Hunting for the Next Big Winners: 5 Potential Multibagger Stocks

Everybody would love to double their money overnight. But we all know that's not realistic.

So, what is realistic? While investing is never without risk, stock prices of certain companies double within five years with some predictability.

What does it take for a stock to achieve such growth?

The formula is simple. The company's net profit should double in five years, assuming no rerating or derating in the stock's PE ratio.

In simple words, look for companies that can deliver a compound annual growth rate (CAGR) of roughly 15% in their net profits over the next five years.

In this article, we will explore five such stocks that can potentially to grow.

Take a look...

#1 Data Patterns (India)

First on the list is Data Patterns (India), a defence and aerospace electronics company.

It's recognised for its capabilities in R&D, engineering, and execution. The company is investing significantly in designing and developing world-class products primarily for the Indian market.

The focus is on building large and complex products such as radars, electronic warfare (EW) systems, and communication systems.

The company is transitioning from providing subsystems to offering entire systems. It's developing integrated systems by leveraging its core strengths and using reusable building blocks.

Most of its sales are to government companies like HAL and BEL, with orders often coming through DRDO.

The company is aiming to scale it to over Rs 10 billion (bn) and build a sustainable presence over the next 5-10 years, by developing intellectual property (IP) in India.

Coming to its financial performance, the company has delivered a top-line growth of 32% compounded annual growth rate (CAGR) over a 3-year period and a net profit CAGR of 33%.

The last 3-year return on equity (ROE) has been 15%.

Data Patterns is positioned to address opportunities that could collectively range between Rs 200-300 bn over the next 3-6 years.

To capitalise on this, Data Patterns has invested significantly in R&D, spending over Rs 1.4 bn on product development in the last one and a half years.

It's developing "future-ready products" and gearing up for several large upcoming contracts.

The focus is on building large and complex systems such as various types of radars (airborne, ground-based, fire control, etc.), electronic warfare (EW) suites (including receivers and jammer systems), and secure communication equipment, as well as seekers. Every part it manufactures is designed in-house.

It's also investing around Rs 1.5 bn in the next 1-2 years to create infrastructure for production, testing, and validation to handle large programs and meet international market demands.

The company is optimistic about a strong order inflow, anticipating between Rs 10 to 20 bn in orders during FY26. It expects a 20% YoY growth in net profit for FY26.

Given its solid revenue trajectory, the company can consistently achieve a 20% annual growth rate in profits over five years.

The company remains debt-free and maintains a robust liquidity position, supporting its ability to manage working capital demands during this growth phase.

But the stock's high valuation is a key risk for investors.

For more details, check out Data Patterns' financial factsheet.

#2 Saregama India

Coming second on the list is Saregama India, an entertainment IP company that is actively diversifying its business beyond its traditional role as a music label.

At its core, the company operates a music business that includes music licensing and artist management.

The company is also involved in the video business, which includes the operations of Pocket Aces, a digital media company it acquired. This vertical is expected to grow and Pocket Aces is moving towards profitability.

Saregama is also scaling its live events business, that benefits from increased discretionary spending and short capital lock-in periods.

Coming to its financial performance, the company has delivered a top-line growth of 27% CAGR over 3 years and a net profit CAGR of 10%.

The last 3-year ROE has been 14%.

The company has set a goal to acquire 25-30% of all new music released in India to double its revenue in this vertical over the next 3-3.5 years.

It's investing heavily in new music content, over Rs 10 bn between FY25-27, to future-proof the company, ensure long-term growth, and become the #1 label in India.

This strategy is guided by a strict 5-year payback period principle, leveraging data-driven processes and predictive AI to select content with high return potential.

Beyond music, Saregama is building its video vertical, which includes films under the Yoodlee brand, digital series and short format content through Pocket Aces (Dice, Filter Copy, Nutshell), and TV serials.

This vertical is strategically important, driven by smartphone penetration and cheap data, and is projected to grow at a 25% CAGR over the next 5 years.

All of its segments are expected to do well in the future. Saregama expects its PBT (Profit Before Tax) to double over the next 3-4 years. Due to the heavy investment in new content, PBT growth in the short term will be modest and slower than revenue growth.

However, after this initial period, around Q3/Q4 FY26, as the returns from the new content start exceeding the charge-offs, the PBT is projected to accelerate and grow faster than revenue.

The overall company revenue, excluding Carvaan, is expected to grow at a CAGR of 30% over the next 3 years.

For more details, check out Saregama India's financial factsheet.

#3 Supriya Lifescience

At number 3 comes Supriya Lifescience. The company manufactures and exports APIs.

Supriya Lifescience's product portfolio encompasses over 40 APIs, addressing therapeutic segments including anaesthetics, anti-asthmatic, anti-histamine, decongestant, and anti-gout.

The company is expanding into newer areas like anti-depressants, anti-anxiety medications, anti-convulsants, and hypnotic therapies.

Specialising in differentiated value-added products with limited competition, the company leverages its backward integrated business model.

Supriya Lifescience serves more than 1,200 customers across 100 nations, with exports making up a significant portion of its total turnover, and is a leading exporter in antihistamine, anaesthetics, and anti-asthma therapies.

Additionally, the company is developing its CMO/CDMO (Contract Manufacturing Organization/Contract Development and Manufacturing Organization) services, anticipating this segment will contribute a substantial portion of revenues in the coming years, including through exclusive partnerships.

Coming to its financial performance, the company has delivered a top-line growth of 13% CAGR over 3 years and a net profit CAGR of -1%.

The last 3-year ROE has been 19%.

The company has a long-term goal to double its revenue to Rs 10 bn by FY27. It aims to sustain a revenue growth rate of over 20% and expects about 25% annual growth in income and profitability over the next 3 years.

This growth shall be supported by its expanding presence in regulated markets, including Europe, Latin America, and North America, which are expected to contribute significantly to future revenues.

The company is focusing on launching at least four new products annually, starting from Q4 FY25, with some expected to target high-volume global markets.

It's also entering new therapeutic segments like contrast media, anticipated to be large revenue contributors by FY27.

Capacity expansion through the commissioning of Module E in Q3 FY25 and the Ambernath facility in Q4 FY25 is expected to nearly double their total production capacity and support future growth.

For more information, check out Supriya Lifescience's financial factsheet.

#4 Interarch Building Solutions

Fourth on the list is Interarch Building Solutions, a leader in turnkey pre-engineered steel construction solutions (PEBs).

The company's business model revolves around converting a customer's total requirement for a building, whether it's a manufacturing plant, warehouse, high-rise building, data centre, or other structure, into a design.

It offers the entire project, including design, engineering, production, component manufacturing, delivery to the site, and erection, as a lump sum bid or price.

A key aspect is that everything is manufactured in-house from a plate, then transported to the site ready for assembly. At the site, the process is primarily a nut and bolt assembly, with cutting, welding, drilling, or painting done in-house rather than on-site.

This approach provides significant advantages to the customer, such as a single fixed price for the entire building like a product, without worrying about cost escalations or delays, very fast delivery and erection, and high quality.

Interarch is ranked second in India by aggregate installed capacity and third among integrated PEB players in India by PEB turnover.

Coming to its financial performance, the company has delivered a top-line growth of 20% CAGR over 3 years and a net profit CAGR of 85%.

The last 3-year ROE has been 20%.

Looking ahead, the company aims to double its revenues over the next 3-4 years. This growth is underpinned by a strong and healthy order book and inquiry pipeline. The total order book stood at Rs 16.5 bn as of 30 April 2025.

The order book is building up throughout the year and the pipeline for future orders is good, with requirements being very large and project sizes increasing.

The typical execution timeline for the company's order book is relatively short, around 9-10 months, which necessitates matching capacity with order intake.

In terms of profitability, management expects sustainable EBITDA margins in the range of 9-10%. Operating leverage can contribute to better margins as turnover increases.

Beyond a certain turnover, the benefit of higher sales will flow directly to the bottom line as indirect costs and overheads are not expected to increase dramatically.

The management is also working on internal efficiencies, improving productivity, and reducing wastage to enhance margins.

For more information, check out Interarch Building Solutions financial factsheet.

#5 OneSource Specialty Pharma

Fifth on the list is OneSource Specialty Pharma, formerly known as Stelis Biopharma, which is India's first specialty pharma pure-play CDMO business.

It operates as a fully integrated, multi-modality specialty pharmaceutical CDMO company focused on the development and manufacturing of drug device combinations, biologics, sterile injectables, and oral technologies like soft gelatin capsules.

The company currently serves a diverse customer base, including 20 customers in the GLP-1 segment and over 60 global customers in total.

Coming to its financial performance, the company has delivered a top-line growth of 124% CAGR over 3 years and a net profit CAGR of 33%.

The last 3-year ROE has been -18%.

But these numbers are not so meaningful for the future, as the company is significantly investing in capacities which will start contributing now.

In terms of revenue and growth, the management is targeting a near-term outlook for FY28 of a US$ 400 m top line. It has reaffirmed a revenue growth CAGR of 30% from FY25 to FY28 and expects a CAGR of 25-30% over FY24-29.

The company is ramping up capacity based on customer forecasts and anticipated patent expiries over the next 2-3 years, with the first phase of capacity expansion already seeing strong utilisation based on current orders.

To support future growth and meet the guidance, OneSource has planned significant capital expenditure. It intends to invest about US$100 m over the next 4 years.

A substantial part of this capex is for drug-device combination capacities, including an increase in cartridge capacity from the current 40 m units annually to 220 m by FY28.

New capabilities are also planned for sterile injectables. This capex will be funded through equity infusion, internal accruals, and customer participation, with management targeting to become debt-free by FY27.

For more information, check out OneSource Specialty Pharma's financial factsheet.

Conclusion

When looking for such stocks why it's critical to go beyond the story. Dig deep into the numbers, monitor developments.

Conduct thorough research on financials and corporate governance before making any investment decisions.

Happy investing.

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