₹9.20 to ₹2,086: Multibagger penny stock turns ₹1 lakh into ₹2.26 crore in 11 years

Multibagger penny stock: Investing in the stock market may look like the easiest way of making money. However, only a few realise that it requires a lot of research and patience to earn good profits. 

One such multibagger stock is RIR Power Electronics. Let's take a look at its journey.

The multibagger penny stock – RIR Power Electronics – which was once priced at ₹9.20 apiece in 2014, is now trading at ₹2,086 on the BSE. This means that the stock has rallied as much as 1,986 per cent in the last 11 years.

To put it in perspective, an investment of ₹1 lakh made 11 years ago in the stock and held over time would have grown significantly to ₹2.26 crore.

RIR Power Electronics stock movement

RIR Power Electronics share price was up 5 per cent in Monday's trading session, March 17. At 1:00 pm, the stock was trading at ₹2,086.75 apiece on BSE.

Long-term investors saw their wealth rising multifold as the share surged as much as 6,631.45 per cent in past five years. In the last one year alone, the shares have zoomed 151.64 per cent.

Meanwhile, RIR Power Electronics has failed to attract short-term investors as the stock has descended over 40 per cent in the last six months.

It is to be noted that the shares have risen over 10 per cent in last one month despite weak stock market sentiments. On a year-to-date (YTD) basis, the stock has declined 30.88 per cent, falling from ₹3,018.90 to the current market price.

RIR Power Electronics financial overview

RIR Power Electronics reported a Q3 FY2024-2025 revenue of ₹20.42 crore, up 36.5 per cent year-over-year, and a net profit of ₹1.48 crore, up 32.14 per cent year-over-year.

For Q2, the company reported a 13.31 per cent increase in revenue, rising from ₹16.61 crore in Q2 FY24 to ₹18.82 crore in Q2 FY25. However, net profit declined by 23.12 per cent, decreasing from ₹1.99 crore in Q2 FY24 to ₹1.53 crore in Q2 FY25.

Last month, the Odisha Cabinet approved a customised incentive package for RIR Power Electronics Limited to establish India's first silicon carbide (SiC) semiconductor manufacturing facility in Bhubaneswar. The project entails an investment of ₹618.60 crore and will be executed in two phases over two years.

RIR Power Electronics Ltd provides a diverse range of semiconductor products tailored for industrial applications, such as rectifier diodes, phase control thyristors, inverter-grade thyristors, power modules, diode bridge rectifiers, customized high-power rectifiers, battery chargers, railway equipment, and IGBT stacks. They efficiently manage large-scale orders and export their products worldwide, including to the USA and Europe.

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.