Sunday, March 04, 2018
Multibagger stocks are those that gain multi-fold in value over a particular period of time. Some examples of multibagger stocks in the recent past have been Asian Paints, Cera Sanitaryware, TTK Prestige, LIC Housing Finance, to name just a few. A potential multibagger stocks can make you wealthy in short period of time. Multibagger stocks are undervalued stock with strong fundamentals, future business potential, and strong corporate governance.
I usually identify these types of stocks as ‘Multibagger Stocks’. If you are also planning to invest in this type of stocks one should always consider the quality of the management and the macro financials of the company.
So, a stock which gives a gain of 200% and returns 300% of the investment becomes a 3-bagger. A stock which gives 10 times the investment is called a 10-bagger.
Also read: Consistently growing stocks.
Penny stocks / small cap stocks
Multibagger stocks are to be found in penny or small-cap stocks. The reason is simple. These stocks have a smaller market capitalization and find it easier to double and triple their net worth in a short period of time.
There are several stocks in India which have given 10x and even 100x returns. Most of these stocks belong to the penny and small-cap stocks.
Smart investors have made their fortune by investing in equities in long term. None other asset class can match giving you such extra ordinary returns. Iits important for you to invest in right set of companies at right price
If you buy these stocks at the right price and don’t sell quickly, you will most likely have a multibagger in your hands. Best of all, these are relatively safe stocks.
1. Fineotex Chemical Ltd
2. Ashok Leyland Ltd
3. Jamna Auto Industries Ltd
4. Welspun India Ltd
5. Panama Petrochem Ltd
6. Kolte Patil Developers Ltd
7. Maruti Suzuki India Ltd
8. Visaka Industries Ltd
9. Phillips Carbon Black Ltd
10. Vikas Ecotech Ltd
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.