₹8 to ₹1380: Multibagger penny stock turns ₹1 lakh into ₹1.72 crore in 10 years

Multibagger penny stock: The Indian stock market has given several multibagger stocks that have driven a multifold increase in investors' wealth over the years. However, the crucial factor is to find such stocks and stay put for the long term to reap rewards. 

One such multibagger penny stock is Associated Alcohols & Breweries. Let's take a look at the share price journey of this multibagger stock.

The penny stock – Associated Alcohols & Breweries – which was once priced at ₹8 in 2014, is now trading at ₹1,380 on the BSE. This means that the stock has rallied as much as 1,625 per cent in the last 10 years.

To put it in perspective, an investment of ₹1 lakh made 10 years ago in the stock and held over time would have grown significantly to ₹1.72 crore.

Associated Alcohols & Breweries share price movement

Associated Alcohols & Breweries share price was down nearly a per cent on Tuesday despite positive market sentiments. 

Despite this, long-term investors have seen their wealth rise multifold as the shares have surged as much as 814.45 per cent in the past five years. In the last one year alone, the shares have zoomed 190.59 per cent.

It is interesting to note that the stock has delivered positive returns despite the market reeling from trade war jitters and the FPI selloff. Associated Alcohols & Breweries share price has gained over 40 per cent in last six months and nearly 35 per cent in a month.

On a year-to-date (YTD) basis, the stock has ascended 24.36 per cent, rising from ₹1,120 to the current market price.

Associated Alcohols & Breweries financial overview

Associated Alcohols & Breweries Limited reported net sales of ₹327.02 crore for the December quarter, a 71.29 per cent increase from ₹190.91 crore in same period a year ago.

The company's quarterly net profit rose by 107.56 per cent to ₹26.09 crore, up from ₹12.57 crore in the same period the previous year. Earnings before interest, taxes, depreciation, and amortization (EBITDA) reached ₹40.63 crore, marking an 83.76 per cent growth compared to ₹22.11 crore in December 2023.

Consequently, the earnings per share (EPS) increased to ₹14.43 in December 2024 from ₹6.95 in December 2023.

Associated Alcohols & Breweries Limited (AABL) boasts a diverse portfolio of seven proprietary brands, including Central Province Whisky, Titanium Triple Distilled Vodka, and Nicobar Gin. In addition to its own labels, AABL manufactures renowned international brands such as Bagpiper Whisky, McDowell's No. 1 Celebration Rum, and White Mischief Vodka. The recent introduction of Hillfort Premium Blended Malt Whisky reflects the company's strategy to broaden its offerings and adapt to evolving consumer tastes.

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.