16,900,000% Returns: How Titan Clocked Out Astounding Gains
If you had invested ₹1 lakh in August 2002, you could have had a whopping ₹169 crore profit! This multibagger yielded 16,900,000% returns in just 20 years. Here’s a closer look at the company.
⌚ Stock Name: Titan Company Ltd.
⌚ NSE: $TITAN
♻️ Dividends, Bonus Shares and Buybacks
A stock price surge is not the only way investors can make money. Here are a few other ways:
➕ Bonus Shares: When investors get additional shares at no extra cost.
🪙 Dividends: Monetary reward given to investors for staying invested in the company.
🔙 Share Buybacks: The company decides to buy its own shares back from investors.
🪓 Stock Splits: A single share turns into multiple shares without affecting the market capitalisation of the company.
⏳ A Stock That Stood The Test Of Time
In the last 20 years, a single share of Titan has yielded 845% returns. But that’s not all. Here’s how this brilliant stock rewarded its investors.
👉🏽 Bonus Shares + Stock Split
On 23rd June 2011, the company announced bonus shares in the ratio of 1:1 and a stock split of 10:1. A stock split does not result in direct profit for the investor—it increases the number of shares an investor has but reduces the cost of the initial investment.
👉🏽 Cost Price Decrease
The input cost of the investors who purchased Titan’s shares 20 years ago, in August 2002, decreased to 10% of their real cost as Titan announced a 10:1 stock split in June 2011. Therefore, the cost price for shareholders who invested 20 years ago further decreased by 50%, given the issue of bonus shares. As a result of the stock split, their input cost was already estimated at 10% of the total cost. Their cost price was further reduced to 5% of their real purchasing level by the bonus share issue.
👉🏽 Astronomical Growth
Due to the 10:1 stock split and 1:1 bonus share announcement, investors actually paid ₹0.15 for each share, rather than the original price of ₹3. For these investors, Titan’s share price multiplied by 16,900 times in the last 20 years.
💰 Stock Value
August 2002: ₹3
August 2022: ₹2535