This multibagger stock doubled shareholder's money in one year; do you own it?

Shares of Grindwell Norton Limited have doubled investors' money in the last 12 months. In the past one year, the share price jumped from Rs 799.95 to Rs 1,824.75, logging around 128 per cent return in this period.   An amount of Rs 5 lakh invested in this multibagger stock a year ago would have turned into Rs 11.4 lakh today. Long-term investors have made big gains by investing in this stock as it has surged over 1,200 per cent in the last ten years.   With a market capitalisation of more than Rs 19,000 crore, the shares stand higher than 100 day and 200 day moving averages but lower than 5 day, 20 day and 50 day moving averages.   Brokerage house ICICI Securities noted that Grindwell Norton Limited benefits from its parent company in terms of access to developments in products and process technology, sourcing of products and development of exports.   It added that the company's exports have been largely towards the global subsidiaries of Saint-Gobain and this trend is likely to continue going forward. The parent has plans to make India a global sourcing hub for 2-3 product segments and this can further boost overall export prospects.   The brokerage firm highlighted that the government’s recent announcements towards building a holistic infrastructure in the country are likely to spur capex growth. This would likely increase capacity utilisation across industries and prompt greenfield investments in sectors like electronics, consumer durables, and electric vehicles, which augur well for GWN’s long-term growth.   "However, due to the recent run-up in stock price, we downgrade our rating to 'ADD'. We roll forward valuations to FY24E and revise our SoTP-based target price to Rs 2,084," it added.   Recently, the company reported 5 per cent rise in consolidated net profit at Rs 69.70 crore for the quarter ended December 2021. Profit in the year-ago period stood at Rs 65.94 crore.   Net sales rose to Rs 501.8 crore in the same quarter from Rs 457.6 crore in the year-ago period. The earning per share (EPS) has increased to Rs 6.30 in December 2021 from Rs 5.96 in December 2020.   According to MarketsMojo, the stock is trading at a premium compared to its average historical valuations and has a Very Expensive valuation. Also, the company has declared positive results for the last 6 consecutive quarters and has high institutional holdings at 22.13 per cent.