Owing to positive momentum in Indian share market, a good number of stocks have delivered stellar returns in the last one year. In fact, Indian stock market has delivered several multibagger stocks which have delivered up to 347% return in the last 12 months
Multibagger stocks are stocks that return several times their investment, that is, 100% higher returns or more in a relatively short time. These stocks have characteristics of good financial health, growth prospects, and competitive advantage, indicating the potential for sustained growth in the future. However, there is no guarantee that a multibagger stock will always provide bumper returns
Investors need to keep an eye on the company’s debt to equity ratio, revenue multiples, price-to-equity ratios while identifying multibagger stocks. Also, cheap valuation may not necessarily be a bad thing. If a stock is undervalued, and it has good fundamentals, the valuation could be revised in the future, and the investors may end up benefiting from it
Investors must pick a multibagger in an industry that is looking to grow substantially in the next five to ten years. If the industry is showing signs of having topped out growth-wise, it may be difficult to pick a multibagger in that industry. Always, look for a company with competitive advantage. Also, keep a close watch on company's management, business model
Some of the factors that pave the way for a stock in being a multi-bagger would be companies that have low debts, better P/E, undervalued stock price, strong revenue stream, high-performing industry, and competitive advantage over their peers. Take a look at some multibagger stocks that have delivered up to 347% in last one year
Apar Industries' share price has surged over 340% in the last 1 year. The company reported a 35% YoY growth in sales and a 194% growth in profit for the March quarter. Its Debt to Equity Ratio of 0.1 is less than 1 and healthy, implying that its assets are financed mainly through equity. This multibagger's Price to Earnings Ratio is 16.9, lower than its sector PE ratio of 74.5
Safari Industries' share price has surged more than 190% in the last 1 year. This multibagger stock has jumped over 350% in the last 5 years. The company's Return on Equity (ROE) for the last financial year was 29.4%, more than 20% in the last financial year, as per Trendlyne data. It has a healthy Debt to Equity ratio
Anant Raj share price has soared over 162% in the last one year. The multibagger stock has rallied 226% in the last 5 years. Its Debt to Equity Ratio of 0.3 is less than 1 and healthy. This implies that its assets are financed mainly through equity, according to Trendlyne. It has outperformed many of its bigger peers in reporting consistent growth in earnings
Cigniti Technologies' share price has rallied over 108% in the last one year. The multibagger stock has logged a 243% gain in the last 5 years. The company has a healthy Debt to Equity Ratio of 0.1, and its Return on Equity(ROE) for the last financial year was 28.6%, more than 20% in the last financial year, according to Trendlyne
KPIT Technologies' share price has soared 93% in the last 1 year. This multibagger stock has jumped over 700% in the last five years. The company's Debt to Equity Ratio is zero, and healthy, implying that its assets are financed mainly through equity, Trendlyne data shows. It reported more than 20% YoY growth in revenue and profits in the last four quarters
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