Fueled by a robust rally in the Indian stock market, a particular SME (small and medium-sized enterprise) stock, Hazoor Multi Projects, has grabbed headlines with an astounding return of 11,000% over the past five years. On Wednesday, January 28, 2026, the stock price of Hazoor Multi Projects surged over 3% during intra-day trading, mirroring the optimistic sentiment prevailing on Dalal Street, where both the Sensex and Nifty indices were trading more than half a percent higher.
The impressive gains in Hazoor Multi Projects' stock are attributed to the overall recovery in the Indian stock markets and the company's strategic decision to convert its existing investment in Optionally Convertible Debentures (OCDs) of its wholly-owned subsidiary, Square.
While specific details on Square and the nature of its operations remain sparse in the available information, the conversion of OCDs typically indicates a move to strengthen the subsidiary's financial position and potentially unlock further growth opportunities. This corporate action, coupled with the favorable market conditions, has resonated positively with investors, further propelling the stock's upward trajectory.
Small and medium-sized enterprises (SMEs) have been vital to the Indian economy, contributing significantly to job creation, innovation, and overall economic growth. However, SME stocks often carry higher risk compared to their large-cap counterparts due to factors such as lower liquidity, limited access to funding, and greater vulnerability to economic fluctuations.
Despite these inherent risks, certain SME stocks have delivered exceptional returns, rewarding investors who are willing to take on the added risk. These "multibagger" stocks, as they are often called, have the potential to generate substantial wealth over a relatively short period.
However, experts caution that investors should conduct thorough due diligence and carefully assess their risk tolerance before investing in SME stocks. It is crucial to evaluate the company's fundamentals, growth prospects, competitive landscape, and management quality. Additionally, investors should be prepared for potential volatility and be aware that past performance is not necessarily indicative of future results.
The remarkable performance of Hazoor Multi Projects highlights the potential for wealth creation in the SME segment, but it also underscores the importance of prudent investment strategies and a thorough understanding of the risks involved. As the Indian stock market continues its upward trajectory, it remains to be seen whether other SME stocks will follow suit and deliver similar "multibagger" returns.
