A big drop in the stock market can be scary for investors. On Monday, there was a huge decline. The Nifty fell over 700 points, dropping below 24,000. The Sensex fell by 2,500 points, trading below 78,500.
However, in the middle of this big drop, one stock from Mukesh Ambani’s Reliance Group remained strong. Investors kept buying shares of Lotus Chocolate Company Ltd. On Monday, it gained 5% and hit the upper circuit, reaching Rs 1,320.95. This stock has been hitting the upper circuit for the last 14 trading sessions.
During the same day, other stocks owned by Ambani, like Reliance Industries (RIL), Jio Financial Services, and Alok Industries, fell by up to 5%. But buyers kept faith in Lotus Chocolate stock.
Reliance Consumer Products Limited (RCPL), a part of Reliance Retail Ventures Limited (RRVL), which is owned by Reliance Industries, bought a controlling stake in Lotus Chocolate Company on May 24 last year.
Lotus Chocolate Company is a packaged food company with a market cap of Rs 1,696.24 crore. Recently, it has given great returns to investors. In the last week, it gained 27%, in the last two weeks, it rose more than 60%, and in the last month, it jumped 93%. Over the last three months, it gave a return of 233%, and in the last six months, it increased by 335%.
Over the last two years, the stock price increased by 1,040%, and in the last three years, it soared by 3,700%. The company saw a massive profit increase of 4,600% in the quarter ending June 30, 2024. The profit after tax stood at Rs 10.40 crore in Q1FY25, compared to Rs 2.33 lakh in Q1FY24.
Investors are happy with the continuous growth of Lotus Chocolate Company amidst the overall market decline.
A Look at Lotus Chocolate Performance
Lotus Chocolate Company Limited has shown remarkable performance over the years. Let us take a look at its historical performance:
Long-term Growth: The stock price of Lotus Chocolate Company has seen substantial growth over the past two decades. In 2002, the stock was priced at ₹2.45. If you had invested ₹10,000 in 2002, your investment would have grown to approximately ₹51.34 lakh by 2024, representing a return of over 51,248% with a compound annual growth rate (CAGR) of 32.8% {reference taken from Stock Price Archive & MarketScreener.}
Recent Performance:
- Last 5 Years: The stock price rose from ₹14.50 in 2019 to ₹1,258.05 in 2024, achieving a positive return of over 8,576% with a CAGR of 144.1%. An investment of ₹10,000 in 2019 would have grown to ₹8.67 lakh by 2024.
- Last 10 Years: From ₹61.65 in 2014 to ₹1,258.05 in 2024, the stock provided a return of over 1,940% with a CAGR of 35.2%. A ₹10,000 investment in 2014 would have grown to ₹2.04 lakh by 2024.
- Last 15 Years: The stock price increased from ₹41.65 in 2009 to ₹1,258.05 in 2024, with a return of over 2,920% and a CAGR of 25.5%. A ₹10,000 investment in 2009 would be worth ₹3.02 lakh by 2024.
- Last 20 Years: The stock price rose from ₹6.17 in 2004 to ₹1,258.05 in 2024, showing a return of over 20,289% and a CAGR of 30.4%. A ₹10,000 investment in 2004 would now be worth approximately ₹20.34 lakh.
Market Performance: Despite the overall market fluctuations, Lotus Chocolate Company has consistently shown impressive growth, even when other stocks experienced declines. For instance, on a recent Monday when major indices fell significantly, Lotus Chocolate Company’s stock still rose by 5%, marking its 14th consecutive upper circuit.
Financials and Shareholding: The company has also reported significant growth in its financial metrics, with a notable increase in net profit and earnings per share. As of June 2024, the promoters hold 72.07% of the shares, reflecting strong insider confidence.
Overall, Lotus Chocolate Company Limited has proven to be a resilient and high-performing stock, offering substantial returns to its investors over the years.