Multibagger stocks: Investing in a penny stock is considered highly risky but investors with high risk appetite prefer to invest in such stocks as it gives massive return to its shareholders in long term. According to stock market experts, investing in stocks is like investing in a business. These days, a good number of investors are investing in startups if they are assured about the success of small company's business model. Similarly, when a high risk investor gets convinced about the sustainability and profitability of the business model of a small listed company, he or she adds such stock in one's portfolio and hold it for as long as they can. Such strategy, some times give exceptional return to its shareholders. 

SRF shares are glaring example of it. It is one of the multibagger stocks in 2021 but the chemical stock has history of giving stellar return to its shareholders. In last 20 years, SRF share price has surged from Rs3.71 (close price on NSE on 22 February 2002) to Rs2424.50 apiece levels today, logging around 65,250 per cent rise in this time horizon.

SRF share price history

In last one month, SRF share price has surged from around Rs2349 to Rs2424 apiece levels, logging around 3.5 per cent rise in this period. In last 6 months, SRF shares have shot up from around Rs1812 to Rs2424 apiece levels, appreciating to the tune of near 35 per cent in this period. In last one year, this multibagger stock has risen from around Rs1090 to Rs2424, clocking around 125 per cent rise in this time. In last 5 years, this multibagger chemical stock has skyrocketed from near Rs315 to Rs2424 levels, soaring around 675 per cent northward in this time horizon.

Likewise, in last one decade, SRF share price has shot up from Rs54.54 levels (close price on 24th February on NSE) to Rs2424.50 levels today, logging around 4350 per cent rise in this period. However, there was a time when this multibagger stock was one of the penny stocks in Indian secondary markets. As mentioned above, this penny stock surged from Rs3.71 apiece levels to Rs2424.50 levels in last 20 years, rising around 653 times in this period.

Rs1 lakh becomes Rs6.53 crore

If an investor had invested Rs1 lakh in this stock one month ago, its Rs1 lakh would have turned to Rs1.03 lakh today whereas it would have turned to Rs1.35 lakh in last 6 months. If an investor had invested Rs1 lakh in this multibagger stock one year ago, its Rs1 lakh would have become Rs2.25 lakh today. Likewise, if an investor had invested Rs1 lakh in this stock 5 years ago, its Rs1 lakh would have turned to Rs7.75 lakh today.

If an investor had invested Rs1 lakh in this multibagger stock 10 years ago buying one stock at Rs54.54 apiece, its Rs1 lakh would have turned to Rs44.50 lakh today. However, if an investor had invested Rs1 lakh in penny stock 20 years ago, and had remained invested in this chemical stock throughout this period, its Rs1 lakh would have turned to rs6.53 crore today.

SRF share price outlook

However, stock market experts are still bullish on the counter. They believe that multibagger chemical stock may give sharp upside moves after retracing in recent sessions. They are expecting this stock to go up to Rs2600 levels in next one month.

Advising stock market investors to add SRF shares in their portfolio; Sumeet Bagadia, Executive Director at Choice Broking said, "This multibagger chemical stock is rebounding from its lower levels and may give technical breakout above Rs2450 on closing basis. After breakout on technical chart pattern, the multibagger stock may give sharp upside movement and can go up to Rs2600 per share levels in one month or say in short term time horizon." 

Sumeet Bagadia of Choice Broking went on to add that positional investors should maintain stop loss at Rs2250 and keep accumulating on every dip as it is set to enter Nifty Next 50 and Nifty 100 index from 31st March 2022.