Multibagger stock tracker: Rs 10,000 in this smallcap turned to nearly Rs 12 lakh in 10 years

Shares of Permanent Magnets have offered bumper returns to investors in the last 10 years. The shares have risen 11,940% over the decade. Accordingly, if an investor had invested Rs 10,000 in the stock 10 years ago and stayed put, the investment would have swelled to nearly Rs 12 lakh, according to an analysis by ET Markets.

In the last 3 years, the stock has surged 1064% and has given returns of 781% in the last five years.

Permanent Magnets, a smallcap company with a market capitalisation of about Rs 1,050 crore, is among the flagship companies of Taparia Group and also one of the leading manufacturers of Alnico Cast Magnets and Yoke Assemblies.


It has an EPS of 34.60 on a trailing twelve-month (TTM) basis and the stock is currently trading at a PB of 9.47.

According to the latest shareholding pattern available with the exchanges, promoters own a majority of the stake at 58.01%, while the rest of 41.99% lies with the public shareholders.

Among the public shareholders, mutual funds and foreign investors have no stake, while retail investors have a combined holding of 21% in the company.

For the quarter ended March, Permanent Magnets' total revenues rose 27% (year-on-year) YoY, to Rs 49.3 crore as compared to Rs 38.8 crore in Q4FY22. PAT for the same period stood at Rs 8.79 crore.

Technical outlook:

Analysts say the stock is in the overbought zone and advise investors to buy on dips near Rs 1,170 levels with a stop loss of Rs 1120 for a target of 1,470.

"The MACD is above its centre and signal line, which is a bullish sign. Permanent Magnets touched a new 52-week high on Wednesday. Investors should consider buying this stock around the current levels. It has been maintaining a healthy ROE of 306.06 over the past three years," said Nanavath Bhupal Naik, MD, Shares Bazaar.

With data inputs from Ritesh Presswala

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)