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All You Need to Know About Multibagger Stocks

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.


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This Tata Stock is Sitting on a Billion Dollar Solar Rooftop Goldmine

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With the rooftop solar subsidiary scheme, will this Tata stock become a billion-dollar rooftop leader?

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If You'd Invested 100,000 in Bajaj Finance Stock 10 Years Ago, Here's How Much You'd Have Today

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Given Bajaj Finance's multibagger gains over the past 10 years, has its valuation outpaced the broader market's growth?

Up 275% in a Year, This Defence Stock's Growth Is Just Getting Started

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Foreign investors (FIIs) have increased their holding in the defence stock from 1.4% to 11.4% in less than a year.

Jio Financial: Is the Hype Real?

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We look into the recent price rise of Jio Financial.

This Multibagger PSU Stock is Set to Approve Bonus Shares Soon

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This will be the Maharatna company's third bonus issue. Find key details inside...

This Green Energy Stock has Soared 1,000% in Eight Months. Can it Maintain the Momentum?

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This stock has skyrocketed from Rs 118 to Rs 1,939 in just eight months. Here's What Comes Next...

Why IFCI Share Price is Rising

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This PSU company has turned a corner in FY24 by registering a profit after seven consecutive years of losses.

Top 5 Debt Free Penny Stocks with Solid Growth

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Debt-free companies are less susceptible to economic downturns. Here are five that should be on your radar.

5 Best Power Sector Penny Stocks in India

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While penny stocks in power sector may not promise the stability of bluechips, they offer an entry point into a sector on the cusp of transformation.

Tata Motors TANKS after GOOD Earnings: Here's Why!

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Understanding the market reaction to Tata Motors' Q4 results

Which Companies Manufacture Solar Panels in India?

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US president Joe Biden recently imposed tariffs on Chinese solar panels. These Indian companies manufacturing solar panels could be permanently rerated.

Shankar Sharma Acquires 3,500,000 Shares in a Surging Penny Stock

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The NSE-only listed stock has rallied around 40% in 2024 so far.

5 High Dividend Stocks Up More Than 80% in 2024

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Dividend stocks are making sense now. Here are 5 which have also performed well on the bourses in 2024 so far.

Better Railway Stock: Ircon International Vs Railtel Corporation of India

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The railway infrastructure revamping initiative is driving the growth of these two railway companies. But which one's the clear winner?

Shankar Sharma Buys 365,000 Shares of this Multibagger Smallcap Stock

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Here's why the seasoned investor added this realty stock that has gained 109% in a year.

Multibagger Pharma Stock Announces Buyback at 25% Premium

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This pharma stock greenlit its fourth buyback program in the last five years. Here's everything you need to know.

A Simple Hack to Beat the Big Investors for Multibagger Gains

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Forget the earnings season. Here's is a better metric that could offer interesting insights about stocks.

Multibagger Stocks for the Next 10 Years

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What are the potentially top 10 multibagger stocks for the long term? Find out...