Business: Investing in the stock market has long been recognised as a potential wealth creation route. Identifying and holding promising stocks over the long term can deliver significant returns. However, achieving consistent returns is challenging due to daily share price volatility and market fluctuations. Nevertheless, some exceptional stocks demonstrate the ability to deliver stable returns even amid market uncertainties, economic downturns and industry disruptions. Lloyds Metals & Energy (LMEL) is one such gem, which exemplifies the resilience and stability in the equity markets with its continuous upward movement and low volatility. These stocks, which traded at a price of ₹9 per share 4 years ago, are trading at a current price of ₹740 with a jump of 9200%. If an investor had invested ₹1 lakh in the stocks at the beginning of this period and maintained the investment till date, the value would have grown to ₹82 lakh.
This achievement is particularly noteworthy due to the strong annual performance of the stock.
It delivered a 32% return in 2020, followed by multifold returns in the subsequent years: 905% in Y21, 144% in Y22 and 144% in Y23. The stock has gained 24% so far this year, taking its price from ₹602 to ₹740. This impressive growth can be attributed to the company’s strong growth trajectory and its ability to remain resilient even in challenging environments, thanks to its operational and cost efficiencies. Its iron ore mining capacity has grown from 3 MTPA in 2020 to 10 MTPA in 2023, and it aims to further increase it to 55 MTPA by 2030, representing an 18-fold increase in just a decade.
