Multibagger Stock Ideas To Buy In India 2021

Over the last one-year after markets witnessed bloodbath due to the pandemic crisis, there have been stupendous gains with Nifty scaling new high of 15431.75 on February 16, 2021. Now as the markets are still 5% down from peak, here we suggest few of the stocks that have or have the potential to turn into multi-baggers, meaning reaping huge returns and enabling you to generate good enough wealth, by holding them for some meaningful time.

What are multibaggers stocks?

In numeric terms which hold far more relevance in today's world, multi-bagger stocks are those that can generate over 100% return or just double in price. And there are several triggers that aid in a stock to double in price.

Triggers for a stock to turn into a multi-bagger stock/ How To Identify A Stock Which Can Turn Out to be A Multibagger?

There could be a host of factors aiding the rise of a particular share.

1. Industry headwinds say in the pandemic times after a steep correction pharma shares witnessed a good buying and hence traction in their share price.

2. On potential growth, MFs and other foreign portfolio investors (FPIs) and foreign institutional stocks (FIIs) upping the stake in the counter.

3. Low or no debt for a company is also a plus

4. Then there is earnings and valuation that also come into play for determining the stock's possible rally.

5. Sound management and strategy for the company's growth has also its part to play.

6. Economic moat i.e. any entry barrier that prevents competition into the space that gives the company the authority on product pricing and hence not suffer in adverse times.

7. Stocks with High return ratios typically return on equity (RoE) that point to efficient deployment of capital should also be chosen. But remember here that such companies should have low equity base that triggers the stock to become a multi-bagger.

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