The multibagger stock is a stock that can give multifold return to the investor. A good multi-bagger stock can make you wealthy. However, it is difficult to identify good multibagger stocks for investment. Investors are always looking for a method to identify good multibagger stock for investment. In this post, I will share a method to identify good multibagger stock for investment. Along with that, I will also share 5 Multibagger Stocks that have generated multi fold returns for the investor.
What is Multibagger Stock?
A multibagger stock is a financial jargon used for a stock that gives a return of more than 100%. A stock that gives several times returns on the cost is called multibagger stock. A stock that doubles its price is called two-bagger stock.
2-bagger —- 100% Gains
3-bagger —- 200% Gains
4-bagger —- 300% Gains
5-bagger —- 400% Gains
10-bagger—- 900% Gains & So On
How to Identify Multibagger Stocks?
Few pointers that will help you in the selection of right multibagger stocks are –
- The company should be operating in a space where they are delivering unique product or services. The demand for these products and services are high and competition is low.
- The historical performance of company should be good.
- A company should be preferably in mid-cap and small cap area.
- The company should have a good source of earning with scalability in operation.
- The company business model should be sustainable and should have favorable future business potential.
- The valuation of stock should be low.
- The management of a company should be highly committed and able to take the company to new heights.
- The Company should have low debt or be debt-free.
- Business expansion, a global market presence or new monopoly product could be added advantage.
5 Multibagger Stocks – Multibagger Returns in 5 Years
- Caplin Point Laboratories
First multibagger stock in the list is Caplin Point Laboratories. Caplin Point Laboratory is Pharma Sector Company. A stock of Caplin Point Laboratories was trading at Rs.15 before 5 years (2013) and today share price has crossed the level of Rs.620. This means stock of Caplin Point Laboratories has given 110% return to the investor in last 5 years. Investment of Rs.10000 in this stock has grown to 11 Lakh in last 5 years.
- Avanti Feeds
Avanti Feeds is from Aqua culture sector. Avanti Feeds has turned out to be another multibagger stock for the investor. A stock has grown by 67 times since past five years. Investment of Rs.10000 in this stock has grown to 6.8 Lakh in last 5 years.
3. Tasty Bite Eatables Ltd
Tasty Bite Eatable is a Frozen specialty food manufacturing company. In last five years stock of Tasty Bite eatable has risen by 35 times. The stock was trading at Rs. 143 in 2013 and today it is trading at Rs.8437. Investment of Rs.10000 is grown to 5.9 Lakh by now
Polson is chemical segment company dealing in dyes and pigments. In last 5 years, this stock has grown from level or Rs. 578 to Rs. 19561. Investment of Rs.10000 in this stock has increased to 3.38 Lakh in last 5 years.
- Arrow Greentech
Arrow Greentech is the biggest manufacturer of water soluble films. The stock of Arrow Greentech has multibagger stock from penny stock. This stock was trading at Rs.8 before 5 years and today it is trading at Rs.452.
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