Multibagger stocks are stocks that generate multiple times returns for investors. Everyone wants to find and invest in stocks that generate multibagger returns. However, finding future multibagger stock is challenging. You need to do research and consider various factors before making any investment decisions. In this post, I will share detailed steps that I use to find out multibagger stocks. I will also share 7 Stocks that have generated multibagger returns in the last 3 years – FY 21-23.
How to Find Multibagger Stocks?
Here are steps that you can follow to identify future multibagger stock.
#1 Industry Analysis
The first thing you need to do is find out the industry that has growth potential and favorable market conditions. Let’s say if you are checking the IT industry, IT companies that are operating in software development, digitalization, and artificial intelligence have very good potential. Under the industry find out companies that have unique positioning in the industry.
#2 Fundamental Analysis
The second thing you need to do is the analysis of the company’s fundamentals. You can do that by doing a study of the company’s financial statements. You need to check profit margins, debt level, revenue growth, and earning growth. Find out companies that are consistently performing well.
#3 Product/Service Diffrentation
Check for the company’s products or services and find out if they have unique selling points compared to competitors or not. A company with a unique or innovative product or service is likely to perform well in the future.
#4 Growth Prospects
Check for the company’s growth prospects. In case the company is doing expansion and launching new products or services it is a positive sign. Find out companies with high growth potential.
Read – How to find Multibagger Stocks?
#5 Small Cap & Mid Cap
The possibility of becoming a multibagger is generally higher when it comes to small-cap and mid-cap companies. Small Cap and Mid Cap companies are growing companies and hence you should go for small-cap or mid-cap companies.
#6 Management
When it comes to finding a multibagger you should also consider management’s track record in terms of executing strategies and plan for the company. Go for a capable leader who has a proven track record of creating shareholder value.
#7 Valuation
You have to check the valuation of the company to ensure that the stock price is reasonable with respect to earnings, cash flow, and other industry peers. Don’t go for overvalued stock as it has limited upside potential.
#8 Expert Opinions & Research
Find out expert opinions and comments on the potential multibagger stocks. You can find out detail from the various research reports published by various experts. Expert opinion is only for reference you need to do your own research while finding stocks.
7 Stocks with Multibagger Returns in the Last 3 Years
Here are 7 Stocks that have generated multibagger returns for the investors in the last 3 years FY21-FY23.
#1 Patanjali Foods
Patanjali Foods is a leading manufacturer & marketer of a healthy range of Edible Oils and a Pioneer of Soya Foods in India. Patanjali Foods is one of the largest palm plantation companies in India.
The stock of Patanjali Food has generated 357% returns for investors in the last 3 financial years (FY21-FY23). The stock price of Patanjali Foods was available at the rate of INR 209 on 1st April 2020 and the stock price touched INR 957 on 31st March 2023 generating 357% returns for the investors.
#2 Alkyl Amines Chemicals
Alkyl Amines Chemicals is a leading chemical company and global supplier of aliphatic amines, specialty amines, agrochemicals, water treatment, and rubber chemicals to various industries. Strong R&D facilities, products, and global presence are advantages of Alkyl Amines Chemicals.
The stock of Alkyl Amines Chemicals has generated 270% returns for investors in the last 3 financial years (FY21-FY23). The stock price of Alkyl Amines Chemicals was available at the rate of INR 596 on 1st April 2020 and the stock price touched INR 2210 on 31st March 2023 generating 270% returns for the investors.
#3 Coforge
Coforge is IT Company. Coforge provides digital IT solutions and technology consulting services worldwide. Coforge leads with its product engineering approach and leverages Cloud, Data, Integration and Automation technologies to transform client businesses into intelligent, high-growth enterprises.
Coforge has come out as a strong player in IT and Digital solutions. This stock has generated 283% returns for the investors in past 3 years.
#4 LTIMindtree
LTIMindtree is also IT stock that has generated multibagger returns for investors. LTIMindtree is consulting and digital solutions company. The major client base of LTIMindtree is outside India. LTIMindtree stock has generated 248% absolute returns for investors in 3 years.
#5 Deepak Nitrite
Deepak Nitrite is a leading chemical manufacturing company. Deepak Nitrite has more than 100 products that have applications in agrochemical, pharmaceuticals, rubber, paper, and other industries. It is one of the oldest companies in the chemical industry. Deepak Nitrite has generated 302% returns for the investors in past 3 years.
#6 Navin Fluorine International
Navin Fluorine International Limited is an India-based company that is primarily focused on fluorine chemistry, which produces refrigeration gases, inorganic fluorides, and specialty organofluorines.
The stock of Navin Fluorine International has generated 205% returns for investors in the last 3 financial years (FY21-FY23). The stock price of Patanjali Foods was available at the rate of INR 1401 on 1st April 2020 and the stock price touched INR 4286 on 31st March 2023 generating 205% annualized returns for the investors.
#7 Vinati Organics
Vinati Organics is also from the chemical sector. Vinati Organics is the world’s largest manufacturer of Isobutylbenzene (IBB) and the second-largest manufacturer of 2–Acrylamido 2–Methylpropane Sulfonic Acid (ATBS). Vinati Organics supplies products to 35 countries across the world. Vinati Organics generated 110% returns for the investors in the last 3 years.
Note – The above article and stocks given here only for information purposes and not the investment advice. Please consult SEBI Registered Investment Advisor or Financial Planner before making any investment.
