3 Multibagger Stocks for 2026 to Add to Your Watchlist

Multibagger stocks are shares that deliver returns multiple times the initial investment. These stocks typically belong to high-growth companies.

Here are three stocks that could be potential multibagger stocks for your watchlist.

These selections were made based on two key factors: the significant decline in their price in recent times and their robust growth strategies.

The reason for the decline in some of the stocks do not alter too much fundamentally.

Readers should note, this is not a fundamental analysis nor a recommendation on the stocks in any form.

#1 Neogen Chemicals

Neogen Chemicals is a prominent producer of speciality chemicals with a significant presence in chemistries based on lithium and bromine.

Pharmaceuticals, agrochemicals, electronics, water treatment, construction, polymers, flavours and fragrances, and energy storage are just a few of the industries the company serves.

Again, this is a stock that has fallen substantially from 52-week highs of almost 48%.

The fire that occurred at its Dahej plant in March of this year is one of the main causes of the stock decline. Nevertheless, the business's operations have been back on track ever since.

Furthermore, the company's ambitious plans for expansion offer the possibility of significant growth in the years to come.

Neogen Chemicals Financial Snapshot (FY23-25)

Source: Equitymaster

On the financial front, the company saw revenues of Rs 2,087 m in Q2 FY26 vs Rs 1,934 m YoY. Net profits of the company fell to Rs 33 m vs Rs 109 m YoY, largely impacted by the fire and the sharply higher insurance premium.

Moving ahead, the company is set to advance with the commercialization of its greenfield plant for electrolyte production, leveraging MUIS technology at its Pakhajan Dahej PCPIR facility.

The management projects mechanical completion by the end of this year, with trial production commencing shortly after. Full-scale commercial production is anticipated to begin in the first half of FY27.

Electrolyte salt production is scheduled for the second half of FY27, aligning with the expected rollout of ACC battery capacities in India and rising global demand for this material outside the FEOC markets.

This progress is supported by crucial recent approvals. A prominent Indian giga-scale customer has successfully completed the rigorous Production Part Approval Process (PPAP), granting long-term commercial supply approval to Neogen's Dahej plant.

Additionally, provisional approval for lithium electrolyte salt has been secured from a key international customer, with final approval anticipated in Q4 FY26. The company is also collaborating with other international clients who have already approved sample electrolyte salts. Final approvals from these clients are expected by Q4 FY26 or Q1 FY27.

Strong growth plans, positive management commentary, sharp fall in the share price recently all of these warrant investors attention going forward.

#2 Transformers and Rectifiers (India)

First on our list is the stock of Transformers and Rectifiers (India).

The company has established itself as a top partner for high voltage power transformers and reactors for customers worldwide with three cutting-edge transformer manufacturing facilities.

One of the reasons to select Transformers and Rectifiers is the sharp fall in the stock from 52-week highs of Rs 650 to the current levels of Rs 307, a drop of 52%.

One of the reasons for the stock to fall is after the World Bank cited fraudulent practices in a particular project. Transformers and Rectifiers issued clarifications asserting good faith and no conclusive proof of wrongdoing.

The company's debarment is limited to participation in World Bank-funded projects. The company currently has no ongoing or pending orders under such projects, which means it does not change anything fundamentally.

Transformers and Rectifiers Snapshot (FY23-25)

Source: Equitymaster

For Q2 FY26 , the company delivered net sales that were flat, while net profits of the company dipped. Revenues were placed at Rs 4,600 m from Rs 4,615 m YoY. Net profits fell to Rs 374 m from Rs 459 m YoY.

The outlook remains good for the company going forward, which raises optimism. The management expects strong order inflows with a robust pipeline of opportunities exceeding around Rs 80 bn.

For the full year, the company remains confident of achieving at least 25% revenue growth, with target of around Rs 26 bn with EBITDA margin of approximately 16%.

Future expansion plans at the company are also expected to underpin growth. The company continues to execute its capacity expansion and backward integration projects as per plan.

The Moraiya facility is progressing well, while Changodar expansion, slightly delayed due to the monsoon and equipment delivery issues, is expected to be operational in the next quarter.

Despite the sharp drop in the share price, the strong expansion plans, proven track record, robust growth in the power sector, and the management's projection on growth, instil confidence going forward.

#3 Vikram Solar

Next on our list is Vikram Solar.

With a focus on producing high-efficiency photovoltaic (PV) modules and providing full EPC (engineering, procurement, and construction) services, Vikram Solar is a leading provider of solar energy solutions. The stock is down 42% from 52-week highs largely due to profit booking.

Vikram Solar Snapshot (FY23-25)

Source: Equitymaster

The business recently reported impressive financial results for Q2 of FY26. Revenues increased 93.7% year-on-year to Rs 11,099 m.

The quarter's EBITDA was Rs 2,350 m, up 225.9% YoY. The EBITDA margins were 21.17%, up from 12.59% in Q2 FY25. PAT margins were 11.58%, and net profits for Q2 FY26 increased 1,636.5% YoY to Rs 1,285 m.

Vikram Solar has recently received several notable orders, highlighting its growing prominence in the solar energy sector.

AB Energia, a reputable supplier of complete EPC solutions for commercial and industrial solar projects, placed a significant order for 200 MW of high-efficiency solar modules with the company in September 2025.

In a similar vein, Larsen & Toubro ordered 336 MW of solar modules for Gujarat's Khavda Renewable Energy Park project. Vikram Solar had an impressive order book of 11.15 GW as of 30 September 2025.

With new capacities coming online, improved backward integration strengthening its value chain, and strong demand fuelled by India's ongoing energy transition, the company is well-positioned to see steady growth in the upcoming quarters.

To keep this momentum going, though, efficient execution will be essential.

Conclusion

It takes careful consideration to buy stocks that may seem potential multibaggers. These stocks may be undervalued or oversold, providing potential buying opportunities, especially if the low price is due to temporary conditions.

Even though some stocks have potential value, care should be taken. Independent, thorough research must be done by investors.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...