5 Best Multibagger Stocks to invest in 2022 (Doubling every 4 years)

Best Multibagger Stocks for Investment in 2022 in IndiaBest Multibagger Stocks to invest in 2022 in India

Investors are worried about direct stock investment as stocks are highly volatile and there is risk for losing money. Identifyng multibagger stocks is a biggest challenge for investors. While there are hundreds of good stocks to invest, only few a consistently creating wealth for investors. How about pickingup a stock that doubled in 4 years? Would you be excited in picking up a stock that consistently doubled every 4 years in the past? In this article we would provide Top 5 Multibagger Stocks to invest in 2022 which doubled every 4 years and generated up to 7,000% returns in the last 8 years.

Also Read: Did’nt get IPO allotment – You can invest in this mutual fund then

What are multibagger stocks?

Multibagger stocks is the fancy word used in stock market which indicates that investment in such stocks would multiply in short to long term and provide abnormal / high returns.

Best multibagger Stocks to invest in 2022

Here is the list of multibagger stocks to invest in 2022.

#1 – Tata Elxi – Generated 6.5x returns in 4 years and 27x in 8 years.

#2 – Coforge – Generated 5.8x returns in 4 years and 13.9x in 8 years.

#3 – Bajaj Finance – Generated 3.6x returns in 4 years and 69x in 8 years.

#4 – Titan – Generated 2x returns in 4 years and 9.5x in 9.5 years.

#5 – Asian Paints – Generated 1.9x returns in 4 years and 5.5x in 8 years.

All the CMP indicated are as of 19th January, 2022.

Multibagger Stocks to invest in 2022 – Detailed Analysis

Let us get into more specifics about these multibagger stocks.

#1 – Tata Elxi – CMP Rs 6,977

Tata Elxsi Limited provides system integration and software development. The company provides hard core technology and strength in design.

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 standalone revenues increased from Rs 1,237 Crores in FY2017 to Rs 1,826 Crores in FY2021.

Its margins improved significantly from Rs 174 Crores in FY2017 to Rs 368 Crores in FY2021.

Few days back it has announced latest quarter results where its revenues increased from Rs 477 Crores of Q3 FY2021 to Rs 635 Crores of Q3 FY22. Its margins improved from Rs 105 Crores to Rs 150 Crores during the same period.

Positives factors in this stock

Strong revenue growth in the last 5 years.

Strong margin growth in the last 5 years.

It shown good quarterly growth in recent results.

Company with zero debt.

Company revenues are increasing every quarter in the last 4 quarters.

Book value increased in the last 2 years.

Cash flows improving in the last 2 years.

Company with zero promoter pledge.

We could see strong momentum in share price for short, medium and long term averages.

Negative or risk factors in this stock

Company costs are growing year on year for long term projects.

Promoters decreasing their share holding.

Company non core income is increasing.

MFs decreased their share holding in recent quarter.

Share Price Performance

Last 1 year – 152%

Last 4 years – 648%

Last 8 years – 2,771%

This stock is showing technically very bullish.

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

#2 – Coforge – CMP Rs 5,408

Coforge (formerly known as NIIT Technologies Limited) is an information technology (IT) solutions organization engaged in application development and maintenance, managed services, cloud computing and business process outsourcing to organizations in the financial services, insurance, travel, transportation and logistics, manufacturing and distribution and government sectors.

Company delivers services across continents directly and through its network of subsidiaries.

It is servicing customers in North & South America, Europe, the Middle East, Asia and Australia.

Snapshot of Financial Performance

Its consolidated revenues increased from Rs 2,802 Crores in FY2017 to Rs 4,662 Crores in FY2021.

Its margins increased from Rs 272 Crores in FY2017 to Rs 466 Crores in FY2021.

Its latest quarter results indicate that its revenues increased from Rs 1,153 Crores for Q2 FY2021 to Rs 1,569 Crores for Q2 FY22 and margins improved from Rs 122 Crores to Rs 161 Crores during the same period.

Positives factors in this stock

Strong revenue growth in the last 5 years.

Strong margin growth in the last 5 years.

It shown good quarterly growth in recent results.

Company with low debt.

Company revenues are increasing every quarter in the last 4 quarters.

Book value per share increasing in last 2 years.

Company with zero promoter pledge.

FII’s / FPIs / DIIs have increased their share holding.

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.

Promoters decreasing their share holding.

Company is not able to generate net cash. There is declining net cash flows.

Share Price Performance

Last 1 year – 106%

Last 4 years – 580%

Last 8 years – 1,390%

This stock is showing technically bearish and can come under correction.

Considering good financials, it can be considered as one of the best multibagger stocks for 2022.

Also Read: Best Largecap Funds to invest in 2022

#3 – Bajaj Finance – CMP Rs 7,571

Bajaj Finance Limited is engaged in the business of retail financing.

The company is engaged in providing finance for two-wheelers, consumer durables, personal computers, personal loans, insurance services, etc.

They also extended their product line with the launch of IPO financing for high networth customers. The company plans to introduce new products, thus increasing its product portfolio as well as widen its presence in semi-urban and rural markets.

Snapshot of Financial Performance

Its consolidated revenues increased from Rs 9,966 Crores in FY2017 to Rs 26,668 Crores in FY2021.

Its margins increased from Rs 1,836 Crores in FY2017 to Rs 4,419 Crores in FY2021.

Its latest quarter results indicate that its revenues increased from Rs 6,656 Crores for Q3 FY2021 to Rs 8,532 Crores for Q3 FY22 and margins increased from Rs 1,145 Crores to Rs 2,125 Crores during the same period.

Positives factors in this stock

Strong revenue growth in the last 5 years.

Strong margin growth in the last 5 years.

It shown good quarterly growth in recent results.

Book value per share increasing in last 2 years.

Strong cash generating ability from core business.

Company with zero promoter pledge.

We could see strong momentum in share price for short, medium and long term averages.

Negative or risk factors in this stock

Company costs are growing year on year for long term projects.

ROE is declining in the last 2 years.

Companies with high debt.

Declining net cash flow.

Share Price Performance

Last 1 year – 52%

Last 4 years – 366%

Last 8 years – 6,976%

This stock is showing technically very bullish.

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

#4 – Titan – CMP Rs 2,588

Titan Industries into the business of watches, jewellery, eye care etc.

Titan Industries Ltd is Indias largest manufacturer of quartz watches and the worlds sixth largest manufacturer of branded watches. Titans core business is manufacturing of watches. In the watch segment they have brands like Fastrack , Sonata, Nebula,Titan Raga,Octane, Zoop & Xylys — a swiss made catering to premium segment of the market.

In the jewellery segment their brand Tanishq has a wide range of diamond, gold and platinum jewellery. Under Tanishq are collections like Zoya, Aria, Moham, Aleya, Kudan & polki & many more.

Titan has also ventured in the eyewear segment through their Fastrack brand. They have also introduced brands Titan eye+ that has wide range of contact lenses, prescription eyewear & sun glasses

Further they have also ventured into automation solution through Titan Automation Solution (TAS) and also in designing & manufacturing of trophies through Titan Trophe.

Snapshot of Financial Performance

Its consolidated revenues increased from Rs 13,260 Crores in FY2017 to Rs 21,644 Crores in FY2021.

Its margins increased from Rs 699 Crores in FY2017 to Rs 979 Crores in FY2021.

Its latest quarter results indicate that its revenues increased from Rs 4,533 Crores for Q2 FY2021 to Rs 7,493 Crores for Q2 FY22 and margins improved from Rs 174 Crores to Rs 641 Crores during the same period.

Positives factors in this stock

Strong revenue growth in the last 5 years.

Strong margin growth in the last 5 years.

It shown good quarterly growth in recent results.

Book value per share increasing in last 2 years.

Company with zero promoter pledge.

We could see strong momentum in share price for short, medium and long term averages.

Negative or risk factors in this stock

Company costs are growing year on year for long term projects.

ROE is declining in the last 2 years.

Share Price Performance

Last 1 year – 70%

Last 4 years – 197%

Last 8 years – 956%

This stock is showing technically very bullish on charts.

Considering good financials and upward technical indicators, it can be considered as one of the best multibagger stocks for investment in 2022.

Also Read: Top 10 SIP Mutual funds to invest in 2022

#5 – Asian Paints – CMP Rs 3,280

Asian Paints Limited is the leading paints manufacturing company in India in Decorative, Automative and Industrial segment.

Apart from these the company also manufactures various Acessories like, Wall Primar, Wood Primer, Putty and Stainers etc. The company has a state-of-the-art supply chain system which uses cutting edge technology to integrate all its plants, regional distribution centres, outside processing centres and branches in India.

Snapshot of Financial Performance

Its consolidated revenues increased from Rs 15,061 Crores in FY2017 to Rs 21,712 Crores in FY2021.

Its margins increased from Rs 1,940 Crores in FY2017 to Rs 3,178 Crores in FY2021.

Its latest quarter results indicate that its revenues increased from Rs 5,350 Crores for Q2 FY2021 to Rs 7,096 Crores for Q2 FY22 and margins reduced from Rs 840 Crores to Rs 594 Crores during the same period.

Positives factors in this stock

Strong revenue growth in the last 5 years.

Strong margin growth in the last 5 years.

Company with low debt.

Book value per share increasing in last 2 years.

Company with decreasing promoter pledge.

FII / FPI / DII increasing their share holding.

We could see strong momentum in share price for medium and long term averages.

Negative or risk factors in this stock

Recent quarter results indicate declining profits.

Non core income is increasing.

Share Price Performance

Last 1 year – 22% (after correction of 10% in the last few weeks)

Last 4 years – 191%

Last 8 years – 556%

This stock is showing technically neutral as it has corrected for over 10% in the last few weeks.

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

Disclaimer: I have holdings in some of the above stocks and continue to accumulate in future 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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Suresh KP

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