The name of this small cap multibagger stock that makes investors rich is Magellanic Cloud Limited. It offers IT services in software development, consulting, and human resource solutions. Since its listing, the stock has yielded significant profits for investors who entered at the right time. Both long-term and short-term investors have benefited greatly.
The company’s shares soared by 3925.11% in the last two years, multiplying investors’ money by 40 times. Those who invested four years ago have seen an astounding return of 11766.23%. For instance, a ₹10,000 investment four years ago would now be valued at ₹11 lakh.
The company’s shares have performed well year after year. If you look at its annual chart or the table below, you will notice that the company’s stock has consistently performed well, except for declines in 2018 and 2019. Few stocks exhibit such consistent annual growth.
The Company’s Profitability
The remarkable rise in the company’s shares is attributed to its strong financial standing and continual sales and profit growth. Except for the Corona period, the company has consistently shown impressive year-on-year results. Over eight years, sales surged from ₹20 crore to ₹427 crore, and net profit rose from ₹1 crore to ₹74 crore. Additionally, the company’s operating profit margin (OPM) escalated from 8% to 27%.
- The company’s three-year compound sales growth is 35% and its five-year compound sales growth is 22%.
- The compound profit on sales of the company for the last three years is 132% and for 5 years is 76%.
- The company’s share price CAGR has increased by 202% in the last three years and 114% in the last 5 years.
- The company’s return on equity has been 34% over the last three years and 30% over the last five years.
Magellanic Cloud Ltd Year after Year Stock Performance
| Year | Opening | Closing | Gain/ Fall |
|---|---|---|---|
| 2015 | ₹1.00 | ₹4.89 | 389.00% |
| 2016 | ₹4.88 | ₹8.45 | 73.16% |
| 2017 | ₹8.32 | ₹12.48 | 50.00% |
| 2018 | ₹12.44 | ₹9.75 | -21.62% |
| 2019 | ₹9.51 | ₹5.06 | -46.79% |
| 2020 | ₹5.26 | ₹16.88 | 220.91% |
| 2021 | ₹16.89 | ₹18.61 | 10.18% |
| 2022 | ₹18.86 | ₹114.70 | 508.17% |
| 2023 | ₹115.21 | ₹456.85 | 296.54% |
The company’s shares have performed very well year after year. If seen from one perspective, except for one or two years, the company’s shares have shown excellent growth in the remaining years.
Magellanic Cloud Ltd Returns: Compounded and Absolute
If you had invested ₹10 thousand in Magellanic Cloud, what would it have been worth today?
| Period | Return | Returns on ₹10k | CAGR |
|---|---|---|---|
| 1 Year | 426.32% | ₹52 Thousand | 426.32% |
| 2 Years | 3925.11% | ₹4 Lakh | 534.44% |
| 3 Years | 2627.46% | ₹2.7 Lakh | 201.01% |
| 4 Years | 11766.23% | ₹11 Lakh | 230.05% |
| 5 Years | 4400.99% | ₹4.5 Lakh | 114.12% |
| 6 Years | 3623.31% | ₹3.7 Lakh | 82.73% |
| 7 Years | 5639.32% | ₹5.7 Lakh | 78.35% |
| 8 Years | 9457.53% | ₹9.5 Lakh | 76.82% |
| MAX | 45585.00% | ₹45 Lakh | 99.74% |
- Its shares surged by 426.32% in a year.
- Over the past two years, investors have gained a remarkable return of 3925.11%.
- Investors who put money in four years ago have seen a staggering 117-fold increase.
- The company’s stock exhibited a CAGR growth of 114.12% over the last five years.
- It has provided investors with an average annual return of 78.35% over seven years.
- If you invested ₹10,000 in the company’s stock at its listing, those shares would be valued at ₹45 lakh today.
Disclaimer: This article is written for informational purposes only, do not consider it as any kind of investment advice.