TWO STOCKS THAT TURNED AROUND AFTER LEADERSHIP CHANGE AND BECAME MULTIBAGGERS

There are times when a company’s success does not change because of a new product or a favourable economy, but because of change in leadership. After all, leadership shapes strategy, capital allocation, and culture, and when that shifts, it can quietly reset the company’s entire trajectory. Below 3 companies struggled with slow or stalled growth, low margins, and profitability, eroding investor confidence. However, when new management came in, often with a more precise focus, lean operations, and a long-term outlook, the story changed.

- the company's financial position began to deterioate as its sales fell from Rs 13,632 crore in FY14 to Rs 5,110 crore in FY20. Later in 2020, the Murugappa Group took over CG Power and appointed directors to its board. The company subsequently rebounded, with revenue growing 1.9x from Rs 5,110 crore in FY20 to Rs 9,909 crore in FY25. Its profitability also rebounded from a loss of Rs 1,331 crore in FY20 to a net profit of Rs 973 crore in FY25. As a result, the stock price has returned approximately 31.4x over the past 5 years. - in 2018, the company led by its former promoters, the Singh brothers, struggled with governance issues and financial troubles. Then, in 2018, Malaysia-based IHH Healthcare Berhad acquired a 31.1% stake in Fortis for about Rs 4,000 crore. That’s where the turnaround started, as under IHH, Fortis’ governance, cost structure, and hospital efficiency improved.