Multibagger Stock

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• Demat
• Multibagger Stock
• A multibagger is a term coined by Peter
  Lynch, one of the world's most renowned
  investors. He used this term in his book One up
  on Wall Street. This term he borrowed from
  baseball.
• Multibagger stock
• An investment that delivers several times higher
  returns than the original investment, e.g. 100
  or more returns in a short period of time is
  considered a multibagger. These stocks are
  usually undervalued, have strong fundamentals,
  and have high growth potential.
• How to find Multibagger stocks
• Being profitable, these stocks are not as easy to
  find out. One needs to follow certain indicators
  to identify the right stock.
• P/E ratio
• It is important to analyze a stock's
  current price-to-earnings (P/E) ratio in order
  to identify a multibagger. Most multibagger
  stocks grow their P/E faster than their stock
  price.
• Debt Levels

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• Businesses have different levels of
  debt, so there is no benchmark regarding
  optimal levels of debt. Ideally, a company should
  have a debt equity ratio of not more than 30.
• Performance History
• An enterprise with low revenues that is
  performing well means it has huge growth
  potential in the future. In order to predict
  future trends, most analysts look at
  the company's past performance.
• Competitive advantage
• It is much more likely for a business to become a
  multibagger if it has a competitive
  advantage. Competitive advantage helps the
  business capture more market share and increase
  revenues as well as profitability.
• Industry
• If you want to find multibagger stocks,
  pick stocks from an industry that you think
  will grow substantially in five to ten
  years. There is less likelihood of finding
  multibagger stocks in an industry that is
  expected to face obstacles and setbacks in the
  near future. You should therefore invest in
  stocks in industries with a high growth
  potential.
• These were some of the indicators to help you in
  researching the multibagger stock. Only investors
  with patience can benefit

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from it in the long run. In addition, investors sh
ould be prepared to assume associated risks. For
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