2016 was a tough year for the stock market. In January 2016, Sensex started its journey from 216160 level and expected to end at the similar levels. It was a difficult task to make returns from the stock market this year. Only a few stocks were able to generate a good return in 2016. The major events that affected stock market in the year 2016 were Brexit, US election, and demonetization.
Soon we will be entering into New Year 2017. Demonetization, GST, and global market condition will be key driving factors for the Sensex in 2017. I hope that 2017 will be a good year for the stock market and Investors.
Before moving ahead with 5 Multibagger stocks of 2017, let’s do a quick recap of 7 multibagger stocks which was suggested by me in 2016.
Out of these seven stocks, three stocks turn out to be a clear cut winner and wealth generator for investors. Stocks like Eicher Motors, SBI and Maruti were able to generate 41%, 17% and 13% returns for the investors.
Keeping the same pace and positive thoughts in mind here is list of top 5 multibagger stocks of 2017.
Top 5 Multibagger Stocks for 2017
CMP – 1840 Rs/-
Target Price – 2250 Rs/-
Potential Upside – 22%
Ajanta Pharma is first Multibagger stock for 2017. Ajanta Pharma is a net debt free company that caters to the specialty generic drug market where the scope for growth is immense.
- In last 5 years, this stock price has increased by 9.2 times. This stock was trading at Rs.200 in Dec 2011 and currently trading at Rs.1840.
- In last year stock has given 40% CAGR return.
- For last 5 years, a company has posted healthy performance with its consolidated revenue growing at 26% CAGR and net profit at 51% CAGR.
- Ajanta Pharma has got future business potential backed by strong management.
CMP – 3889 Rs/-
Target Price – 4800 Rs/-
Potential Upside – 23%
Force Motors is next multibagger stock pick for 2017. Force Motors is a manufacturer of multi utility vehicles, light and heavy commercial vehicles.
- In last 5 years, this stock price has increased by 9.72 times. This stock was trading at Rs.400 in Dec 2011 and currently trading at Rs.3890.
- In last year stock has given 37% CAGR return.
- They have recently set up new manufacturing unit near Chennai for BMW car. Looking at increasing luxury car segment it is expected that this stock will grow rapidly in days to come. You can purchase this stock with target price of Rs.4800.
CMP – 5141 Rs/-
Target Price – 6000 Rs/-
Potential Upside – 16%
Maruti Suzuki is next multibagger stock for 2017. Maruti Suzuki is leading automobile manufacturer of India.
- In last 5 years, this stock price has increased by 5.68 times. This stock was trading at Rs.905 in Dec 2011 and currently trading at Rs.5141.
- In last year stock has given 13% CAGR return.
- The premium segment Nexa car Baleno and S-cross launched by Maruti is doing well. Maruti is also planning to launch new cars named as Ignis and YJC.
CMP – 1071 Rs/-
Target Price – 1300 Rs/-
Potential Upside – 21%
Indusind Bank is one of the best multibagger stocks for 2017. Indusind is leading private sector bank established by Hinduja group.
- In last 5 years, this stock price has increased by 4.78 times. This stock was trading at Rs.224 in Dec 2011 and currently trading at Rs.1071.
- In last year stock has given 17% CAGR return.
- Low NPA level and consistent growth make this stock more attractive.
CMP – 225 Rs/-
Target Price – 300 Rs/-
Potential Upside – 33%
NBCC is public sector owned building & Construction Company. This company also provide project management & consultancy services.
- In last 4 years, this stock price has increased by 11.25 times. This stock was trading at Rs.20 in April 2012 and currently trading at Rs.225.
- In last year stock has given 19% CAGR return.
- A healthy order book and upcoming order flow make this stock very attractive.
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Note – Stock recommendation given above is after careful research and study; if required you can concern financial advisor or expert before taking any position in above stocks.