Multibagger stock: The ups and downs of the stock market may have some people uneasy, but those who remain insulated from the short-term triggers and believe in their conviction get rich dividends. Shareholders of Eicher Motors, who invested in the auto stock 10 years or may be 20 years ago, can better define how patience pays to a stock market investors in long term. Eicher Motors share price has risen from ₹3.18 (close price on NSE on 25th January 2002) to ₹2618 (close price on NSE on 28th January 2022), logging around 82,225 per cent rise in these 20 years.
Eicher Motors share price history
For last one year, like any other auto stock, Eicher Motors share has been sideways to negative due to the outbreak of Covid-19 pandemic. In last one month, the stock has surged just 1 per cent whereas in last 6 months, Eicher Motors share price has been able to add mere 0.50 per cent. In last one year, Eicher Motors share price has depreciated from around ₹2842 to ₹2618 apiece levels, logging near 8 per cent loss in this period. In last 5 years, auto stock has surged from near ₹2340 to ₹2618 levels, appreciating around 12 per cent. Thus, in last 5 years, the multinational automotive company stock hasn’t been able to deliver stellar return to its shareholders.
But, those who invested in Eicher Motors shares 10 years ago when Eicher Motors shares were around ₹160 apiece levels, they have got whopping return from the stock as the auto stock has recorded around 1500 per cent rise in this period. Similarly, in last 20 years, Eicher Motors share price has surged from ₹3.18 to ₹2618 levels, clocking near 82 times rise in this period.
Impact on investment
Taking cue from Eicher Motors share price history, if an investor had invested ₹10,000 in Eicher Motors shares one month ago, its ₹10,000 would have turned to ₹10,100 today whereas it would have turned to ₹10,050 in last 6 months. However, if an investor had invested ₹10,000 in Eicher Motors shares one year ago, its ₹10,000 would have turned to ₹9,200 today. If an investor had invested ₹10,000 in Eicher Motors 10 years ago buying one share at ₹160 levels, its ₹10,000 would have turned to ₹1.60 lakh today.
Similarly, if an investor had invested ₹10,000 in Eicher Motors shares 20 years ago buying one stock at ₹3.18 levels, its ₹10,000 would have turned to around ₹82,32,000 today, provided the investor had remained invested in the stock throughout this period.
Eicher Motors share price outlook
However, stock market experts are expecting bull run in the auto counter from now onwards. Giving ‘buy and hold’ tag to Eicher Motors shares; Sumeet Bagadia, Executive Director at Choice Broking said, “The stock looks sideways to bullish. One can buy the scrip at current market price and hold for short-term target of ₹2750 to ₹2800 maintaining strict stop loss at ₹2500 per share levels.”
More about Eicher Motors shares
Eicher Motors has current market capital of near ₹71,330 crore. Its current P/E ratio is 42.95 (sector P/E ratio 53.65) whereas its dividend yield is 0.65 per cent. Eicher Motors share price 52-week high is ₹3018 whereas its 52-week low is ₹2303.70 per shares. Eicher Motors trade volume stands at 8,71,638, which is higher than its 20 days average volume of 7,39,576.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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