There are several examples of incredible growth in the stock market, where select companies have delivered notable returns over the past five years, subsequently turning humble investments into considerable wealth. For instance, three corporate entities have reported a growth multiplier of up to 200 times. A simple investment of ?1 lakh five years ago could have grown to a remarkable ?2 crore today. However, it must be stated that searching for such stocks can be challenging, and necessitates patience to endure the wait. Such stock market rallies are often influenced by factors such as industry dynamics, political attention, changes in company’s management, or business restructuring. Let’s uncover the secrets behind their impressive growth and explore if these stocks still hold potential for further growth.
The growth story of PG Electroplast Ltd is nothing short of astonishing. The company, which offered a 20,000% return, saw its shares soar from ?4 on 17 July 2020 to an overwhelming ?802 in present times. This company has evolved to become a formidable force in the realm of electronic manufacturing services (EMS), an industry that is currently experiencing a robust structural kindle. Few years ago, its operation was mainly focused on the production of plastic mouldings, predominantly for consumer durable sectors.
In the fiscal year of 2019-2020, this aforementioned segment was the prime contributor to the company’s revenue, accounting for approximately 69% ( ?441 crore) of its total revenue generation of ?640 crore. The residual revenue (24%) was generated from product-based sectors, including air conditioners, washing machines, and air coolers among others. Other revenue segments comprised various electronic products, TV sets, and printed circuit boards along with appliance manufacturing.
However, structural transformation took place following the implementation of the China+1 manufacturing model and the Indian government’s flagship ‘Make in India’ campaign, both of which extended production-linked incentives (PLIs). This shift has been extremely beneficial not just for PG Electroplast, but for the entire EMS sector as well. The product segment’s revenue grew fifteen-fold to ?3,526 crore in 2024-25, from a minimal sum of ?150 crore in 2019-20. This segment now contributes 71% to the total revenue, up from 24%, and the total revenue itself experienced an approximately 8-fold increase, touch ?4,870 crore.
Meanwhile, the contribution from the plastic moulding division shrunk to 20%, a considerable decline from the earlier 69%. This shift saw the net profit of the company skyrocket by 100 times to ?288 crore, up from a mere ?2.6 crore in 2019-20. Such a remarkable leap in profitability often forms the foundation for delivering multi-bagger returns.
The company has also seen a comprehensive rerating in its return ratios. Its return on equity (RoE) grew from 13.4% to an admirable 15%, even reaching 19% in 2023-24. The company’s return on capital employed (RoCE) has appreciated to 27%, displaying a competent utilization of capacity. Fixed assets of the company have expanded fourfold to ?1,139 crore, a marked rise from ?253 crore in 2019-20.
Moving forward, the company is anticipated to benefit from long-term structural growth trends in the EMS space. Factors such as rapid urbanization, government reforms, less penetration of consumer durables, and the China+1 theme are likely to sustain the growth momentum. The company has projected its revenue to grow by about 30% reaching to ?6,345 crore in 2025-26, with 75% coming from the product business. The net profit is also expected to grow by 39% to ?405 crore. However, the company’s valuations are high, trading at a price-to-earnings (P/E) multiple of 80, surpassing its five-year median of 55.
Another company delivering impressive returns is Transformers and Rectifiers (India) Ltd, which has provided an astounding return of 10,000%, its share price rising from ?5 on 15 July 2020 reaching ?510 today. Assuming you had invested ?1 lakh in this company, your investment would be worth a resounding ?1 crore now. This leading transformer and reactor manufacturer maintains a global outreach. Their diverse product range comprises power transformers, furnace transformers, and rectifier and distribution transformers, as well as specialty transformers. Their products find usage in a wide array of industries, including power distribution, petrochemicals, power transmission, pharmaceuticals, metal processing, cement, and rail.
The company has also entered renewable-focused areas, producing transformers specifically for solar applications and green hydrogen. The rising infrastructure investments in India have greatly benefited the company. Increased government capital expenditure, growing global demand for power, and the rapid growth of data centres have all led to a rising demand for power equipment, including transformers.
This demand is clearly visible in the company’s financials. The company’s revenue boasted a compound annual growth rate (CAGR) of 28% in the FY21-FY25 phase, escalating from ?727 crore to ?1,950 crore. Rising operating leverage witnessed the Ebitda margin growing from 10% to 16%, while the net profit margin rose by 860 basis points to 9.5% in 2024-25. The company’s profits rose nearly 27-fold, going from ?7 crore to ?187 crore during the same period. The company also experienced a significant improvement in the all-important RoCE, which nearly doubled to 23%, up from 12%.
Transformers and Rectifiers order book reports a solid ?5,132 crore as of 31 March 2025. This offers significant future revenue potential. In addition, the company is currently negotiating orders worth ?22,000 crore. The company has an ambitious goal of reaching $1 billion in revenue (?8,600 crore) by 2027-28. This represents a sharp CAGR growth of 64% between 2024-25 to 2027-28, a challenging target but one that management believes can be achieved with strong execution, novelty and judicious money management.
Findings suggest that the company’s profit growth is to exceed revenue expansion, powered by operation efficiently and other benefits. The company targets maintaining a consistent profit margin of 16-17%, with improvements expected by leveraging operational efficiencies. The firm has secured a controlling stake in a CRGO processing unit, a material that constitutes 32%-35% of transformer manufacturing costs. This backward integration ensures an advantage in pricing, margins, and product quality and is expected to enhance competitiveness in order booking and profitability.
The third company presenting extensive returns is the SG Finserv, which transformed into an entity under the APL Apollo Group following an acquisition in 2022. Originally designed to cater to the financial requirements of dealers related to APL Apollo Tubes (the flagship company of the group), its assets under management (AUM) grew threefold from ?736 crore to ?2,326 crore after expansion into financial solutions for SMEs, MSMEs, and other corporate bodies. The portfolio is geographically diversified with a primary concentration in the North (44%), followed by the South (30%), the West (23%), and the East (3%). Impressively, it maintains zero gross non-performing assets.
80% of its AUM is backed by the charge on financed inventory and sales-generated receivables, ensuring light asset quality. As the AUM spiked, so did revenue, elevating from ?2 crore in FY22 to ?171 crore in FY25. Simultaneously, net profit saw a surge from ?1 crore to ?81 crore. Its share price shot up by an incredible 18,348%, moving from ?2.2 on 22 July 2020 to ?404 in the current day. SG Finserv is cognizant of the opportunities for further growth, planning to elevate its AUM to ?6000 crore by 2026-27.
It is necessary to mention that while these three companies have delivered extraordinary returns, they benefitted from various industry-related impetuses, innovative business strategies, and financial management. Although their past achievements have been laudable, future success will pivot on effective execution, maintaining margins and valuations which offer lesser space for errors. For investors, the wisdom lies in appreciating the difference between momentum and long-term fundamentals.