How to choose a multibagger stock – Today we will talk about how to find multibagger stocks in Hindi, how to identify a stock that gives good profits from the future. Due to which you will be able to earn good profits in the coming days.
Friends, if you want to earn big returns in the stock market in future, then it is very important for you to have a good multibagger stock. With which you will be able to earn good profit with less investment. Today we will talk about how to identify a Multibagger stock very easily. Let’s know-
How to choose a multibagger stock?
If you recognize any stock before it becomes a Multibagger stock, then you can earn big money in future. We will tell you 5 ways by which you choose Multibagger stock with a view to a better future.
Future Predictive Business:- Before choosing Multibagger stock, you should see the business model of that stock. What will the company do and whether its business is a future business or not. There are many such businesses which are doing well right now. But the future of that business is negligible. You are better to stay away from AC stock.
You should look at the AC stock whose business has just started and is going to see tremendous growth going forward. For example, business like Electric Vehicle, Solar Energy seems to be starting now. But as it will be seen being used a lot, the company related to it is also going to grow rapidly.
Also Check: Indus Towers Share Price Target 2024, 2025, 2028, and 2030
Pay attention to the signs of growth: – Whenever there is a downtrend in the market, then all the good and bad stocks come down. At that time it is difficult to decide which stock is the right time to buy. Because all the stocks look the same at that time. But as time passes, the difference starts to be seen in the stock.
You should take the stock at that time which is seen to be slowly going ahead of the rest of the company. When you start seeing that stock as different from the rest of the company, then you should buy that stock. You should not rush to buy, first of all, see what is going on in the stock. When you feel that the stock is showing signs of growth in a different way, it is the right time to buy that stock. If you would buy the stock at that time, you would have kept a multibagger stock in your portfolio for the future.
Continuous Growth in Revenue and Profit:- The most important thing for any company is continuous growth in Revenue and Profit. A company can give you multibagger returns only when that company is consistently earning a good amount of profit from its business. The market is going to give more value to the company’s price if it continues to earn good profits. That’s why you have to choose a company in which continuous growth in revenue and profit can be seen.
Company with Pe Ratio Expansion:- Before investing in any stock, you should not only focus on Earning Growth, along with that you should also pay attention to Pe expansion. At present, the market does not like any stock due to which the Pe Ratio is very low. But going forward, there should be something in that company which the market likes very much. Due to which the market will also give more value to that stock.
This is also necessary for choosing a multibagger stock because very few companies have the ability to keep increasing the earnings continuously. In such a situation, you will get tremendous returns by increasing Pe. When the company starts performing even a little bit better. The market will give value to that company by increasing pe. If you search for an AC company, then there is every possibility of becoming a Multibagger.
Debt should be less:- The biggest obstacle for any business to grow in the future is. Debts owed to the company. It also drowns the company and if it is used properly, it can also become a good Multibagger company. However, the company takes loans to grow its business. But it is very important to keep reducing it from time to time.
This should not happen at all, the company kept raising money by pledging its promoter holding. Markets never give good value to AC stocks. If you want to choose Multibagger stock, then you should choose the company with the least debt.
Also Check: Future Rising Stocks 2024 | Which Company’s shares to buy in 2024
How much money should be invested in Multibagger stock?
All the stocks you have searched for for the future. In this, more than 5 percent of your total invested amount should not be invested in a single share at all. No matter how good a stock you like, it is right to invest with discipline. Whenever that company presents good results, they gradually increase their investment amount every fall.
If you select good stocks by following these steps, then you are going to earn good profits in the coming days. But for this you have to give time and work hard. Without hard work you can not earn good money from share market. Maybe you can earn some money in less time. But to make good earnings for a long time, you must see this feature in every stock.
