Stocks with good fundamentals and strong business models have the potential to become multibagger stocks. Picking the best mid cap small cap stocks is never easy in a rising market. Thus, we have picked some very good ones, which can generate good returns in the medium to long term. Mid cap small cap stocks of companies with strong fundamentals may go up over time, while fundamentally weak companies may see their stock prices fall. This makes fundamental analysis especially valuable to long-term investors.
There are many companies which were once small or mid cap but now large cap. They generated very good returns over the years for investors. If you are looking for small cap mid cap stocks with good fundamental here is a list of Small Cap and Mid Cap Stocks for Investment 2018.
Prior to discussing, let’s take a look at Mutlibagger stocks of small-cap and mid-cap stocks of 2017.
Multibagger Small Cap Mid Cap Stocks 2017
Multibagger Small Cap Mid Cap stocks for 2017 were Heg ltd, India Bull Ventures, Sanwaria Consumer Ltd, Bhansali engineering polymer, Weizmann Forex Ltd, Goldstone Infratech Ltd, Jindal Worldwide Ltd, Venky’s (India) Ltd, Avanti Feeds Ltd and , Future Retail Ltd etc.
5 Potential Multibagger Mid Cap Stocks – 2018
Fineotex Chemical Ltd
Fineotex chemical ltd is first stock on the list of potential multibagger. It is one of the leading manufacturers of chemicals for textiles, construction, water-treatment, fertiliser, leather and paint industry. Also produce adhesives used in several industries like wood, paper etc. It operates through two segments specialty chemicals and real estate development.
Company has good consistent profit growth of 25.88% over 5 years and it is virtually debt free. Overall it is a good stock for investment.
Ashok Leyland Limited
Ashok Leyland Limited is 2nd largest manufacturer of commercial vehicles in India, the 4th largest manufacturer of buses in the world and the 12th largest manufacturer of trucks globally. It offers power solutions for electric power generation, agricultural harvester combines, earth moving and construction equipment, and marine and other non-automotive applications. It has operations in India, Sri Lanka, Bangladesh, Mauritius, the Middle East and Africa extends across 50 countries.
A company has a very good distribution network. It has been maintaining a healthy dividend payout of 43.26% Overall one can invest in the ashok Leyland for the long term.
Jamna Auto Industries Limited
Jamna Auto Industries Limited is the largest manufacturer of Tapered Leaf and Parabolic Springs for Commercial Vehicles (CVs) in India. It has been a trusted and preferred supplier of Leaf and Parabolic Springs to all major CV manufacturers for over 50 years. The Company is fast expanding its presence in new-generation products, like air suspension and lift axle.
The Company’s products include Suspension Products, including Rear Air Suspension-Cow Horn Style; Lift Axle-Steerable/Non Steerable, and Bogie Suspension-Tandem Axle; Multileaf Springs, and Parabolic Springs. Its manufacturing plants are located in various areas, including Yamuna Nagar, Haryana; Bhind, Madhya Pradesh; Kharsawan, Jharkhand; Krishnagiri, Tamil Nadu; Pune, Maharashtra, and Sriperumbudur, Tamil Nadu.
Company has a good return on equity (ROE) track record: 3 Years ROE 30.08%. It has been maintaining a healthy dividend payout of 28.43%. Overall it is a good stock for investment.
- Ruchira Papers Limited
Ruchira Papers Limited is an India-based company, which is engaged in offering paper and paper products. The Company is engaged in the process of manufacturing writing and printing paper, and Kraft paper. The Company’s white writing and printing paper is used in the fabrication of note books and writing material; the colored paper is used in the fabrication of spiral notebooks, wedding cards, shade cards, children’s coloring books, colored copier paper and bill books. The Company offers its products to customers in India and overseas.
Ruchira Paper has already given a very good return for the investor . Company has good consistent profit growth of 33.43% over 5 years. It has been maintaining a healthy dividend payout of 17.60%. Overall I find this stock good for investment.
Future Retail Ltd
The last potential multibagger stock for 2018 is future retail. Future Retail Limited is an India-based company, which is engaged in the business of retailing a range of household and consumer products through departmental store facilities under various formats. The Company is primarily engaged in the business of multi-brand retail trade. The Company has access to approximately 20 compact hypermarket easyday stores and over 210 supermarket easyday stores. In its home business, the Company operates Home Town, a one-shop destination for home improvement, and eZone, a consumer durable and electronics chain.
The company has a good presence in the domestic market. Future retail has already given a very good return for the investor however still stock contains good potential.
Do you think these multibagger stocks will able to give good returns in the future?
Do share your opinion in the comment section.
The article is not a solicitation to buy, sell in securities or other financial instruments. This article is strictly for informational purposes only. The research is based on the current situation may be change from time to time. The author do not accept culpability for losses and/or damages arising based on information in this article.