What is the best multibagger stock now in India?

Multibagger Stock : Stocks that give returns that are several times their costs are called multibaggers . These are essential stocks that are undervalued and have strong fundamentals, thus presenting themselves as great investment options.

Multibagger stock companies are strong on corporate governance and have businesses that are scalable within a short span of time.

Source google:

In simple terms are stocks that have potential to perform very good over a few years of time, to yield huge profits and that can give back returns that are multiple times greater than the price of the stock at present

Investors are often inclined to buy such stocks but fall to identify them due to the lack of good research abilities. if an investor fails to identify it in a right time then he/she misses the opportunity to multiply their earnings

Stocks experts have a dedicated team of researches and financial analysts who utilise their skills and knowledge to identify a mutlibagger ,so that an investor has plenty of time to act upon.

How to Find Multibagger Stocks for Investment:

Hunting for a potential multibagger stock is a difficult task,

• Vision of the Company: The most important part of identifying multibagger stock or any profitable stocks for that matter is that one has to have a certain foresight to understand where the company or the product/service would be in next 10–15 years . Try to analyse whether the company has the potential to stay two steps ahead of its peer group and dig in to the history of the promoters .
• Sustainable Competitive Advantage: Another important point to spot a multibaggers is to identify the competitive business advantage of the company where the company is at such a unique position that it doesn’t have any close competition and at the same time ,it is delivering exceptional performance on the regular basis,such companies have a fair chance of making the cut.
• Identify Undervalued Stocks: The most important part of stock investing is figuring out how much the stock you are investing is worth, and whether the trading price is fair.
• Long Term perspective is only route for multibagger growth: This is the most important part , having a long term investment perspective increases your chances of experiencing multibagger growth . it’s simple, any company doesn’t multiply its value overnight ( in some case if it does, it doesn’t sustain) , hence ,it is important to hold your stocks for a considerably long period and give the company plenty of time to march ahead with sustainable growth.

Source google:

• While the fern plant had started , growing steadily right from the first day, bamboo had spent all this time strengthening its roots and showed no growth till 5 years, but after that, within the next 6 months,it grew to more than double size of fern. In the same way, multibaggers many not give handsome returns in the short term but in the long run, their returns my outperform even blue chips.
• Some various tools or methodologies which one can adopt in choosing stocks which have the potential to become next multi baggers
• The debt level of a company should be low, A company should be nearly debt free
• Future business potential
• Good performance history
• EPS growth
• A revenue of company should be growing quarter to quarter . A performance history of a company should be good
• The company should have good source of earning with scalability in operation
• The company business model should be sustainable and should have favourable future business potential
• Business expansion, a global market presence or new monopoly product could be added advantage
• The valuation of stock should be low
• A man agreement of the company should be strong and clean and decisive.

Source google:

Here some multi-bagger stocks :

1. Tata Motors
2. ICICI Bank
3. SBI
4. ITC
5. Britannia
6. Hindalco
7. Colgate Palmolive India,
8. Crompton Consumer
9. IOC Ltd
10. RBL Bank
11. Ultratech Cement
12. Force Motors
13. Maruthi Suzuki
14. JK cement

Note: These are best stocks as per my knowledge, before investing do research and invest!

• Don’t expect instant returns , while investing in multi baggers . Be patient and wait to the great returns
• Don’t get swayed by the buzz around penny stocks . Make sure you do proper research on stocks before investing
• There are factors the may not affect the stock fundamentally Noise and factors , that affect the stock fundamentally structural changes.
• Understand the differentiating between ‘Noise’ and ‘Structural changes’ can make all the difference between success and failure.

The reality is no one can identify a multi bagger before it is already a multibagger . So, invest in businesses that are the market leaders and continue to generate value to investors , over a period of time they will prove to be multi baggers.