Top 10 multibagger stocks in India to invest for long term
Indeed a very good question,so you should find a multibagger in future. A multibagger should contain the below qulaities :-
In every market sector there are always leaders and laggards. You want to always pay close attention to the laggards. That isn’t to say that a stock is undervalued just because it’s trailing others in it’s sector. But if the fundamentals and financials are healthy compared to it’s competitors, it might be because it’s time hasn’t come yet. You’ll want to get in before it does!Price/earnings ratio (P/E).This is one of the first clues that a stock’s undervalued. If the typical P/E ratio in a sector is 20 and you find a stock trading at 10, you need to investigate. Again, if the fundamentals and financials are comparable to it’s competitors, but it’s not being blessed by one of the investment advisor superstars, it may be a strong candidate.P/E growth ratio. You can determine this by dividing the P/E ratio by the company’s projected growth rate over the next five years. If the number is less than one, the company may be a strong candidate. Just be careful here: growth forecasts are expectations, not guarantees.High dividend yield. If you find a company with a 4% dividend yield in a sector that typically pays 2%, you either have a company that’s about to go over a financial cliff, or one that’s a legitimate undervaluation. The higher dividend yield is either the result of a pending financial problem (that will lower the dividend yield) or it’s a case of a stock that’s paying an above average rate, simply because it’s currently out of favor..Pay attention to market sell-offs.
There are usually more undervalued stocks to be found after market sell-offs than at market peaks. Undervalued stocks are a relative rarity in strong bull markets, but can be quite common in bear markets. Bear markets punish good stocks along with the bad, and that creates plenty of interesting opportunities. Always keep some cash on hand, that way you can find these gems after big market sell-offs — when they’re much easier to find.Be patient! Finding — and ultimately profiting from — undervalued stocks is a slow process. Take your time and be careful in locating legitimate investment opportunities.
Below stocks has following potentials :
- Avanti feeds
- Ajanta Pharma
- PI industires
- Century Plywoods
Dont invest all your money at a go ,invest slow and steadily. You will be able to reap benefits on a longer run.For more details on stock recommendations, mail us at email@example.com or call us at +917708838702