The Impact of 1 Lakh Investment in Infosys Shares from 2010 to Present

Introduction

Investing in the stock market can be a lucrative venture, especially with the right stock. If someone invested Rs 1 Lakh in Infosys (INFY) shares in 2010, they might be fascinated to know the potential value of their investment after a decade. Let's explore the journey and current scenario of this investment.

Initial Investment and Dividends

When Infosys traded at Rs 400 in the year 2010, an investor could buy around 250 shares for Rs 1 Lakh.

Jan 1, 2010: Price: Rs 325 per share No of Shares: 308 shares First Bonus (2014): Prices increased to Rs 615 per share post the first bonus Second Bonus (2015): Prices increased to Rs 1,231 per share Third Bonus (2018): Prices increased to Rs 2,462 per share

The initial investment of Rs 1 Lakh could have surged up to Rs 4,160,000 by 2020, purely due to the bonus shares. However, there are further variables such as dividends that need to be considered to get a comprehensive picture.

The reality, though, might not always align with the theoretical model. Historically, Infosys shares saw a low of Rs 261 in 2012, compared to the 2010 price of Rs 430.34 per share. An investor who invested during the boom of 2010 might have chosen to exit at this lower price.

Current Scenario and Future Prospects

Fast forward to 2021, with market conditions significantly changed, Infosys shares have experienced substantial growth. As of September 9, 2021, one share of Infosys was trading at Rs 1,687.95, with an estimated current value of Rs 3,916,044.40 for the 232 shares purchased in 2010, excluding dividends. When dividends are included, the total value could go up to Rs 5,62,646.40.

Considering the share price in May 2010 at approximately Rs 340, the current price of Rs 1,356 indicates that the investment has grown approximately four times, making a Rs 1 Lakh investment worth around Rs 4 Lakh in the current period.

Further Investment Opportunities

While looking back at the past, it's equally important to explore other investment options for the future. Shares like Wipro, NTPC, Ambuja Cement, Apollo Tyres, Apostle Alcohol and Breweries, Marico, and ITC present interesting opportunities, as they are undervalued and have the potential for significant returns. These suggestions are provided for educational purposes only, and individuals should thoroughly research and assess their own financial circumstances and goals before making investment decisions.

This overview highlights the importance of re-evaluating and diversifying investments over time, as market conditions change. It is always wise to consider not just the initial investment but also the growth potential and implications of market fluctuations.