Ongoing volatility in the stock market has highlighted why investors need to identify stocks with strong wealth-creation potential. While benchmark indices offer steady returns, stock-specific bets can sometimes generate much higher gains- though they also carry higher risk. Careful research, disciplined allocation and a long-term approach remain essential.
One such example is Kabra Drugs, a penny stock that has significantly outperformed the broader market over the years.
Kabra Drugs’ share price, which stood at ₹0.65 in February 2019, is now trading at ₹32 on the BSE. In simple terms, an investment of ₹1 lakh made around six years ago and held consistently would have grown to nearly ₹50 lakh in seven years.
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Strong long-term and short-term returns
The stock has delivered multibagger returns of 4960% in the last seven years. Over five years, it has gained 589%, and in three years, it has risen about 514%.
Even in the short term, Kabra Drugs has outperformed weak market conditions. It has delivered 209% returns in one year, compared to a 10% rise in the BSE Sensex during the same period. The stock has also gained over 65% in six months and 17% in the past month.
Profit surge and expansion plans
In January 2026, the company approved several strategic initiatives, including expansion into high-growth sectors, which helped boost investor confidence.
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On Tuesday, Kabra Drugs reported a 578% year-on-year surge in net profit to ₹2.56 crore for the December quarter of FY26, compared to a loss of ₹53.69 lakh in the same quarter last year.
Revenue for the December quarter stood at ₹30.42 crore, up 53.9% from ₹19.76 crore in September 2025, and marked a turnaround from zero revenue in December 2024, according to a PTI report.
The company also signed an agreement with MR Franchise to add 200 channel partners nationwide, strengthening its distribution network and market reach.
