A glaring example of how stock market pays to its long term investors is Eicher Motors shares. This auto stock, which was once a penny stock is now available at ₹3,145 apiece and in last 20 years, it has risen from around ₹7.50 to ₹3,145 per share levels, delivering around 420 times growth to its long term shareholders. It is one of the multibagger stocks that Indian stock market has produced in post-Covid rally.
Eicher Motors share price history
This auto stock has given sharp upside moves in YTD time, delivering more than 15 per cent return to its shareholders. It is one of the multibagger stocks in 2021 in India as it surged from ₹1270 to ₹2500 levels in first 9 months of FY21. In last six months, this auto stock has risen from around ₹2600 to ₹3,145 apiece levels, logging near 21 per cent jump in this period. In last 10 years, this auto stock has risen from around ₹206 to ₹3,145 apiece levels, logging to the tune of 1,425 per cent return to its shareholders. In last 20 years, it has risen from ₹7.50 apiece levels on NSE to ₹3,145 per share levels, delivering around 41,900 per cent return to its shareholders. In this period, we are not including the dividend that company has announced in various financial years.
Impact on investment
Taking cue from Eicher Motors share price history, if an investor had invested ₹1 lakh in this stock, six months ago, its ₹1 lakh would have turned to ₹1.21 lakh today. If an investor had invested ₹1 lakh in this auto stock 10 years ago, its ₹1 lakh would have turned to ₹15.25 lakh today. Likewise, if an investor had invested ₹1 lakh in this stock 20 years ago buying one stock paying ₹7.50 apiece, one's ₹1 lakh would have turned to ₹4.20 crore today.
