In this blog we discussed about the multibagger growth stocks for long term India ,multibagger stocks for next 5 years 2024 ,2026,2028 , the stocks to hold for long term in indian stock market . also provided here the brief explanation on how to pick the multibagger stocks.
How to pick the best multibagger stocks for long term
Identifying multibagger stocks involves a combination of strategic factors that can lead to exceptional returns. These stocks, often associated with small-cap and blue-chip companies, hold substantial growth potential but also come with risks that can impact a country’s economic landscape. To navigate this terrain, investors should prioritize prudent research and analysis.
Crucial indicators include the debt-to-equity ratio, which varies by industry but generally should not surpass 0.3. Monitoring the price-to-earnings (PE) ratio is also essential – a rapidly increasing PE relative to stock price indicates potential multibagger status. Consistency in business margins over several years indicates a strong company framework, while undervaluation coupled with solid fundamentals can signal an opportunity.
Assessing revenue multiples and aligning with growth-oriented industries are pivotal. Industries poised for substantial expansion over a decade offer fertile ground for multibaggers. Patience is key, as these stocks are subject to market fluctuations. A long-term strategy is advised over short-term trades to maximize returns. Equally vital is the competence of the company’s management. Evaluating governance practices, financial decisions, and board independence provides insights into a company’s growth trajectory. By carefully considering these factors, investors can position themselves to identify and capitalize on potential multibagger stocks in India.
Multibagger growth stocks for long term India ,multibagger stocks for next 5 years 2024 ,2026,2028
|Company Name||Sub-Sector||Market Cap (Rs. in cr.)||Close Price (Rs.)||PE Ratio (%)||5Y CAGR (%)||Net Income (Rs. in cr.)|
|Adani Green Energy Ltd||Renewable Energy||1,52,882.89||965.15||156.96||97.71||974.00|
|Tanla Platforms Ltd||Software Services||13,780.74||1,025.35||30.79||91.46||447.64|
|Adani Enterprises Ltd||Commodities Trading||2,76,210.87||2,422.90||111.69||81.18||2,472.94|
|Tube Investments of India Ltd||Cycles||62,235.77||3,220.30||93.56||67.40||665.20|
|Adani Power Ltd||Power Generation||94,186.45||244.20||8.78||64.29||10,726.64|
|Fertilisers And Chemicals Travancore Ltd||Fertilisers & Agro Chemicals||30,781.21||475.70||50.21||60.22||612.99|
|JBM Auto Ltd||Auto Parts||16,016.57||1,354.50||128.76||59.08||124.39|
|Capri Global Capital Ltd||Consumer Finance||15,619.17||757.65||76.32||58.75||204.66|
|Linde India Ltd||Commodity Chemicals||37,787.73||4,430.80||70.23||57.94||538.04|
|Alkyl Amines Chemicals Ltd||Specialty Chemicals||12,789.99||2,502.25||55.93||57.11||228.66|
|J B Chemicals and Pharmaceuticals Ltd||Pharmaceuticals||18,965.20||2,449.75||46.28||56.98||409.83|
|Olectra Greentech Ltd||Electrical Components & Equipments||10,811.67||1,317.20||164.84||52.11||65.59|
|Deepak Nitrite Ltd||Commodity Chemicals||26,357.96||1,932.50||30.94||51.22||852.00|
|APL Apollo Tubes Ltd||Building Products – Pipes||36,518.92||1,316.80||56.90||50.48||641.86|
Adani Green Energy Ltd
Adani Green Energy Ltd has joined forces with TotalEnergies of France to establish the world’s largest green hydrogen ecosystem. In this collaboration, TotalEnergies will acquire a 25% minority stake in Adani New Industries Ltd (ANIL) from Adani Enterprises Ltd (AEL). This partnership aims to create a significant impact on the energy landscape, with a focus on green hydrogen, contributing both domestically and globally. Over the past 5 years, this large-cap stock has demonstrated remarkable growth, achieving an astounding 3,003.38% increase in absolute returns.
Tanla Platforms Ltd
Established in 1995, Tanla Platforms Ltd specializes in end-to-end solutions within the telecom infrastructure domain. The company also develops and markets software solutions, offering a range of cloud communication services, including messaging, voice, and IoT solutions. With a development center in Hyderabad and a global marketing office in the United Kingdom, Tanla Platforms caters to a diverse international audience. Over the last 5 years, this midcap stock has delivered exceptional absolute returns, boasting an impressive growth of 2,450.62%.
Adani Enterprises Ltd
Adani Enterprises Ltd operates across various sectors, including coal trading, mining, oil and gas exploration, power generation, logistics, and more. Its diversified portfolio has contributed to strong returns for its shareholders. Over the past 5 years, this large-cap stock has surged by 1,849.24% in terms of absolute returns, reflecting the company’s robust performance across its diverse ventures.
Tube Investments of India Ltd
Founded in 1959 through the merger of TI Cycles of India and Tube Products of India, Tube Investments of India Ltd focuses on mobility-related manufacturing. The company operates through segments such as engineering, metal-formed products, and mobility. In the past 5 years, the stock has experienced substantial growth, with absolute returns reaching 1,215.48%, showcasing its success in the mobility sector.
Adani Power Ltd
Adani Power Ltd, established in 1996, is a prominent player in electric power generation through coal-based thermal power plants and coal trading. It holds the distinction of being India’s largest private thermal power producer and has set up a coal-based Supercritical thermal power project registered under the Clean Development Mechanism (CDM) of the Kyoto Protocol. Over the last 5 years, this large-cap stock has witnessed significant growth, achieving absolute returns of 1,165.28%.
These companies have demonstrated impressive growth and strategic partnerships, contributing to their multibagger stock status in the Indian market.
read also – multibagger penny stocks for 2024
Frequently Asked Questions (FAQ) about Top Multibagger Stocks in India or Multibagger growth stocks for long term India
1. What are multibagger stocks?
Multibagger stocks are stocks of companies that have delivered exceptionally high returns over a certain period, often surpassing expectations and market averages.
2. What are the key indicators of a multibagger stock?
Indicators include strong financial growth, innovative strategies, partnerships, market demand for their products/services, and efficient management practices.
3. What is the significance of Adani Green Energy Ltd’s partnership with TotalEnergies?
The partnership aims to establish the world’s largest green hydrogen ecosystem, focusing on sustainable energy solutions and contributing to both India’s and the global energy landscape.
4. What sets Tanla Platforms Ltd apart in its sector?
Tanla Platforms provides end-to-end solutions in telecom infrastructure and cloud communications globally. Its impressive 5-year growth of 2,450.62% reflects its success and market demand for its offerings.
5. How diversified is Adani Enterprises Ltd’s portfolio?
Adani Enterprises operates in various sectors, including coal trading, mining, power generation, and logistics. This diversified approach has contributed to its strong returns over the past 5 years.
6. What segments does Tube Investments of India Ltd operate in?
Tube Investments focuses on engineering, metal-formed products, and mobility-related manufacturing. Its 5-year absolute return growth of 1,215.48% underscores its success in the mobility sector.
7. What sets Adani Power Ltd apart in the power generation industry?
Adani Power is India’s largest private thermal power producer and has set up innovative projects under international protocols. Its absolute return growth of 1,165.28% in 5 years indicates its substantial success.
8. What are the advantages of investing in multibagger stocks?
Investing in multibagger stocks can lead to significant wealth accumulation due to their exceptional growth potential, making them attractive options for investors seeking higher returns.
9. How can I identify potential multibagger stocks?
Look for companies with strong financials, innovative strategies, partnerships, and consistent growth in revenue and net income. Researching the market trends and the company’s industry can also provide insights.
10. Is investing in multibagger stocks risk-free?
No, investing in multibagger stocks carries risks as well. While the potential for high returns is present, the market is dynamic, and factors such as market downturns or company-specific challenges can impact returns.
11. How can I keep track of the performance of these stocks?
Regularly monitor financial news, company reports, and stock market data to stay informed about the performance of these multibagger stocks.
12. Can the past performance of these stocks be indicative of future returns?
While historical performance can provide insights, it’s essential to remember that past performance doesn’t guarantee future results. Conduct thorough research and consider current market conditions.
13. Are there any risks associated with investing in multibagger stocks?
Yes, risks include market volatility, changes in company performance, regulatory changes, and unforeseen events that can impact the stock’s performance.
14. What is the importance of due diligence before investing in multibagger stocks?
Due diligence involves comprehensive research to understand the company’s financial health, management practices, industry trends, and growth potential. It helps investors make informed decisions.
15. Is it advisable to invest in multibagger stocks for short-term gains?
Multibagger stocks are often more suitable for long-term investment strategies. While short-term gains are possible, the true potential of multibagger stocks often unfolds over several years.