₹5.85 to ₹638: Multibagger penny stock turns ₹1 lakh into ₹1.09 crore in five years

Multibagger penny stock: If you believe that investing in the stock market is the easiest way to make money, then you are quite far from the truth. Stock market investing requires deep research and patience to earn good profits.

The rally in shares of CG Power exemplifies this statement. Let's take a look at the share price journey of this multibagger stock.

The multibagger penny stock – CG Power and Industrial Solutions – which was once priced at ₹5.85 in 2020, is now trading at ₹638 on the BSE. This means that the stock has rallied as much as 10,923 per cent in the last five years.

To put it in perspective, an investment of ₹1 lakh made five years ago in the stock and held over time would have grown significantly to ₹1.09 crore.

CG Power and Industrial Solutions share price movement

CG Power and Industrial Solutions share price was up nearly 1.53 per cent on Wednesday amid positive market sentiments.

Long-term investors have seen their wealth rise multifold as the shares have surged as much as 13,838.31 per cent per cent in the past 25 years. Meanwhile, the stock's performance has been impressive in a shorter time frame of one year as well, with the scrip climbing 34.44 per cent in this period.

CG Power and Industrial Solutions shares have remained volatile in the last few months. The stock has fallen over 12.50 per cent in the last six months. However, it has ascended 10.23 per cent in over a month despite the market remaining under pressure.

On a year-to-date (YTD) basis, the stock has dropped 13.10 per cent, declining from ₹741 to the current market price.

CG Power and Industrial Solutions dividend

CG Power and Industrial Solutions, on Tuesday, announced that its board has approved an interim dividend of ₹1.30 per equity share, representing 65 per cent of the face value of ₹2 per share, for the financial year 2024-25 (FY25).

"The board of directors of the company at its meeting held today, i.e. 18th March 2025, have considered and approved the payment of interim dividend at ₹1.30 per equity share, i.e. 65 per cent on the face value of ₹2 per share for the financial year 2024-25," said the company in an exchange filing.

The company has designated March 22 as the record date for its interim dividend, with the distribution scheduled on or after April 16.

"The record date for determining the eligibility of shareholders to receive the interim dividend is Saturday, 22nd March 2025. The interim dividend will be paid on or after 16th April, 2025, but within 30 days from the declaration of interim dividend," the company said.

CG Power and Industrial Solutions financial overview

CG Power & Industrial Solutions Limited in Q3 FY25 posted a 68 per cent decline in net profit to ₹237.85 crore for the quarter ended December 31, 2024, as compared to the previous year.

The company's total income for the quarter surged 27 per cent year-on-year to ₹2,549.28 crore, driven by strong performance in the power systems segment, which recorded a 42 per cent revenue growth, reaching ₹920 crore. The industrial systems segment also experienced a 20 per cent annual increase.

Additionally, the board approved a ₹712 crore investment to establish a 45,000 MVA transformer manufacturing unit in western India, set for completion by FY28. This expansion is intended to meet rising domestic and export demand, reinforcing CG Power’s market presence, the company stated.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.