Multibaggers Stocks

Which stocks will become multibagger ?

But remember here that such companies should have low equity base that triggers the stock to become a multi-bagger. Stocks that give returns that are several times their costs are called multibaggers. Thus, multibaggers are stocks whose prices have risen multiple times their initial investment values.

How do you choose multibagger stock ?

Strong and Capable Management.

Competitive Advantage.

Strong Promoter Holding.

Healthy Earnings Growth.

Study the PE Ratios.

High Margin Businesses.

Financially Conservative Approach Or Prudent Allocation Of Capital.

Future Growth Potential.

What are Penny Stocks ?

Penny stocks are a form of market traded security which attracts minimal pricing. These securities are mostly offered by companies with lower market capitalisation rates. Therefore, these are also called nano-cap stocks, micro-cap stocks, and small-cap stocks, depending on the company’s market capitalisation.

A company’s market capitalisation rate is determined based on the product of the current price of its shares or stocks and the number of outstanding shares i.e. NAV of shares x number of outstanding stocks.

Penny stocks in India are, therefore, released by companies with market capitalisation lower than Rs. 5,000 Crore.

Multibaggers

Some of these stocks have the potential to evolve into multi-baggers. It means shares which yield in multiples of the investment amount. If specific security reaps double its investment amount, it is called a double-bagger, and if it returns ten times its investment value, it is considered a ten-bagger.

Including them in your portfolio could exponentially increase your return prospects and might outperform the large and mid-cap funds. However, conduct thorough research ito the penny stocks list to gauge which stocks have the potential to be multibaggers.