This Stock Made Investors Wealthy With Returns Of Over 1000% In 3 Years

The multi-bagger stock, from the space of graphite manufacturers, Graphite India Limited has rendered investors in the stock wealthy by multi-folds with return of as much as 1120% in the span of just 3 years.

This Stock Made Investors Wealthy With Returns Of Over 1000% In 3 Years

About the stock: Though the market is under the correction phase, companies with strong fundamentals such as Graphite India can be a good bet even at this time for investors who understand the fickle nature of the stock market.

Brokerages like ICICI Direct and Jefferies are still bullish on the stock: In June this year, the stock was hit severely in respect of its market price as it was put under the ASM or additional surveillance mechanism category of stocks with effect from June 1. There was a sharp decline in the stock by nearly 15%.

Jefferies maintains a target price of Rs. 1,275 a piece for the Graphite India stock while ICICI Direct has a target of Rs. 1250 per share.

Few reasons cited by the brokerages for the bullishness in the stock

1. Bullish landscape in respect of graphite electrode price that are used in the manufacture of steel.

2. Improved availability of the chief raw material i.e. needle coke

3. Tightened demand supply scenario

4. Reduced fears that China may add to the graphite capacity

Outlook in Graphite India stock

The stock holds a positive outlook and on a more recent basis, the stock of Graphite India on the likely prospects of good first quarter results for the FY 2019 rebounded sharply to the current price level of Rs. 1000. In the calendar year, the stock has been a star performer with gains of 40% as against the Sensex which registered an increase of mere 6%.

Goodreturns.in