus share for every share the investor had in September 2017, his or her ownership would have increased to 14,814 (7,407 x 2).
₹1 lakh turns to ₹13 crore
The current share price of Tata Elxsi is 8,840. If a shareholder had kept their investment in this scrip during this time, their original investment of one lakh rupees in this multibagger stock 27 years ago would have grown to thirteen crore rupees today (i.e., 8,840 times fourteen lakh rupees).