As a stock market participant or investor, every investor’s dream is holding multibagger stocks in their portfolios. But it is the nightmare to the most of the retail investors as they invest into particular stock after the same stocks buzzes in the social media or after they deliver multifold returns.
So catching the multibagger stock at initial stages is most important to receive multifold returns. For that we need to do some basic ground work and focusing on the same is too much important, as we have 60000 plus stocks in the Indian market including both exchanges BSE & NSE.
To identify multibagger stocks, are we really should go across the 6000 stocks of indian market ? actually no, for that to simplify the process, here we are going to provide you the best sources to identify multibagger stocks at initial stages, which will help us to receive multifold returns.
As we all know, maximum retail investors will loose their hard earned money by investing buzzing stocks and by taking tips and all other useless things. You should work on some particular stock after selecting a stock through our sources to identify multibagger stocks, then only you will get some conviction to hold it until it delivers the expected multifold returns.
Here we are providing best sources to identify multibagger stocks, which we follow to pick up the stocks, as you all know how is our hit rate, almost our picks delivered multifold returns till date and some of them are on the way to deliver the expected returns.
Sources to identify multibagger stocks:
1. Gro Stocks, Stocks & Industry Analysis:
You can pick the stock from our stocks and industry analysis articles as you all know, we are giving the best and premium content for the free of cost. We are providing most of the stocks and industries analysis articles timely, almost prior to the opportunity triggers.
You can observe the same by going through our previous articles on stocks analysis and their performance. We have been picked up railway theme stocks, textile stocks, power sector stocks and many more.
So Gro Stocks giving you the best analysis, by following our articles you will be definitely ahead of the markets and you can pick up some stock ideas from here as it works as one of the best sources to identify multibagger stocks.
2. Brokerage Research Reports:
Brokerage Research Reports are another best sources to identify multibagger stocks as they post industry and stocks analysis where there is an opportunity. Lot of domestic and international analysts such as motilal oswal, HDFC securities, JP Morgan, CITI group, FITCH and many more
By going through these research reports you can find a best stock ideas to work our from your end. If you don’t have enough time or enough knowledge to find reports and stock ideas, better do follow us on our Telegram channel, where we post best stock ideas and various brokerages research reports.
3. Top Down Approach:
Top down approach is one of the famous sources to identify multibagger stocks. Usually in the top down approach, we first analyze the opportunity in the country, then we try to understand the industry and then the companies looking attractive and trading at the fair valuations also we can add technical analysis to find the stocks to invest.
But top down approach is little tough to approach manually but the screening website Tijori Finance made it simple to analyze the sector and it’s stocks.
Tijori Path: Search for Tijori Finance – Open Tijori Finance Website – Click on Research Tools – Select Sector Analysis
4. Bottom Up Approach:
Bottom up approach is a similar to top down approach but we start analysis with the individual company then we analyze the industry and then the opportunity in detail, you can also use the most of the screening websites such as screener, tijori, trendlyne and tickertape.
5. The most familiar companies:
Identifying the multibagger stocks from the most familiar companies and the products we use is the easiest way of identifying stocks and it’s also called as commonsense investing. For example Pidilite Industries – we use Fevicol and Fevikwik, Nestle – we use Maggie noodles on regular basis in our daily life.
6. Cloning Stocks:
The final source to identify multibagger stocks is the cloning stocks, which is we will find the stocks from the Big sharks portfolios and from the top performing mutual funds. These data you can find from the below websites.
Big sharks portfolios : Rate Star
Top performing Mutual funds : Value Researh
7. Turnaround stocks:
To catch the turnaround stocks, we really need to work hard to build the conviction. Actually the turnaround stocks are the shrinking stocks due to high debts, heavy competition, management failure, frauds and many other internal and external reasons.
The company should come out from all these things and should beat the market expectations to deliver multibagger returns. That’s why it’s very risky and very tough to identify through this source but not impossible if you work properly.
For example, Suzlon stock going through the same path, but don’t take it as buy recommendation as its in very early stage. Do your own research.
After finding the stock through above all sources, also it’s very important to hold the stock until It delivers the expected returns. Some stocks take one year, some takes 2-3 years and some may take 5 years to become multibagger. So we should have that much conviction.
Go through all the sources, choose one which fits to your stye of analysis to pick the stock. What ever stock, it should meet some multibagger stocks qualities, here you can read the 15 points of checklist to filter multibagger stocks.
Conclusion:
The above discussed 5 sources are the best sources to identify multibagger stocks, but we should keep in mind that we use these sources just to pick the stock, after that we have to do our own research on that particular stocks such as valuations, technical levels, financial ratios you use and many more, then only you will get some kind of conviction, that conviction will help you to hold the stocks in the tough times.
We already published the two important articles in this series, do check it out
That’s all for today