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Vadilal Industries: How One Lakh Rupee Became Over a Crore , A Story of 15,000% Returns


Vadilal Industries: How One Lakh Rupee Became Over a Crore , A Story of 15,000% Returns

Imagine investing in a company and watching your money multiply by over 150 times! That's exactly what happened for long-term investors in Vadilal Industries. This popular ice cream and dairy product maker has delivered an astonishing 15,000% return, turning an initial investment of just one lakh rupees into more than a crore rupees. It's a fantastic example of how patience and smart stock picking can pay off big time.The Incredible Journey of Vadilal Shares:Let's break down this amazing growth. If someone had invested in Vadilal Industries back in 2005, when its shares were trading at around₹20, their initial₹1 lakh would have bought them approximately 5,000 shares. Fast forward to today, with the share price hovering around₹3,200, those same shares would be worth a fortune.But the story doesn't end there. Vadilal has also rewarded its shareholders with bonus shares over the years. They issued a 1:1 bonus share in 2012 and another 1:1 bonus share in 2023. What does this mean? It means your initial 5,000 shares would have doubled to 10,000 shares in 2012, and then doubled again to 20,000 shares in 2023.So, those 20,000 shares, at the current price of₹3,200 each, would be valued at a staggering₹6.4 crore! This incredible journey highlights the power of holding onto quality stocks for the long haul, especially when companies issue bonus shares, significantly increasing your holdings without any extra investment.A Look at the Company:Vadilal Industries is a well-known name in the ice cream and frozen foods sector. It boasts a market capitalization of around₹2,000 crore. The company has been performing well recently, too. In the first quarter of the current financial year (Q1FY25), Vadilal reported a 23% increase in profit and a 21% rise in revenue. This consistent performance, combined with its strategic business decisions, has clearly fueled its stock market success.This story of Vadilal Industries serves as a real-world example for investors looking for multi-bagger returns and demonstrates the potential of compounding and bonus shares in wealth creation.

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