Want to earn an insane amount of money by long-term investing. Best Multibagger Stock to Buy now in India. Giving you a glimpse of the multibagger stock. How to detect multibagger stock? Long-term investing always will always surprise you with an exponential return, and an insane growth in the value of the stock.
If you really want to increase your wealth and retire with lots of money the best investment will be on the multibagger stock. multibagger stocks are always best for gaining high returns and covering all the money you ever lose in investing. Its always possible that you might lose some of your money in investing. But, always have an option for investing on multibagger it always helps you cover yours losses. And multibagger stocks are always best when you do a long-term investment.
Let me give you an example of multibagger stocks that grow with an insane figure in the last decade. The best example is “Avanti Ferds”. This stock grew by over 34,200% in the last 10 years. Starting from Rs. 1.66 this stock reach 569.50 in the year 2019. Such a big growth.
Table of Contents
- Picking a Best Multibagger Stocks
- Important Factors to Look at While Buying a Stock
- Size of a Company
- Healthy Earnings Growth
- High Margin Business
- Future Growth Potential
- Competitive Advantage
- Capabilities to Expand Free Cash Generation
- Return Ratio
- Best Multibagger Stock to Buy now in India.
- Bajaj Hindustan Sugar
- Happiest Mind Technology
- Alkyl Amines
- Related Articles: Best Multibagger Stock to Buy now in India.
Picking a Best Multibagger Stocks
Think of an amount you have invested just say if you have invested just 1,00,000 in the year 2009. Then after 10 years, you’d have made 3.43 crore. Retiring with that amount is just awesome. Many of the people made this mount, and some even made more and less than this. So, also you’re targeting a multibagger stock now. Let me explain to you all the factors, and then take you to the multibagger stocks to buy.
HDFC is the best example of a long-term multibagger stock. Since its IPO in 1995, this company have completed its 26 years in 2021. With dividend return, this company have delivered a return of 30% CAGR, and without dividend, this company have return a 25% CAGR. Worth Rs. 8 crores if you have invested 1 lac in this IPO. Seeing the growth the price is gone 800 times higher. The multibagger stock for the last year 2020 were Caplin point Laboratory growing 22,300 percent, Garware Technical Fibre growing by 2600%, and also La Opala having growth of 4500 percent. All these growths are record for the last decade.
As an investor, you should have patience for the returns. A tree doesn’t grow within two or three months it takes a year. But every time you water it, there is a growth you might not see that growth. But, there will be and you’ll be getting the sweet fruits from it. Sometimes the price might fall down, and sometimes there must be a growth you see. So, never lose hope and work patiently.
A sector that a company deals with is the first thing a person should look at. A sector like technology is the strongest sector, and it can give its investor the highest returns. So, sector is said to be strong by seeing how much strong potential does that sector have, and how is the feature of that sector. The investor should also look at how the competition is in the sector, and strengthen the company could stand out from the others you’re investing. Whatever the threats come in the way of the company how will it respond, and deal with the company?
There are also many sectors in the market which have low competition, and it is to start up with a successful business in that sector. A large number of investors will put the money if the company have high growth. Let me give you an example of the FMCG industry although the competition is high in this sector, there are lots of opportunities to establish a successful and profitable business in this type of industry. Whereas a small number of players can put a huge impact on the competitor’s profitability in the mature low growth industry.
Greater pressure is seen on the company when it enters the extremely high competition sector. Therefore an investor should look for a company whos stand out to be at the top position in its sector. Investing in this type of company will always turn out to be profitable. Also, the investor have a look at the company that focuses on growing its value in the value market and provides its investor a good amount of returns.
Beginning with an example of a Telecom company. This sector have grown rapidly from providing calling service to internet service it have generate a large form of revenue from it. Also, the competition in this sector have increased day by day. Look for a company who at the top in this competition. A company that is in the growing industry or sector will give you more profit than the other mature companies. The potential of the company in the industry, and the industry it is dealing with. Must be the best value to calculate for investing in the company.
Important Factors to Look at While Buying a Stock
Size of a Company
When you expect something to get out of the stock, the size of the company matters the most. Big companies mostly have a stable stock move. So, they should not be included in the list of multibagger stock. But, focusing on the smaller companies they have a fast move. So, that’s the reason to keep an eye on the small company. The small companies can bring you a lot of the profit as of that compare to big companies. For the big companies like MRF, and all you shouldn’t hope for a big return within two. It’s sure that you’ll get profit. But, that profit will not be that big. So, the conclusion is that you must focus on small companies. The companies who have a higher potential, and great products or service.
Healthy Earnings Growth
When a company earns a profit the person holding the share will also be earning the profit. There will be high growth in the earning of the companies, the companies which are involve in the multibagger list. These companies have a high growth profile. That’s the other reason for buying the multi-bagger stock.
High Margin Business
Business with a high margin is another main point to be note down for finding an multibagger stock. The only reason the company will have a high margin is some operational efficiency, some moat, or because the reason is that they command a leading position in the industry it is dealing with. Meanwhile, the companies don’t fluctuate more who have sustainable margins.
Future Growth Potential
If the companies don’t provide consumers with the products or the service which meets the future needs. Then that company doesn’t have further potential to grow and provide the basic need of the consumer. Hence, that might be the multibagger stock. The company that explains its every step, and can meet the future needs will be your multibagger stock.
To find out the Best Multibagger Stock to Buy now in India this might be the best step to consider for you. By providing a good product as well as the service the company can stand out in the competition. Let me take you to an example of an MRF. Starting from manufacturing the air ballon this company have gone so far. This company have provide its consumer with all they need with changing time and have always remain at the top when it comes to competing with other companies. Seeing how innovative the company is you can find out how well it stands in the competition. Looking at the factors like how innovative the service or products that company provides, and how frequently it launches it. This will help the company to beat the other company and can promote growth that other companies will not.
Capabilities to Expand Free Cash Generation
The ability to grow and generate free cash flow consistently is the most important, and sustainable feature of the multibagger stock. To expand or launch its product the multibagger company will use its internal funds. Also, the debt level of these will be lower than the other companies in the equity. The free cash company generating will be used for its future plan of launching products or the service.
ROE and ROCE are both the return ratio. By using this ratio one can find out the efficiency of a company for generating profit. These ratios are the important ones to be pick up. One should keep an eye on this ratio and should check the company us whether growing or not.
People always fear that investing is like gambling, and they’re going to lose money in this game. But, it is not like investing by understanding the field will always give you profit.
So, these are the best tricks to find out the Best Multibagger Stock to Buy now in India.
Best Multibagger Stock to Buy now in India.
Bajaj Hindustan Sugar
The growth from Rs. 14.50 to Rs. 16.60 which is a 14.50 percent return within throne month. This stock is an all-time favorite for the bulls of the share market. Raising from Rs. 6.15 to Rs. 6.60 in the year 2021 this stock have provide have provide its shareholder 170% returns, and that’s a really big number. Coming on the history of this stock. The highest price of this stock have seen at Rs. 455.53. This shows the stock have never before a penny stock. It w-as at the hike in the year of 2006 to 2008. But, gradually the price is seen to go down, and now it have come to two-digit. But, it will be become high at some point. This includes him in the list of Best Multibagger Stock to Buy now in India.
Happiest Mind Technology
Operating in the IT sector, Happiest Mind Technology is a large company launch in the year 2011. Operating in the UK, US, Canada, Middle East, and Australia this company is headquarter in Bangalore. Working in the field of blockchain, internet of things, artificial intelligence, cloud, digital process automation, robotics/drones, security, virtual/augmented reality, etc it is rank fourth in the IT sector.
The company wa-s seen in January at Rs. 339.55 this company have a growth of 320%. This company have a market value of Rs 49.9 billion. Coming on today’s rate this company now have a share value of Rs. 1,426.55, and making the company worth 211.2 billion.
Although only the retail investor are seen investing in this company. Else the foreign portfolio investors (FPIs), mutual funds, and HNIs are not seen investing in this company. Around 1.35 lakh investors have found interesting this company, and have made a good amount of money. As per the June it is the 25 biggest company in India. Also, the company have provide its consumer the good products and have increase its sale. This includes him in the list of Best Multibagger Stock to Buy now in India.
Alkyl Amines is a leading manufacturer of aliphatic amines in India. Share of chemical companies have been on a tear for quite some time now and Alkyl Amines is one such stock that has given 174% returns since the start of this year.
Brokerages are bullish on the sector opening reason such as India’s share in specialty chemicals is expected to double over the next five years. Other factors also favor Indian chemical companies including strong domestic consumption-led by a young population, favorable labor cost (one-third that of China/half that of Vietnam), and government impetus.
Here’s interesting data on the company. Alkyl Amines had a market cap of fewer than ₹1 bn, with barely 11,000 shares traded on a daily basis in the year 2010 to 2011. The stock was priced well below ₹50 and traded at a 7 to 8 times price-to-earnings ratio.
The stock is since up 12,640%. An annualized return of over 60%.The stock has multiplied its topline and operating profits by 14 times and 65 times in the last decade, respectively. This includes him in the list of Best Multibagger Stock to Buy now in India.
Related Articles: Best Multibagger Stock to Buy now in India.
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