Buyers only multibagger stock: Hind Rectifiers logs over 500% returns

On Friday, Indian market indices were consolidating during intraday trade. More than 250 stocks locked in the upper circuit, with 176 stocks touching their respective 52-week highs. One stock that grabbed the attention of buyers has provided multibagger returns of 566.20% since its inception. Additionally, on Friday, the stock price skyrocketed and locked in an upper circuit of 15% at Rs. 597.15. The trading volume was more than four times the average.

Hind Rectifiers Ltd, commonly referred to as Hirect, is a prominent company specializing in the production of rectifier equipment and semiconductor devices. The company also manufactures a wide range of products designed for use in AC electric locomotives and AC electrical multiple units used in railways.

The shareholding pattern of the company is as follows: 44.08% stake is held by promoters, 49.65% is controlled by retail investors, and 6.26% is in the basket of FIIs. The promoters have not pledged any of their shares. The market capitalization of the stock stands at Rs 990 crore, with a price-to-earnings ratio of 115. The debt-to-equity ratio is 94:100.

Stock Performance:

Hind Rectifiers has demonstrated exceptional stock performance over the years, with a remarkable 149.10% increase in its share price. Even more impressively, the company has achieved substantial growth of 388.16% over the past three years, reflecting consistent and substantial gains. This robust performance is underpinned by a year-to-date return of 165.82%, showcasing its sustained momentum.

The chart above depicts the entire journey of the Hind Rectifier since its inception. The stock traded under Rs 100 around 500 weeks before 2018. It gave its multi-year breakout in 2018, reaching a high of Rs. 250. The resistance at Rs. 250 was strong but was eventually broken by a symmetrical triangle pattern, leading to the stock’s significant gains and multibagger returns.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.