There are at least 146 such stocks in the BSE 500 index.
Which has climbed more than 500 percent in the last 10 years.
The Sensex gained 220 per cent in the same period.
New Delhi. Keeping patience and restraint by investing money in the equity market gives guaranteed returns. As an investor, especially after investing in equities, if you are not patient, then you may have to suffer losses. There are at least 146 stocks in the BSE 500 index, which have gained more than 500 percent in the last 10 years. Tanla Platforms is at the first place in this list. This stock has given a return of 16,393% in the last one year.
The shares of the company were Rs 6.10 on 26 October 2012 which increased to Rs 744.60 on 27 October 2022. This means an investment of Rs 1 lakh in stocks a decade ago would have grown to over Rs 1.20 crore today. On the other hand, the Sensex gained 220 per cent in the same period.
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These stocks gave bumper returns
The list includes Deepak Nitrite, Alkyl Amines Chemicals, HLE Glasscoat, KEI Industries, UNO Minda, Naveen Fluorine International, Caplin Point Laboratories, Garware Technical Fibers, APL Apollo Tubes, Tata Alexei, SRF, Bajaj Finance.
How to identify such multibaggers?
According to Research & Ranking, an investor should look for a number of qualitative and quantitative factors to discover companies that can become a multibagger. To recognize such shares, the debt of the company does not exceed 30 per cent of its equity value, the potential for growth in revenue is very high and the PE growth exceeds the growth of the stock price, such shares have the potential to become a multibagger. Apart from this, you should also keep an eye on the capital expenditure model of the company.
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Also promoter holding, capital return more than 18 percent, return on equity should be more than 15 percent, the company should have low debt or debt free with a steady increase in net profit and cash flow. An investor should also be aware of the allocation percentage and allocate 3 percent to 7 percent of the overall portfolio in a single stock.
Instead of looking for multibagger stocks, an investor may want to focus on building a potentially multibagger portfolio. Such a portfolio can have a mix of 20-25 stocks as this helps to avoid the risk of under-diversification and the pitfalls of over-diversification. These stocks can be in different market capitalizations and sectors depending on the goals of the investor.
Tags: Multibagger stock, stock option, stock return, Stock tips
FIRST PUBLISHED : October 29, 2022, 08:30 IST