Multibagger stock to give more than 600% return in 2024

Ayush Wellness, which operates in the packaged food industry, has made huge gains for investors in 2024. The shares of this company have given returns of more than 600% by hitting back-to-back upper circuits. The special thing is that from August 2024 to December 23, 2024, it saw the upper circuit in 91 consecutive trading sessions. This spectacular surge came after the 1:10 stock split done by the company.

Stock performance: continued gains

On December 23, 2024, the stock of Ayush Wellness closed at Rs 207.20, touching the upper circuit by 2% on BSE.

• Market cap: Rs 672.36 crore.
• Lifetime High: Rs 207.20 (adjusted after stock split).
• Continuation of Upper Circuit: Upper Circuit of 2% on every consecutive trading day from August 12, 2024 to December 23, 2024.

Ayush Wellness’s sentiment has remained consistently positive since its stock split in August.

• Since August 2, this stock has given a return of 609.8%.
• Stock price on August 1, 2024: Only Rs 29.19 (after stock split).

Performance since January 2024 (YTD)

Since the beginning of 2024, AYUSH Wellness’s stock has increased by 3,765.67%.

• January 2024 level: Rs 5.36.
• December 2024 level: Rs 207.20.

However, this surge reflects the company’s 488.28x value-to-equity ratio, which is on the high side. Despite this, Return on Equity (ROE): 28.02% remains positive.

Bonus issue announcement

Ayush Wellness has recently announced a bonus issue for its investors in the ratio of 1:2.

• Meaning: 1 free share for every 2 equity shares.
• Record date: 26 December 2024.

meaning of upper circuit

Upper circuit usually occurs when there are more buyers of a stock but not more sellers.

• The continuous influx of buyers in Ayush Wellness has taken its share price to new heights every day.

Reason behind company’s growth

1. Stock Split:
   Stock split in the ratio of 1:10 in August 2024. This means that one share was divided into 10 smaller shares. This made the shares more affordable for investors.
2. Strong demand in the market:
   Ayush Wellness has strengthened its place in the packaged food sector.
3. Positive Investor Sentiment:
   Consistent upper circuit and better returns boosted investor confidence.

What matters to investors?

• AYUSH Wellness has proven to be a multibagger stock in 2024.
• The company has maintained the interest of investors with decisions like stock split and bonus issue.
• However, the valuation of the stock is very high, which suggests that investors need to be cautious.

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