Sunday 7 June 2015

ULTIMATE MULTIBAGGER STORY INFOSYS D07M06Y2015

Infosys has been one of the most successful and commendable indian business venture of our times. This company needs no introduction. It will very difficult to find some one, who may not have heard of this company, or come across any anecdotes about this stupendous entrepreneurial success.    

Co-founded by seven software professionals in 1981, the company was incorporated as "Infosys consultants Pvt. Ltd." in Pune with rs. 10,000 as its initial capital.  In 1992 it became a public limited company with the name "Infosys Technologies Ltd". Over the next 2 decades this company went on the become the second largest IT services company in India, and one of the top 10 publicly traded company in the India.  

A one-time investment of Rs.1,00,00 by buying 1000 shares of Infosys during its IPO would now be worth approximately 25 crores (Twenty Five crore rupees). That makes it at the least, a 2500-bagger
Mind boggling!!   

Even assuming one lakh rupees was a lot of money in at that time, even an investment of 10,000 rs. which a lot of people could have surely managed, could have transformed into around 2.5 crores now. Yes, that is 2,50,00,000 rupees!!  

HOW INFY BECAME SUCH A STUPENDOUS MULTIBAGGER     
1. Revenues story -> Rs. 512 crores in the year 1999, 9521 CR in 2006 and 50,132 CR in FY2014
2. Net profit story -> Rs. 132 crores in 1999, 2458 CR in 2006 and 10,656 CR in FY20124
3. Dividend story -> Rs. 15 (2001), 12.5 (2002), 14.5 (2003),
                                                  Rs. 115 (2004), 38.5 (2006), 55 (2010), 35 (2011), 47 (2012)
4. Bonus story -> 1994 (1:1), 1997 (1:1), 1999 (1:1), 2004 (3:1), 2006 (1:1), 2014 (1:1)

INTERESTING INFO        
1. Infosys made an IPO offer in February 1993 at a price of rs. 95 per share, that is, a share with FV of rs. 10 and rs. 85 as a premium.
2. The stock got listed on the exchanges in June 1993 and opened at an approx price of rs. 140
3. Infosys IPO was almost a debacle. It was under-subscribed, and hence Morgan Stanley bailed them out, by buying a good portion of equity at offer
4. In the year 1999, the share price of Infosys moved to 8100 rupees making it one of the most expensive share in the market by denomination      

MY TAKE      
Finding a company like Infosys in its early stage, and benefiting from it to the maximum, is very difficult. How ever, with some diligent research of the past years, we will be able to find at least 25 - 50 super multibaggers over the last 2 decades.         
Even though they may not be 2500-bagger like Infy, it is quite enough, even if they are 100-baggers or 200-baggers. One lakh to one crore rupees or two crores, even if it takes 12, 15, 18 years, is not a bad deal at all.
 

Over the next 2 decades, there will be many such opportunities!!
The point is, even if we are successful with one such find, by investing a good amount in it, and forgetting it for 10, 12, 15 years, then you pretty much need not do anything. Even if it takes us 1, 2, 3 years to find that kind of a potential multibagger, it is worth it.       


Disclosure: I do not own shares in Infosys.    

Important note: The objective of this blog is to share knowledge and info about multibagger ideas/opportunities. Neither is this trading website nor an analyst website nor a Buy/Sell call website. For stock market success, always do your home work, own analysis and make your own decisions.  

     
For consultation(commercial) and JV ideas; 
                                                   you can contact me via zorbayogi9@gmail.com

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