What are Multi-bagger Stocks in India | Multi-bagger Stocks 2021

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What are Multi-baggers?

Multi-baggers are sprouting small caps or mid-caps that have the flair to grow into large-cap stocks thereby enriching investors with mounting returns. These stocks have the potential to grow at a remarkably higher rate than large-cap stocks.

Why should one invest in Multi-bagger?

Investing in a prospective multi-bagger stock will give you the opportunity to grow your wealth monumentally. These stocks represent blooming companies with an exclusive product or service with high potential desire from the clients. Once the product or service is incorporated, demand can explode resulting in a sharp rise in stock valuation.

How much time it takes?

Cashing in on from multi-baggers requires patience and methodical to stay invested. Proceeds from such stocks are as straight as arrow, i.e. these stocks usually competent of high price volatility and on forming a base, the price rise is usually swift. In brief, VRSK Multi-baggers have a holding period of around 2-3 years.

What is the potential Gain?

As the name suggest, multi-baggers are stocks which multiply the investments value. VSRK Multi-baggers offer a potential upside of 80%-100% in a period of 2-3 years.

Do Multi-baggers involves risk?

Multi-baggers are perilous if one invest without adequate research and loosely examine these stocks. This is what VSRK does for you. Embryonic multi-baggers are picked after rigorous research and analysis and are tracked to assess any potential change in the position of the company or any micro/macro breezes. Diligent selection 

And continuous monitoring significantly minimize investment risk in such stakes. These stocks go through price volatility which one must be prepared for in order to catalyze blooming wealth from such stakes.

How multi-baggers are chosen?

Finding a virtuous multi-bagger involves a meticulous process of comprehensive and insightful research across the entire orbit of stocks falling in this basket. Every VSRK multi-bagger is chosen after analyzing various factors which include company valuations, the background of promoters & their holdings, corporate governance due to diligence, management efficiency, industry trends and economic policies.

Models of stock Selection

Management Quality

  • Corporate governance
  • Highest ethical standards
  • History of wealth creation
  • Corporate Governance
  • Alignment of interest
  • High Ownership
  • Attitude of rewarding minority shareholders

Opportunity size

  • Robust Business model
  • Large opportunity size
  • Scalable – Without changing the business model
  • Huge Profit Pool – Scope and potential to earn many times its current profits.

Superior product and services

  • Leading products or services
  • Competitive edge
  • Moat
  • Ability to gain market share

Financial Discipline and Efficiency

  • Capital allocation
  • Superior Cash flows Profile
  • Return ratios
  • Clean balance sheet – Avoid leverage
  • Efficient working capital management

With the Multi-bagger Stocks, You:

  • Invest in both growth & value stocks with strong fundamentals.
  • Own a Tax-efficient portfolio.
  • Have a low churn portfolio with systematic rebalancing
  • Maintain a diversification of 15-20 open positions
  • Set a time horizon of up to 3 years

 “We go all the way with our business & Industry Legwork”

Our research seeps through beyond the stock analysis into the core business and the intricate details of Industry dynamics. This allows us to estimate the bigger picture when it comes to these Gems.

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