How to Identify a Multi Bagger Stock
How to identify a multi bagger stock
A question that is often asked in my stock market training classes is:
How to find a multibagger stock?
I'll point out a few footprints of a multibagger stock in this post, and give stocks at the bottom which can give huge returns in coming years.
Before that, what is a multibagger stock? The answer is very simple.
A stock that can give very high returns in a very short time is a multibagger stock.
Now remember, we are talking about investment here, not trading.
In an "investment" style, a short time period varies between 5-10 years.
What should you look for in a business to determine if its a multibagger stock or not?
1. Future business potential
If the market is already stagnated, the company cannot grow. Likewise, if the product is losing demand, the company cannot grow.
An example is Moser Baer who were one of the leading manufacturers of CDs, but today the product itself has lost demand because of new technology like Pen drives and hard disks...
2. Low debt level:
The company should not have a high debt level otherwise most of the profit will get used up in paying the debt, and cannot be used for business expansion etc.
A low Debt to Equity ratio represents a low debt level. Debt to Equity ratio of companies are available for free on various websites, and even on websites of stock exchanges.
3. Consistency
You cannot depend on the company if they are not a consistent performer. What if they posted a loss of 20 crores in the first quarter, and a profit of 30 crores in the next, and then a loss of 10 crores again? Would you trust this company?
Isn't it better if a company is just posting a profit of 5 crores every quarter, with a small, but consistent growth in profits?
Next time you try to find a multibagger, try to find these above mentioned footprints first.
As promised, here are the stocks: 2016-17
Bombay Burma Trading Corporation
Bengal and Assam Company
(Both have given a 50% return in a very short time)
The same material we use in our stock market classes is available as a single download PDF file. Its not an ebook written by just anyone.
Its the complete Munafa Training Material we teach in our 5 day paid seminars!
Download here:
http://www.munafasutra.com/page/ebook
From 9 chart patterns that never lie, to candle stick analysis, to FnO trading with math and examples. Its all there!
- 00e Buy Sell
- 00ebook
- About Munafa Sutra
- Bank Nifty Strategy
- Best Way For Beginner To Get Into Stock Markets
- How Can One Become Full Time Professional Trader
- How Does The Stock Market Work For Beginners
- How To Learn About Stock Markets
- How To Trade In Nifty
- Ichi Moku Indicator Strategy
- Intra Day Trading For Beginners
- Intra Day Trading Volume Strategy
- Nifty Strategy
- Swing Trading Strategy Based On Indicator
- Tips For Intra Day Trading
- Tips For Investing
- Warning About Initial Public Offer
- What Is Futures Trading
- What Is Nifty
- What Is Options Trading
- What Is The Best Tool To Predict Stock Markets
- Which Indicators Are Best Indicators For Trading
- Basics Of Options Call And Put
- Best Intraday Tips
- Best Intraday Tips2
- Do Not Hold A Rotten Egg
- E Buy Sell
- Ebook
- How Stock Market Works
- How To Identify Multi Bagger Stocks
- Intraday Trading Tips
- Which Technical Indicators To Use For Intraday
- Which Tips Provider Is Best
Videos related to: How to Identify a Multi Bagger Stock
![Videos related to: How to Identify a Multi Bagger Stock](https://munafasutra.com/images/MunafaBookCover.png?+Videos+related+to%3A++How+to+Identify+a+Multi+Bagger+Stock+)
Hindi Video The Truth Of Stock Markets That Everyone Is Hiding From You
Hindi Video What Is Needed To Succeed In Stock Markets
- NSE Screeners
- NSE Daily Screener
- NSE Weekly Screener
- NSE Monthly Screener
- Support & Resistance
- NSE Shares Near Support
- NSE Shares Near Resistance