An investment of Rs 1 lakh in this stock became Rs 93 lakh in 10 years.
Patience is one of the most important virtues for stock market investors across the globe. According to ace investors, while investing in a value stock, one must look at the business model and growth outlook of the industry as well as the company.
After getting a positive answer on these two, one should maintain a buy, hold and forget strategy because going deep long helps an investor to get compounding benefit on the investment which can give wonderful returns.
The most glaring example of how patience pays in stock market investment is the shares of Aarti Industries Limited. This multibagger stock has risen from Rs 11.90 apiece (close price on September 30, 2011, on NSE) to Rs 1109.30 per share levels (close price on October 8, 2021, on NSE) — rising 93 times in a decade.
Aarti Industries Limited (AIL) is a leading Indian manufacturer of speciality chemicals and pharmaceuticals with a global footprint. Over the last decade, AIL has transformed from an Indian company servicing global markets to a global entity with state-of-the-art manufacturing facilities in India. It manufactures chemicals used in the downstream manufacturing of pharmaceuticals, agrochemicals, polymers, additives, surfactants, pigments and dyes.
Impact on investment
Taking a cue from Aarti Industries share price history, if an investor had invested Rs 1 lakh in this chemical stock six months ago, its Rs 1 lakh would have turned to Rs 1.46 lakh whereas if the investor had invested Rs 1 lakh in this stock one year ago, its Rs 1 lakh would have turned to Rs 1.90 lakh today. Similarly, if the investor had invested Rs 1 lakh in Aarti Industries shares five years ago, its Rs 1 lakh would have become Rs 7.5 lakh today.
Astonishingly, if an investment of Rs 1 lakh in this counter 10 years ago at the close price of September 30, 2011, on NSE, would have turned to Rs 93 lakh today, provided the investor had remained invested in this stock throughout this period.
Such is the power of compounding and the results of staying invested for the long term.
Share Market Today
| Indices Name | Price | Price Change (% change) |
|---|---|---|
| S&P ASX 200 | 7683.00 | -7.7 (-0.1%) |
| CAC 40 | 8091.86 | 0 (0%) |
| DAX | 18088.70 | 0 (0%) |
| Dow Jones | 38460.92 | -42.77 (-0.11%) |
| FTSE 100 | 8040.38 | 0 (0%) |
| Hang Seng | 17225.16 | 23.89 (0.14%) |
| US Tech Composite | 15717.75 | 16.11 (0.1%) |
| Nikkei 225 | 37628.41 | -831.67 (-2.16%) |
| S&P 500 | 5071.63 | 1.08 (0.02%) |
| Gift Nifty | 22421.50 | 51.5 (0.23%) |
| Shanghai Composite | 3046.74 | 1.92 (0.06%) |
| Taiwan Weighted | 19857.42 | -274.32 (-1.36%) |
| US 30 | 38388.30 | 6.5 (0.02%) |
Start Investing in 5 mins*
Rs. 20 Flat Per Order | 0% Brokerage
