Note : All the information here u will get is not mine , I Search on google and whatever I found suitable for knowledge ,I copy and past here .This is for my reference purpose only .
Very important note: The objective of this blog is to share knowledge and info about multibagger ideas/opportunities. Neither is this trading website nor an analyst website nor a Buy/Sell call website. For stock market success, always do your home work, own assessment and make your own decisions.
Disclaimer :: Please do not invest after view my selected share , as I am just learner of share market ,I personally do not hold any share , I personally invest in Mutual fund under Direct plan . I Think this stock has potential to become 1 or 2 bagger .
'Multibagger'
Definition: Stocks that give returns that are several times
their costs are called multibaggers. These are essentially stocks that are
undervalued and have strong fundamentals, thus presenting themselves as great
investment options. Multibagger stock companies are strong on corporate
governance and have businesses that are scalable within a short span of time.
Description: A stock that doubles its price is called
two-bagger while if the price grows 10-times, it would be called a 10-bagger.
Thus, multibaggers are stocks whose prices have risen multiple times their
initial investment values.
How to identify multibagger stocks?
1. Debt level of the company should be within reasonable
limits: There are no defined levels per se for debt, as it will vary from
industry to industry. However, as a ballpark measure, debt should not be more
than 30 per cent of the equity value.
2. Check on previous quarter performance: Keep a check on
the company's revenue multiples on a quarter-on-quarter basis. If the multiples
are low but the company is performing at the operational level, then that can
be a hint that the company has significant upside potential.
3. Sources of earnings: Along with the revenue numbers,
check the sources from which the company is making money. Is the primary
revenue segment set to grow at the macro level? Are the operations of the
company easily scalable? If yes, then the stock may have the potential to be a
multibagger.
4. Earnings and price multiples: Calculate the trailing
12-month EPS and revenue to arrive at the current PE and price /sales ratios.
If the PE level is growing faster than the stock price, then its chances of
being a multibagger are bright.
5. Check out business model/capex/ structural/management
changes: Be on the lookout for any major changes in the quarterly
results/annual reports that could have significant impact on the company's
operations
Note : All the information here u will get is not mine , I Search on google and whatever I found suitable for knowledge ,I copy and past here .This is for my reference purpose only .
Very important note: The objective of this blog is to share knowledge and info about multibagger ideas/opportunities. Neither is this trading website nor an analyst website nor a Buy/Sell call website. For stock market success, always do your home work, own assessment and make your own decisions.
Disclaimer :: Please do not invest after view my selected share , as I am just learner of share market ,I personally do not hold any share , I personally invest in Mutual fund under Direct plan . I Think this stock has potential to become 1 or 2 bagger .
'Multibagger'
Definition: Stocks that give returns that are several times
their costs are called multibaggers. These are essentially stocks that are
undervalued and have strong fundamentals, thus presenting themselves as great
investment options. Multibagger stock companies are strong on corporate
governance and have businesses that are scalable within a short span of time.
Description: A stock that doubles its price is called
two-bagger while if the price grows 10-times, it would be called a 10-bagger.
Thus, multibaggers are stocks whose prices have risen multiple times their
initial investment values.
How to identify multibagger stocks?
1. Debt level of the company should be within reasonable
limits: There are no defined levels per se for debt, as it will vary from
industry to industry. However, as a ballpark measure, debt should not be more
than 30 per cent of the equity value.
2. Check on previous quarter performance: Keep a check on
the company's revenue multiples on a quarter-on-quarter basis. If the multiples
are low but the company is performing at the operational level, then that can
be a hint that the company has significant upside potential.
3. Sources of earnings: Along with the revenue numbers,
check the sources from which the company is making money. Is the primary
revenue segment set to grow at the macro level? Are the operations of the
company easily scalable? If yes, then the stock may have the potential to be a
multibagger.
4. Earnings and price multiples: Calculate the trailing
12-month EPS and revenue to arrive at the current PE and price /sales ratios.
If the PE level is growing faster than the stock price, then its chances of
being a multibagger are bright.
5. Check out business model/capex/ structural/management
changes: Be on the lookout for any major changes in the quarterly
results/annual reports that could have significant impact on the company's
operations
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