In this article we will discuss:
– What are multibagger stocks?
– Top performing stocks for the past 12 months
– Top multibagger stocks from the past decade
– Sectoral distribution of best multibagger stocks from the past
– How to find multibagger shares in India
– Characteristics of multibagger shares
– Future multibagger stocks for next 10 years
– List of small cap multibagger stocks for 2022
– List of multibagger penny stocks for 2022
What are multibagger stocks?
This term was coined by legendary American fund manager Peter Lynch in his 1988 book One Up on Wall Street.
Lynch was a baseball fan and he borrowed the idea of a multibagger from baseball where ‘bags’ or ‘bases’ that a runner reaches are the measure of the success of a play.
For example, a ten bagger is a stock which gives returns equal to 10 times the investment, while a twenty bagger stock gives a return of 20 times. MRF for example, gave 1651% returns between June 2001 and April 2018 – it can be referred as a 17-bagger stock.
Top multibagger stocks for 2021
|JINDALPHOT||Jindal Photo||2671%||Finance & Investments|
|NAHARSPING||Nahar Spinning Mills||1120%||Textile|
|TTML||Tata Teleservices (Maharashtra)||1061%||Telecom|
|MCDHOLDING||McDowell Holdings||656%||Finance & Investments|
|ELECON||Elecon Engineering Company||497%||Capital Goods|
|ADSL||Allied Digital Services||433%||IT|
|SPTL||Sintex Plastics Technology||418%||Plastics|
|TI||Tilaknagar Industries||373%||Alcoholic Beverages|
|TNTELE||Tamil Nadu Telecommunications||369%||Telecom|
Top multibagger stocks for the past decade
|BERGEPAINT||Berger Paints||2268%||Paints & Varnish|
|CANFINHOME||Can Fin Homes||1643%||Finance|
Past multibagger stock Ajanta Pharma
In 2012 when I first stumbled across Ajanta Pharma, I was drawn to it purely by its numbers. It had excellent financials, but I had no clue on what it did. Looking up in the Internet revealed it’s a pharmaceutical company (yes, you can tell that by the name) that produces a herbal preparation for kids named “Pinkoo Gripe Water” and sells anti-malarial drugs in Africa. Didn’t ring any bells, but after hesitating for few days I bought some shares of the company in September 2012. Subsequently, I added some more over the next two months (probably after bit more reading).
Between September 2012 – when I bought my first share of Ajanta Pharma, and May 2017 – when I sold my last bit– the stock had went up by an astonishing 1361%.
And finally, The 100-baggers
ITD returns of best multibagger stocks based on 10Y performance:
Characteristics of top multibagger shares
The Bajaj Finance story
Today it stands out as one of the largest and fastest growing deposit taking NBFC in India with a diversified portfolio of financing businesses covering Retail, SME Rural & Commercial.
Since its IPO listing in FY95, the stock has multiplied by an astounding 124,450%. A casual 1 lakh rupees invested in the IPO is now worth around 1200 crores! (Feel free to double check the number of zeros when you have time 😊)
The Astral story & our experience
Astral Limited is a prime example. The company is primarily engaged in manufacturing of plumbing & drainage systems, fittings and adhesive solutions. Roughly 77% of its business comes from Pipes & Fittings, while Adhesives accounts for the rest.
We had identified Atral almost a decade back. It used to be known as Astral Poly Technik then. In one year the stock went up by approximately 5 times!
Schooled in the principles of traditional value investing, we exited the stock considering it to be over-valued, waiting for a suitable opportunity to re-enter after correction! As you can imagine, it has been a rather long and frustrating wait 😊
How to spot potential multibagger stocks
The usual starting point is to screen the traded stock universe by applying filters in-line with the criteria mentioned before. This will give us an initial list, which can be digged in further.
We look for a highly profitable business with strong cash-flows and low debt that is maintaining a consistent but high growth rate. We translate these attributes into the filter represented below:
Future multibagger stocks for next 10 years
|Name||CMP||Mcap Cr.||P/E||PSR||PAT Var 10Yrs||ROE 5Yrs||FCF 5Yrs Cr.|
|Indo Borax & Ch.||142.15||456.16||11.35||2.59||16.52||15.14||62.75|
|JK Lakshmi Cem.||628.15||7393.78||14.48||1.42||21.26||10.35||2203.85|
|Sh. Jagdamba Pol||997.45||873.57||15.58||2.78||42.08||36.78||16.81|
|High Energy Bat.||1747.6||312.82||16.21||3.86||26.12||27.46||23.23|
|Guj. Themis Bio.||518.4||753.16||18.84||6.54||27.26||57.56||4.3|
|Amines & Plast.||119.05||655.01||21.05||1.25||32.53||26.03||45.83|
|NGL Fine Chem||2687.35||1660.78||25.41||5.55||36.78||27.12||19.21|
|Black Rose Indus||211.1||1076.61||30.06||2.39||25.87||34.09||41.99|
|J K Cements||3354.1||25828.15||33.17||3.41||27.34||16.06||2159.44|
|APL Apollo Tubes||916.9||22938.37||43.29||2.12||23.62||21.14||1104.79|
List of smallcap multibagger stocks for 2022
HLE Glasscoat Ltd
The Company’s products include AE & CE type reactors, rotary conical vacuum dryer (RCVD), agitated nutsche filter & drier (ANFD), heat exchanger/condenser, receivers/storage tanks, dryers, filters, columns and agitators. The Company offers accessories, such as valves, pipes and fittings.
The Company’s products cater to pharmaceutical/active pharmaceutical ingredient (API), specialty chemicals, dyes/colors, agro chemicals, food processing and allied industries.
Oriental Aromatics Ltd
Company is one of only ten completely integrated flavour, fragrance and aroma chemical manufacturing companies in the world
Camphor and Allied Products Limited (CAPL), a listed subsidiary of the company was amalgamated with the company in January 2018. CAPL was the India’s largest manufacturer of terpene chemicals and other special chemicals. Post amalgamation the promoter holding increased from 57.66% to 74.17%
Associated Alcohols & Breweries Ltd
It has presence in all varieties of potable alcohols, country liquor (CL), rectified spirits (RS), extra neutral alcohol (ENA), distilled grain spirit, Indian made foreign liquor (IMFL) in the whisky, brandy, rum, gin and vodka categories, and bottling scotch whisky for other international brands.
It manufactures and markets in house brands, such as Red & White, James McGill, Bombay Special (in the whisky segment), London Bridge (in the gin segment) and Jamaican Magic in the rum category.
Its licensed brands include Smimoff Vodka, Captain Morgan rum, HAIG Scotch whisky, Masterstroke whisky, Glen Drummond single malt Scotch whisky and Royal Crown whisky. It has a production capacity of 42 million liters per annum.
List of multibagger penny stocks for 2022
KMC Speciality Hospitals Ltd
The company is in the business of running a super specialty hospital having 175 beds with team of dedicated specialists and state-of-the-art equipment. They cater to key specialty areas such as Neurosurgery, Cardiovascular & thoracic surgery, Orthopedics, Plastic and Reconstructive Surgery, Gynecology, Neonatology and Nephrology (including renal transplants).
Dolat Algotech Ltd.
As Lynch says, you only need a few big winners !
All you need for a lifetime of successful investing is a few big winners, and the pluses from those will overwhelm the minuses from the stocks that don’t work out.
Legendary American Investor and Fund Manager
Feel free to review our advisory offerings and select a plan that suits you.
Otherwise, just keep learning and happy hunting!