Best Multibagger Stocks in India for 2024: Features, Risks, Alternatives Investments, And More

Multibagger stocks are stocks that have the potential to multiply in value many times over the course of several years. For example, a stock that goes from Rs. 10 per share to Rs. 100 per share would be considered a 10-bagger. Some stocks have even higher growth potential, with the potential to become 20-baggers, 50-baggers, or even 100-baggers. So, any stock that observes a multi-fold growth can be considered a multibagger stock. In this article, we will discuss what are multibagger stocks, provide an overview of the best multibagger stocks in India for 2024, and explain how to invest in these multibagger shares.

Best Multibagger Stocks in India for 2024

Here is the list of best multibagger stocks for 2024 sorted according to their 5Y CAGR:

Multibagger Stock Name	Sub-Sector	Market Cap (Rs. in cr.)	Close Price (Rs.)	PE Ratio	5Y CAGR (%)	Net Income (Rs. in cr.)
Lloyds Metals And Energy Ltd	Iron & Steel	42,899.88	928.30	34.52	149.40	557.40
PTC Industries Ltd	Iron & Steel	20,922.68	13,491.50	495.56	142.34	4.89
CG Power and Industrial Solutions Ltd	Heavy Electrical Equipments	109,860.08	780.40	76.99	122.07	241.14
Rattanindia Enterprises Ltd	Power Trading & Consultancy	10,102.57	72.50	23.71	113.09	851.73
Elecon Engineering Company Ltd	Heavy Electrical Equipments	15,164.95	637.85	42.65	113.00	73.36
Jupiter Wagons Ltd	Rail	20,853.47	491.80	62.90	106.33	91.93
HBL Power Systems Ltd	Batteries	17,267.86	604.20	61.48	104.12	80.09
Suzlon Energy Ltd	Renewable Energy Equipment & Services	101,888.94	73.64	154.30	100.90	302.29
Godawari Power and Ispat Ltd	Iron & Steel	13,837.75	191.05	14.79	97.05	286.51
Titagarh Rail Systems Ltd	Rail	15,085.48	1,111.10	52.72	93.18	67.01

Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.

Note: The data in the list of multibagger stocks is from 8th October 2024. This data is derived from Tickertape Stock Screener using the following parameters:

• Stock Universe: Nifty 500
• Close Price: Rs. 50 and above. 
• 5Y CAGR: 50% or more, sorted from highest to lowest. 
• Net Income: Positive

🚀 Pro Tip: You can use Tickertape’s Stocks Screener to research and evaluate stocks with over 200+ filters and parameters.

Overview of Top Multibagger Stocks in India

Here is the overview of the shares on our list of the best multibagger stocks for 2024 in India:

Lloyds Metals and Energy Ltd

Lloyds Metals and Energy Ltd, established in 1977, operates primarily in the iron and steel sector. The company focuses on mining, steel production, and energy generation. It plays a significant role in supplying steel products to various sectors like infrastructure and construction. As of the latest data, the company’s market capitalisation is Rs. 42,899.88 cr., with a close price of Rs. 928.30. The PE ratio stands at 34.52, with a strong 5-year CAGR of 149.40%. Its quarterly net income is Rs. 557.40 cr.

PTC Industries Ltd

PTC Industries Ltd, founded in 1963, is a specialised manufacturing company involved in producing advanced engineering components, primarily for sectors such as aerospace, defence, and power. The company operates in the iron and steel sub-sector. Its market capitalisation is Rs. 20,922.68 cr., and its stock closed at Rs. 13,491.50. PTC Industries has a high PE ratio of 495.56, and the 5-year CAGR is 142.34%. The company’s quarterly net income is Rs. 4.89 cr.

CG Power and Industrial Solutions Ltd

CG Power and Industrial Solutions Ltd, originally known as Crompton Greaves, was established in 1937. The company manufactures electrical equipment such as transformers and switchgear, serving sectors like power, mining, and oil and gas. It has a market capitalisation of Rs. 109,860.08 cr., with a close price of Rs. 780.40. The PE ratio is 76.99, and the 5-year CAGR is 122.07%. Its quarterly net income is Rs. 241.14 cr.

RattanIndia Enterprises Ltd

RattanIndia Enterprises Ltd operates in the power trading and consultancy sector and was established in 2010. The company provides power solutions and consultancy services to help industries optimise their energy usage and manage electricity trading. As of the latest data, its market capitalisation is Rs. 10,102.57 cr., with a close price of Rs. 72.50. The PE ratio is 23.71, and the 5-year CAGR is 113.09%. The company’s quarterly net income is Rs. 851.73 cr.

Elecon Engineering Company Ltd

Elecon Engineering Company Ltd, founded in 1951, is a leader in the design and manufacturing of heavy electrical equipment. The company produces gearboxes and material handling equipment for industries such as cement, mining, and steel. Elecon Engineering has a market capitalisation of Rs. 15,164.95 cr. and a close price of Rs. 637.85. Its PE ratio is 42.65, with a 5-year CAGR of 113.00%. The company’s quarterly net income is Rs. 73.36 cr.

Jupiter Wagons Ltd

Established in 1979, Jupiter Wagons Ltd specialises in manufacturing railway wagons and other equipment for rail freight operations. It is a key supplier to Indian Railways and several international markets. As of the latest data, the company’s market capitalisation is Rs. 20,853.47 cr., and its stock closed at Rs. 491.80. The PE ratio is 62.90, and the 5-year CAGR stands at 106.33%. The quarterly net income is Rs. 91.93 cr.

HBL Power Systems Ltd

HBL Power Systems Ltd, founded in 1977, is a company engaged in the manufacturing of specialised batteries used in defence, aviation, and industrial applications. It also works in electronics and renewable energy systems. As of the latest data, the company has a market capitalisation of Rs. 17,267.86 cr., and the close price is Rs. 604.20. The PE ratio is 61.48, with a 5-year CAGR of 104.12%. The company’s quarterly net income is Rs. 80.09 cr.

Suzlon Energy Ltd

Suzlon Energy Ltd, founded in 1995, is a leading player in the renewable energy sector, particularly in wind energy. The company manufactures wind turbines and provides project execution, maintenance, and development services for renewable energy projects. As of the latest data, the company’s market capitalisation is Rs. 101,888.94 cr., and the stock price is Rs. 73.64. Its PE ratio is 154.30, and the 5-year CAGR is 100.90%. The company’s quarterly net income is Rs. 302.29 cr.

Godawari Power and Ispat Ltd

Godawari Power and Ispat Ltd, established in 1999, is an integrated steel manufacturer that also engages in power generation. The company operates in the iron and steel sector and has significant mining operations to supply raw materials for its steel production. As of the latest data, the company’s market capitalisation is Rs. 13,837.75 cr., with a close price of Rs. 191.05. The PE ratio is 14.79, and the 5-year CAGR is 97.05%. Its quarterly net income is Rs. 286.51 cr.

Titagarh Rail Systems Ltd

Titagarh Rail Systems Ltd, established in 1997, is engaged in manufacturing railway coaches, wagons, and other railway equipment. The company serves both Indian Railways and international markets, offering advanced rail solutions. As of the latest data, its market capitalisation is Rs. 15,085.48 cr., with a close price of Rs. 1,111.10. The PE ratio is 52.72, and the 5-year CAGR stands at 93.18%. The company’s quarterly net income is Rs. 67.01 cr.

When analysing the top 10 multibagger stocks, it becomes clear that each company has unique strengths. Remember to conduct your own research on the best multibagger stocks to buy today before making any investment decisions.

Investing in Multibagger Stocks in India with smallcase

You can invest in multibagger stock portfolios via smallcase too! Go to the smallcase website or the app, go to the ‘Discover’ section and search for the ‘Multibagger’ keyword. You’ll get a plethora of small cases to choose from, and you can pick the one that fits your investment criteria.

Investing in Indian multibagger stocks using smallcase’s readymade portfolios is a convenient and hassle-free way to gain exposure to this sector. smallcases provide a diversified portfolio of stocks, reducing the risk of investing in a single stock, and are managed by professionals with expertise in this field. However, doing your own research and due diligence is important before investing in any smallcase or stock. Here are a few smallcases for investors interested in these stocks:
Multibagger Framework: This smallcase, managed by Tequity Investing, is a diversified portfolio of 35-40 micro-cap and small-cap stocks. This portfolio is inspired by Chris Mayer’s book ‘100 baggers’. It is a wonderful book which highlights the importance of holding on to your winning stocks. He aptly says ‘Every hundred bagger goes through a phase when it appears super expensive!’

Multibagger framework smallcase by Tequity Investing

Disclosure for the Multibagger Framework smallcase.

What are Multibagger Stocks?

The term “multibagger” was coined by well-known investor Peter Lynch in One Up on Wall Street to describe equity shares of a firm that may provide returns multiple times greater than their related cost of acquisition. Multibagger stocks yield returns significantly surpassing their acquisition cost. These shares indicate a company’s substantial growth potential, effective management, and advanced production techniques. Additionally, they showcase the company’s strong research and development capabilities, driving heightened market demand. Investors often look for multibagger shares in India or penny stocks with strong fundamentals to capture this growth. Yet, it’s crucial to note that these stocks can sometimes signal the emergence of an economic bubble in a country, potentially leading to adverse consequences in the long-term financial market.

How to Invest in Multibagger Stocks?

Now that you know the meaning of multibagger, here are some tips on how to invest in the best multibagger stocks for 2024 for your financial goals:

Identify growing industries and companies

Look for growing industries and companies with strong potential for future growth. Search for companies with a strong business model, solid financials, and a competent management team. You may also come across fundamentally strong penny stocks or strong penny stocks with the potential to grow into multibagger stocks for the next 5 years.

Research the company

Research the companies in the multibagger stocks list. Study their financial statements, read industry reports, and look at their historical best multibagger share prices to identify trends. If you’re wondering how to find multibagger stock, check out tools like the Tickertape Stock Screener to generate a stock screener using the 200+ filters available!

Look for undervalued multibagger stocks

Look for undervalued multibagger stocks for 2024 in India based on their fundamentals, such as price-to-earnings ratios, price-to-book ratios, and other financial metrics. This will help identify fundamentally good penny stocks and other multibagger stocks in India.

Monitor market trends

Keep an eye on market trends and news that can affect the stock prices of the companies you’re interested in. This will help you make informed decisions about when to buy or sell. Tracking top multibagger stocks in India and staying up to date on market movements is key to maximising your returns.

Diversify your portfolio

Investing in long-term multibagger stocks can be risky, so it’s important to diversify your portfolio. Don’t put all your eggs in one basket; instead, spreading your investments across multiple companies and industries, including multibagger stocks for 2024 or strong penny stocks, may be wiser.

Why Invest in Multibagger Stocks in India?

Investing in potential multibagger stocks for 2024 in India has the potential to significantly boost your wealth. These stocks have the potential to provide remarkable returns, like turning a Rs. 200 investment into Rs. 2,000, which is a tenfold increase. This is also known as a ten-bagger stock. Investing in multibagger shares in India or penny stocks with strong fundamentals early on can help capture such returns.

Holding onto these stocks for a specific duration is crucial to maximising capital gains. This ensures substantial profits by efficiently channelling funds gained from listing shares on the stock exchange. These funds are utilised for research, development, and production, ultimately leading to high profits through substantial sales volume. Following a list of multibagger stocks or identifying top multibagger stocks 2024 can greatly enhance long-term gains.

How to Find Multibagger Stocks For Investments in 2024?

Now that we know the multibagger stocks meaning, here are a few strategies to identify potential future multibagger stocks, consider these steps:

1. Understand industry trends: Investors can focus on sectors poised for growth, such as electric vehicle mobility when selecting multi bagger stocks in India.
2. Assess the company’s product portfolio: Look for companies with strong competitive advantages and evolving product lines.
3. Evaluate debt levels: Lower debt-to-equity ratios indicate financial stability. This is crucial for sustained growth.
4. Analyse earnings and valuation: Growing earnings per share (EPS) and undervalued stocks can signal future multibagger potential.
5. Investigate management and promoter holding: A competent management team and high promoter holding indicate confidence in the company’s prospects.

Features of Multibagger Stocks

Companies in the top multibagger shares list should possess the following characteristics to generate substantial returns:

Robust Fundamentals

The best multibagger stocks in India include companies with strong financials, including consistent revenue growth, expanding profit margins, and manageable debt. Sound financial health indicates the company’s resilience and ability to fund growth. This is key for identifying the next multibagger stock and knowing which stocks to invest in 2024 for long-term returns. Investing in penny stocks that eventually develop these characteristics can lead to substantial gains.

Market Dominance

Companies that lead their industry or niche often yield multibagger returns. Market leaders typically possess competitive advantages like brand recognition, economies of scale, or unique intellectual property. Identifying the next multibagger stocks in India requires a focus on companies with strong market dominance.

Innovative Disruption

Top multibagger stocks with innovative products, technologies, or disruptive business models can experience rapid growth. You can prioritise companies at the forefront of technological advancements. This innovation makes them prime candidates for becoming the next multibagger stock in the market.

Scalability

Investors can favour companies with scalable business models, enabling significant revenue growth without proportionate cost increases. Scalability is a defining trait of any multi bagger stock, helping them grow quickly and efficiently.

Expansive Market

The best multibagger stocks for 2024 include companies with access to large and expanding markets that have a higher potential for multibagger growth. Focus on industries or sectors with substantial and growing demand to find the highest return stocks last 2 years India. These markets offer opportunities for companies to become the next multibagger stocks.

Advanced Research and Development

Companies with robust R&D deliver quality products, leading to high sales and customer satisfaction. Significant R&D investment is crucial for companies to list their securities as multibagger stocks. Start-ups with unique products and no close substitutes can generate huge market demand and may issue multi bagger stocks to increase paid-up capital. Companies with monopoly or duopoly status can also issue multibagger shares, using aggressive pricing and entry barriers to boost revenue.

High Growth

Identifying these stocks involves examining the company’s performance. Top contenders show high profits, minimal debt, and strong financial management. These stocks have high earnings per share (EPS) and a low debt-to-equity ratio. Their price-to-earnings growth (PEG) ratio is also usually high, reflecting significant returns on investment, making them attractive multi bagger stocks.

Excellent Management

Companies that issue multibagger stocks have skilled and experienced managers who ensure efficient production and sales coordination. Strong management is critical in identifying multi bagger stocks or companies poised to deliver exceptional returns.

Risks Associated With Multibagger Stocks

Investing in even the top multibagger stocks in India carries a number of risks, including:

1. Volatility: Multibagger stocks can be highly volatile, meaning the multibagger share price can fluctuate widely over short periods. This volatility can be especially pronounced in the early stages of a company’s growth, when investors may be uncertain about its prospects.
2. Limited liquidity: Many of the top multibagger stocks are small-cap or mid-cap companies, which can make them less liquid than larger, more established companies. This means that it may be more difficult to buy or sell multibagger stock at the right price.
3. Risk of failure: Not all multibagger stocks that appear to have strong growth potential will succeed in the long term. Investing in future multibagger stocks carries the risk that the company may fail to live up to its potential, either due to competition, changing market conditions, or other factors.

Investors should always be mindful of their investment goals and risk appetite before purchasing any potential multibagger stocks; thorough research of the market conditions and stock performance often aids investors in gaining financial freedom.

Advantages of Investing in Multibagger Stocks

While investing in the best multibaggers In India can be risky, they also offer the potential for significant returns over the long term. In fact, many of the world’s most successful investors, such as Warren Buffett, Peter Lynch, and Charlie Munger, have made their fortunes by investing in the best multibagger stocks. Here are some reasons why you should consider investing in multibagger shares:

1. Higher returns: Multibagger shares have the potential to generate significantly higher returns than regular stocks. With the right investment strategy and a long-term perspective, you could potentially earn returns of 2x, 5x, or even 10x your initial investment.
2. Diversification: The best multibagger stocks in India can help you diversify your investment portfolio. Investing in a mix of the best multibagger stocks for long term across different industries and sectors can help spread out your risk and potentially increase your overall returns.
3. Long-term growth: Multibagger shares are typically associated with companies that have strong fundamentals, innovative products, and a proven track record of growth. By investing in these potential multibagger stocks, you’re essentially buying into the future potential of a company.
4. Compound returns: Over time, the returns from the best multibagger shares can compound significantly. The higher the multibagger share price, the higher the return. This compounding effect can help grow your investment portfolio exponentially.

What are Some Alternative Investments to Multibagger Stocks?

Risk-averse investors looking to venture into the stock market can consider alternate investment options to multibagger stocks, like:

• Debt Funds: Debt funds consist mainly of company-issued debt securities. They prioritise repayment upon revenue generation and thereby reduce associated risks. Those with a low risk tolerance may find SEBI-registered debt mutual funds attractive. They incorporate government securities and liquid money market instruments for maximum returns with minimal risks.
• Hybrid Funds: Hybrid funds are also called balanced advantage funds. They seek an optimal balance between risk and return by including both equity and debt securities in their portfolios. While equity shares offer significant returns, the volatility stemming from market influences is mitigated by debt-oriented securities.
• Large Cap Funds: Unlike multibagger shares, which pose higher investment risks, large-cap funds invest in the equity securities of companies with a market capitalisation exceeding Rs. 20,000 cr.

Factors to Consider Before Investing in Multibagger Stocks

Investing in these stocks in India, including penny stocks with strong fundamentals, involves carefully considering various factors to make informed decisions. Understanding the following key aspects is crucial before venturing into this high-reward, high-risk territory:

• Company Fundamentals: You can evaluate the company’s financial health, management expertise, and growth prospects. Robust fundamentals provide a solid foundation for potential multi bagger stocks to buy and their returns. 
• Industry Trends: It can be helpful to analyse the industry’s current and future trends. Investing in sectors with long-term growth potential enhances the chances of identifying multibagger opportunities.
• Market Conditions: Investors can consider the overall market conditions and economic landscape. Bullish markets often favour long term multi bagger stock in India with strong fundamentals, while bearish trends may pose challenges. When analysing the multibagger share price today, it’s important to consider the broader market trends and company fundamentals.
• Business Moat: Look for the top multibagger stocks in India with a competitive advantage or a strong economic moat. Sustainable competitive edges can contribute to prolonged growth.
• Risk Tolerance: Assess your risk tolerance carefully. Multibagger stocks can be volatile, and understanding your risk appetite is essential to weather market fluctuations, especially when considering shares termed as ‘multibaggers’ by experts

To Wrap It Up…

Now that you know the meaning of multibagger stocks, it’s important to stay focused on your long-term goals and avoid getting caught up in short-term market fluctuations. Multibagger stocks often have high growth potential, and it is important to be patient when making these investments.  Investors should consider all fundamentals and research thoroughly before investing in the best multibagger stocks for 2024.

Frequently Asked Questions About Multibagger Stocks