Best Midcap Multibagger Stocks to invest in 2022 (Tripled every 3 years)

Best Midcap Multibagger Stocks to invest in 2022 (Tripled every 3 years)Best Midcap Multibagger Stocks to invest in 2022 in India

While blue chip stocks can provide stable returns, midcap stocks can be multibaggers if invested for short to medium term. Midcap stocks are riskier, however, picking up consistent performers always rewarded investors. Identifying Midcap Multibagger Stocks are a biggest challenge for investors. While there are hundreds of good mid cap stocks to invest, only a few a consistently creating wealth for investors. How about picking up a mid cap stock that tripled in last 3 years? Would you be excited in picking up a mid cap stock that consistently tripled every 3 years during 2016 to 2022? In this article we would provide 5 Best Midcap Multibagger Stocks to invest in 2022 which tripled money every 3 years and generated over 1,000% returns in the last 6 years.

Also Read: Best Bluechip Multibagger Stocks that doubled every 4 years

What are Midcap Multibagger Stocks?

Like I indicated earlier, Midcap multibagger stocks are the fancy word used in the stock market, which indicates that investment in such midcap stocks would multiply several times in short to long term and provide high returns.

One can always argue that in the last 2 years due to bull run, all stocks have shown high returns.

However the analysis is for the period Feb-2016 to Jan-2019 (3 years) and Feb-2019 to Jan-2022 (3 years). Means if it passes both these tests and returns are tripled in both periods (e.g. 1 Lac turning to 3 lacs), these are considered in this analysis.

Best Midcap Multibagger Stocks to invest in 2022

Here is the list of Midcap Multibagger Stocks to invest in 2022. These have tripled in every 3 years i.e. During 2016-2019 and 2019 to 2022.

#1 – Gareware Tech – 277% returns in 3 years – 1,027% returns in last 6 years.

#2 – Coforge – 215% returns in 3 years – 1,025% returns in last 6 years.

#3 – Radico Khaithan – 274% returns in 3 years – 1,022% returns in last 6 years.

#4 – DCM Shriram – 228% returns in 3 years – 872% returns in last 6 years.

#5 – Aarti Industries – 220% returns in 3 years – 862% returns in last 6 years.

Midcap Multibagger Stocks to invest in 2022 – Detailed Analysis

Let us get into more specifics about these Midcap Multibagger Stocks.

#1 – Garware Technical Fiber – CMP Rs 3,163

Garware Technical Fiber is one of India’s leading players in the technical textiles sector, providing specialized solutions to the cordage and infrastructure industry worldwide. Established in 1976, the company today is a multi-divisional, multi-geographical technical textile company. The company manufactures and provides world class solutions in high performance polymer ropes, fishing nets, sports nets, safety nets, aquaculture cages, coated fabrics, agricultural netting and geosynthetics.

The company offers end-to end solution across the product lifecycle. The company also in the business segment of Systems Integration and Support, Software Development and Services.

Snapshot of Financial Performance

  • Its consolidated revenues increased from Rs 845 Crores in FY2017 to Rs 1,034 Crores in FY2021.
  • Its margins improved significantly from Rs 84 crores in FY2017 to Rs 158 crores in FY2021.
  • Its latest quarter results indicate revenues increased from Rs 268 Crores (Qtr ending Sep-20) to Rs 281 Crores (Qtr ending Sep-21). However, profits declined from Rs 44 crores to Rs 40 crores for a similar period.

Positive factors in this stock

  • Strong revenue growth in the last 5 years.
  • Strong margin growth in the last 5 years.
  • Company with low debt.
  • ROA improving in the last 2 years.
  • Book value per share increasing in the last 2 years.
  • Company with zero promoters pledge.
  • We could see strong momentum in share price for short, medium and long term averages.

Negative or risk factors in this stock

  • Recent quarterly results indicate a decline in margins.
  • Declining net cash flows.
  • Company non core income is increasing.

Share Price Performance

  • Last 1 year – 37%
  • Last 3 years – 199%
  • Last 6 years – 1,027% (1 lac turned 11.27 lacs)
  • 2016-2019 (3 years) – 277% (1 Lac turned 3.77 Lakhs)
  • 2019-2022 (3 years) – 199% (1 Lac turned 2.99 Lakhs)
  • This stock is showing technically very bullish except for recent market correction time.

Considering good financials and upward technical indicators, it can be considered as one of the Best Midcap Multibagger Stocks to invest in 2022.

You may like: Top 5 Midcap Mutual Funds for 2022

#2 – Coforge – CMP Rs 4,792

Coforge is an IT services company (Erstwhile NIIT Technologies) providing end-to-end software solutions and services.

It is among the top-20 Indian software exporters. Prominent global customers include British Airways, the ING group, SEI Investments, Sabre, and SITA. Over the years, Coforge has set up subsidiaries in the US, Singapore, Australia, UK, Germany and Thailand, mainly to market and mobilise projects in the software division. The company has business partnerships with large IT companies across the world

Snapshot of Financial Performance

  • Its consolidated revenues increased from Rs 2,802 Crores in FY2017 to Rs 4,662 Crores in FY2021.
  • Its margins improved significantly from Rs 272 Crores in FY2017 to Rs 466 Crores in FY2021.
  • Its latest quarter results indicate revenues increased from Rs 1,190 Crores (Qtr ending Dec-20) to Rs 1,658 Crores (Qtr ending Dec-21). Profits also improved from Rs 123 Crores to Rs 197 Crores for a similar period.

Positive factors in this stock

  • Strong revenue growth in the last 5 years.
  • Strong margin growth in the last 5 years.
  • Good performance in the recent quarter results too.
  • Company with low debt.
  • ROA improving in the last 2 years.
  • Book value per share increasing in the last 2 years.
  • Company with zero promoters pledge.
  • FPI/FIIs are increasing the stake in the company.
  • Stock brokers recommendation increased in the last 3-6 months.
  • We could see strong momentum in share price for short, medium and long term averages.

Negative or risk factors in this stock

  • ROE declining in the last 2 years.
  • Promoters decreasing their share holding.
  • Declining net cash flows.
  • Stock is trading at higher P/E ratio 48x.

Share Price Performance

  • Last 1 year – 95%
  • Last 3 years – 257%
  • Last 6 years – 1,025% (1 lac turned 11.25 lacs)
  • 2016-2019 (3 years) – 215% (1 Lac turned 3.15 Lakhs)
  • 2019-2022 (3 years) – 257% (1 Lac turned 3.57 Lakhs)
  • This stock is showing technically very bullish except for recent market correction time.

Considering good financials and upward technical indicators, it can be considered as one of the Top Midcap Multi bagger Stocks to invest in 2022.

#3 – Radico Khaithan – CMP Rs 1,067

Radico Khaitan is one of the most recognised IMFL (Indian Made Foreign Liquor) brands in India.

The company was initially known as a Rampur Distillery Company and was focussed on distillation and bottling for branded players and canteen stores of the armed forces.

Later on in the year 1997, Radico Khaitan ventured into its own branded IMFL products and launched its first brand 8PM whisky which became its millionaire brand within a year of its launch.

Snapshot of Financial Performance

  • Its consolidated revenues increased from Rs 1,679 Crores in FY2017 to Rs 2,418 Crores in FY2021.
  • Its margins improved nearly 4 fold from Rs 80 Crores in FY2017 to Rs 270 Crores in FY2021.
  • Its latest quarter results indicate revenues increased from Rs 630 Crores (Qtr ending Sep-20) to Rs 708 Crores (Qtr ending Sep-21). Margins have declined from Rs 72 crores to Rs 69 crores for the same period.

Positive factors in this stock

  • Strong revenue growth in the last 5 years.
  • Strong margin growth in the last 5 years.
  • Cash flow is rising.
  • Company with low debt.
  • Book value per share increasing in the last 2 years.
  • Company with zero promoters pledge.
  • FPI/FIIs are increasing the stake in the company.
  • Stock brokers upgraded the target price in the last 3-6 months.
  • We could see strong momentum in share price for short, medium and long term averages.

Negative or risk factors in this stock

  1. Company with growing costs year on year for long term projects.
  2. Recent quarter results show decline in net profits.
  3. MFs have decreased their shareholding in recent quarters.

Share Price Performance

  • Last 1 year – 115%
  • Last 3 years – 200%
  • Last 6 years – 1,022% (1 lac turned 11.22 lacs)
  • 2016-2019 (3 years) – 274% (1 Lac turned 3.74 Lakhs)
  • 2019-2022 (3 years) – 200% (1 Lac turned 3 Lakhs)
  • This stock is showing technically very bullish except for recent market correction time.

Considering good financials and upward technical indicators, it can be considered as one of the Best Multibagger Stocks in midcap segment to invest in 2022.

#4 – DCM Shriram – CMP Rs 1,110

DCM Shriram is engaged in the business of manufacturing facilities of Fertiliser, Chloro Vinyl & Cement in Kota (Rajasthan) and of Chlor- Alkali in Bharuch (Gujarat).

Snapshot of Financial Performance

  • Its consolidated revenues increased from Rs 5,788 Crores in FY2017 to Rs 8,308 Crores in FY2021.
  • Its margins improved from Rs 552 Crores in FY2017 to Rs 672 Crores in FY2021.
  • Its latest quarter results indicate revenues increased from Rs 2,158 Crores (Qtr ending Dec-20) to Rs 2,729 Crores (Qtr ending Dec-21). Margins have increased from Rs 252 crores to Rs 349 crores for the same period.

Positive factors in this stock

  • Strong revenue growth in the last 5 years.
  • Strong margin growth in the last 5 years.
  • Latest results indicate good quarterly performance.
  • Company with low debt.
  • Book value per share increasing in the last 2 years.
  • Company with zero promoters pledge.
  • FPI/FIIs are increasing the stake in the company.
  • We could see strong momentum in share price for short, medium and long term averages.

Negative or risk factors in this stock

  • Company with growing costs year on year for long term projects.
  • ROA and ROE are declining in the last 2 years.

Share Price Performance

  • Last 1 year – 156%
  • Last 3 years – 200%
  • Last 6 years – 872% (1 lac turned 9.72 lacs)
  • 2016-2019 (3 years) – 228% (1 Lac turned 3.28 Lakhs)
  • 2019-2022 (3 years) – 200% (1 Lac turned 3 Lakhs)
  • This stock is showing technically very bullish except for recent market correction time.

Considering good financials and upward technical indicators, it can be considered as one of the good midcap multibagger stocks to invest in 2022.

You may also like: 5 Multibagger Mutual Funds for 2022 (10x returns in last 10 years)

#5 – Aarti Industries – CMP Rs 1,014

Aarti Industries Limited is a leading Indian manufacturer of Speciality Chemicals and Pharmaceuticals with a global footprint. Chemicals manufactured by Aarti are used in the downstream manufacture of pharmaceuticals, agrochemicals, polymers, additives, surfactants, pigments, dyes, etc.

Snapshot of Financial Performance

  • Its consolidated revenues increased from Rs 3,163 Crores in FY2017 to Rs 4,506 Crores in FY2021.
  • Its margins improved from Rs 327 Crores in FY2017 to Rs 535 Crores in FY2021.
  • Its latest quarter results indicate revenues increased from Rs 1,172 Crores (Qtr ending Sep-20) to Rs 1,551 Crores (Qtr ending Sep-21). Margins have increased from Rs 143 Crores to Rs 176 crores for the same period.

Positive factors in this stock

  • Strong revenue growth in the last 5 years.
  • Strong margin growth in the last 5 years.
  • Latest results indicate good quarterly performance.
  • Company with zero promoters pledge.
  • FPI/FIIs are increasing the stake in the company.
  • Stock brokers have upgraded target prices in the last 3 to 6 months.
  • We could see strong momentum in share price for short, medium and long term averages.

Negative or risk factors in this stock

  • ROE is declining in the last 2 years.
  • MFs have decreased their shareholding in recent quarters.

Share Price Performance

  • Last 1 year – 74%
  • Last 3 years – 200%
  • Last 6 years – 862% (1 Lac turned 9.62 Lakhs)
  • 2016-2019 (3 years) – 220% (1 Lac turned 3.2 Lakhs)
  • 2019-2022 (3 years) – 200% (1 Lac turned 3 Lakhs)
  • This stock is showing technically very bullish except for recent market correction time.

Considering good financials and upward technical indicators, it can be considered as one of the Best Midcap Multibagger Stocks to invest in India.

Disclaimer: I have holdings in some of the above stocks and continue to accumulate in the future too as and when there is dip. I generally do this analysis for my personal investments and also post on this blog which might be useful for others too. Investment in direct stocks are high risk. Investors should consult their financial advisor before investing in any of these stocks.

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4 comments

  • Kishore Punjabi

    Your views on AstraZeneca, Alembic pharma, Petronet LNG, Sterling tools. I am 20% down on all of these stocks and I don’t mind holding them for another 3 years if they could give me multibagger returns.Alternatively you can also suggest some stocks that I can buy, by selling any of these above stocks

  • Mohammed Abdul Vaheed

    Pls send me

  • SURAJ SHETTY

    Dear Suresh,
    I have been observing TRIDENT TEXTILES for a couple of years now.
    In your opinion after analysis,
    Does this company have prospect of being a multibagger,
    Given its Revenues and profits incremental?
    Could you please forward your review?

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