Equitymaster's guide to Multibagger stocks with detailed analysis and much more. Also check out Equitymaster's powerful stock screener to find the Multibagger stocks.
Wikipedia describes a multibagger stock as the one which gives a return of more than 100%.
The term was introduced into investing by the legendary Peter Lynch in his 1988 best seller, 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.
So for example, a ten bagger is a stock which gives returns equal to 10 times the investment. A twenty bagger stock gives a return of 20 times.
Now that you know what it is, how do you invest in a future multibagger stock? How do you find a stock which goes on to be a 5-bagger, a 10-bagger, and in rarest of rare cases, a huge 100-bagger?
Well, a potential 100-bagger stock must be small. Sheer size militates against growth.
It must be relatively unknown. Popular growth stocks may keep on growing but too often one has to pay for expected growth too many years in advance.
It must have a unique product that would do an essential job better, cheaper, and/or faster than before, or provide a new service with prospects of great and long-continued sales increases.
It must have a strong, progressive, research-minded management.
An important point you should note here is that your goal should be to look for a good investment and not necessarily a multibagger stock.
Jun 1, 2023
It's good to see smallcaps rallying. How long can this rally continue?
May 26, 2023
Here's why the multibagger's stock is down 10% in the last five days.
May 24, 2023
CCL Products: Evolving from differentiated commodity player to FMCG brand
May 22, 2023
Following a non-stop rally, Siemens share price corrected 15% in two days after getting nod to sell its general motor business to the parent company.
May 16, 2023
Here's why Ashish Kacholia bought stake in this smallcap IT management firm.
May 11, 2023
Rising crude oil prices and disruptions in the supply chain, have directly impacted the profit margin of Aarti Industries.
May 10, 2023
This multibagger stock tumbled more than 14% in a single day amid profit booking. Find out its growth prospects and more.
May 5, 2023
After delivering multibagger returns of 400% in a year, the stock slipped 54% in five days. Here's why.
May 2, 2023
Will stocks like Titan create more super investors?
Apr 29, 2023
Here is a list of 5 multibaggers that must be on your radar.
May 29, 2023
Balkrishna Industries shares crash 9% post weak Q4 results. What lies ahead for this fundamentally strong company?
May 26, 2023
Here's why the seasoned investor trimmed her stake in this chemical company for the third consecutive quarter.
May 22, 2023
These small and medium enterprises are coming out with their IPOs this week. Are they worth a look?
May 19, 2023
After reporting highest ever quarterly profit, shares of SBI have encountered a roadblock due to these reasons.
May 15, 2023
Mukul Agrawal is a prominent investor in India, who is known for his microcap and smallcap stock picks.
May 11, 2023
Is Shankar Sharma's investment strategy well suited for the average investor?
May 8, 2023
Why Shankar Sharma's 4 A.M. strategy may not be for everyone.
May 3, 2023
Share price of this beverages company recently hit a new 52-week high after announcing a stock split. More gains ahead?
May 1, 2023
Is it time to move out of the high-flying railway stocks?
Apr 28, 2023
This theme could be the biggest wealth creator of the decade.