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Multibagger Stock: This stock turned ₹1.23 crore from ₹1 lakh, now there is a chance to earn again!

Izmo Limited has made investors rich. An investment of ₹1 lakh in 2013 has now grown to ₹1.23 crore. Now, the company is entering the semiconductor business, raising hopes of further strong earnings.

 
Multibagger stocks

Multibagger Stock: It's often said in the stock market that patience is the key to achieving significant profits for even a small investor. 

Companies often emerge in the market whose names may not be widely known, but whose performance surpasses even the largest giants. 

Izmo Limited is one such name that has proven this throughout its long-term journey. Once considered merely a penny stock, this company has today proven itself a boon for its investors. The pace this stock has gained over the past 12 years has surprised even market analysts.

Now the company's new flight in the semiconductor sector

Not only past returns, but the company's future is also a topic of discussion. The company shared a significant information through an exchange filing, further fueling investor excitement. Izmo Limited is now expanding beyond its traditional boundaries and entering the high-tech sector. The company plans to enter the fields of semiconductor packaging and opto-electronic solutions.

Market experts believe that the coming era is one of technology and chip manufacturing. This strategic shift by the company could give a new direction to its growth. According to the company's estimates, the optical transceiver market could grow from $13.5 billion to $28 billion by 2030. 

The expansion of artificial intelligence (AI) and 5G technology is expected to further accelerate this demand, which could benefit the company at a CAGR (compound annual growth rate) of approximately 14%.

Business will run at the speed of 27%

In its presentation, the company stated that the semiconductor packaging market for silicon photonics, currently valued at $2 billion, could grow to over $10 billion. The company projects a 25% to 27% compound annual growth (CAGR) in this particular segment. 

For the average investor, this means the company is investing in a sector where demand is unlikely to decline over the next 5 to 10 years. This new business model could prove to be a game changer for Izmo.

Huge returns on an investment of ₹1 lakh

Timing and trust are crucial in the world of investing. If we look at Izmo Limited's data, the picture has completely changed since August 2013. During this period, the company's shares have delivered incredible returns of over 12,200 percent to its investors.

Understanding this from the perspective of a common investor, if a person had invested just Rs 1 lakh in this company in 2013, trusting it, and had held it, then today the value of that investment would have increased to approximately Rs 1.23 crore.

Risk or opportunity in stocks?

Despite delivering impressive returns over the long term, Izmo Limited has not been immune to the recent stock market turmoil. According to National Stock Exchange (NSE) data, the stock closed at ₹793.50 on Friday, down 0.86%.

While this stock has returned 1,520% in the past five years and gained 938% in the past one year, it has seen pressure in the short term. Over the past month, the stock price has declined by approximately 19.15%. 

Its 52-week high was ₹1,374.70, while its lowest was ₹229.70. Currently, the company's market cap is around ₹1,186.57 crore. Experts say the stock could see a surge in the coming months.