5 Best Multibagger Stocks to Buy Today

Who doesn’t wish for substantial profits from their investments, be it in the stock market, gold, or real estate? But nowadays, the general ambition is to achieve high-yielding results quickly when it comes to stock investments. 

Well, earning a high amount of profit in a short span of time is a questionable occurrence. But is earning high-yielding profits at all possible?

Absolutely! 

It’s all possible when you invest in multibagger stocks. These stocks possess the potential to skyrocket your wealth—yes,  skyrocket, not just increase. For instance, a small investment of 10,000 INR can turn into 1,00,000 INR in due course of time, which is a staggering increase.

However, the art of recognising and investing in multibagger stocks to generate higher returns is not everyone’s cup of tea.

So, to help you out, in this blog, we will explain what multibagger stocks are and how to identify them. 

Let’s dive in!

What are multibagger stocks?

Multibagger stocks refer to stocks that yield returns of 100 percent or more on the initial investment within a relatively brief period. These stocks are generally undervalued, and investors pursue them in anticipation of significant value appreciation, resulting in substantial profits.

The remarkable growth of multibagger stocks is often attributed to factors like robust financial performance, the launch of ingenious products or services, alignment with current market trends, or a favourable economic climate.

However, identifying these stocks also requires several careful considerations, such as in-depth research and analysis of a company’s fundamentals, market trends, growth prospects, etc.

But before we get into that, let’s discuss some of the top-performing multibagger stocks in India backed by a proven track record.

List of Best Multibagger Stocks in India

Here’s a list of multibagger stocks to buy today:

1. Raymond Ltd

• Last Traded Price (LTP): ₹1741.85
• % Change: -0.47%
• Volume: 174,717
• Market Cap: ₹11,650.74 Cr

Each stock of Raymond Ltd is currently valued at ₹1741.85, with a slight decrease of -0.47%. The trading volume is 174,717, and the company’s market capitalisation stands at ₹11,650.74 Crores.

2. Bank of Maharashtra

• Last Traded Price (LTP): ₹45.95
• % Change: +1.55%
• Volume: 16,580,260
• Market Cap: ₹32,043.22 Cr

Each stock of Bank of Maharashtra is currently priced at ₹45.95, showing a positive increase of +1.55%. The trading volume is impressive at 16,580,260, and the company’s market capitalisation is ₹32,043.22 Crores.

3. Paramount Communications

• Last Traded Price (LTP): ₹95.05
• % Change: +4.97%
• Volume: 1,070,008
• Market Cap: ₹2,531.87 Cr

Each stock of Paramount Communications is currently priced at ₹95.05, showing a positive increase of +4.97%. The trading volume is 1,070,008, and the company’s market capitalisation stands at ₹2,531.87 Crores.

4. Rail Vikas Nigam Ltd

• Last Traded Price (LTP): ₹199.8
• % Change: +1.22%
• Volume: 51,040,633
• Market Cap: ₹41,158.3 Cr

Each stock of Rail Vikas Nigam Ltd is currently valued at ₹199.8, with a positive increase of +1.22%. The trading volume is significant at 51,040,633, and the company’s market capitalisation is ₹41,158.3 Crores.

5. SAL Steel

• Last Traded Price (LTP): ₹25.35
• % Change: +1.20%
• Volume: 240,060
• Market Cap: ₹212.85 Cr

Each stock of SAL Steel is currently priced at ₹25.35, showing a positive increase of +1.20%. The trading volume is 240,060, and the company’s market capitalisation is ₹212.85 Crores.

How to find Multibagger Stocks?

Now that we know the top-performing multibagger stocks to invest in today, they can benefit us in the long run. Let’s find out how to seek out these stocks in the market.

1. Choose a Potent Industry

Pick an industry that has the potential to grow significantly over the next 5-10 years. 
For instance, according to Mint, the manufacturing industry stands out as one of the potent sectors that holds the prospect for substantial returns.

On the other hand, don’t go for industries facing stagnation or encountering economic or policy challenges, as finding multibaggers within such sectors may prove tricky.

2. Look for a Company That Promises Economic moat.

Look for a company that boasts an economic moat, a term coined by Warren Buffett, one of the wealthiest investors globally. An economic moat refers to a competitive advantage that a company strategically builds to sustain long-term profitability and growth, ensuring it outperforms competitors.

To identify if a company possesses a competitive advantage, assess its level of innovation and find out how frequently it launches innovative products and services in the market. Additionally, you must evaluate the number of patents it holds and the activity of its Research and Development (R&D) division.

3. Evaluate Debt Levels 

Debt levels are a clear indicator of a company’s financial stability. Huge interest payments associated with high debt levels can strain a company’s finances. On the other hand, businesses with moderate debt are able to reinvest their profits back into the company, which may potentially drive growth.

Therefore, it is imperative to give importance to companies with a manageable amount of debt when assessing prospective multibagger stocks. Undoubtedly, debt levels vary from industry to industry. They shouldn’t, however, go above 30% of the stock value.

4. Identify Undervalued Stocks

There are a lot of businesses whose stocks are significantly undervalued, even though the business has so far shown every indication of profitability. Although there are fewer of these stocks, they remain available for purchase until a wise investor picks them.

Keep in mind that a low valuation is not always something to be worried about. Whereas, overpriced stocks have the potential to cause an investment bubble to pop, leaving investors let down by the subsequent decline in value. 

However, if a stock is undervalued and the company has strong fundamentals, the valuation may be changed later, and the investors may gain a lot from it.

5. Have long-term vision and patience

When searching for multibagger stocks, it is essential to have a long-term vision. Understand that it takes time and requires persistence and patience for stock to achieve the status of a multibagger. 

Rather than letting the short-term shifts in markets influence you, keep an eye on the business’s long-term growth potential. Before multibagger stocks begin to grow substantially, they frequently go through periods of volatility.

Final Words

Understanding the basics of multibagger stocks isn’t as complicated as it seems. Study the above-mentioned information carefully and it will help you how to identify these stocks and decide which ones to consider for investing today.

With comprehensive insights into promising stocks like Raymond Ltd, Bank of Maharashtra, Paramount Communications, Rail Vikas Nigam Ltd, and SAL Steel, you are now certainly ready to go. 

So, use this information wisely and invest today for a rewarding future!