₹ 1 lakh increase 1000 times to ₹ 10 Cr after two bonus shares: Buy shares?

Birlasoft Ltd is a mid-cap company with a market capitalization of 9,465.58 Crore operates in the IT sector. As part of the diversified multi-billion dollar CK Birla Group, Birlasoft is involved in digital, technology and enterprise services. According to Value Research data, Birlasoft Ltd. is a debt-free company, but what’s even more appealing is that this stock has provided long-term returns to its shareholders, which is like the coating on the cake.

Share price history of Birlasoft

Shares of Birlasoft Ltd closed today at Level 338.05 per person, up 2.88% from the previous closing level of 328.60. The stock price has skyrocketed from 1.34 as of January 12, 2001 against current market prices records multibagger returns and an all-time high of 25,127.61%. If an investor has invested 1 lakh on this share from the early stage of the company, then he/she will get 74,626 shares by that time. Not long after the investment on January 4, 2007, the company announced a 1:1 bonus issue, which changed the number of shares held by investors and showed ownership of 1,492 .252 new shares of the company. Again on March 13, 2012, the company issued a bonus in the ratio of 1:1 and long-term investors will definitely get an advantage from it, as the total number of shares increases to 2, 98,504 the value and value of the stock also increased and it totaled more than 10 Crores generates 1000 times the value of what was invested 21 years ago.

Over the past 5 years, this stock has delivered a multibagger return of 421.60%, resulting in a CAGR of around 35.50%. Over the past year, the stock is down 17.29%, and on a year-to-date basis, the stock is down 40.43% so far in 2022. According to the NSE, the stock hit a 52-week high of . 585.85 on (January 10, 2022) and the 52-week low of 306.15 on (August 29, 2022) shows that at current market prices, the stock is trading 42.26% below the high and 10.48% below the low. At today’s closing price, the stock is trading above the 5-day, 10-day, 20-day and 50-day EMAs but below the 100-day and 200-day exponential moving averages (EMAs). The RSI for Birlasoft Ltd is 51.02, indicating that the stock is neither overbought nor oversold. The company has a book value per share of 92.25 results in a price-to-book (P/B) ratio of 3.66. The stock is also trading at a P/E ratio of 20.11, and due to the stock’s low P/B and P/E ratios, the stock is currently undervalued when compared to its peers. such as Affle India, Coforge, Persently Systems Ltd, L&T Technology. Services Ltd, Mphasis and Tata Elxsi.

Should you buy stocks?

Research analysts at brokerage Prabhudas Lilladher have recommended ‘BUY’ the shares for short-term profit as they have maintained a target price of . 375 and recommend keeping stop loss 320. Today, they said in their research note that “The stock has maintained a decent bottom near 305 levels and is now pointing to a decent pullback to improve the trend and also to break through resistance. The resistance of the descending trendline is 333 to reinforce the trend. We anticipate another up move with the RSI also strengthening and trending up. With the chart looking attractive and with tremendous upside potential, we recommend and recommend this stock with a bullish target of 375 and a stop loss of 320.”

Disclaimer: The views and recommendations expressed above are those of individual analysts or brokerage firms, not those of Mint.

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