Identify multibagger stocks in this way, there will be bumper earnings even in the falling market
Share Market The number of people investing in it has reached in crores. In such a situation it is possible that you also invest in the stock market. You must have heard such news that this one stock has made investors rich. 10 thousand rupees have been made 1 lakh in a year. At the same time, if the investor invested 10 lakhs in any other stock, it has become 3 crores in two years. Such shares are called multibagger stocks in the language of the market. However, it is quite difficult to identify such stocks for an investment. When most investors invest in a stock, it breaks down. This results in loss to the investors. Now the question arises how to identify the multibagger stock. So let us show you how you can identify a multibagger stock.
Choose Multibagger Stock on These 8 Parameters
- Competent and Strong Management: A stock can be a multibagger only when its management is competent and strong. Therefore, before choosing the stock of any company, see its monetization. If he is capable and strong then he can become a stock multibagger.
- Strong Promoter Holding: If the promoter’s holding in the company is more than 50 per cent, it shows that the promoter has confidence in that company. That is, that company will grow faster and share prices will increase.
- Consistent growth in earnings: If the earnings of the company are increasing continuously, then there is every hope of further growth in the stock of that company. Be sure to choose this type of stock while choosing a multibagger.
- High Margin Business: In Multibagger, choose the type of shares of the company whose business is high margin. With higher margins, the company’s profits will increase rapidly. This will benefit the stock. The share price will increase rapidly.
- debt burden: Before investing in any company, definitely look at the debt burden on it. If the company is heavily burdened with debt, it cannot become a multibagger.
- Growing Cash Flow: A company’s cash flow is the most accurate measure to assess a company’s performance. The cash flow statement determines a company’s ability to grow earnings in the future. If the management company is able to generate cash from operations, it will increase its business. That is, the shares of that company can become multibagger.
- Industry Identity: Industry recognition is very important in selecting a multibagger stock. First assess which industry is going to grow the fastest in the future. Which industries are emerging strongly and why? What is the growth potential for an area and how is it different from others. Then identify the shares of the company in that sector.
- Company’s business model: Any stock becomes a multibagger only when the business model of that company and the product is in demand in the market. Therefore, choose a company whose product has a strong demand or is going to happen. Also his competitors are less.
What is a multibagger stock?
A multibagger stock is a stock that gives investors manifold returns in a very short period of time. If you have invested in a stock of Rs 50 and it becomes Rs 700 in a long time, then it is called multibagger stock. The term multibagger was first coined by Peter Lynch, an American investor and mutual fund manager. Lynch was a fan of baseball and multibagger is also a term derived from this game. It is used to describe the above average performance of a baseball player. Experts said that Lynch had coined the term tenbagger, which meant that the stock would increase 10 times in a very short time from its current price. There is no dearth of multibagger stock in India after Corona.
Latest Business News
function loadFacebookScript(){
!function (f, b, e, v, n, t, s) {
if (f.fbq)
return;
n = f.fbq = function () {
n.callMethod ? n.callMethod.apply(n, arguments) : n.queue.push(arguments);
};
if (!f._fbq)
f._fbq = n;
n.push = n;
n.loaded = !0;
n.version = ‘2.0’;
n.queue = [];
t = b.createElement(e);
t.async = !0;
t.src = v;
s = b.getElementsByTagName(e)[0];
s.parentNode.insertBefore(t, s);
}(window, document, ‘script’, ‘//connect.facebook.net/en_US/fbevents.js’);
fbq(‘init’, ‘1684841475119151’);
fbq(‘track’, “PageView”);
}
window.addEventListener(‘load’, (event) => {
setTimeout(function(){
loadFacebookScript();
}, 7000);
});
,
