Looking For One Multibagger Today? Here Is a Checklist for Finding The Best Multibagger Stocks for 2022 [Updated list of 54 stocks that turned Multibaggers]
You must know that a stock market is a place that rewards those who remain patient. But you may also want to see that it’s where you can get lucky in the short term with a few right stocks in the portfolio. However, the probability of becoming wealthy in the short time is very rare.
So, in this article, we will define a checklist to identify the best multibagger stocks for 2022. An interesting fact is you can use this checklist to find great investment opportunities every year for the long term. Before we begin, if you are new to equity investments and don’t know the term multibagger, then now is the time to learn and add it to your stock market vocabulary.
Otherwise, how will you find the best multibaggers for 2022 without knowing the word’s meaning?
What are Multibagger Stocks?
- Stock that delivers exponential returns usually several times their costs are called multibaggers.
- A stock that grows twice its price is called two-bagger, and a stock that jumps ten times its cost is called ten-bagger. And multibaggers are stocks that grow multiple times their initial price. These are primarily undervalued stocks with solid fundamentals and immense potential to grow.
Click here to get your personalized a portfolio of 20-25 potential multibagger stocks for 2022.
Two years ago, on March 23 2020, stock markets plunged to their lowest in over four years. But little did we know that it was the beginning of the Bull Run. The Bull Run not only pushed the benchmark indices to new all-time highs but also gave rise to new multibaggers. For those who don’t know, the stock markets churned out 733 multibaggers in the last two years.
There are 730 days in two years. It means one multibagger created a day over the last two years. However, the list does not include stellar IPO listings during the pandemic.
Of the 733 multibagger stocks that emerged in the last two years, 54 stocks soared over 1000%. Check out the list below.
|Company Name||March 25 2022||March 23 2020||Return (in%)|
|Tata Teleservices (Maharashtra)||167.7||1.99||8327.14|
|Brightcom Group Ltd.||89.5||1.55||5674.19|
|3i Infotech Ltd||543||1.24||4279.03|
|Tanla Platforms Ltd||1368.1||40||3320.25|
|Share India Securities Ltd||1167.5||44.45||2532.47|
|Khaitan Chemicals & Fertilizers Ltd||124.1||4.78||2496.23|
|Vishnu Chemicals Ltd||1724.35||72.1||2291.61|
|Adani Total Gas Ltd||2053.65||89.1||2204.88|
|Nahar Spinning Mills Ltd.||573.7||25||2194.80|
|Globus Spirits Ltd.||1484.7||66.9||2119.28|
|Nahar Poly Films Ltd||557.95||26.75||1985.79|
|PG Electroplast Ltd||708.6||35.15||1915.93|
|Syncom Formulations (India) Ltd||11.53||0.59||1854.24|
|Everest Kanto Cylinder Ltd||239.45||12.55||1807.97|
|Urja Global Ltd||17.59||0.95||1751.58|
|Borosil Renewables Ltd||587.95||32.5||1709.08|
|Saregama India Ltd||4413.95||247.45||1683.77|
|DB Realty Ltd||94||5.29||1676.94|
|Intellect Design Arena Ltd||858.55||48.65||1664.75|
|Greenpanel Industries Ltd||540.7||31.25||1630.24|
|PTC Industries Ltd||4401.95||255.1||1625.58|
|Company Name||March 25 2022||March 23 2020||Return (in%)|
|Godawari Power And Ispat Ltd.||388.75||23.25||1572.04|
|BCL Industries Ltd.||498.85||31.7||1473.66|
|Tata Elxsi Ltd||8440.85||545.75||1446.65|
|Adani Enterprises Ltd||1869.6||123.35||1415.69|
|Gulshan Polyols Ltd||374.45||24.85||1406.84|
|Butterfly Gandhimathi Appliances||1380.7||93.85||1371.18|
|KPIT Technologies Ltd||591.6||40.5||1360.74|
|JTL Infra Ltd||253.2||17.77||1324.87|
|Adani Green Energy Ltd||1922.45||134.95||1324.56|
|Kabra Extrusiontechnik Ltd||505.7||36.5||1285.48|
|Balaji Amines Ltd||2993.8||217.15||1278.68|
|Poonawalla Fincorp Ltd.||253.3||19.05||1229.66|
|Adani Transmission Ltd||2443.9||185.75||1215.69|
|Ganesh Housing Corporation Ltd||259.6||20.25||1181.98|
|Gokaldas Exports Ltd.||409.65||32.55||1158.53|
|Olectra Greentech Ltd.||625.6||50.2||1146.22|
|Fineotex Chemical Ltd.||164.45||13.45||1122.68|
|Expleo Solutions Ltd||1641.95||137.15||1097.19|
|Company Name||March 25 2022||March 23 2020||Return (in%)|
|HLE Glascoat Ltd.||5747.5||490.6||1071.52|
|Manali Petrochemicals Ltd.||110.4||9.5||1062.11|
|Mcleod Russel India Ltd.||226||1.95||1058.97|
|Jain Irrigation Systems Ltd.||40.65||3.55||1045.07|
|Venus Remedies Ltd.||289.15||25.3||1042.89|
|Reliance Power Ltd.||12.99||1.14||1039.47|
|Tejas Networks Ltd||384.3||33.75||1038.67|
|Jaiprakash Power Ventures Ltd.||6.87||0.61||1026.23|
|Sarda Energy & Minerals Ltd||1145.15||101.75||1025.45|
Note: The stocks mentioned in this article are just for information purposes only. He/she should not consider this a buy/sell/hold from Research & Ranking. The company shall not be liable for any losses that occur.
Tata Teleservices Ltd., a Tata Group company, topped the list with 8,327% from the lows of March 24 2020.
Brightcom Group Ltd. came second thanks to the stellar rise of 5,675%. As a result, the scrip moved from Rs. 1.55 to Rs. 95.95 on April 13 2022.
3i Infotech, Tanla Platforms, Share India Securities, Khaitan Chemicals, Vishnu Chemicals, Adani Total Gas, Nahar Spinning Mills, and Globus Spirits were among other top multibaggers in the last two years. All these stocks soared over 2000% from their lows of March 2020.
You may now feel the stock market is a place to make quick money. But it is not. Despite a stellar Bull Run after the March 2020 crash and swift recovery across sectors, some counters have not been able to recover from the pandemic crash. They delivered weak returns.
While there are stories of these multibaggers, there were a few wealth destructors. Some stocks tumbled up to 78% since the beginning of the pandemic, eroding investors’ wealth. Kishore Biyani’s Future Lifestyle Fashions topped the list of destructors with a 78% decline. The stock plunged to Rs. 36 on April 13 from the close of Rs. 168 on March 23, 2020.
GE Power India, Yes Bank, Future Retail, and Future Supply Chain are some stocks down over 60% from their March 23, 2020, lows. In addition, Omaxe, Future Consumer, Future Enterprises, and Spandana Sphoorty Financial Ltd. are down between 40-50% from their March 2020 lows.
Poor fundamentals, high debt, sub-standard corporate governance practices, and poor demand from consumers are the reasons behind the weak performance of these stocks.
Moral of the story
The stock market is a place of winners and losers. It rewards the companies with solid fundamentals, and those with poor fundamentals find they are at the bottom of the ladder after the initial euphoria. Of course, we don’t mean people do not gain in the short term. We just mean the gains are volatile and not substantial enough to create wealth for investors.
The only way to create wealth is to invest for the long-term in well-researched companies that show promise. So how do you identify the best multibagger stocks for 2022? Here is a checklist you can keep handy.
Checklist to identify the Best Multibagger Stocks for 2022:
Check if the company has an excellent historical performance
Although the past revenue and profit trends do not guarantee a company’s good performance year after year, it is considered a strong indicator of what you can expect from the company in future. A company with a consistent record of earnings growth over a long-term period, such as five years or more, is more likely to become multibagger stock in future.
Look at the stock of HDFC, for instance. The stock of HDFC has grown at a compounded annual growth rate (CAGR) of 22.01% between July 1 2002, and August 1 2022.
Check the companies’ Debt to Equity Ratio
Heavy debt can be a severe burden for any company, as a significant portion of the profits will be used for servicing its debt. This implies that the company cannot use its excess fund to expand capacity. On the contrary, a company with zero or low debt can use its surplus funds to expand the business or further diversify, resulting in new revenue streams.
The table below is a list of Nifty companies with their debt to equity (DE) ratio as of March 2022
|Company||NSE Code||DE Ratio|
|Bajaj Finserv Ltd.||BAJAJFINSV||3.99|
|Bajaj Finance Ltd.||BAJFINANCE||3.78|
|Tata Motors Ltd.||TATA MOTORS||3.13|
|Housing Development Finance Corporation Ltd.||HDFC||2.82|
|Bharti Airtel Ltd.||BHARTIARTL||2.00|
|Power Grid Corporation of India Ltd.||POWERGRID||1.77|
|Mahindra and Mahindra Ltd.||M&M||1.58|
|Larsen & Toubro Ltd.||LT||1.50|
|Adani Ports and Special Economic Zone Ltd.||ADANIPORTS||1.19|
|Bharat Petroleum Corporation Ltd.||BPCL||1.08|
|JSW Steel Ltd.||JSWSTEEL||1.04|
|Grasim Industries Ltd.||GRASIM||0.96|
|Britannia Industries Ltd.||BRITANNIA||0.96|
|Hindalco Industries Ltd.||HINDALCO||0.81|
|Tata Steel Ltd.||TATA STEEL||0.60|
|Apollo Hospitals Enterprises Ltd.||APOLLOHOSP||0.47|
|Oil and Natural Gas Corporation Ltd.||ONGC||0.42|
|Reliance Industries Ltd.0||RELIANCE||0.34|
|UltraTech Cement Ltd.||ULTRACEMCO||0.20|
|Dr Reddys Laboratories Ltd.||DR REDDY||0.16|
|Shree Cements Ltd.||SHREECEM||0.12|
|Coal India Ltd.||COAL INDIA||0.08|
|TATA Consumer Products Ltd.||TATACONSUM||0.07|
|Tech Mahindra Ltd.||TECHM||0.06|
|Titan Company Ltd.||TITAN||0.06|
|Asian Paints Ltd.||ASIANPAINT||0.06|
|HCL Technologies Ltd.||HCLTECH||0.06|
|HDFC Life Insurance Company Ltd.||HDFCLIFE||0.04|
|Hero Motocorp Ltd.||HEROMOTOCO||0.02|
|Sun Pharmaceutical Industries Ltd.||SUNPHARMA||0.02|
|Nestle India Ltd.||NESTLEIND||0.02|
|Maruti Suzuki India Ltd.||MARUTI||0.01|
|Eicher Motors Ltd.||EICHERMOT||0.00|
|Bajaj Auto Ltd.||BAJAJ-AUTO||0.00|
|Divis Laboratories Ltd.||DIVISLAB||0.00|
|SBI Life Insurance Company Ltd.||SBILIFE||0.00|
|Hindustan Unilever Ltd.||HINDUNILVR||0.00|
|Tata Consultancy Services Ltd.||TCS||0.00|
Check if the company is well managed professionally
Companies with a history of good corporate governance and well-managed professionally often become market leaders in their segment. Well-managed companies like TCS, HDFC Bank and Maruti Suzuki have created massive wealth for their shareholders over the years.
Check if the company offers a unique product or service
A company that provides a unique product or service enjoys a considerable advantage without significant competition. With time this advantage will also reflect in the company’s financials positively. Keeping a close eye on this parameter will help you find the best multibagger stocks for 2022.
Companies like HUL, Britannia, Asian Paints, and Eicher Motors have generated stellar returns for their investors. An important reason for this can be attributed to the massive demand for the products and services offered by these companies.
For example, Eicher Motors was the only company in India offering classic motorcycles until 2018. Despite the entry of new products recently in this segment by competitors, Eicher Motors has managed to hold its position as the market leader thanks to loyal customers and its brand recall value.
Check if the stock is available for investment at the proper valuation
It is essential to invest in multibagger stocks at the correct valuation. It makes no sense if you invest in the right stock at the wrong price, as the potential upside may be limited. As mentioned at the beginning of this article, merely looking at 52-week highs and 52-week lows before investing will not help you invest in multibagger in 2022.
You may ask, “how do you find a company with the right valuation?” Well, that’s where a SEBI registered equity investment advisor can help you. Explore our best product 5 in 5 Wealth Creation Strategy.
Related investing topics
Some sectors where one can find the best multibagger stocks for 2022
India shares its long borders with hostile neighbors such as China and Pakistan. The recent standdown with China in Ladakh has only worsened the situation, and the threat of a two-front war can never be entirely ruled out in the future. However, with Atmanirbhar Bharat and the Make in India initiative gaining momentum, select stocks in the defence sector in India can emerge as the best multibagger stocks for 2022.
Pharma and healthcare
India’s pharma and healthcare sector has not only managed to tide over the disruption caused by Covid-19 but also emerged as winners. Moreover, this success story will likely continue in the post-pandemic era extending to a few years ahead.
A well-developed infrastructure is the backbone of a developed country. In the latest Union Budget, Finance Minister Nirmala Sitharaman announced a massive investment allocation for infrastructure development over the next few years. It is why the infrastructure sector in India, which includes power, airports, railways, ports, bridges, dams, roads, and urban infrastructure development, will give rise to many unique business opportunities.
The pointers above can help investors to identify the best multibagger stocks for 2022. However, if you do not have the time or the expertise to analyze stocks, it is highly advisable to seek professional advice. Click here to invest in a portfolio of 20-25 potential multibagger stocks for 2022 chosen after detailed research by our team of experts.
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