I bought Graphite India Ltd share in November 2019, before the covid market crash. I bought this share blindly because it was dividend-paying stock. It was during my initial day of the share market, and I was looking for strong market capital shares and shares which were paying dividends.
So after 19 months, Graphite India Ltd’s share has reached nearly 200 % higher than the rate I bought. This seems to be a good return like I always say better than fixed deposits. To gain a good return you have to buy shares and hold for the long term, and this is just one example from my own experience.
The business has grown tremendously showing positive net profit, it has the potential to grow back to its older share price.
It was founded in 1962 as a pioneer in manufacturing graphite and carbon electrodes in India. They also diversified their product portfolio from other carbon-based products which cater Indian market and the international market. Graphite India was started on a joint collaboration with a US company later merged to form one entity.
Graphite India products are mainly used by very niche segments, mainly heavy industries like steel, the auto sector, and infrastructure. So Graphite India Ltd’s performance depends on these major industries mainly the steel industry. Since I am an amateur stock trader, I chose shares that have a large market cap and dividend-paying stocks. When you start trading with shares, it always good to start with shares that have a large market cap. Another reason for buying this stock was its price. This particular share was trading above Rs 1000 during 2018 and took a downfall due to business losses. Otherwise, the company had solid fundamentals. I saw this as an opportunity and bought the stock for the long term.
Taking a look at their shareholding pattern , the promoters hold more than 60% of the company which is a good sign.
I think this current share fluctuation is mainly because of the current situation of the Indian market, where all major sectors like auto and infra are facing a slowdown. Since the business is directly proportional to these industries, Graphite India Ltd is facing turbulence. I strongly believe that this stock might perform well and become a multi-bagger stock once the major industries get revived. I believe the graphite India share price target will go back to Rs 1000.
So, buying this share and waiting for the right time to boom.
Stay tuned , will update you soon.
