Friday 26 September 2014

Everything about MULTIBAGGERS

Friday 26 September 2014
Important Question: What is a multibagger ?  

A multibagger is a stock that has multiplied its investor's money. (this is PAST)

More important Question: What is a potential multibagger ?

A potential multibagger is a stock which can multiply your money. (in the FUTURE)

In other words, it is a stock which can provide you with multifold profits/returns

If a stock gives you 100% profits (doubles your money) then it is a 2-bagger.
If a stock gives you 300% returns (quadruples your money) then it is a 4-bagger
If a stock gives you 700% returns, then it is a 8-bagger
If it gives you 900% profits, then it is 10-bagger

....we can go on.....    

Examples of recent (past) multibaggers: Over last 1 - 2 years      

 1. Granules India (Pharma): 95 rs (as 22Mar2013) and 929 rs (price as on 19Sep2014)
          Almost a 10-bagger (profit 900%): Time frame: 18 months (approx)

2. JK Tyre (Tyres): 82 rs (as 28Aug2013) and 498 rs (price as on 19Sep2014)
          Almost a 6-bagger (profit 500%): Time frame: 12 months (approx)

3. eClerx (IT/BPO): 600 rs (as 25Mar2013) and 1440 rs (price as on 02Sep2014)
          Almost a 2-bagger (profit 120%): Time frame: 18 months (approx)

4. Gati (Logistics): 24 rs (as 01Oct2013) and 190 rs (price as on 12Sep2014)
          Almost a 8-bagger (profit 700%): Time frame: 12 months (approx)  

5. Himatsingka Seide (Textile): 30 rs (as 26Mar2013) and 100 rs (price as on 12Sep2014)
          Almost a 3-bagger (profit 200%): Time frame: 18 months (approx)

6. RS Software (IT/software): 120 rs (as 16Aug2013) and 820 rs (price as on 18Sep2014)
          Almost a 6-bagger (profit 500%): Time frame: 12 months (approx)

7. Gabriel India (Auto ancillary): 20 rs (as 24Jun2013) and 84 rs (price as on 12Sep2014)
          Almost a 4-bagger (profit 300%): Time frame: 15 months (approx)

VERY IMPORTANT POINT:
Observe that this happened in the scenario of a massive bull run (hope rally) in the indian stock markets with a bullish backdrop of global stock markets driven by easy liquidity. This is a unique situation (just like this, every other situation in the market will be different).    


Phenomenal (past) multibaggers: Over last decade (adjusted for stock splits and bonuses)

1. Shriram Transport (Finance): 25 rs (as 07Jul2004) and 1000 rs (price as on 13Jun2014)
          Almost a 40-bagger (profit 3900%): Time frame: 10 years (approx)    

2. Lupin (Pharma): 70 rs (as 09Mar2004) and 1400 rs (price as on 19Sep2014)
          Almost a 20-bagger (profit 1900%): Time frame: 10 years (approx)  

3. AVT Natural (Agro): 90 ps (as 24Jun2004) and 50 rs (price as on 19Sep2014)
          Almost a 50-bagger (profit 5000%): Time frame: 10 years (approx)  

4. Dabur India (FMCG): 10 rs (as 02Jul2004) and 200 rs (price as on 20Aug2014)
          Almost 20-bagger (profit 1900%): Time frame: 10 years (approx)  

5. Atul Auto (Auto): 30 rs (as 26Mar2013) and 100 rs (price as on 12Sep2014)
          Almost a 3-bagger (profit 200%): Time frame: 18 months (approx)  

IMPORTANT OBSERVATION:
Multibaggers are not sector dependent. Most of them are very high quality companies.  


multibaggers
1. Marksans Pharma (Pharma): 12 rs (as 22Nov2013) and 48 rs (price as on 03Sep2014)
          Almost a 4-bagger (profit 300%): Time frame: 10 months (approx)  

2. Prakash Constrowell (Construction): 90 ps (as 15May2014) and 3.60 rs (price on 11Aug2014)      
          Almost a 4-bagger (profit 300%): Time frame: 14 months    

3. Trigyn Tech (IT/software): 21 rs (as 13Jan2014) and 52 rs (price as on 09Sep2014)
          Almost a 2/3-bagger (profit 150%): Time frame: 9 months (approx)  

4. Firstsource Solutions (IT/BPO): 20 rs (as 18Dec2013) and STILL HOLDING  


In this post, I have listed around 15 examples of past multibaggers. If you search enough, you will be able to find at least another 20 - 25 examples (of the past multibaggers) easily.

Try and search for some. It will be a learning exercise as well as fun. Cheers!!

Source - My colleageYogi

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