Best Multibagger Stocks to Buy in India – List of Top 10 Multibagger Shares of 2022

Most people investing in the stock market expect exorbitant returns; however, returns depend on the stocks you are adding to your portfolio.

If you add the top multibagger stocks in India, you can earn huge returns. In this article, we will discuss the best multibagger stocks to buy in 2022.

Here, you will find the list of these stocks and why you should add them to your portfolio, risks, how to invest in multibagger stocks, and other details.

You can also learn about the factors you need to check while picking multibagger stocks.

Know about Multibagger Stocks in India

For picking the top multibagger companies in India, you first need to understand how these stocks work. Multi-bagger stocks to buy are those stocks which have enormous potential to provide exponential returns in the future.

For instance, if you invest a certain amount in these stocks, the return you can expect is several times the money you invested.

So, these stocks are the ones that are undervalued. This means the market price of these stocks is way below the intrinsic value of the stocks.

The companies have solid fundamentals and excellent corporate governance, and thus you can expect the value of the stocks to rise in multiple folds.

These are businesses that have the potential to scale up hugely within a shorter duration.

List of Top 10 Multibagger Sector Stocks to Buy Today

Check out the Multibagger Share Price & Ranking of Best Multibagger Shares to buy Today or Tomorrow or for Long Term –

We have shortlisted the ten best multibagger shares in India to help you choose the ones that suit your portfolio.

Apart from these multibagger shares to buy, you can also check the honorable mentions that we have after the first ten stocks.

As per our findings, the top three multibagger stocks are National Standard, followed by Gujarat Fluorochemicals, and then K.P.I.T. Technologies.

Then there are Angel One, K.P.R Mill, and others which we will discuss later in the article. We have chosen these stocks based on price change in 1 year.

As you can see in the table above, the maximum change in the price has been noticed for National Standard, which is around 1234.62%.

We have also picked the stocks whose current market prices (C.M.P.) are higher than Rs. 500 and the market capitalization is above Rs. 10000 crores. Now let us see each of the top multibagger stocks in detail.

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National Standard – Best Multibagger Stocks in India

National Standard is our first pick for the best multibagger stocks in India.

If you are looking for a multibagger share to buy, you can consider it as it has provided a whopping return to the investors in the last year, more than a 1000% change in its share price.

The company deals in manufacturing bead-wire for tyres and produces other specialized wires.

National Standard is a subsidiary of Anantnath Constructions and Farms Private Limited and is one of the biggest exporters of tyre molds and tyre bead-wire.

National Standard has developed hi-tensile tyre bead-wire, especially for the foreign markets. In these bronze plates, the tin content remains high.

Why should you buy National Standard stocks?

If you are wondering whether National Standard stocks can be a good fit for your portfolio and can earn you exorbitant returns or not, then here are specific facts about the company and the stock’s performance.

• National Standard Ltd. has shown a high TTM EPS growth in the past few years. This directly depicts that the investors’ returns increase along with their earnings. Along with TTM EPS, the annual EPS growth is also quite strong.
• In the past two years, the RoCE of the company has been improving, which suggests the effective use of capital to generate a net profit.
• Similarly, the R.O.E. is improving, which means effective utilization of shareholder’s funds.
• There is a Zero Promoter pledge in the company.
• No debt
• The annual net profits have been increasing for the last two years, which is a good sign of growth.
• In just one year, National Standard Ltd.’s stocks have increased 1234.62% in price.

Check out Best Stocks to Buy from Other Sectors & Industries

Gujarat Fluorochemicals Ltd. – Best Multibagger Shares to Buy

Gujarat Fluorochemicals Ltd is our second pick for the best multibagger shares to buy in 2022. This multibagger stock in India increased around 415.19% in price within a year.

Gujarat Fluorochemicals Ltd. is a chemicals company of Indian origin with more than thirty years of experience in the market of fluorine chemistry.

It produces various products like refrigerants, fluoropolymers, chemicals, and others.

Why should you invest in Gujarat Fluorochemicals Ltd.?

Let’s take a look at the company’s fundamental analysis to find out whether this stock is a good buy or not.

• The company has achieved excellent results in the quarterly reports in recent times.
• There is a low debt percentage in the company’s financial structure, which is a plus for the shareholders.
• One of the positive signs that the company has excellent potential to grow is the increased shareholding of F.I.I. and F.P.I.s.
• For the past four quarters, there has been continuous revenue growth.
• If you check the YoY results, you will find that the company has significantly grown its operating profit.
• The share prices are surging, and it is close to 52 weeks high.
• It has returned around 415.09% in the past year.

K.P.I.T. Technologies – Top Multibagger Stocks to Buy

K.P.I.T. Technologies is our third pick for the top multibagger stocks to buy this year. This company is involved in the software business, where it supplies software to different automotive companies across the world.

It has clientele in Europe, China, the U.S.A, Japan, India, and others. It was founded in 1991 and had headquarters in the city of Pune.

This company’s share price has grown by 342.41% in the last 12 months, and in the past six months, out of 12, the price grew 75.63%.

Why should you invest in K.P.I.T. Technologies?

The reasons for tracking this multibagger share price and including it in your portfolio of yours can be the following –

• The first positive aspect of the company is that its net profit is growing and its profit margin. This signifies the company is in its growth stage and can provide higher returns in the time to come.
• The company has kept its debt lower, which is an advantage for the shareholders.
• The Piotroski score is high, along with the high return on equity.
• The EPS has been growing significantly in recent times.
• The cash flow statement from the operation is one of the significant factors determining a company’s growth. This company has been growing significantly from the core business operations for the last two years.
• The F.I.I. and F.P.I. investment has been increasing over time, which signifies the potential for tremendous growth.

Angel One – Top Multibagger Companies in India

Angel One is a renowned name in the stock market. However, the company itself is one of the top multibagger companies in India.

This brokerage house has showcased an increase in its share price of around 299.17% in the past year. It provides brokerage solutions, shares trading facilities, financial products, investment instruments, and solutions.

It was formerly known as Angel Broking which was established in 1996. As per 2020’s data, the company’s asset under management was Rs. 13,254 crores.

Why should you invest in Angel One?

The factors which suggest that Angel One can be one of the highly profiteering multibagger share prices to track and buy are as follows –

• The EPS of the company has been growing strongly over recent times. This signifies the massive potential for earning great returns by the shareholders.
• The recent quarterly results are also showcasing growth in different aspects.
• The return on assets (ROA) has improved for the last two years. This shows the company has been managing its assets well.
• The net profit of the company has been increasing. However, that is not all; the profit margin has also improved, which signifies the huge growth potential.
• The F.I.I.s and F.P.I.s are taking interest and increasing their shareholding, suggesting the company’s potential.
• The revenue of the brokerage house has been improving along with the profits and is good for investment.
• The company has a Zero promoter pledge which is another excellent benefit for the shareholders.

K.P.R. Mill – Best Multibagger Stock

In our list of top multibagger stocks in India, we have ranked K.P.R. Mill as the 5th best multibagger stock.

This mill is a garment exporter and also runs a clothing brand. It is involved in the production and marketing of knitted garments, cotton yarn, fabrics, and other similar products.

Why should you invest in K.P.R. Mill stocks?

Following this multi-bagger share price can be its exceptional growth which is 267.89% in a year.

Apart from these let’s see the fundamentals which can give you insight into the performance of the company:

• The financials of the company have been really strong over the years. It is suggested by the high Piotroski score of the firm.
• The company’s increasing revenue in every quarter has been an indication of the company’s potential growth. The revenue has been increasing for the last two years in every quarterly result.
• The profits are surging for the past two years, and the book value per share is also improving.
• I.I. and F.P.I. investments are increasing. Their shareholdings in the company have been increasing, which is another excellent measure of potential growth.
• The company maintains a low debt profile which is another benefit for the shareholders in the Indian share market.

Adani Total Gas – Top 10 Multibagger Stocks

Our sixth pick for the top 10 Multibagger Stocks is Adani Total Gas. This company is engaged in the production of city gas distribution (CGD) networks.

The primary purpose is to supply piped natural gas for domestic, industrial, and commercial uses. It also supplies C.N.G. for the transport companies.

It has distribution channels in Gujrat’s Ahmedabad and Vadodara cities. Also, they have their network in Faridabad in Haryana and Khurja in U.P.

Why should you invest in Adani Total Gas stocks?

Adani Total Gas is a high dividend multibagger stock in India whose price has increased by 223.93% in just one year.

Let us see the other fundamentals of the company to evaluate it in a better way:

• Firstly, as you can check, the company has been getting a lot of attention from the F.I.I.s and F.P.I.s. They have been increasing their shareholding in this company which suggests the company’s potential.
• The revenue of Adani Total Gas has been increasing over two consecutive years, suggesting good management and smooth operational flow and marketing policies.
• The net profit has also improved along with the other variables discussed above for the past two years.
• The cash flow has been increasing for the last two years, mainly from operations.
• The company has a Zero promoter pledge policy.

Adani Transmission – Best Multibagger Stocks to Buy

Our seventh pick for the best multibagger stocks to buy is Adani transmission.

This company is one of the major players in the energy sector. Adani Transmission is engaged in developing and transmitting energy across the country.

It has been developing around 400-kilowatts of direct current, dedicated to the Mundra-Dehgam transmission line, which runs for around 430 km. It was founded in the year 2013 under the Adani Group of companies.

Why should you invest in Adani Transmissions stocks?

The factors which suggest that this multibagger share in India can be a good buy for your portfolio are as follows –

• Strong EPS growth on an annual basis suggests that the company has been prudent enough to provide significant returns on the shareholders’ investments. The earnings per share of the shareholders have been increasing.
• The R.O.E. or the return on equity has been improving over the past two years. The effective management has been using the shareholders’ fund properly, and thus the returns are great.
• I.I. and F.P.I. and other institutional investors are increasing their shareholding in the company, which suggests the company’s growth potential.
• The company’s annual net profit has been increasing for the past two years, along with the book value per share.
• This firm’s share price has increased by 170.23% in the past year, which is another factor to eye this stock for long-term investment.

IRCTC – Multibagger Companies in India

IRCTC needs no introduction as this is the sole company in the country running the railways. This is our 8th pick for multibagger companies in India.

IRCTC made its I.P.O. in the last year, and already its price increased around 152.17% in this little time. The company is engaged in every aspect of railways in the country.

Starting from maintenance of the railways to catering services, ticketing, and every other aspect one can think of when talking about railways in India.

Why should you buy IRCTC Shares?

The prime reasons to buy top multibagger stocks IRCTC can be the following –

• The quarterly results of the company have been showing excellent growth potential.
• The company has no debt
• The most important aspect of the company is that it is a government undertaking, so the risk factor is next to nil
• The company’s revenue has been increasing for the past two years as well.
• If you consider the book value of the share, then that also has been increasing over the past two years.
• This company has a Zero promoters pledge, which benefits the shareholders.
• The operating profits have been increasing on a YoY basis.
• IRCTC Share Forecast suggests that it has very good future potential.

Tata Elxsi – Best Multibagger Company in India

The 9th best multibagger company in India, as per our research, is Tata Elxsi. This firm is engaged in the development and integration of software.

The company is primarily providing technology solutions and designing services to the companies and solutions through the product’s lifecycle. It was founded in 1989 in Bengaluru under the Tata Group of Companies.

Why should you invest in Tata Elxsi stocks?

The primary reasons to buy multi-bagger stock – Tata Elxsi are the following:

• TTM EPS has been growing, which is relatively higher than the sector EPS.
• The company’s profits have been increasing over the past two years constantly.
• Quarterly results are showing good growth as well.
• One of the most important factors to consider is the cash flow from operating activities. For the last two years, Tata Elxsi has been successfully churning out cash flows from the operations/ core activities.
• The company has a Zero Promoter pledge.
• The company’s revenue has been increasing over the past four quarters consecutively as well.
• According to Tata Elxsi Stock Prediction, it is expected to provide decent returns.

Persistent Systems – Top 10 Multibagger Shares to Buy

Our pick for 10th of the list of top 10 multibagger shares to buy is Persistent Systems. This company is engaged in developing, designing, and maintaining software.

It also provides solutions and creates new applications to enhance customer experiences. The main clientele of this company is in the telecom and wireless sector, also in the infrastructure and healthcare sector.

Why should you invest in Persistent Systems stocks?

The main reasons for investing in this low price multibagger stock can be –

• Its high Piotroski score depicts the solid finances and balance sheet of this company.
• Then the increase in the revenue for consecutive quarters for the last one year.
• The TTM EPS is at 82.06, which is relatively high in this sector.
• Similarly, the TTM PE stands at 54.22, higher than the sector PE of 40.84.
• The increasing shareholding of the F.I.I.s and F.P.I.s is an indication of the company’s growth potential.
• The company’s cash flow has increased as well, and that too from the core business activities. This suggests that the business is flourishing.
• The company’s financial structure has a low debt ratio, which is another added benefit.
• The technical analysis suggests high chances of prices going up and remaining bullish for a longer duration.

Mindtree – Top 10 Multibagger Stocks to buy

Apart from the top 10 Multibagger Stocks to buy, we also have five other stocks with huge potential to provide exponential returns.

However, as per the current price change percentage we considered for ranking stocks, these stocks couldn’t make it to the top ten.

The first out of these 5 is Mindtree. In one year, the price of this stock has increased by 136.91%. It has a market cap of 63181.28 crores.

This company is engaged in the business of information technology and implementation. It has a product engineering services department as well as I.T.I.T. services.

It was started in 1999, and now it has a presence worldwide.

The increasing cash flow from operations, high TTM EPS, increasing revenue are some of the main factors to consider if you want to invest in this stock.

Central Depository Services – Multibagger Companies’ Stocks to Buy

If you are looking for more multibagger companies’ stocks to buy, then you can also check the stock of Central Depository Services Ltd.

This is one of the two depositories in the country which provide dematerialization services to investors across the country.

Its dependable and convenient and secure depository services at a reasonable price have made it stand out in the market.

Some of the reasons this stock seems a good buy are increasing revenue for consecutive 4 quarters.

Then increasing shareholding of FIIs and FPIs, strong annual EPS growth, improving book value per share, and increasing net cash flow. The price of this stock has increased by 136.15% in a year.

Vardhman Textiles – Best Multibagger Companies Shares to Buy

Vardhman Textiles is our 13th pick for best multibagger companies shares to buy. It is one of the major players in the textile industry in the country.

The company is engaged in yarn manufacturing, steel, sewing thread, and fabric development. It has a strong presence worldwide with its export business. It exports to more than 25 countries across the world.

The prime reasons for investing in this stock are its strong growth in TTM EPS and improving book value per share for the past two years. Then the low debt structure is a plus for the company to manage its capital efficiently.

The increasing FII and FPI investments are a sign of the company’s potential. There is a Zero promoter pledge in the company, another added benefit for the shareholders.

SRF – Multibagger Company in India

The fourteenth multibagger company in India that we have picked is SRF. This company’s share price has increased by 124.92% in a year. It is a company with multiple business lines.

It is a market leader in manufacturing refrigerants, industrial yarns, and engineering plastics in India. Then it also produces polyester films, as well as fluoro specialities.

The prime reason for buying this stock can be its market presence. It has a huge 50% market share in its chemical business, which depicts the company’s exponential potential.

Then the increasing cash flow from operating activities is another sign of the company’s growth and excellent management.

Linde India – Multibagger Stock in India

Our 15th pick is a low price multibagger stock in India – Linde India. This company deals in producing industrial gases, engineering products, and other gases such as medical, industrial, and speciality gases.

It is also involved in producing steel, electronics, chemical processes, metal cutting and fabrication, and others. The business line of this company is quite broad.

The reason for buying this stock can be FIIs increasing shareholding pattern in the company, which suggests the company’s high growth potential.

Then there is no debt in the company’s financial structure as well. Another plus is that the book value per share of the company has been increasing, and technical analysis suggests solid bullish momentum for the share.

The price has increased by around 117% in a year.

How to identify a good Multibagger Industry Stock for Trading?

Multibagger stocks can give you exponential returns that you may know but identifying a multibagger stock is the actual task. For choosing the right multibagger stock and trade in multibagger stocks, you need to analyze:

Price change – You need to check how the price of the company’s shares is changing. The price indicates the actual scenario of the company. Go for companies that have witnessed price change of more than 100% in a year.

Market Capitalization – While multibagger stocks are in their growth stage, the market capitalization of these stocks you choose must be at least Rs. 10000 crores. They need to have a significant presence in the market.

Piotroski score –Multibagger stocks have immense potential, and this potential comes from strong financials and fundamentals. You can assess the same by checking the Piotroski score of the company.

Plans – The price of multibagger stocks surges exponentially, but how it all depends on the company’s prospects. You need to analyze their business expansion and other plans to identify the best multibagger companies.

Important Financial Ratios to Identify Multibagger Shares

To identify the best multibagger stocks to buy, you need to check the following ratios:

• R.O.E.: The company’s return on equity has to be more than 20% if it is a multibagger stock. Return on equity suggests how efficiently the management is using the company’s equity capital.
• P.E. Ratio: The second financial ratio to consider is the Price to Earnings ratio, which has to be more than equal to the industry/ sector average. The price to earnings ratio suggests whether the company is rightly priced or not. If the P.E. ratio is high, then there is a probability of the share price to increase.
• Debt/Equity ratio: This ratio needs to be lower than 1, and thus, companies with low or no debt in their financial structure are chosen in the list above.
• Current Ratio: The current ratio that depicts the company’s liquidity quotient has to be more than 1.5. This means the company’s liquidity has to be more than 1. The company can pay off its liabilities in case of winding up.
• EPS: The TTM EPS, as well as the annual EPS, have to improve continuously.

Important Annual Report Metrics to Identify Multibagger Stocks

To find the top multibagger stocks in India, you need to analyze the companies’ annual reports. The important annual report metrics which you need to check and compare are –

Revenue: The first thing you need to check is whether the company’s revenue is growing or not. If growing, it is stable or not.

Profits: Secondly, you need to check the profits – annual, quarterly profits are increasing or not. For how many consecutive quarters or financial years are the profits increasing.

Also, you need to check the profit margin – whether that is increasing or dropping.

Cash flows: Make sure the multibagger stock you are picking has cash flows from the core business activities.

Why invest in Multibagger Stock?

You can invest in multibagger shares for:

Excellent returns: Firstly, the enormous returns you can earn from multibagger stocks. You can earn exponentially from the multibagger stocks, provided you can choose the right stocks.

As you can see in the above list of top ten stocks, the price has increased more than 100% for most stocks in just a year.

Diversification of your portfolio: Multibagger stocks also help you diversify your portfolio. You can pick different multibagger stocks which have great potential to diversify your portfolio to reduce the risk.

How to Invest in Multibagger Sector Stocks in India?

To invest in the best multibagger stocks in India, you have –

• Open a Demat and trading account with any brokerage house
• Then identify the multibagger stocks
• Buy the number of stocks by using the trading terminal/ applications and trading account
• And wait for the price to increase.

Cons of Multi-bagger Companies

While high dividend multibagger stocks can provide huge returns, if you cannot choose the right stocks, there are certain risks of losing your money, slow growth, stagnant returns. The primary thing is to choose the right stocks.

However, the stock market is unpredictable, so if you have invested in a multibagger stock that is not performing well consistently, you should re-evaluate all its financials to understand whether the investment is still holding right.

If you see the company has unstable revenue profits, it is better to book profit if any is there and leave.

Top Multibagger Companies in India – Conclusion

While top multibagger companies in India are every investor’s top choices, picking the right stock is the work.

So, if you want to earn significant returns on your investment, you need to critically assess the stocks, evaluate them, and find the best for you.

While we have shortlisted the above fifteen stocks for your help, you can find others as the market keeps changing.

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