“Make Rs 1 Crore with just Rs 10,000”. Crazy, isn’t it? All of us have come across such clickbaity pieces on the internet and are probably guilty of clicking on them.

More often than not, these turn out to be “get rich quick” Ponzi schemes that all of us have been warned about by our “once bitten, twice shy” friends.

But what if I tell you there are legitimate ways of achieving this? You can amass wealth via stock market investing with the help of what we call “Multi-Bagger Stocks”.

In this blog, you will find out how to find Multi-Bagger Stocks. Let’s delve deeper.

Understanding Multi-Bagger Stock

For the uninitiated, Multi-Bagger stocks mean the stocks that provide returns that are several times the amount invested in them. For example, if you purchase a stock at a market price of Rs.50. And if it climbs to Rs.700 in a relatively short time, then it is called a multi-bagger stock.

These businesses tend to have unique characteristics such as strong financial performance, reliable and capable management, efficient capital allocation strategy, and robust free cash flows.

A few examples of multi-bagger stocks include companies like Eicher Motors, MRF Ltd, Asian Paints, Pidilite Industries, and Bajaj Finance, which have achieved phenomenal growth over the years. All these stocks have given significant returns over the years and hence make it to the list of Multi-Bagger stocks. Had you invested Rs 10,000 in these stocks in 2010, you would have made lakhs today.

An important thing to observe here is that these names were not created overnight. It took these businesses decades to establish themselves as respected names and pioneers in their respective fields.

Even when these businesses were not big names, they showed immense promise and growth potential. Investors who were able to spot them and decided to remain invested reaped the rewards.

So, what makes a stock provide such high returns, and how do you find Multi-Bagger stocks? While there is no guarantee of assured returns once you enter the stock market, there are vital signs that can help you identify a Multi-Bagger.

If you’re wondering about How to find Multibagger Stocks in India, then here are some useful hacks that can help you identify Multi-Bagger stocks.