This stock gave multibagger returns in 2021, doubled shareholders’ money

Multibagger Stock: The shares of Dalal Street’s legendary investor are widely tracked by investors. A part of the portfolio of veteran investor Radhakishan Damani, the shares of Mangalam Organics Limited have given multi-bagger returns to its shareholders in the last 12 months.

On Tuesday, the stock rose 3 per cent to a high of Rs 1,007.65 on the Bombay Stock Exchange (BSE). With a market capitalization of Rs 858 crore, the stock is higher than the 5 day, 50 day, 100 day and 200 day moving averages but lower than the 20 day moving averages.

In the last one year, the share price of Mangalam Organics Limited has increased from Rs 404.85 to Rs 1007.65. During this period, the return of about 149 percent was given.

Big advantage for long term investors
Long-term investors have made huge gains by investing in this stock as it has gained over 2,900 per cent in the last five years and over 4,000 per cent in the last ten years.

According to Marketsmojo, the company has declared positive results for 4 consecutive quarters and has strong debt servicing ability as the company has a low EBITDA ratio of 0.95 times.

Stock is in bullish range
Technical trend has corrected from mildly bullish as on December 13, 2021 and the stock is in technically bullish range. It is trading at a discount to its average historical valuation and has a fair valuation.

Mangalam Organics Limited posted a good set of earnings for the quarter ended September 2021. The company reported a 56 per cent jump in its net profit at Rs 22 crore for the quarter ended September 2021. The profit in the year-ago period was Rs 14 crore. Net sales increased to Rs 143 crore from Rs 85.8 crore in the year-ago period.

Principal investor Radhakishan Damani, owner of Avenue Supermarts Ltd, increased his stake in Mangalam Organics to 4.3 per cent for the quarter ended September 30, from 2.2 per cent in the quarter ended June 30.

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