Multibagger stock: Investing in stocks is like investing in a business. According to Charlie Munger, one should buy and hold a stock as long as one can. From this stock investment tip, the business partner of Warren Buffett probably tried to make investors understand that long term stocks give high return on total investment. This long term shareholding includes other benefits like periodic dividend payment. According to stock market experts, long term shareholding helps an investor minimize one's risk factor as well.

To understand how long term shareholding can benefit a shareholder, one needs to look at Rama Phosphates shares. This fertilize maker stock is one of the multibagger stocks in 2021 as it has delivered around 235 per cent return to its shareholders in this period. However, this is not the first year, when this multibagger stock has delivered whopping return to its shareholders. It has a history of generating alpha return beating key benchmark return by big margin. So, if an investor had invested in this stock decade or more than a decade ago, its money would have grown many folds.

Rama Phosphates share price history

In last one month, this multibagger stock has been under selloff heat. Rama Phosphates share price has dipped from near Rs400 to Rs361 levels, dipping around 10 per cent in this period. The stock has remained sideways for last 6 months yielding mere 8 per cent return to its shareholders. However, in last one year, this multibagger stock has generated alpha return of staggering 235 per cent after surging from Rs108 to rs361 levels. Likewise, in last 5 years, Rama Phosphates share price has appreciated from Rs75.95 to Rs362 levels, logging near 380 per cent rise in this period.

In last 10 years, this multibagger share's price has shot up from around Rs51 to rs362, appreciating to the tune of 610 per cent in this period. However, in last 19 years, this stock has ascended from Rs2 (close price on BSE on 13th March 2003) to Rs362 levels today, logging near 18000 per cent rise in this period.

Multibagger penny stock: Rs1 lakh turns to rs1.81 crore

Taking cue from Rama Phosphates share price history, if an investor had invested Rs1 lakh in this multibagger stock, one year ago, its Rs1 lakh would have turned to Rs3.35 lakh today whereas it would have turned to Rs4.80 lakh in 5 years. If an investor had invested in this stock 10 years ago, its Rs1 lakh would have turned to rs7.10 lakh today.

Similarly, if an investor had invested in this multibagger penny stock 19 years ago and had remained invested in this scrip throughout this period, its Rs1 lakh would have turned to Rs1.81 crore today.

Rama Phosphates share price outlook

However, stock market experts are still bullish on the counter. They are of the opinion that the stock is currently trading sideways with positive bias. They expected this multibagger stock to hit Rs550 per share levels in short to medium term.

Speaking on this multibagger share price outlook; Anuj Gupta, Vice President at IIFL Securities said, "Rama Phosphates share is trading between Rs300 to Rs400 range from last 8 month. Trading either side may trigger a momentum in the stock. As the long term trend of this multibagger stock is positive, we are recommending buy on a dips levels maintaining stop loss at Rs274 for short term target of Rs400 to Rs450. Trading and closing above Rs400 levels on weekly basis may lead the targets towards Rs500 to Rs550 levels in medium term."