Multibagger - Maruti Suzuki, 380% Return in 5 Years


multibagger maruti suzuki

Hello friends, welcome to our Proven Multibagger segment where we bring stocks to your focus with exceptional return. Today's stock is a well known company, Maruti Suzuki. It's tag line is "The Way Of Life" and it seems it is really making way of life for it's investors. This company is operating in auto industry and a leader in passenger vehicle segment. But why I am writing this? Every one knows this and so I said that this is a well known household company.

In India normally people invest in small cap stock, mid cap stocks. Reason is quite simple either they don't know the risk associated with these stocks or they prefer more the risk more the return theory. Maruti Suzuki has proven this statement wrong. Being a large cap company it has given return more than many small cap and mid cap company in last five years. I am not wrong if I say that Maruti contributes a mazor portion of the rally which we are witnessing in Nifty today.

Now let's come to it's investment and return on investment calculation.

Maruti weekly chart


This is the weekly chart of Maruti Suzuki. In 2014 this share's price was around ₹1800. Whenever I see chart like this I feel super excited. Just see the chart there is no downtrend at all and this stock is moving in an uptrend from last 5-6 years. Now it is consolidating around ₹8600-8800 but I have confidence that soon it's price will start to climb the ladder again.  If you had invested ₹90000 in Maruti in 2014 then now you have 50 number of  shares of Maruti Suzuki and your investment value will be ₹434000. This is just the capital appreciation. If we consider the dividend income then it comes around 2018- ₹80 , 2017- ₹75, 2016- ₹35, 2015-₹25, 2014-₹12, total ₹227 per share that comes around ₹11350. Interestingly Dividend income are exempt from tax, so that was an added benefit. So you got 380% absolute return in Maruti Suzuki and that's not a small return.

I always say that nothing can beat the return of stock market and stocks like Maruti are live example of it. So I'll advise new investors to invest in quality stocks and remain invested for a longer period for long term wealth creation. Stick like this never disappoint you. 

Thank you for your time. Comment your questions and suggestions.

Happy Investing.

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