Finding multibagger stocks in India depends on your research skills. You need to find the stocks that are fundamentally good but are priced very cheap because of some negative news or because of the perception that the company has high debt. You need to find out if the company has products which are, or will be, in high demand. Also, you will need to do some research on the key persons managing the operations. Do a check on their background and find out if they have a history of performing well.
Investing in penny stocks in India
What is a Penny stock in India? The name Penny Stocks in India comes from the American stock market. A Penny in a Dollar is like a paisa in a Rupee. 100 penny makes a Dollar, and 100 paisa makes a Rupee. In the old days, most American stocks had a face value of one dollar. Shares of companies that were not doing good used to trade for under a Dollar – for Pennies. Thus Shares which trade below their face value were called Penny Stocks and the name ‘Penny Stock’ became associated with cheap stocks.
I recommend that everyone should invest a portion of their investment money in at least two shares with the aim hitting a multibagger share. You should not invest more than 5 to 10% of your money kept aside for investment. This is a gamble for multibaggers.
Some penny stocks can give very high returns. Most investor Gurus will tell you to stay away from penny stocks. But if you do your research well, you may be able to pick some Multibaggers from penny stocks. If say you choose a penny stock at Rs.2- and it becomes Rs.4, then it is a multi-bagger. Your investment has multiplied by two times. There will always be some stocks in India which are driven down by negative news, even though the fundamentals of the company are good. If you can grab such shares at their lowest price during the fall, and hold onto it for some time, then you could have a multi-bagger in your hand.
My picks of Multibagger Shares in India
I thought I will share with you my experience in trying to hit multibaggers. Below are some of the cheap stocks I bought and still holding, in the hope that it will become multi-baggers. Out of the five shares I invested in the hope of getting multibagger shares, three have gained. One share, V2 Retail has multiplied by almost 25 times. These are the shares I have gambled in:
3i Infotech: I bought this share at about Rs.2.50, now it is about Rs.4-. My reason for buying this share is because I felt that it has some good products like an ERP software called ‘Orion’, Insurance Management software ‘Premia’, Banking solution software called ‘Kastle’ and some other software solutions. I feel that in a few years that this company should do good. The early promoters of this company were ICICI Bank and some other leading Banks and financial institutions, but they sold most of their shares. 3i have some heavy debts, but with the price where it is, I think it is still a bargain and in due course, the price should start going up. The problem is that I bought this share may be, four years back and it is still struggling, but I plan to hold onto it.
Lycos Internet: During the 1990s Lycos was a famous name and was the leading search Engine like what Google is today. But they went broke and finally the Indian company Ybrant Digital bought Lycos. There is still a court case regarding the acquisition of Lycos, and so the share value of Lycos Internet is depressed now. I bought it at about Rs.8- almost two years ago, now it is about Rs.6-. I have a feeling this share will go up in value in a few years.
Morepen Labs: I do not remember the exact date I bought this share, but it was more than four years ago at a price of under Rs.6-. Now it is trading at about Rs.18-. Already a multi-bagger at three times, but I plan to hold on to it hoping it will go much higher. The reason for my buying this stock is that I was impressed by their product lines. They have USFDA approved manufacturing facilities for some important bulk drugs, and they have a retail line ‘Dr Morepen’ for home self-care medical instruments like BP machines. They also own ‘Burnol’ a famous medicine for burns.
Opto Circuits: I bought this share at a price of Rs. 12- about three years ago. Now it is down at about Rs.8-, but I am betting that it will go up soon. Opto Circuits is an Indian Company with operations all over the world. Their product line includes internationally approved small medical devices and implants like Stents.
V2 Retail: V2 retail shares were purchased by me around three years ago at a price of about Rs.15-. Now it is over Rs.400. I bought this share because the founder of this company, Mr RC Agarwal had earlier built up a very successful retail business Vishal Retail, whose value went up to nearly Rs.1000. But that venture failed due to his bad luck – the 2008 financial meltdown. He sold Vishal Retail and after some time started V2 Retail. When he came back again with this new company, V2 Retail, I had great expectations that he will do well, because he knows how to build up a business. So I bought V2 Retail shares at intervals and my average buy cost price is now under Rs.40-. The first purchases were made at about Rs. 15-. I have been fortunate with this share. I am still holding on to it because I think it will keep going up. V2 retail has a chain of department stores, and they are expanding rapidly.
All pages in our website www.WhyShares.com
Below are links to all the pages on this Site and we hope you will make full use of all the great information on how to invest in Shares in India. So please Enjoy our website WhyShares.com
- Home Page of WhyShares.com
- Share Market Basics
- Why invest in Shares in India
- Invest in Shares, Property or Gold in India
- Best Gold Schemes in India to invest in
- Good Shares to buy in India
- India BSE or NSE Stock Exchange Better
- How to find Multibagger Shares in India
- How to do Share Trading in India
- Best way to invest gold in India
- Indian Mutual Funds explained
- SIP Investments in Mutual Funds in India
- News about India affecting Share value
Please share your predictions of multibagger shares in India
Please be kind enough to share your views about investing and in shares in the hope that it will be multibaggers. Is it a wise strategy? Your opinion please.
Also in your opinion, which are the future multibagger stocks in India? Let us all benefit from your choice. Thanks