Some stocks in the stock market make investors millionaires or millionaires in a short span of time. Those who have such shares in their portfolio, their luck opens up. One such multibagger stock is Permanent Magnet, which has generated manifold return on investment in a decade. Investors who had invested Rs 10,000 in this stock 10 years ago and retained it till now, are now getting Rs 12 lakh.
Permanent Magnet is one such stock which has given bumper returns to the investors in the last 10 years. This share has increased by 11,940 percent in a decade. Getting 12 lakhs on an investment of 10 thousand is not an unusual thing. In the last three years also, Permanent Magnet has generated strong earnings and this stock has gained 1064 percent while in the last five years this stock has given a return of 781 percent.
Permanent Magnet Company Operation
Permanent Magnet is a Small Cap company with a market capitalization of Rs 1050 crore. It is the flagship company of the Taparia Group and a leading manufacturer of Alnico Cast Magnets and Yoke Assemblies. On last 12 months basis the EPS of the company is 34.60 and the stock is currently trading at PB of 9.47.
As per the shareholding pattern given to the stock market, its promoters hold more than 58 per cent stake in the company while public shareholders hold 41.99 per cent. Mutual funds, public shareholders and foreign investors have no stake in the company’s shareholders, while retail investors jointly hold 21 per cent stake in the company.
Technical Outlook for Permanent Magnets
Analysts believe that this stock is in overbought zone and should be bought near 1170 levels. The target price for the stock is Rs 1470 with a stop loss of Rs 1120. Permanent Magnet hit a 52-week low of Rs. 313 while the fifty two week high of Rs. Is. 1275 Permanent Magnet’s total revenue for the quarter ended March grew 27 per cent to Rs 49.3 crore from Rs 38.8 crore in the previous year’s fourth quarter. The profit after tax of the company during this period stood at Rs 8.79 crore.