Multibagger stocks are desired by everyone. One multibagger stock alone can earn you more money than what you may earn in years. Here are some useful guidelines to find out a multibagger stock :
1. Check out a company which has a very good business. Also the company's business must be in a sector which has a good growth story behind it.
2. Find out order value of the company. A company with good order value shows the business solidarity of the company.
3. Look for a midcap stock which has capability to become a largecap. History tells that many a midcap have become large caps and in the process have turned out to be a multibagger. A potential mid caps stock rises more quickly than bluechip companies. Its better to opt for a company with market capital of less than 1000 crores.
4. Find out if the company has any expansion plans. A company must have expansion plans like increasing its turnover or diversifying its business into other sectors.
5. EPS of a multibagger stock should have increased over past few years. Find it out from its previous data.
6. Look for a company which has a new innovative idea which might have great future potential. This can be like introduction of new technology in field of education, automobiles, treatment of diseases, generation of power, agriculture, reducing global warming etc.
7. A multibagger company usually pays regular dividends. This shows that it is ready to share profits. But if a company is paying too much dividend then you should be cautious. A company with expansion plans will not pay too much dividend and leave nothing for itself.
8. Don't ask somebody else to do the research for you. Research yourself and after picking your stock be confident in your stock pick. Stay invested for long term. Do not loose hope in your stock even if the market crashes. A stock with future potential can even go upwards in the falling market.
1. Check out a company which has a very good business. Also the company's business must be in a sector which has a good growth story behind it.
2. Find out order value of the company. A company with good order value shows the business solidarity of the company.
3. Look for a midcap stock which has capability to become a largecap. History tells that many a midcap have become large caps and in the process have turned out to be a multibagger. A potential mid caps stock rises more quickly than bluechip companies. Its better to opt for a company with market capital of less than 1000 crores.
4. Find out if the company has any expansion plans. A company must have expansion plans like increasing its turnover or diversifying its business into other sectors.
5. EPS of a multibagger stock should have increased over past few years. Find it out from its previous data.
6. Look for a company which has a new innovative idea which might have great future potential. This can be like introduction of new technology in field of education, automobiles, treatment of diseases, generation of power, agriculture, reducing global warming etc.
7. A multibagger company usually pays regular dividends. This shows that it is ready to share profits. But if a company is paying too much dividend then you should be cautious. A company with expansion plans will not pay too much dividend and leave nothing for itself.
8. Don't ask somebody else to do the research for you. Research yourself and after picking your stock be confident in your stock pick. Stay invested for long term. Do not loose hope in your stock even if the market crashes. A stock with future potential can even go upwards in the falling market.
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