Guide To Finding Multibagger Stocks For 2017

Multibagger Stocks Meaning

Peter Lynch, the highly respected manager of Fidelity Investments Mutual Fund, coined the word “multibagger stock” in his books One Up on Wall Street and Beating the Street.

The term became very popular amongst investors because Peter Lynch gave practical examples of how companies that we use in the daily life like McDonalds, Dunkin Donut, Walt Disney, Ford Motor Co etc are great investment opportunities and give huge gains to shareholders.

The reference by Peter Lynch was to stocks which can give a return which is several times the investment made in them.

So, a stock which gives a gain of 200% and returns 300% of the investment becomes a 3-bagger. A stock which gives 10 times the investment is called a 10-bagger.

Click here for a daily updated list of Free Stock Market Tips & Recommendations By Experts. The stocks are picked based on fundamental and technical parameters




Meaning Of 100-Baggers

The concept of 100-baggers was made popular by Thomas Phelps in his book “100 to 1 In The Stock Market”.

Thomas Phelps referred to stocks which the potential to give 100x the investment made in them. Phelps gave several examples of such stocks and also gave a detailed explanation on the process that should be adopted by investors to find such stocks.

Penny Stocks, Micro-Cap & Small-Cap stocks

Generally, multibagger stocks are to be found in penny, micro and small-cap stocks. The reason for this is simple. These stocks have a smaller market capitalisation and find it easier to double and triple their net worth in a short while.

For, example a stock with a market capitalisation of only Rs. 100 crore can easily grow to a market capitalisation of Rs. 500 crore and give investors a 500% return.

In contrast, large-cap companies will find it very difficult, if not impossible to give multibagger returns to their shareholders.

Examples of multibagger stocks in India

There are several stocks in India which have given 10x and even 100x returns. Most of these stocks belong to the penny and small-cap space.

Caplin Point Laboratories is one example of a stock which has given a 10x return in a short period of time. Caplin Point manufactures pharmaceutical products and exports them to Venezuala and other Latin American countries.

Another example of a multibagger stock is Uniply Industries. The stock has attracted marquee investors like Radhakishan Damani, Ramesh Damani and Vallabh Bhanshali and has given a return of 1400%.

There are several other examples of stocks which have become multibagger and created huge wealth for investors. Stocks like Ajanta Pharma, Alembic Pharma, Mangalam Drugs, Intrasoft Technologies, Lanco Industries (Srikalahasthi Pipes), Shreyas Shipping, Page Industries, Hawkins Cooker, PI Industries etc are examples of such stocks.

How To Find Multibagger Stocks

Generally speaking, one has to hunt for such stocks in the penny, micro and small-cap space. Such stocks have a low market capitalisation which makes it easier for them to grow exponentially.

Moat

One has to find stocks that enjoy a moat from the competition. The moat can be in the form of a technological advantage or a marketing advantage. Basically, the company must be able to fend off competitors from laying stake to the market.

High RoE Companies

It is a common feature of penny and small-cap stocks which are growing fast that they will enjoy high rates of RoE. The RoE must be in excess of 20% to be attractive. The high RoE shows that the Company is growing in a profitable manner and that the growth is not coming at the cost of profits.

It is elementary that if a company does not make profit and instead suffers a loss, it will soon run out of capital and will have to go for liquidation and be wound up.

In fact, several companies in the e-commerce space have chased high growth at the cost of profits. Such a strategy is not sustainable in the long run and has resulted in the closure of these companies.

Examples of such companies are Local Banya, Tiny Owl, Grofers, Hola Chef etc.

Characteristics of multibagger stocks

The following are the salient features that all potential multibagger stocks display

(i) The Company offers a product or a service that is unique or innovative and for which there is a lot of demand and not much competition;

(ii) The size of the opportunity should be huge in relation to the size of the Company;

(iii) The Company should enjoy high profitability which will be reflected in the RoE levels;

(iv) The promoters should be highly committed and able to steer the Company to new heights through hard work and perseverance;

(v) The promoters must have the honesty and integrity to want to share the gains of the Company with the shareholders;

(vi) The Company should have low debt or be debt-free.

Multibagger Stocks 2017




The following five stocks are small-cap stocks with excellent quality of management and high RoEs. They have a huge scale of opportunity ahead of them. These stocks have the potential to give multibagger returns in the future as well.

(i) Caplin Point Laboratories;
(ii) Shaily Engineering Plastics;
(iii) Vidhi Dyestuffs;
(iv) Apcotex Industries;
(v) Oriental Carbon;
(vi) Adi Finechem;
(vii) Astec Life;
(viii) Prima Plastics;
(ix) Heritage Foods;
(x) Capital First.

Multibagger Stocks 2016

The following stocks have already given huge returns in 2015 and 2016. However, they are of such good quality of management and have such a dominant command over the market that they can be expected to give excellent returns in the future as well.

(i) Pricol
(ii) LIC Housing Finance
(iii) Repco Home Finance
(iv) VST Tillers Tractors
(v) Bharat Electronics

Experts in multibagger stocks

There are a number of experts who have mastered the subject and are able to find stocks that give huge gains. Their names are as follows:

(i) Rakesh Jhunjhunwala and Radhakishan Damani

Rakesh Jhunjhunwala and Radhakishan Damani became billionaires by buying small-cap stocks which became large-cap stocks. The present size of the portfolio of Rakesh Jhunjhunwala and Radhakishan Damani is so great that they can no longer invest in penny or micro-cap stocks. Even small-cap stocks are out of bounds for these investors. They can invest only in large-cap stocks.

(ii) Dolly Khanna/ Rajiv Khanna

Dolly Khanna and Rajiv Khanna have made a large number of investments that have become very big success stories. Dolly Khanna has made a lot of money in stocks like Cera Sanitaryware, Hawkins Cooker, Avanti Feeds etc.

(iii) Vijay Kedia

Vijay Kedia has also made a large number of investments which have proved to be big winners. Vijay Kedia is famous for stocks like Atul Auto, Sundaram Chemicals, Repro, etc where he has made a fortune.

(iv) Porinju Veliyath

Porinju Veliyath has a Portfolio Management Service called Equity Intelligence. He has made a lot of money by buying penny and small-cap stocks.

Porinju Veliyath has recently recommended stocks like Future Consumer, DCM Shriram, Tata Global Beverages, Biocon, Jubilant Life Sciences, Emkay, NIIT, HSIL, Transport Corporation etc.

(v) Basant Maheshwari

Basant Maheshwari is a well-known stock advisor. He runs a Portfolio Management Service called Basant Maheshwari Financial Services. His favourite stocks are Granules India, Ujjivan Financial, Equitas Holding, Repco Home Finance etc.

(vi) Mudar Pathreya

Mudar Pathreya writes a column in Business Standard where he recommends penny, micro and small-cap stocks for investment. Some of Mudar Pathreya’s recent stock recommendations include Mercator, Sumeet Industries, Lakshmi Foods, Alphageo, Caplin Point Labs, Indo Count Industries etc.

Several other experts who have made a fortune from buying penny, micro and small-cap companies include Ramesh Damani, Kenneth Andrade, Kalpraj Dharamshi, Madhusudan Kela, Shyam Sekar, Sunil Singhania, Ambareesh Baliga, S. P. Tulsian etc

Download Multibagger stock research reports

The research reports prepared by leading brokerages like Sharekhan, ICICI-Direct, Motilal Oswal, Religare, Kotak Securities etc are available for download.

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Comments (111)

  1. rajesh

    I hold the following stocks which should I hold. I wanted two multibagger stock in my portfolio rest all stokcs to be a safer bet.
    pls let me know which I can remove and add.
    I hold th following bought at the rates mentioned.
    1)bharat financial rate 857/-
    2)ceat 987/-
    3)century 575/-
    4)care 986/-
    5)dishtv 58/-
    6)india bulls realestate 80/-
    7)jain irrigation 67/-
    8)Jindal steel 82/-
    9)mmtc 90/-
    10)obero realty 248/-
    11)pnb glits 53/-
    12) rattan power at 45/-
    13)reliance capital at 353/-
    14)relian indus. infra(riil) – 400/-
    15)ruchira papers 113/-
    16)sintex 103/-
    20)spicejet 82/-
    21) summet industries 33/-
    22)federal bank 82/-
    23)Lakshmi vilas bank 166/-
    24)trident 82/-
    my value is 7.8 lacs as of now. how much percentage of the value I should shift to two multi bagger stocks

    Reply
  2. Chandra

    Hi all. i am looking a multibagger stock for month of may 2017
    plz can any one advise me ?

    Reply
  3. Manoj Padipurakkal

    Hi,
    This is Manoj here .I would like to express my thanks and relief to you on the query about FIEM industries about a month back.Your reply was..
    ”It is difficult to time the market. Fiem is a good company, with good management and good track record. It is better to buy in SIP mode so that if the price falls further, you have money to buy more stocks.”
    Now I am holding this @910 on the profit side by adding it on SIP mode.
    This time I would like to get a clarification on Divis lab & Dish tv.
    Would you recommend to buy Divis at this level for 2 years time frame?Is it bottomed out considering the fundamentals?
    I am holding Dish tv @99.Can I hold this as the merger with Videocon is on the cards?
    Any impact on Dish TV on the back of the news about Reliance digital TV?

    Thanks & Regards
    Manoj

    Reply
  4. deva

    DearSir,

    I would like to hold the following stock for next 56 years,Pls advise

    S.NO Script
    1 Ramco Cements
    2 Ceat
    3 KTK Bank
    4 KEC Intl
    5 Kpr Mill
    6 KCP Ltd
    7 Lakshmi Vilas bank
    8 PFS
    9 Va Tech Bag
    10 Techno Electric
    11 Repco Home
    12 BBTC
    13 Mahindra Holidays
    14 HSIL
    15 Tata Coffee
    16 Suprajit Engg
    17 Dishman Pharma
    18 All Cargo
    19 Bajaj Electricals
    20 Trident

    21 DHFL
    22 GAEL
    23 JK Paper
    24 Sterrling Tools
    25 Zee Enterprises
    26 LIC Hsg Finance
    27 Havells India
    28 Nitin Spinners Ltd
    29 VST Tillers Tractors
    30 Bharat Electronics

    Reply
  5. debasish

    I have only 20000 rs to invest and want to hold for long time so what share should i buy for good profit and iam new to this market

    Reply
    1. Somnath

      Suzlon energy

      Reply
  6. Ajay

    Nice blog for beginners…
    Kudos to great effort👍👍👍

    Reply
  7. debprakashrout

    I am investing in
    stampede capital rs 30
    Eros intl. rs 272
    Can i hold for long term

    Reply
  8. Manas

    Hi I am holding the following stocks, plz advise which one to remove and which I can hold for next 2-3 years.

    8K MILES SOFTWARE SERVICES LIM 774.38
    ACC LIMITED 1506.42
    ADANI TRANSMISSION LIMITED 64.8
    ADVANCED ENZYME TECHNO LTD 2098.06
    AJANTA PHARMA LTD 1900.74
    ALKEM LABORATORIES LIMITED 2179.95
    GE T&D INDIA LIMITED 517.44
    AMARA RAJA BATTERIES LTD 949.71
    AMBUJA CEMENTS LTD 243.28
    ASHOKA BUILDCON LIMITED 195.11
    ASHOK LEYLAND LTD 97.05
    ASIAN GRANITO INDIA LIMITED 275.13
    ASTEC LIFESCIENCES LIMITED 618.08
    ASTRA MICROWAVE PRODUCTS LTD 119.97
    AUROBINDO PHARMA LTD 797.73
    AVANTI FEEDS LTD 689.35
    AXIS BANK LIMITED 546.22
    BAJAJ ELECTRICALS LIMITED 319.1
    BANK OF BARODA 199.52
    BEML LIMITED 1269.96
    BHARAT ELECTRONICS LTD 156.01
    CADILA HEALTHCARE LIMITED 440.03
    CAPITAL FIRST LIMITED 716.63
    CIPLA LIMITED 705.39
    COAL INDIA LIMITED 353.67
    CG POWER AND IND SOLUTIONS LTD 76.97
    DEEPAK FERTILIZERS &PETROCHEMI 252.22
    DISHMAN PHARMACEUTICALS & CHEM 282.97
    EDELWEISS FINANCIAL SERVICES L 88.94
    EQUITAS HOLDINGS LIMITED 187.77
    EROS INTERNATIONAL MEDIA LIMIT 330.85
    ESCORTS LIMITED 515.85
    FORCE MOTORS LIMITED 4524.65
    GAYATRI PROJECTS LIMITED 141.61
    GEOMETRIC LIMITED 233.26
    GLENMARK PHARMACEUTICALS LTD 950.33
    GUJARAT NARMADA FER & CHEM LTD 269.51
    GRANULES INDIA LIMITED 133.28
    GUJARAT STATE FERTILIZERS & CH 125.51
    HAVELLS INDIA LIMITED 432.83
    HBL POWER SYSTEMS LIMITED 43
    HCL TECHNOLOGIES LIMITED 889.2
    HEIDELBERG CEMENT INDIA LTD 123.14
    HPL ELECTRIC & POWER LIMITED 166.08
    HSIL LIMITED 325.85
    ICICI BANK LIMITED 351.68
    IDFC LIMITED 64.26
    INDIABULLS REAL ESTATE LIMITED 88.67
    INFOSYS LTD 1174.74
    INSECTICIDES INDIA LTD 554.07
    INTERGLOBE AVIATION LIMITED 993.13
    IRB INFRASTRUCTURE DEVELOPERS 230.9
    ITD CEMENTATION INDIA LIMITED 157.6
    JAIN IRRIGATION SYSTEMS LTD 93.24
    JK CEMENT LIMITED 893.98
    JK LAKSHMI CEMENT LIMITED 391.74
    JUBILANT LIFE SCIENCES LIMITED 796.3
    KAJARIA CERAMICS LTD 569.98
    KALPATARU POWER TRANSMISSION L 276.76
    KEC INTERNATIONAL LTD (FORMER 197.43
    KPIT TECHNOLOGIES LIMITED 158.94
    LARSEN AND TOUBRO LIMITED 1569.54
    LAURUS LABS LIMITED 530.07
    LUPIN LIMITED 1704.57
    MADHUCON PROJECTS LIMITED 55.19
    MAHANAGAR GAS LIMITED 708.68
    MANAPPURAM FINANCE LIMITED 98.64
    MARUTI SUZUKI INDIA LTD 5968.82
    MINDTREE LIMITED 587.44
    MOTHERSON SUMI SYSTEMS LIMITED 369.08
    NCC LIMITED 82.54
    NARAYANA HRUDAYALAYA LIMITED 329.2
    NATCO PHARMA LIMITED 791.77
    NBCC (INDIA) LIMITED 177.01
    NUCLEUS SOFTWARE EXPORTS LTD 280.98
    PRAJ INDUSTRIES LIMITED 100.18
    PRISM CEMENT LIMITED 99.63
    THE RAMCO CEMENTS LIMITED 680.78
    RAMCO SYSTEMS LIMITED 671.79
    RELIANCE DEFENCE AND ENG LTD 87.51
    RELIANCE INFRASTRUCTURE LTD 599.18
    ROLTA INDIA LTD 159.15
    RPG LIFE SCIENCES LIMITED 474.18
    SAGAR CEMENTS LTD 766.01
    SCHNEIDER ELECTRIC INFRA LTD 150.29
    SHIPPING CORP OF INDIA LT 78.55
    SHARDA CROPCHEM LIMITED 473.12
    SINTEX INDUSTRIES LTD 93.36
    SPICEJET LIMITED 80.13
    STATE BANK OF INDIA 299.77
    STERLITE TECHNOLOGIES LIMITED 124.98
    SUDARSHAN CHEMICAL INDUS LTD 382.53
    SUN PHARMA ADVANCED RESEARCH C 478.2
    SUN PHARMACEUTICAL INDUSTRIES 838.28
    SUVEN LIFE SCIENCES LIMITED 222.98
    SUZLON ENERGY LIMITED 20.81
    TATA ELXSI LIMITED 1802.47
    TATA MOTORS LIMITED 517.06
    TCI EXPRESS LIMITED 295.53
    TECH MAHINDRA LIMITED 601.04
    TEXMACO RAIL & ENGINEERING LIM 119.91
    THERMAX LTD 1063.72
    TITAGARH WAGONS LIMITED 129.48
    TRANSPORT CORPORATION OF INDIA 359.65
    TRANSFORMERS AND RECTIFIERS (I 380.56
    UJJIVAN FINANCIAL SERVICES LTD 465.46
    ULTRATECH CEMENT LIMITED 3809.07
    UNION BANK OF INDIA 174.03
    UPL LIMITED 707
    VAKRANGEE LIMITED 300.82
    VOLTAS LTD 392.87
    WELSPUN CORP LIMITED 122.19
    WOCKHARDT LTD 826.09
    V-GUARD INDUSTRIES LIMITED 177.92
    COROMANDEL INTERNATIONAL LIMIT 314.99

    Reply
    1. manas

      Can any expert advise me ..which r the stocks i can hold gor next 1 to years nd which need to reduce ?

      Reply
  9. p.eswara rao

    Nice website for common invester

    Reply
  10. Harikrishna Avvaru

    Dear sir,

    pls give your suggestion to consolidate my portfolio. I have too many stocks , very difficult to follow:

    ISIN SCRIPNAME CURRENT FREE LOCKIN PLEDGE PLEDGESETUP EARMARK PNDG_DEMAT

    INE779A01011 ABC BEARINGS EQTY 200
    INE793A01012 ACCELYA KALE SOL- EQ 100
    INE982B01019 ADF FOODS LIMITED EQ 350
    INE034A01011 ARVIND LIMITED EQ 200
    INE021A01026 ASIAN PAINTS EQ 1/- 50
    INE386C01029 ASTRA MICRO-EQ RS2/- 400
    INE406A01037 AUROBINDO-EQ-RE.1/- 200
    INE794B01026 BALAJI TELE RS 2/- 250
    INE166C01025 BELLARY STEEL-EQ RE1 7500
    INE397D01024 BHARTI AIRTEL-EQ 5 150
    INE029A01011 BPCL EQUITY 150
    INE052I01032 CAMLIN FINE-EQ 500
    INE974B01016 CHEVIOT COMPANY EQTY 10
    INE169A01031 COROMANDEL I EQ RE.1 50
    INE171A01029 FEDERAL BANK EQ 2/- 500
    INE111B01023 FINANCIAL TECH NEW 250
    INE220J01025 FUTURE CONS- EQ 6/- 4000
    INE152B01027 GATI LTD – EQ RS.2/- 150
    INE955D01029 GENUS POWER-EQ 1/- 1500
    INE102D01028 GODREJ CON – EQ RE.1 50
    IN0020160076 GOI 18850 2.5 2024 35
    IN0020150101 GOI 2.75 SGB I 2024 50
    INE224A01026 GREAVES COTTONE EQ 2 250
    INE473B01035 HATSUN AGRO-EQ 1/- 75
    INE040A01026 HDFC BANK EQ 2/- 50
    INE559A01017 IFB INDUSTRIES EQY 50
    INE194C01019 INDAGE VINTNERS LTD 500
    INE312H01016 INOX LEISURE LTD EQ 200
    INE544H01014 JHS SVENDGAARD – EQ 9
    INE614B01018 KARNATAKA BANK LTD 500
    INE760A01029 KOKUYO CAM – EQ RE 1 750
    INE115A01026 LIC HSG FIN RS-2-EQ 100
    INE624M01014 LYKIS LIMITED- EQ 600
    INE998I01010 MAHINDRA HOLIDAY- EQ 150
    INE196A01026 MARICO LIM – EQ RE 1 300
    INE912H01013 MBL INFRA – EQ 1000
    INE018I01017 MINDTREE LIMITED-EQ 200
    INE795A01017 PANASONIC ENERGY-EQ 200
    INE027A01015 RCF EQUITY 250
    INF204K01FI0 RELCAP DBF GR-GROWTH 8878.472
    INE461B01014 REPRO INDIA EQTY 350
    INE058A01010 SANOFI INDIA – EQ 12
    INE439E01022 SKIPPER LTD EQ-RE-1 400
    INE734N01019 SNOWMAN LOGIS- EQ 2250
    INE219H01039 SRS LIMITED-EQ RS10 2000
    INE669C01036 TECH MAHINDRA-EQ 200
    INE621L01012 TEXMACO RAIL&ENGN-EQ 400
    INE149A01025 TUBE INV – EQ RS 2 75
    INE527H01019 UFO MOVIEZ-EQ 100

    INE764D01017 V S T TILLERS TRACTO 25
    INE956G01038 VA TECH WABAG-EQ 2 100
    INE768C01010 ZYDUS WELLNESS LIMIT 125

    Reply
    1. michael (Post author)

      Generally speaking the quality of stocks in the portfolio cannot be faulted. I suggest you segregate the stocks sector wise (money control has that facility) and see what the percentage of holding is in each sector. This will help to ensure that the Portfolio is evenly balanced. Thereafter, identify the stocks in which the holding is less than a certain threshold, say 3%. You can decide what your conviction level is in the stock and decide to either increase the holding in it or sell it off.

      Reply
  11. Riyaz

    hi Sir,

    what is ur opinion on Pasupati Acrylon, its trading @ 24.70/- at present and ROCE is above 20 etc.

    Please respond

    Reply
    1. michael (Post author)

      Pasupati Acrylon has been a disappointment in the past despite the huge expectations that were in it. The results are also erratic. Let us see what Q4FY17 brings in and then take a call. Otherwise the demand for acrylic fibre is quite robust. The margins are also decent but require to be sustainable.

      Reply
  12. Gaurav Anand

    Hi
    I am new to market I want to invest kindly guide me.

    Reply
    1. michael (Post author)

      This may or may not be the right time to invest because the market is looking quite heated. If there is an earnings disappointment in Q4FY17, the stock market could crash. So, it is better to stay on the sidelines for the present and invest only small amounts. We can take a call after the Q4FY17 result season comes to an end.

      Reply
  13. sushanth

    Good work man

    Reply
  14. minakshi

    Sir what about mic electronics, celebrity fashions and TRF

    Reply
  15. Karthik

    I am a very new to stock market and planning to start … Can i buy pricol? Is it right time to buy?

    Reply
    1. michael (Post author)

      If you are new to the stock market, it may not be a sensible strategy to straightaway start picking stocks. It is better to invest slowly by way of a SIP through a diversified mutual fund. Also, the market is looking quite heated presently and it may not be the right time to start investing. If there is an earnings disappointment in Q4FY17, the stock market could crash. It is better to stay on the sidelines for the present and to take a call after the Q4FY17 result season comes to an end.

      Reply
  16. abhijit

    Sir what about axtel industries

    Reply
    1. michael (Post author)

      Axtel industries is a micro-cap with a market capitalisation of only Rs. 100 crore. Such stocks tend to be volatile in their price movements. The stock has given a return of 400% over the last one year. It is advisable to see the fundamental performance of the Company over a couple of quarters before deciding to invest funds in the Company.

      Reply
      1. Rituparna

        Hi, I want to start investing on some safe, high potential small and mid cap stocks for 3 to 5 years. Can you please provide me an ideal list, a best o best list for 10 stocks at this moment according to you

        Reply
  17. venkat yohan

    What about cosyn ltd.s
    News from equity intelligence say that it will reach 1500rs by september 2018.is it good to accumulate as porinju sir indicated.

    Reply
    1. michael (Post author)

      Cosyn is up 1332% over two years and 257% over one year. After such an increase, normally a stock has to cool down and the earnings have to catch up. Much of the expectations about the performance of the Company are already built into the price. So it is better to wait for a few quarters and see how the performance is shaping up before taking the call to invest.

      Reply
  18. Satyakam barsainyan

    Hi i have just started investing in stock and would like to. Improve my portfolio. Also please suggest how are stock under my portfolio which is as follows
    1. Bharat electronics
    2. ONGC
    3. RURAL ELECTRIFICATION
    4. SUZLON ENERGY

    Reply
    1. Halping Nature

      Also add some banking stock, Like HDFC, SBI, ICICI

      Reply
    2. michael (Post author)

      The first three stocks in your portfolio, Bharat Electronics, ONGC and REC, are excellent stocks. These are high-quality PSU stocks which are available at attractive valuations. Each stock is a market leader in its field. These stocks should be held for long periods of time for the compounding gains to show. In Suzlon Energy, everything depends on how they perform in the future. It appears the downside is low while the upside may be high.

      Reply
  19. Debajyoti

    I shall get Rs 90,000 in the 3rd week of April 2017 or thereabouts. I wish to invest Rs 30,000 each in 3 stocks, namely Capital First, Nitin Spinners and Sterling Tools. My holding horizon is roughly 3 years. So, is my choice OK or would you like to suggest something else ? Kindly reply… Thank you !

    Reply
  20. dilipbihani1111@gmail.com

    WHAT ABOUT NITIN SPINNERS

    Reply
    1. michael (Post author)

      Nitin Spinners is a good stock. It is doing well as the expansions are complete or at an advanced stage of completion. Dolly Khanna has a big holding in Nitin Spinners (see Dolly Khanna Latest Portfolio 2017 http://multibaggerstocks.org/dolly-khanna-latest-portfolio-2017/). The stock has also been recommended by Daljeet Kohli’s IndiaNivesh Securities and East India Securities for a target price of Rs. 150. So, if you have the stock in your portfolio it is advisable to hold it and to add on declines.

      Reply
  21. Charan

    HI.. Iam following your site Recently .. very usefull for us like new investors. 🙂

    i have these below following shares. but iam little nervous wether i’ve chosen right shares or not ? .. can you please suggest me.

    DLF
    JKTYRE
    INOXWIND
    COALINDIA
    BSLIMITED
    GMRINFRA
    BHEL
    SJVN

    Reply
    1. michael (Post author)

      DLF, Coal India and BHEL are blue-chip large-cap stocks. These are safe stocks. However, there are better blue-chip stocks available in the mid-cap stocks which offer similar degree of safety coupled with higher growth. A stock like Century Plyboard, for example, has a track record of a couple of decades and has a respected management. It has a consistent dividend track record. It can also be considered as a “blue-chip” from the mid-cap space. The same can be said for Transport Corp, HSIL, Cera Sanitaryware, Kajaria Ceramics, Trident Ltd, ADF Foods, Heritage Foods, Oriental Carbon, Prima Plastics and other similar stocks. So, a basket of top-quality small-cap and mid-cap stocks, bought during declines, will give more returns over the next five years as compared to large-cap stocks.

      Reply
      1. Charan

        Thanks Michel..:)

        Reply
  22. Bipin

    Hi sir, what are you views about capital first, tci xpress & pricol. You have mentioned capital first in your multibagger list as well. Also, what targets one can expect from these shares? Also, promoter holding is less in pricol & promoter has further reduced their stake. What are your views on that?

    Reply
    1. michael (Post author)

      Capital First is an excellent stock in my view. V Vaidyanathan, the CEO, stated that the Company will grow at about 25% over the next 4-5 years. The company’s rating has been upgraded to AAA status. Margins have improved by 100 basis points as cost of funds have come down by 50-75 basis point. If the stock becomes the “next Bajaj Finance”, the sky is the limit for it. TCI Express is also an excellent stock to hold in the portfolio. Good, venerable management. The logistics business will grow rapidly as e-com grows. Pricol is also a good stock though I prefer Sterling Tools because the promoters hold upto 75% of the equity and Dolly Khanna and Anil Kumar Goel are invested in it. The equity capital of Rs. 6.8 crore of Sterling Tools is also very low compared to its market capitalisation of Rs. 700 crore.

      Reply
      1. Bipin

        Thanks Michael for your prompt response. Highly appreciated. Will have a look at sterling tools.

        Reply
  23. manish patel

    i have banco product at 200 rs. & gnfc at 250 rs. please suggest me.

    Reply
  24. abhijit

    Sir,as per your guidence,I have bought shares cupid@310,fiemindustries@889, lypsa gems@69 and one more share is ginni filament@35.14. And waiting correction for panama petro , fiberweb india & trident. Is it ok ?

    Reply
  25. Manoj

    My name is Manoj and I am following you on this for the last few months.
    Is it right time to enter into FIEM now, or it has some more down side left?
    Can you also advise on RS software & texmaco rail as both had corrected a lot .

    Reply
    1. michael (Post author)

      “Is it right time to enter into FIEM now, or it has some more down side left?”

      It is difficult to time the market. Fiem is a good company, with good management and good track record. It is better to buy in SIP mode so that if the price falls further, you have money to buy more stocks.

      You can also look at Minda Industries. It is doing very well on the operational front and also on the stock market front. It is a good buy on declines.

      “Can you also advise on RS software & texmaco rail as both had corrected a lot”

      RS Software’s business model is not clear after it lost VISA as a client. The stock was in demand because of demonetisation/ e-governance etc. However, unless the earnings reflect the growth and profitability, the stock price cannot move.

      Texmaco Rail is a heavy industry stock. Such stocks require very heavy growth in the economy to thrive. It is a very good stock but will require a lot of patience. The increase in the stock price will also be slow in comparison to other stocks which are not so heavily dependent on the heavy economy.

      Reply
      1. Manoj

        Thank you very much!!

        Reply
  26. Mahendra

    Nicesite

    Reply
  27. Prakash

    Guj alkalies 320 shares @398 hold or sell,if sell other better multibagger stocks to invest

    Reply
  28. Jose Abraham

    Is the bull run in specialty chemicals stocks over? They are showing signs of weakness? Is the disrupted Chinese production back on track? What are the outlook for these stocks?

    Reply
    1. michael (Post author)

      The prices of chemicals had increased because Hubei Chuyuan, a Chinese giant manufacturer, had suspended operations due to the directives of the Government. However, in January 2017, Hubei Chuyuan has restarted production. The increase in supply will lead to softening of prices for chemicals like H-Acid, Vinyl Sulphone, intermediate etc. So, it is possible that the trend may change in the future.

      Reply
  29. koushik

    koushik

    Reply
  30. Raj

    Future of sun pharma, lupin?? Hold or sell

    Reply
    1. michael (Post author)

      These are very good stocks for long-term investors. Presently, the fear of the FDA and of Donald Trump’s policies has caused all Pharma stocks to fall out of favour. However, this is the opportunity for long-term investors to buy.

      Reply
  31. Raj

    How is the future for established pharma companies? Like sun, lupin, torrent etc

    Reply
  32. shweta

    very informative

    Reply
  33. Abhijit

    1)What about Hindustan motors after selling his brand to PEUGEOT company.

    Reply
  34. DILEEP KUMAR

    Suggest about mblinfra 400 sh/144 rs.
    What we do now
    And lupin at rs 1700

    Reply
  35. Deepak

    Sterling international cmp @1.7 tgt 10 .. 1 year time

    Reply
  36. Pavan

    How is marksans pharma for long term?

    Reply
  37. Prof Swapan

    Please suggest 5-10 small/micro Multi bugger stocks for long term holding

    Reply
  38. rohit prajapati

    infosys 150
    icici bank 500
    sun pharma 300
    aurobindo pharma 100
    tata motor 100
    sintex industris 300
    reliance industries 100

    Reply
  39. Arun Kaul

    can you advise on the following :

    Rasoya Proteins Ltd.
    Ambuja cements

    Reply
  40. krishna p

    I have the following shares and would like to hold for at least 5 years.Would like to know if they can give multibagger returns.
    i have been holding last two years ,request you to suggest need to change any of them.

    ADF FOODS LIMITED 100
    CHENNAI PETROLEUM CORPORATION LTD. 230
    CUBICAL FINANCIAL SERVICES LIMITED 4
    DCB BANK LIMITED EQ 90
    DISH TV INDIA LIMITED 110
    DISHMAN PHARMACEUTICALS AND CHEMICAL 180
    GVK POWER & INFRASTRUCTURE LIMITED 6.35
    HBL POWER SYSTEMS LIMITED 40.00
    HIMACHAL FUTURISTIC COMMUNICATIONS 14.50
    IDBI BANK LIMITED EQ 85.15
    IDFC BANK LIMITED 61.65
    IDFC LIMITED 54.85
    INDIAN OVERSEAS BANK 28.20
    KWALITY LIMITED 137.75
    NARAYANA HRUDAYALAYA LIMITED 334.05
    PENNAR INDUSTRIES LIMITED 43
    PITTI LAMINATIONS LIMITED 50
    PNB GILTS LIMITED 40
    SHREE RENUKA SUGARS LIMITED 15
    RASOYA PROTEINS 1.50
    SUZLON ENERGY LIMITED 20
    TVS ELECTRONICS LIMITED 200
    UNION BANK OF INDIA 187

    KM SUGAR 22
    NETVISTAIT 3.72
    VIJAY TX 50
    ASHOK LEYLAND 90
    IBVENTURES 50
    SYNCOMF 2.00
    MARKANS PHRAMA 50
    NAHA POLY 70
    VEER ENRGY 25
    ALOK INDUSRTIES 3.00
    BPL 70

    Reply
    1. michael (Post author)

      I think commodity stocks like sugar are avoidable because they are cyclical stocks. Some stocks appear to be low quality e.g. Cubical is a penny stock. GVK Power, HBL Power etc also appear to have doubtful pedigree. I suggest you create a filter that only stocks with a RoE in excess of 15% over the past two years, with a debt-free status or a low-debt status will be considered. This will eliminate loss making concerns and junk stocks. You can invest 80% in such high quality companies and keep the balance of 20% for investing in unproven stocks which may become multibaggers.

      Reply
    2. SANJIB

      YOU CAN CONSIDER THE FOLLOWING
      JUBILANT LIFE SCIENCES
      MANAPPURAM FINANCE
      KARNATAKA BANK
      UNIPLY
      SUDARSHAN CHEMICAL

      Reply
  41. krishna

    can i hold netvista information technology stock ..now trading at 3 rs

    Reply
    1. michael (Post author)

      Such stocks are not investment worthy and cannot create serious wealth in the long run. It is better to invest only in companies with a proven track record, high ROE and with management of good pedigree.

      Reply
  42. Uday

    Myself Uday I am a new Investor to stock market. I have just booked profit of 28k in idea share and I am really happy and want to invest more.i am looking for multibagger stocks Can you suggest some for me.

    Reply
    1. michael (Post author)

      Congrats for the heavy gains. Hope there will be many more to come your way 🙂 I suggest you build a complete portfolio with small and mid-cap stocks from various sectors. In the NBFC space, Manappuram Finance is a good choice. It has Dolly Khanna as a major shareholder. You can also look at Prima Plastics, TCI Express, Veto Switchgears, L&T Finance Holdings. These are well managed companies with an excellent track record for growth and profitability. Good Luck!

      Reply
  43. Abhijit

    Can s h kelkar be multibagger

    Reply
    1. michael (Post author)

      SH Kelkar is an excellent small-cap engaged in the manufacture of fragrances which are used in a variety of products. The Company has a long track record of growth and profitability. The Company is one of the largest domestic fragrance and flavour companies by revenue with a market share of 12% in CY13. The estimated size of Indian fragrance industry and Indian flavour industry was ~Rs 2090 crore and ~Rs 1715 crore, respectively, in CY14. It is the largest domestic fragrance producer with a market share of 20.5% in CY13. It exports its fragrance products to 52 countries. Fragrance It has four manufacturing facilities in Raigad and Mumbai in Maharashtra, Vapi in Gujarat and Barneveld in the Netherlands with a total installed manufacturing capacity of ~19800 tonnes annually. So, it is a very good investment candidate stock.

      Reply
  44. Minakshi

    I have the following shares and would like to hold for 1 years. would like to know if they can give multibagger returns. Do I need to change any ?

    1) Meghmani Organics
    2) NBCC
    3) Linc Pen and Plastics
    4) Redington (India)
    5) Prakash Industries
    6) SJVN
    7) Fedders Lloyd

    Reply
    1. michael (Post author)

      All the stocks are of very high quality. They will do well over time. However, one year is a very short period for the stocks to show their mettle. You have to hold for at least three or five years for the gains to compound.

      Reply
  45. mohan

    Myself mohan I am a new Investor to stock market. Can you suggest some good stock for 1year horizon.

    Reply
    1. michael (Post author)

      Congrats for deciding to invest in equities. If you are young in age, it is better to think long term of three to five years rather than just for one year. There are several top-quality small and mid-cap stocks that you can look at. Look at stocks like Astec Lifesciences, Apcotex, Cosmo films, Cera Sanitaryware, Kajaria Ceramics, Manappuram, L&T Finance, Adani Transmission, Minda Industries, Apar, Fiem Industries, Prima plastic, SP Apparels, Shaily Eng, Srikalahasti Pipes, TCI Express, Veto Switchgear etc.

      Reply
  46. Pankaj SHAH

    What are you views on:
    1. Uniphos Enterprises
    2. Balkrishna Paper Mills
    3. Excel Care crop

    Reply
    1. michael (Post author)

      All three are very good stocks. Excellent management capabilities and good product line up. I would have no hesitation in buying these stocks. They are bound to do well over the next three to five years.

      Reply
  47. Praveen

    I have the following shares and would like to hold for at least 5 years.Would like to know if they can give multibagger returns. Do I need to change any ?

    1.Bharat electronics(Bel) at 1214
    2.Pnbhousing at 835
    3.Atul auto at 617
    4.Bhageria industries at 158
    5.Bpl at 76
    6.Equitas at 120
    7.L and T at 992
    8.Mayur uniquoters at 435
    9.Motherson sumi at 339
    10.Persistent Systems at 670
    11.Shakti pump at 222
    12.Sun pharma 743
    13.Trf at 393
    14.Ujivan at 210
    15.V guard at 163
    16.Gabriel India
    17.Plastiblend at 490
    18.Apar industries at 638
    19.Sterlite technologies at 111
    20.Eros media at 176
    21.Icici prudential at 354.5

    Im thinking of buying LICHFL and Bhel by selling some of these stocks. Please suggest.

    Reply
    1. michael (Post author)

      Do you really want to keep the large-cap stocks like L&T, Sun Pharma etc in the portfolio? These can be replaced with mid-cap stocks which are of equal credibility in terms of management quality but with better growth prospects. The existing mid-cap and small-cap stocks in the portfolio are of good quality. You can consider allocating the funds from the large-caps to these stocks.

      Reply
  48. Jagat

    Very good article.thnks

    Reply
  49. Jose Abraham

    I have the following shares and would like to hold for 4-5 years. would like to know if they can give multibagger returns. Do I need to change any ?

    1. ADF Foods at Rs 129/-.
    2. Astec Lifesciences at Rs 230/-
    3.ABFRL at 152/-
    4. Apcotex at 320/-
    5. Cosmo films at 396/-
    6.Manappuram at 78.5/-.
    7. Minda Industries at Rs 310/-
    8. Omkar Special at 163/-
    9.Prima plastic at Rs 234/-
    10. Repro India at Rs 427/-
    11. Ruchira at Rs 116/-
    13.SP Apparels at 331/-
    14.Shree Pushkar at 126/-
    15. Shaily Eng at 520/-
    16/-Srikalahasti Pipes at 317-
    18.TCI Express at 320/-
    19. TCI at 160/-
    20.Vetoswitchgear at 157/-

    Reply
    1. michael (Post author)

      It is a superb portfolio of the best small and mid-cap stocks. I want to use it as a Model portfolio. The only change is that I would remove TCI because TCI Express is already there and it may be a duplication.

      Reply
  50. Padmanabha Hegde

    I have following shares and would like to hold for at least 2 years please offer your remarks. Whether these can become mtibaggers?

    1. Geecee Ventures at 133

    2.Kanpur plastipack at Rs. 100

    3.Sree Rayalaseema Hypo at 136

    4.PNB gilts at Rs. 46

    5.Rishiroop at 38

    6.Swasti vinayaka art and heritage at 3.20

    7.Nitin spinners at 70

    Reply
  51. Jose Abraham

    Can Ester industries be a multibagger

    Reply
    1. michael (Post author)

      Ester Industries is a good stock for investment. Ashish Kacholia has invested in 1,503,121 shares in December 2016 quarter.

      Ester Industries plans to spend Rs 50 cr for new R&D centre in Gurgaon. It is engaged in the manufacturer of polyester films & engineering plastic compounds. Ester Industries markets its engineering plastics under the brand name Estoplast and production capacity of 16,500 MTPA.

      However, the Company has poor return ratios. It has made a loss. If the operations turn profitable it can be a multibagger.

      Reply
  52. Prakash

    Hi am new investor holding TCS SHARES @Rs2299 59 share its getting down hold or sell with loss

    Reply
  53. Prakash

    Hi am new investor holding TCS SHARES @Rs2299 59 share its getting down hold or sell with loss

    Reply
    1. michael (Post author)

      TCS is a blue chip mega cap with market capitalisation of 450,725 crore. Over two years the stock has lost 8.49%. Over one year, the stock is flat. It is unlikely that the stock will see much upside in the near future due to macro economic challenges. It is better to shift to a small-cap or mid-cap stock like Persistent, Tata Elxsi etc.

      Reply
  54. Pawan patil

    Hi an new in share market and I want to invest for next 5 year.please suggest me witch stock should I purchase in this year for get more profit

    Reply
    1. michael (Post author)

      It is best to buy blue chip small-cap and mid-cap shares with a good track record of profitability and growth. You can look at Prima Plastics, Balaji Amines, Kuyoko Camlin, Linc Pen, ADF Foods, Vidhi Dyestuffs etc.

      Reply
  55. Pawan patil

    Hi an new in share market and I want to invest for next 5 year.please suggest me witch stock should I purchase in this year for get more profit.

    Reply
  56. KALAI

    Please suggest three penny stocks time frame 3 years
    I hold 300 shares of Rattan power @ 45 IPO stock .How long should i hold that

    Reply
    1. michael (Post author)

      Rattan Power is looking very weak. Not sure about its prospects. I suggest a shift to micro-cap stocks like Prima Plastics, Vidhi Dyestuffs, ADF Foods, Panama Petrochem. These are good stocks with good management.

      Reply
      1. KALAI

        Thank you sir
        Any penny stocks you suggest
        Thanks

        Reply
        1. michael (Post author)

          It is better to avoid penny stocks because of risks of corporate governance. It is better to invest in small-cap stocks. These have a proven track record. The capital is safe and there is also a possibility of good growth in such stocks.

          Reply
  57. RAKESH SUTAR

    Please give me TGT for following Stocks I will Hold such stocks for next 2 years
    FIEM INDUSTRIES
    MARICO
    HERITAGE FOOD
    GARWARE WALL ROPE
    JK PAPER
    BHARAT FINANCIAL INCLUSIONS
    WEST COST PAPER
    PHILLIPS CARBONS

    Reply
    1. michael (Post author)

      FIEM is a very good portfolio stock. It is a good buy. Stock should give at least 60 – 80% gain over two years.

      Reply
  58. Naresh Panchal

    Hi Basant Maheshwari, I have Granules bought at Rs. 123/- in Oct 2015, currently it is down to 106. What should I do? Should I hold? if yes up to what price I should hold? if exit then what price?

    Reply
    1. michael (Post author)

      The stock is down because of regulatory problems with the FDA of Portugal. However these problems are temporary and the stock will spring back. Continue to hold.

      Reply
  59. Kiran

    Very good article

    Reply
  60. Mukesh

    These are good stocks for the stock market

    Reply
  61. TANUJ SINGH

    Mahesh P. Parikh ji….
    You can go for MOSCHIP,
    DUCON
    MANGALAM DRUGS
    TVS ELECTRONICS

    Reply
  62. Mahesh P.Parekh

    Please suggest two / three Multibagger shares I want to invest . I can hold for long time.

    Reply
  63. Pravin

    I have invest 500000 rupees which one is the best penny stocks

    Reply
  64. jaimin

    i want to invest 200000 lack ropees for 2017. which is best stocks for me?

    Reply
  65. Praveen

    Pls give your views on GTL infra

    Reply
  66. rn singh

    Please guide me for 5 stocks as multibagger for 2017

    Reply
    1. AXVV

      LIC Housing Finance Limited(Watch)
      Repco home finance
      Caplin point laboratories
      VST Tillers Tractors
      Bharat Electronics

      Reply
    2. Alok

      Buy #peeceecosma, #zeemedia, #walchadnagar, #rcf, #hcc & #sterlitetech

      Reply
  67. tejas

    l want too multibagger stock next five year

    Reply
    1. MAK

      Go for VRL Logistics.A Cash rich logistic company with high ROI in the coming years.

      Reply
      1. rajkumar.hirani

        i have invested in mahanagar gas 881 price when it will double

        Reply
        1. michael (Post author)

          Mahanager Gas is a very good stock meant for long-term investors. It has a steady revenue model which faces no risk of disruption or competition. The stock has given 72% return on a one year basis. Assuming it now compounds at about 25%, we can expect the stock to double in about 3 years, which is a very good return on investment.

          Reply
  68. Pramod

    Is Karnataka Bank a good stock to buy now? It has opened a rights issue.

    Reply

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