Introduction
Today we are going to see what you mean by a Multibagger stock? In simple words we can say that a Multibagger stocks that gives returns many times of the current price of that particular stock. These stocks will be the stocks which are rated undervalued but have strong fundamentals, therefore that particular stock provides a good opportunity for the investment. When a stock that doubles the current price can be called as 2-Bagger and if a stock grows 5 times means 5-Bagger and so on. |
| "Stock is a Multibagger" |
Main Features of a "Multibagger" Stock
- Low Leverage:- No debt is the first thing which couldn't avoid while considering Multibagger stocks. Without any debt means they are free on high interest rates and shortage of money.
- PE expansion:- If a company in good profits and its growing then the PE will be increased with this growth. If PE levels increase faster the stock price then it can become a Multibagger.
- Source of Earning of a company:- Source of earning is another important point you should consider.
- Less Capital expenditure :- If a company is done its resources for the future expansion, it can be a good points that a particular stock can be grow more faster.
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Future Technologies Related to "Multibagger" stocks
This is one one important thing you can consider while choosing the stocks for investment in future. For this you have consider that what all technologies are going to come in future, what all changes can be happen in future? All these points should be considered. For example, in future there will be for production of Electrical vehicles and you can select such stocks which can grow many times in future. Likewise, Future technology prediction can help you choose or determine a Multibagger stocks for investment.
Conclusion
Do not choose some stocks from nifty 50 induces and say its blue chip stock or Multibagger stocks. Do each analysis very carefully , because you are going to invest in that stock for a long time in regular intervals. So choosing a stock that should be growing and also continue growing in future too. While investing divide your capital in different stocks, not just in a single stocks