Vijay Kedia portfolio: Money is not in buying and selling of stocks but in wait. So, if someone is investing in stocks, one should have a longest possible vision because stock investments with proper planning gives stellar return to its investors. Cera Sanitaryware shares are glaring example of it. The stock has remained under consolidation phase for last one year, but it is one of the multibagger stocks that Indian stock market has produced in recent years. In last two decades, this Vijay Kedia share has risen from Rs10 to Rs4,725 apiece levels on BSE, rising to the tune of 47,150 per cent in this period.

However, the multibagger stock had turned ex-bonus in September 2010 and the bonus issue was announced in 1:1 ratio. So, if an investor had invested 20 years ago in this stock and had remained invested in this share till date, its actual cost of share would have become Rs5 per share (after doubling of shareholding due to one bonus share for each share of the company) instead of Rs10 apiece. Hence, its actual return would have been 94,300 per cent (47,150 x 2)) due to the 1:1 bonus share issuance.

Cera Sanitaryware share price history

As mentioned earlier, this Vijay Kedia share has been under consolidation phase for last one year. It has delivered just 2 per cent return to its shareholders in last one year whereas in last 5 years, it has surged from around Rs2,735 to Rs4,725 apiece levels, logging around 75 per cent rise in this period. In last 10 years, it has surged from around Rs300 to Rs4,725 apiece levels on BSE, delivering around 1,475 per cent return to its shareholders in last one decade. Similarly, in last 15 years, this multibagger stock has risen from around Rs70 to Rs4,725 levels, recording around 6,650 per cent rise in last one and half decade. Likewise, in last two decades, this multibagger stock has risen from Rs10 to Rs4,725 apiece levels, ascending to the tune of Rs47,150 per cent in this period.

Bonus share impact

As the company had announced 1:1 bonus share in September 2010, a shareholder holding one share got an additional bonus share in return. so, one's shareholding got doubled in the company if it had invested in the company before bonus share issuance. So, if someone had invested in the stock 15 years ago and it has remained invested in the scrip throughout this period, then its buying price would go down at Rs35 per share as is shareholding got doubled due to 1:1 bonus share. So, its actual return in last 15 years would be 13,300 per cent. Similarly, due to bonus share issuance, if someone has invested in the stock 20 years ago, then its actual cost would be Rs5 per share and its actual return would be 94,300 per cent in last two decades.

Impact on investment

If an investor had invested Rs1 lakh in this stock one year ago, its Rs1 lakh would have turned to Rs1.02 lakh today whereas it would have turned to Rs1.75 lakh today. Likewise, if an investor had invested Rs1 lakh in this scrip 10 years ago, it would have become Rs15.75 lakh today. Similarly, if an investor had invested Rs1 lakh in this stock 15 years ago, its Rs1 lakh would have turned to Rs1.34 crore.

However, if an investor had invested Rs1 lakh in this stock 20 years ago, its Rs1 lakh would have turned to Rs9.44 crore today.

Shares of this Vijay Kedia portfolio stock are available for trade on both NSE and BSE. But, earlier it was available on BSE only. It was made available for trade on NSE in November 2007. Current market cap of the stock is Rs6,144 crore and its trade volume on Friday was 49,547 on NSE. As per shareholding pattern of the company for April to June 2022 quarter, Vijay Kedia holds 1.02 per cent stake in the company.