Hello Traders,
If we go by the meaning of the word ‘multibagger,’ it refers to a stock that generates over 100% return (or multiple bags). There are small-cap stocks that generate returns several times higher than the cost of acquisition in real life. We all wish we had the power to tell the happenings of the future. It would allow us to gauge our chosen stock’s performance and verify whether it is a multibagger. Unfortunately, such things are only limited to reel life.
In real life, it is imperative to understand that such stupendous returns don’t happen overnight. The transition from a smallcap to a midcap and finally becoming a large-cap share would demand your patience and perseverance. You also need an eye to unearth potential.
first, you need to know how will you identify the multibagger stocks.
So here is the answer to that first,
There are multiple ways from which you can easily identify the stocks but these are the most important 5 ways to identify multi-bagger stocks:
- The debt level is essential when looking for a multi-bagger.
- Check the quarterly performance (revenue/EBITDA).
- Look for the source of earnings of the company
- Earnings per share (EPS) and price multiples.
- Look for cues of CAPEX and structural change from Quarterly presentations.
Multibagger Stocks: Why Should You Invest in These?
It is not necessarily that your entire holding should be composed of multibagger stocks, and that’s not feasible as well. You should prioritize maintaining a balance between return and risk and build a portfolio that gives you a steady return in the long run. Having said this, finding out about multibagger stocks can help you to increase your returns substantially. And if you wish to earn the most from the stock market, you have to identify and invest in future multibagger stocks.
Multibagger Stocks offer substantial returns
Multibagger stocks, by their definition only, are the ones that can multiply your investments substantially. You can do some research to scan the best multibagger stocks for 2022 and get higher returns in the future. However, stocks are not multibagger by default, instead, they become multibagger. Hence, you have to gain a fair bit of knowledge on how to analyze stocks based on their fundamentals.
Here are some multibagger stocks in which you can invest:
- Flomic Global Logistics Ltd
- Sel Manufacturing Company Ltd
- Saraswati Commercial (india) Ltd
- Xtglobal Infotech Ltd
- Deepak Fertilizers & Petrochemicals Corp Ltd
- JK Paper Ltd
- UPL Ltd
- Vardhman Special Steels Ltd
I am providing a link for one of my answers which will surely help you:
Manushi Bhatia's answer to Which is the best multibagger stock to buy?
So these are the stocks in which you can invest as you can see it gave insane profit in last few months and it will give more further.
Instead of fighting with yourself and making a mess of your portfolio, get a good quality stock to get better returns and try to understand the market trend.
I hope this will help.
Thank you
Manushi Bhatia🙏🙏🙏
0 Comments