Mumbai Stock Exchange：Top Multibagger Stocks to Invest in NSE India for 2024

Investing in the stock market can be a complex and rewarding endeavour, especially when you come across multibagger stocks. You might wonder, “What are the best multibagger stocks in India?” Multibagger stocks are those that provide returns several times their initial investment over a specific period. They can be a boon for investors looking to significantly grow their wealth.

However, identifying such high-potential stocks requires a deep understanding of company fundamentals, industry trends, and management quality. This article explores some of the best multibagger stocks in India for 2024, providing insights on how to identify potential multibaggers, explore the multibagger meaning, and the key features and associated risks of investing in multibaggers.

Multibagger stocks are equity shares of a company that have generated returns several times higher than their cost of acquisition. In simple terms, if a stock doubles in price, it is called a two-bagger. Similarly, a stock that rises multiple times its initial investment value is termed a multibagger stock.

Note: To find out the best multibagger stocks of 2024, we used the Tickertape Stock Screener with the following filters.

Stock Universe: Nifty500The closing price of stocks is Rs. 50 and above5Y CAGR of 50% and morePositive net income to ensure the companies are profitable

Note that the data on this multibagger stock list is as of 4th October 2024, and we have only used a few metrics to screen multibagger stock; you can use others based on your preference. For instance, if you want to look for multibagger penny stocks below Rs. 1, you can set the close price to less than Rs. 1.

Note that these stocks are in no order of preference. Please note that these stock selection criteria and the stocks are provided for informational purposes only; it is essential to conduct your own research.

🚀 Pro Tip: Explore Tickertape’s Financial Statements for detailed company financial reports to make informed investment decisions.

Did you know that you can invest in readymade stock portfolios managed by SEBI-registered experts?

But first, what is a smallcase?Mumbai Stock Exchange

smallcases are modern investment products that help investors build low-cost, long-term & diversified portfolios with ease. A smallcase is a basket or portfolio of stocks/ETFs representing an idea – an objective, theme, or strategy. They are created and managed by SEBI-registered experts.

With over 500 smallcases to choose from, here are some of the most popular smallcases you can check out:

Note: The smallcases are mentioned only for educational purposes and are not meant to be recommendatory. Investors must conduct their own research and consult a financial expert before making any investment decisions.

Disclosures for aforementioned smallcases

Adani Enterprises Limited (AEL), the flagship company of the Adani Group, incorporated on 2 March 1993, has created several unicorns, including Adani Power, Adani Transmission, Adani Ports & SEZ, Adani Total Gas, and Adani Green Energy. The company actively contributes to shaping a better future for India by investing in diverse industries and sectors such as green hydrogen, copper, PVC, roads, airport management, solar manufacturing etc.

As of 4th October 2024, the company has a market capitalisation of Rs. 354,614.45 cr. and a stock price of Rs. 3,110.65. It boasts a PE ratio of 109.46 and a 5-year Compound Annual Growth Rate (CAGR) of 85.93%. The net income stands at Rs. 3,239.55 cr. Learn more about it here.

Tata Motors Limited, originally established as Tata Locomotive and Engineering Company Limited in 1945, rebranded to its current name in 2003. As a global automaker, Tata Motors manufactures a wide range of passenger, commercial, and electric vehicles. It leads India’s transition to electric vehicles while maintaining a strong position in the evolving Indian automotive sector.

As of 4th October 2024, the company has a market capitalisation of Rs. 342,598.29 cr. and a stock price of Rs. 930.75. It boasts a PE ratio of 10.91 and a 5-year CAGR of 50.72%. The net income stands at Rs. 31,399.09 cr. Learn more about it here.

Adani Green Energy Ltd, part of the Adani Group, operates in the Renewable Energy sub-sector. Launched to spearhead the group’s renewable energy initiatives, the company focuses on developing and operating solar and wind energy projects across India.

The company has a market capitalisation of Rs. 285,315.93 cr. and a stock price of Rs. 1,801.20. It has a PE ratio of 259.38 and a 5-year CAGR of 94.24%. With a net income of Rs. 1,100.00 cr., Adani Green Energy continues to play a crucial role in India’s transition to sustainable energy. Learn more about it here.

Hindustan Aeronautics Limited (HAL) manufactures helicopters and aircraft and handles their repair and maintenance. Shri Walchand Hirachand founded the company in Bangalore on 23rd December 1940. In January 1951, the Ministry of Defence assumed administrative control.

The company has a market capitalisation of Rs. 284,674.11 cr. and a stock price of Rs. 4,256.65. It has a PE ratio of 37.35 and a 5-year CAGR of 65.02%. Furthermore, the company also has a net income of Rs. 7,621.05 cr. Learn more about it here.

Trent Ltd. is a leading retail company in India and operates popular brands such as Westside, Landmark, Zudio, and Utsa. The company offers various products, including apparel, footwear, accessories, toys, and games. Founded as Lakme Ltd. in 1952, Trent shifted its focus to retail after selling off its cosmetics division.

As of 4th October 2024, the company has a market capitalisation of Rs. 261,400.59 cr. and a stock price of Rs. 7,353.30. It boasts a PE ratio of 175.81 and a 5-year CAGR of 71.89%. The net income stands at Rs. 1,486.80 cr. Learn more about it here.

Adani Power Limited (APL), a subsidiary of the Adani Group, generates and sells power from its plants across Gujarat, Maharashtra, Rajasthan, Karnataka, Chhattisgarh, and Madhya Pradesh. By the end of March 2023, APL’s total capacity reached 15,250 MW, comprising 40 MW of solar and 15,210 MW of thermal power, making it India’s largest private thermal power producer.

As of 4th October 2024, the company has a market capitalisation of Rs. 247,654.05 cr. and a stock price of Rs. 642.10. It boasts a PE ratio of 11.89 and a 5-year CAGR of 60.60%. The net income stands at a whopping Rs. 20,828.79 cr. Learn more about it here.

Bharat Electronics Limited (BEL), founded in 1954 under the Ministry of Defence, caters to the specialised electronic needs of India’s defence sector. The company went public in 1993 with a successful listing on the BSE. In recent years, BEL has diversified its operations to manufacture a range of civilian products.

As of 4th October 2024, the company has a market capitalisation of Rs. 202,627.07 cr. and a stock price of Rs. 277.20. It boasts a PE ratio of 50.85 and a 5-year CAGR of 51.27%. The net income stands at a whopping Rs. 3,984.52 cr. Learn more about it here.

Varun Beverages Ltd, part of the RJ Corp group, a diversified conglomerate with interests in beverages, quick-service restaurants, dairy, and healthcare, ranks among the largest franchisees of carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs) globally, outside the US, under PepsiCo trademarks. The company manufactures and distributes various CSDs and NCBs, including packaged drinking water.

As of 4th October 2024, the company has a market capitalisation of Rs. 188,065.93 cr. and a stock price of Rs. 578.90. It boasts a PE ratio of 91.48 and a 5-year CAGR of 60.17%. The net income stands at Rs. 2,055.91 cr. Learn more about it here.

Tata Power, established on 18th September 1919, is India’s largest Integrated Power Company. Originally called Tata Electric, it operates across the full spectrum of the power value chain, including conventional and renewable energy, power services, EV charging stations, and solar rooftops. In 1915, the company built India’s first hydroelectric power stations.

As of 4th October 2024, the company has a market capitalisation of Rs. 149,110.52 crKolkata Wealth Management. and a multibagger share price of Rs. 466.65. It boasts a PE ratio of 40.34 and a 5-year CAGR of 51.74%. The net income stands at a whopping RsSimla Stock. 3,696.25 cr. Learn more about it here.

JSW Energy Ltd, part of the Jindal South West group, became Karnataka’s first Independent Power Producer. The company currently operates a 560 MW generating capacity and is building an additional 3,090 MW. They also engage in power trading. JSW Energy began commercial operations of the second unit of its 2×130 MW power plant at Toranagullu on 18th January 2000, followed by the first unit on 5th August 2000.

As of 4th October 2024, the company has a market capitalisation of Rs. 122,022.91 cr. and a stock price of Rs. 699.50. It boasts a PE ratio of 70.83 and a 5-year CAGR of 64.06%. The net income stands at a whopping Rs. 1,722.71 cr. Learn more about it here.

The term “multibagger” was introduced by Peter Lynch in his book “One Up On Wall Street.” These stocks are typically associated with high growth potential and significant returns. Understanding the meaning of multibagger is crucial for identifying such investment opportunities.

Wealth creation with multibagger stocks usually occurs over a long period through gradual compounding. These stocks which can be multibaggers are generally small-cap or mid-cap, with significantly high growth potential. They tend to operate in sectors with considerable growth opportunities and often have strong business models, competitive advantages, and capable management teams.

In essence, identifying multibagger stocks involves recognizing companies with the potential for substantial growth, driven by factors such as innovation, market expansion, and strategic management.

When considering investing in multibagger stocks, it is crucial to evaluate several factors carefully:

You can assess the company’s financial health, including revenue growth, profit margins, and debt levels. Strong fundamentals may indicate the company’s potential to grow significantly. Look for companies with consistent revenue growth, healthy profit margins, and manageable debt levels. For example, Varun Beverages has shown impressive growth with strategic investments and expansion, making it a potential multibagger.

Understanding industry trends can help you identify sectors poised for growth, which might present opportunities for the next multibagger stocks. For instance, the technology and electric vehicle sectors have been burgeoning with opportunities. Keeping an eye on emerging sectors can help you spot potential multibaggers.

The experience and track record of a company’s management team can play a crucial role in its success. Competent management may drive the company towards achieving exponential growth. Look for management teams with a history of successful execution and strategic vision. Companies like Jindal Stainless Steel have shown strong leadership, contributing to their exceptional growth.

Companies that are innovative and have plans for expansion can often become multibaggers. Look for businesses investing in research and development or expanding into new markets. Innovation in products, services, and business models can be a key driver of growth. Dynatrace, for example, stands out for its innovative software solutions and global operational coverage.

Market sentiment and economic conditions also impact the performance of stocks, including multibagger intraday stocks. You might want to consider the overall market environment before investing in multibagger stocks. During bullish markets, growth stocks tend to perform well, while bearish markets may pose challenges.

Investing in multibagger stocks involves higher risk compared to blue-chip stocks. It is important to conduct thorough research and risk assessment before investing. Diversifying your investments across different sectors and stocks can help mitigate some of this risk. Always assess the potential downside along with the upside.

If we go by the meaning of the word ‘multibagger,’ it refers to a stock that generates over 100% return (or multiple bags). There are small-cap stocks that generate returns several times higher than the cost of acquisition in real life. We all wish that we had the power to tell the happenings of the future. It would allow us to gauge our chosen stock’s performance and verify whether it is a multibagger. Unfortunately, such things are only limited to reel life.

In real life, it is imperative to understand that such stupendous returns don’t happen overnight. The transition from a small-cap to a mid-cap and finally becoming a large-cap share would demand your patience and perseverance. You also need an eye to unearth potential.

Here are some aspects that would help you identify potential multibagger stocks, including the best multi bagger stocks in NSE:

The first and foremost thing that you need to understand is not regarding the stock but the industry to which it pertains. Understand the upcoming trends and which sectors are poised to benefit the most from them. For example, there is an increasing drive to go electric in the vehicles sector. So electric mobility will seemingly gain traction (not that we are recommending it to you!). Make sure the company you are betting on belongs to one of these industries.

The next step is to look at a company’s shares and delve deeper into its product portfolio. The motive is to understand their core competencies and if they have the potential competitive edge over others. To figure out the right companies, look for the latest developments in the sectors you are interested in and then look for the right companies that seem to be the biggest contenders for growth and expansion.

The debt ratio signifies the debt portion of the total capital that an organisation utilises for its operation. Typically, a ratio of 0.5 or lower represents lower debt in the company’s capital structure. The higher the debt, the more likely the company’s cash flow will be unstable. A positive and free-flowing cash flow shows growth potential.

The next step is to dive deeper into its recent financials and figure out its earnings growth. A growing EPS is an excellent indicator of an increase in wealth. After that, figure out the stocks that are undervalued. If the company’s shares are underpriced, there is a high chance of becoming a multibagger stock.

Looking into past financial statements is an indicator of present performance, but it won’t necessarily reflect the future. It is not an IPL auction, and you need not place your bets based on past performance alone.

To find out true potential, look into the organisation’s management and promoter holding. A strong management team is more likely to drive growth and bring about success. Also, look for companies with high promoter holding, as it is an indicator of confidence in whatever they are trying to create. Tickertape’s promoter holding filter allows you to check the percentage of the company’s common stock held by promoters.

Investing in multibagger stocks can be highly rewarding. Here are some advantages you might consider:

Multibagger stocks may offer substantial returns, multiplying the initial investment manifold over time. This can be particularly advantageous for long-term investors who have the patience to hold onto their investments as they grow.

These multibagger stocks India can significantly contribute to long-term wealth creation, helping you achieve your financial goals. By identifying and investing in upcoming multibagger stocks, you can potentially build a substantial portfolio over time.

Often, multibagger stocks outperform broader market indices, providing better returns than average market growth. This outperformance can enhance the overall performance of your investment portfolio.

Investing in companies with high growth potential in emerging sectors or innovative industries can be a lucrative opportunity. These companies often lead the way in new technologies and market trends, offering substantial upside potential.

Investing in multibagger stocks for future can be enticing due to their potential for high returns. However, it is essential to be aware of the risks involved. Here are some potential risks you might consider:

Investing in multibagger stocks often requires substantial capital, which can expose you to significant risk if the stock’s value collapses. The notion of “the higher the risk, the greater the reward” often applies to penny stocks, but this can become detrimental if the stock starts to decline.

Many investors may fall into value traps or economic bubbles driven by temporary high demand for a product or service. This demand can be artificially inflated by bulk investors creating a false bull market, only to short-sell and trigger a collapse.

Multibagger stocks typically take a long time, often over two decades, to mature and deliver significant returns. This long-term horizon means your capital may be tied up for years, making it crucial to resist the urge to sell prematurely.

You might encounter trick trades, where artificial inflation is caused by others investing heavily to manipulate the stock price of even the top multibagger shares. Many multibagger stocks are small-cap stocks that can be multibaggers with low market capitalisation, making them vulnerable to manipulation.

Multibagger stocks often suffer from low liquidity and performance issues in their early stages. This low liquidity means that any rumours or negative news can trigger a price collapse of even the best multibagger stock for long term. Recovery from such collapses can take months, adding to the risk.

Understanding these risks can help you make more informed decisions when considering investing in multibagger stocks. It is essential to perform thorough research and due diligence to mitigate these risks effectively.

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