25,562% Returns: Multibagger Stock Turns ₹1 Lakh into ₹2.56 Cr in 5 Yrs; Here’s the Risk Investors Must Know

Synopsis: Multibagger delivering 25,562% returns, operating in multiplexes, digital media, and emerging sectors, but facing overvaluation, weak earnings, and governance-related red flags for investors.

This article outlines a multibagger stock that has delivered phenomenal returns of over 25,000 percent in five years. It explores the company’s core business segments, including multiplexes, digital media, and emerging infrastructure ventures, while highlighting key financials, growth drivers, and potential red flags for investors to watch.

Incorporated in 2000, City Pulse Multiplex Ltd is in the business of multiplexes and digital media content. The company is in the services and entertainment Industry as it deals in films, cinema halls, and F&B. At present, it is restructuring its business model to OTT platforms and is in a transition phase. This company’s stock has given a multibagger return of 25,526 percent over the last 5 years

Stock Performance

With a market capitalization of Rs 3,078 crore, shares of City Pulse Multiventures Ltd were trading at Rs 2,887 per share, marking a fall of about 0.72 percent from the previous closing price of Rs 2907.95.

On February 27, 2026, the stock price of Rs 2,887 reflects an extraordinary surge of nearly 25,562 percent from Rs 11.25 recorded on Februrary 27, 2021. An investment of Rs 1 lakh made 5 years ago would have appreciated to approximately Rs 2.56 crore, underscoring its multibagger returns.

City Pulse Multiventures Ltd is an India-based entertainment company primarily engaged in operating multiplex and miniplex cinema theatres under the brand WOW Cine Pulse, mainly in Gujarat. The company is involved in film exhibition, distribution, and production, and has expanded into digital entertainment through its OTT platform WOWPLEX. It is also exploring strategic growth through acquisitions to strengthen its presence in the broader media and content ecosystem.

Core Verticals

City Pulse Multiventures operates a diversified portfolio spanning entertainment, infrastructure, and emerging growth segments. Its Citypulse Cinemas chain offers premium multi-screen movie experiences, while its renewable energy initiative includes the flagship Matar solar project. The company is also establishing a strategic presence in GIFT City, aligning with India’s expanding global financial hub ecosystem.

Beyond infrastructure-led ventures, the company is expanding across education, digital media, and energy distribution. Through Lovekush Education Group, it delivers structured academic programs from foundational to higher education. Its Matrubharti platform strengthens its digital content footprint, and the operational Nayara fuel station at Matar supports its presence in conventional energy solutions.

Key Red flags any investor should see before investing in a stock

• Shareholding pattern: A sharp decline in promoter holding from 38.52 percent in March 2024 to 11.98 percent in September 2025 is a significant red flag, especially when institutional participation remains absent. With public shareholding rising from an already elevated 61.49 percent to 88.01 percent, it signals weakening promoter confidence and a lack of smart money validation, increasing governance and volatility risks.
• Overvaluation: The stock is trading at an exceptionally high P/E of 2,129x, far exceeding industry benchmarks, despite subdued profitability with ROCE at 1.66 percent and ROE at 1.48 percent. Additionally, a PEG ratio of 28.1x indicates valuations are disproportionately high relative to earnings growth, highlighting a significant overvaluation risk for investors.
• Weak Earnings Trajectory and Rising Working Capital Stress: A major red flag is the erratic profitability, with net profits swinging between losses and gains, and remaining negative across multiple quarters. The five-year profit CAGR stands at negative 3 percent, while elevated debtor days of 156 signal stretched receivables and potential cash flow stress.
• Stretched Valuation & Financial Red Flags: The stock trades at an elevated Rs 2,800 versus a book value of Rs 32.8, reflecting stretched valuations. Absence of dividend payouts limits shareholder returns, while negative investing and financing cash flows indicate potential financial strain and capital allocation risks.

Recent developments in the company

The Board of Directors is scheduled to meet on Saturday, 07th March, 2026, to consider key corporate actions, including a proposal for the issuance of bonus shares and the sub-division or split of equity shares, along with other routine business matters.

In compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, the trading window will remain closed for designated persons and their immediate relatives from 07th March, 2026, until 48 hours after the Board meeting concludes.

Q3 Financial Highlights

QoQ View: The revenue from operations grew by 25 percent to Rs 1.48 crore in Q3 FY26 from Rs 1.18 crore in Q2 FY26, and EBIDT grew by 52 percent to Rs 1.20 crore in Q3 FY26 from Rs 0.79 crore in Q2 FY26. Accompanied by a net profit growth of 70 percent to Rs 0.75 crore in Q3 FY26 from Rs 0.44 crore in Q2 FY26.

YoY View: The revenue from operations declined by 8 percent to Rs 1.48 crore in Q3 FY26 from Rs 1.61 crore in Q3 FY25, and EBIDT grew by 64 percent to Rs 1.20 crore in Q3 FY26 from Rs 0.73 crore in Q3 FY25. Accompanied by a net profit growth of 29 percent to Rs 0.75 crore in Q3 FY26 from Rs 0.58 crore in Q3 FY25, resulting in an EPS growth of 30 percent to Rs 0.70 per share in Q3 FY26.

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