Grindwell Norton currently boasts a market capitalisation of nearly Rs 23,000 crore.
Shares of the company have gained more than 300 percent in the past three years.
Grindwell Norton, a leading manufacturer and exporter of abrasives and silicon carbide, has emerged as a wealth generator for its long-term investors. This exceptional multibagger stock has multiplied an initial investment of Rs 74,000 into a staggering Rs 1 crore over a span of 20 years.
The company’s recent financial performance, especially in the fourth quarter of the financial year 2023, has been commendable, driving brokerage firms to predict further growth and strength in its shares.
Market experts remained optimistic about the company’s prospects, emphasising its potential for future gains. The stock closed 5.02 percent higher at Rs 2076 apiece on BSE on Tuesday, May 16.
Shares of the company have gained more than 300 percent in the past three years.
Grindwell Norton currently boasts a market capitalisation of nearly Rs 23,000 crore. The company’s impressive performance in the March quarter can be attributed to a resurgence in industrial demand and its recent acquisition of PRS Permacel. Notably, its consolidated revenue witnessed a substantial 19% increase year-on-year, reaching Rs 660 crore in the March quarter. With higher operating income, the company’s net profit surged 11% YoY at Rs 99.2 crore during the same period compared to Rs 89.72 crore in the March quarter last year.
ICICI Securities recently assigned an “Add” rating to the stock and at a target price of Rs 2215 per piece. The brokerage highlighted the company’s consistently strong earnings, which can be attributed to its robust product portfolio and strong demand from various sectors, including industrial, construction, paint, infrastructure, and metal finishing. The brokerage believes that the automotive, construction, and housing sectors will further bolster its growth prospects.
In a remarkable display of long-term growth, Grindwell Norton’s shares have transformed an initial investment of Rs 74,000 into Rs 1 crore over a period of 20 years. On May 23, 2003, the share was valued at Rs 14.61 per piece, and it has since surged to Rs 2062.10. This signifies a remarkable 13,430% increase in investors’ capital during the two-decade timeframe. Notably, the share has witnessed an approximate 16% increase in the past year and provided investors with a return of around 8% in 2023 alone. Over the past five years, Grindwell Norton’s share has delivered a remarkable return of 287%.
Overall, Grindwell Norton’s outstanding financial performance, coupled with positive market sentiment, positions it as an enticing investment opportunity. The company’s consistent growth, bolstered by robust demand from various sectors, makes it an attractive choice for investors seeking substantial long-term returns.
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