Whopping! This stock gave 1100 per cent returns - From Rs 1 lakh to 12 lakh in just 4 years

Stock market is famous for miracles, success stories and surprises. You must have heard about stocks giving 20 per cent, 30 per cent, 50 per cent or even 100 per cent returns as a long term investment. But have you heard about a company that has given over 1100 per cent returns in a period of fewer than 4  years. Shocked? Yes, this has actually happened! 

The company is IOL Chemicals and Pharmaceuticals Ltd. a pharmaceutical company which has multiplied by 1133 per cent (12 times) than its price around four years back. It has a market cap of Rs 1,049.64 crores and is a leading pharma company in India.

Technical Analyst, Simi Bhaumik, told Zee Business Online "the stock has given a fresh breakout of Rs 182 and has witnessed an uptrend since September 2017. The share looks strong on charts, technically."

Here is simple maths of how one could have earned Rs 12 lakhs by investing just Rs 1 lakh, around 4 years back:-

IOL Chemicals and Pharmaceuticals was trading at Rs 15.15 on 3rd February 2014, and is currently trading around Rs 186 for each share. Which means, if a person had invested Rs 1 lakh to buy 6,600 shares of the company in February 2014 at the rate of Rs 15.15 for each share, the investments would have turned to Rs 12,27,600 at a price of Rs 186 for a piece. The return of over 1100 per cent in a period of fewer than 4 years. 

Stock price on 8th January 2019 at closing hrs

Current NSE price of IOL Chem: Rs 191.00 per share
Current BSE price of IOL Chem: Rs 191.10 per share

IOL Chemicals and Pharmaceuticals 4 year price chart as on BSE:

Company's financials:

The company has nearly doubled up its revenue from Rs 563.50 crores (March 2014) to Rs 983.30 (March 2018). The net profit of the company for the same period has gone up by 740 per cent from Rs 3.30 crores to Rs 27.70 crores.

The company has a 5 year compounded sales growth and profit growth of 15.35 per cent and 77 per cent respectively. The company has also reduced 23 per cent debt in the period of 4 years.

It has also increased its cash from operations to a massive Rs 55 crores from a negative Rs -88 crores in 4 years. 

"Any fresh buying is suggested in the stock, even at slight corrections with a stop-loss of Rs 165 to 170 and with an immediate target of Rs 210 to 220," Bhaumik added.

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Company's details:

IOLCP was established in 1986, IOLCP is India's one of the leading generic pharmaceutical company, and is a significant player in the Organic chemicals space. IOLCP has wide presence across various therapeutic categories like, Pain Management, Anti-diabetic, Anti hypertensive, Anti Convulsants, etc. 

IOL Chemicals and Pharmaceuticals Limited (IOLCP) is a leading organic chemicals manufacturer and supplier. An Indian manufacturer of industrial chemicals & bulk drugs for over two decades. 

Company's management includes:

Vikas Gupta (Executive Director), Sandhya Mehta (Additional Independent Director), Chandra Mohan (Non-Executive Independent Director), Vijay Kumar Garg (Joint Managing Director), Pardeep Khanna (Chief Financial Officer)Krishan Singla (Vice President, Company Secretary), Varinder Gupta (Chief Executive Officer, Managing Director)

Note: The investments in equity markets are highly volatile and risky, any investment in any company\stock is advised to be done after reader's discretion.