Why we didn't book profits on these 5 multibaggers

You check your portfolio on a volatile morning and see one of your stocks up 300 per cent. The reflex is immediate: should I book profits? The urge to sell a high-performing stock is among the most common investor dilemmas. We’ve all felt that mix of pride and fear. But the truth is, wealth in the stock market isn’t just made by picking the right stocks – it’s made by holding the right ones long enough.

At Value Research Stock Advisor, we’ve seen this firsthand. Over the years, some of our recommendations have turned into multibaggers. And despite this success, we continue to hold these companies in our model portfolios. Why? Because their stories are still unfolding. And from them, investors can draw five important lessons about conviction, patience, and the power of compounding.

The core message: Why holding matters

Selling early may feel like a win, but it often cuts off long-term wealth creation. Research has consistently shown that a handful of great stocks often generate the bulk of portfolio returns. If you trim them too early, you may never realise their full potential.

The market will always test your patience. But if a company is still executing well, gaining ground in its industry, and expanding its earnings power, the bigger risk is not volatility – it’s exciting too soon.

Let’s explore five companies that have gone on to become multibaggers after our initial recommendation. We won’t name them here. But we will show you how much they’ve gone up – and more importantly, why we are still holding them. Each company illustrates a timeless investing lesson.

1. Powering India’s Energy Future

Stock up: 11x since recommendation

We first recommended this engineering and power grid company in late 2019. Back then, it was at the centre of a restructuring process, and its long-term prospects were underappreciated. Since then, the company has scaled significantly: order inflows in the transmission and renewable segments have jumped, exports have expanded, and profitability has more than doubled.

In FY25 alone, revenue grew by 22 per cent, net profit jumped 134 per cent, and the company now boasts a record multi-thousand crore order book. A new service division and plans to invest a significant multi-year investment over five years reflect a growth-oriented mindset. Margins are also strengthening with a rising share of high-margin HVDC and lifecycle services.

Why we still hold it: With the energy transition accelerating globally and India investing in renewables, this company is a clear beneficiary. Strong execution, large orders from transmission, and a growing share of exports make the long-term story intact.

Lesson: If the business keeps strengthening, your best returns may still lie ahead. Don’t let short-term gains distract from long-term compounding.

2. A pharma giant in the making

Stock up: 7x since recommendation

This company was first recommended in 2017 when it was already India’s leading API player. Since then, its custom synthesis business has grown rapidly, it has entered the contrast media segment, and is now developing capabilities in peptides and GLP-1 therapies.

FY25 saw revenue growth of 19 per cent, profit after tax up 37 per cent, and margins expanding to 32 per cent. One of its facilities for backward integration has started operations, ensuring supply-chain stability. It also signed two major long-term manufacturing contracts in custom synthesis.

Why we still hold it: It is positioned as a key player in the global pharma outsourcing theme. The new verticals – peptides, contrast media, backward integration – are only just beginning to deliver. The company is also investing a multi-hundred crore investment to expand capacity and strengthen innovation.

Lesson: When a company enters new, high-potential growth areas, holding on gives you a front-row seat to the next leg of compounding.

3. From automation to electrification

Stock up: 5x since recommendation

We recommended this company in 2018. Since then, it has transformed from a power-centric business into a diversified automation and electrification giant. Its solutions today cover smart grids, rail electrification, industrial automation, motion products, and more.

The March 2025 quarter showed modest topline growth (3 per cent YoY), but the positives lie elsewhere: export orders grew 40 per cent YoY, and the order backlog touched a record-high. High-value, short-cycle orders are driving visibility. EBITDA margins remain strong, and the company is actively targeting data centres, buildings, and cement plants for automation tools.

Why we still hold it: The core electrification and motion businesses are gaining momentum. Diversification across sectors allows it to navigate economic cycles better. Despite short-term volatility, execution is strong.

Lesson: A company that keeps evolving and building new growth drivers is worth staying invested in, even after significant gains.

4. A high-margin agrichem specialist diversifying into pharma

Stock up: 4.5x since recommendation

Since our first recommendation in 2017, this company has grown steadily in the agrichem contract manufacturing space and recently made a foray into pharma APIs. The pharma segment is currently loss-making but strategically important. Recent acquisitions in Europe and the US offer capabilities in peptides, oncology, and rare disease APIs.

In FY25, the company’s new product mix led to a 300 basis points expansion in gross margins. Though net profit declined marginally due to higher tax outgo, the company reported healthy domestic branded business growth and a rising share of biologicals. Management is targeting 5x growth in biologicals and a 3x scale-up in pharma in the next three years.

Why we still hold it: The company has always delivered on execution – and this next phase, with pharma as a second growth engine, can be transformative. The agri business remains cash-generating, enabling reinvestment.

Lesson: For companies with a strong execution track record, strategic pivots can unlock the next level of compounding – if you give them time.

5. Fertiliser to full-service agri giant

Stock up: 4.3x since recommendation

When we first recommended this fertiliser major in 2017, it stood out for its capital discipline and smart backward integration. Over time, it gained market share in complex fertilisers, expanded into crop protection, and set up a pan-India rural retail network.

FY25 saw strong volume growth in both fertilisers and crop protection. Net profit grew 26 per cent YoY. It also acquired a majority stake in an agrochemical company to strengthen product and R&D capability. Upcoming projects in key input and processing projects will further enhance margins and self-reliance.

Why we still hold it: It continues to demonstrate execution excellence in a regulated industry. The expansion into higher-margin businesses is bearing fruit. Cash flows remain strong, and return ratios are robust.

Lesson: Companies that consistently create value in tough industries often outperform when tailwinds emerge. Holding through cycles can be very rewarding.

Final thoughts: The courage to hold

In each of these cases, the temptation to book profits was real. But every time, our ongoing research reinforced the same belief: the story wasn’t done. Selling a winner just because it’s up 2x or 3x is often a shortcut to mediocrity. Staying invested with strong conviction and updated insight is how real wealth is created.

Yes, markets fluctuate. But if a company keeps growing earnings, defending moats, and finding new growth runways, it’s usually best to stay put. The discipline to hold – not just pick – the right stocks is a rare but essential investing skill.

The takeaway for any investor is clear: Don’t let short-term volatility or the thrill of a quick profit derail your long-term wealth creation. If you’ve found a high-quality business that’s delivering on its promises, consider holding on tight. The real magic of the stock market is in the power of compounding, and compounding works best with time and patience.

“Big money is not in the buying or the selling, but in the waiting.” – Charlie Munger (Warren Buffett’s investing partner)

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Note: The above article is for illustration and educational purposes. Stock examples are illustrative; past performance is not a guarantee of future results.