3 Quality Multibagger Stocks That Grow From ₹1 Lakh To ₹2 Crore In 20 Years

Godrej Consumer Products Limited

Taking into account the Q1FY23 results of Godrej Consumer Products, brokerage firm Sharekhan in a note said that “Godrej Consumer Products Limited (GCPL) posted another quarter with consolidated revenue growth of 8% yoy (volume decline of 5%)”. Delivered soft quarter. 3,125 cr. India business registers 12% y-o-y growth, Personal care segment grew 25% y-o-y while Homecare grew 4% y-o-y Internationally, businesses in Africa, the Americas and the Middle East maintained double-digit growth momentum and grew 12% on CC terms, while Indonesia’s business remained impacted after declining 9% on CC terms. Consolidated Gross margin declined 558 bps year-on-year, while OPM declined by 407 bps to 17% due to higher input cost inflation. The EBITDA margins of India and Indonesia businesses declined by 380 bps and 810 bps, respectively. Profit down 12.8% y-o-y to Rs.532.6 cr. Adjusted PAT down 16.5% y-o-y to Rs.347 cr.”

“Changes in top management and revised strategies focus on growth levers such as increased penetration, cross-pollination, ease of doing business in key markets and increased distribution to drive double-digit revenue growth in the medium term. The company aims to continuously improve OPM through premiumization and operational efficiencies in the medium to long term. The stock is currently trading at a discount valuation of 42.9x/36.7x its FY2023/24E earnings. We maintain our buy on the stock with an unchanged pt of Rs. 959,” said research analysts at Sharekhan.

an investment of 1 lakh now increased. Would have been done 2.13 crore today on the back of excellent 20-year returns of 21,217.07 per cent in Godrej Consumer Products shares. The stock is currently trading at a market price of 874, which represents a potential increase of 9.72 per cent to reach the target price set by the brokerage company Sharekhan. On a year-on-year basis, the stock is down 8.73 percent so far in 2022.

Triveni Engineering & Industries Limited

Speaking about the Q1FY23 results of Triveni Engineering & Industries, Sharekhan in a note said that “Revenue of Triveni Engineering & Industries Limited (TEIL) grew by 22.5% YoY at Rs. Distillery segment with 67% YoY growth in revenue 1,361.5 crore to Rs.379.3 crore, core sugar business with a growth of 17% year-on-year at Rs.1,051.9 crore and engineering business revenue of Rs.95.7 crore with 33% growth in gross margin and EBITDA margin by 653 bps and 509 bps respectively Year-on-year declines to 22.0% and 8.4%. Excluding export subsidy of Rs. 45 crore in the base quarter, EBIDTA margin decline will be around 100 bps. Sugar due to higher cane prices, higher transfer price and lower recovery The Division’s EBIT was lower at 43.8%. Distillery business EBIT grew by 44.2% yoy. This was due to 33% YoY decline in Adjusted PAT along with higher interest expense to Rs.66.4 crore. Grain based distilleries and existing distilleries at Muzaffarnagar and Milak Narayanpur The capacity has been increased to 40 KLPD (from 160 KLPD to 200 KLPD), thereby increasing the total distillation capacity of the company. 660 KLPD. In addition, the company has proposed a new dual feedstock facility of 450 KLPD at Rani Nangal and Sabitgarh, U.P. with an investment of Rs. 460 crores. Its distillation capacity will increase to 1,110 KLPD by Q3FY2024.”

“With higher capacity utilization at the expanded distillery facility and better order book in engineering, TEIL is well poised to achieve strong double-digit earnings growth in FY 2022-FY2025. In addition, the company is focused on enhancing shareholders’ value by unlocking value in non-core investments. The stock trades at 16.3x/13.2x its FY2023E/FY2024E EPS (12.6x/10.1x its FY2023E/FY2024E EV/EBITDA). Structural changes in the sugar industry, strong growth prospects for the distillery business and lean balance sheet will help sustain the strong growth momentum in the medium to long term. We maintain our buy recommendation on the stock with a revised price target (PT) of Rs. 285,” said research analysts at broking firm Sharekhan.

The shares of Triveni Engineering & Industries Ltd. have had a staggering multibagger returns of 30,858.90% over the last 20 years, which means an investment of Rs. 20 years ago, 1 lakh was kept in this stock, which today will cost Rs. 3.09 crore This share is currently priced at Rs. 226.00 represents a potential increase of 26% to achieve the target price set by the brokerage. On a YTD basis, the stock has gained 0.83 per cent so far in 2022.

TRANSPORT CORPORATION OF INDIA LIMITED

In the light of Q1FY23 figures, brokerage firm Sharekhan, in a note, said that “Transport Corporation of India (TCI) reported better-than-expected consolidated revenue of Rs.903 crore (up 29.7% yoy, up 0.6% qoq) during Q1FY2023. Led by a low base with continued demand momentum from Q4FY2022. All three key verticals viz. Sea Route (32.5% of revenue driven by higher freight rates), SCM (up 33.5% y-o-y led by revival in auto sector demand) and freight (up 30.8% year-on-year, though 3.6 percent quarter-on-quarter led by the MSME slowdown) performed well. However, consolidated OPM of 11.5% (down 177 bps QoQ) was below our estimate of 12.9%. All three verticals viz. sewage (increasing input cost), freight (lower LTL mix) and SCM (inability to pass higher fuel cost in larger accounts) felt sequential pressure on OPM. Overall, consolidated operating profit/net profit Growth of 37% / 66% to Rs.104 Crore / Rs.78 Crore Management has increased its Topline and Bottom Line for FY2023 Has retained growth guidance at 10-15% yoy, which is slightly bearish towards the fag end of the financial year. Its capex plan is Rs. 300 crore remains unchanged, although it has not yet been zeroed on the ship for acquisition.”

“TCI’s multi-modal capabilities are expected to benefit from GST-led logistics sector growth tailwinds, Atmanirbhar Bharat, PLI-led manufacturing push and the government’s thrust on plans like global supply chain re-alignment. The sewage division is expected to maintain a strong performance on the back of increase in freight rates, though a gradual normalization of OPM is expected. The addition of another ship will be eagerly awaited and its sea route will get a further boost. We expect TCI to be on a long-term growth trajectory driven by positive sectoral fundamentals and its inherent strengths and capabilities. We maintain our Buy rating on the stock with a revised SOTP based target of Rs. Lowering our valuation multiples of 850 to factor in near-term macro headwinds particularly impacting the MSME segment, claimed research analysts at broking firm Sharekhan.

an investment of 1 lakh held in the shares of Transport Corporation of India Limited 20 years ago would have increased now 2.9 crore thanks to the stock’s staggering multibagger returns of 28,900.00 percent over the past 20 years. The stock is currently trading at a market price of 725.00 per share, indicating a potential growth of 17.24 percent to achieve its target price 850 set by the brokerage. On a year-on-year basis, the stock is down 0.81 percent so far in 2022.

Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.

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