Multibagger stocks give multifold returns to the investor. Even single multibagger stock in your portfolio can make you wealthy. However, identification of good multibagger stock demands a lot of hard work and research. You need to consider multiple factors such as earning potential, line of business, debt level etc. You can go through my earlier article mentioning about How to identify multi bagger stock for investment? In this post, I will share the detail of top multi-bagger stocks that would have make you crorepati in few years.
Multibagger stocks that can make you crorepati in few years
Eicher Motors is first multi-bagger stock in my list. A stock of Eicher Motors has given magnificent return to the investors. Money invested in Multibagger stock Eicher Motor has grown by 9081% in past 7 years.
Let’s try to understand this by example. Suppose before 7 years you were in need of a vehicle and you purchased Royal Enfield Bullet of Eicher Motors worth Rs. 1.35 Lac. On the other hand, your friend was also in need of a vehicle but he decided to postpone his requirement. He invested his money Rs. 1.35 Lac in Eicher Motors shares. The stock price of Eicher Motors was Rs.216 in the year 2009. He got 625 stocks in his portfolio.
He recently sold Eicher Motors stock with CMP of Rs. 19800 and got 1.23 Cr in his kitty.
- Cost of Royal Enfield Bullet (Eicher Motors) in 2009 = 1.35 Lac
- Current market value = 1 Lakh (Approximate)
- 625 Shares of Eicher Motors in 2009 = 1.35 Lac
- Current market value = 1.23 Cr
Yes Bank is second multibagger stock in my list. Yes Bank has given magnificent returns to the investors in past few years. Multibagger stock of Yes Bank grows 2800% in past 7 years.
In order to understand return given by Yes Bank let’s take one hypothetical example. Two friends Ravi and Raj wanted to invest Rs. 5 Lac for the long term in the year 2009. Two options were given to them for the investment.
- Option -1 – Invest Money in Fixed Deposit of Yes Bank.
- Option -2 – Invest Money in Stock of Yes Bank.
Ravi was a conservative investor he selected fixed deposit as an investment option. On the other end, Raj was a smart investor and he opted for Yes Bank stock.
Ravi got 7.25% return from the fixed deposits. On the other hand, Raj got CAGR return of 61% from the Yes Bank stock.
The stock price of Yes Bank in March 2009 was Rs. 40 so Raj got 12500 shares of Yes Bank. Raj sold these stocks recently with the price of Rs. 1160. Raj Invested Rs. 5 Lac and in return, he got 1.45 Cr in 7 years, whereas Ravi Invested Rs.5 Lac and got Rs 8.26 Lac in return.
- 5 Lac Yes Bank Fixed Deposit in 2009 @ 7.25%
- Current Value = 8.26 Lac
- 1200 Shares of Yes Bank in 2009 = 5 Lac
- Current Market Value = 1.45 Cr
Symphony is third multibagger stock on my list. Stock investment in Symphony has made many people crorepati.
Let’s understand return given by Symphony by Air cooler example. Suppose before 7 years you were in need of Air Cooler and you purchased Symphony Air Coolers worth Rs. 1 Lac. On the other hand, your friend was also in need of cooler but he decided to postpone his requirement. He invested his money Rs. 1 Lac in Symphony shares. The stock price of Symphony was Rs.32 in the year 2009 (Before Split). He got 3075 stocks in his portfolio. After a split of face value, he got five times shares in his portfolio.
He recently sold Symphony stock with CMP of Rs. 2389 and got 3.6 Cr in his kitty.
From above examples, it is quite clear that long-term investment in good stocks can earn you lot of money.
1 Lakh to 1 Cr in 10 years
In past 10 years, many investors have become crorepati by investing in the stock market. After analysis, I have got some interesting result that one can become crorepati by investing just 1 Lakh in some of the great multibagger stocks.
You might have noted that most of the stocks mentioned above were either small cap or penny stocks before few years.
Future Multibagger Stocks
All the stocks mentioned above have historically generated very good returns for the investor. However, it is not sure that these stocks will generate similar returns in future or not. If you are looking for good multibagger stocks for future Investment here is few multibagger stocks for future investment.
- Ashok Leyland
I have identified these stocks based on my experience and analysis.
Do you think these stocks will become multibagger stocks in future?
Do share your views in the comment section.