How to pick multibagger Stocks

A multibagger stock is an equity stock which gives a return of more than 100%. The term was coined by Peter Lynch in his 1988 book, One Up on Wall Street and comes from baseball where "bags" or "bases" that a runner reaches are the measure of the success of a play.

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1. How to Pick Multibagger Stocks A multibagger stock is an equity stock which gives a return of more than 100%.
2. How to avoid mistakes while opting Multibagger 1. Debt to equity ratio More than 3. 2. Interest coverage Ratio is below 2. 3. Promoter Pledging is more than 30%. 4. Promoter holding+ Institutional Holding is less than 30%.
3. • The solvency ratio indicates whether a company’s cash flow is sufficient to meet its short-and long-term liabilities. • The lower a company's solvency ratio, the greater the probability that it will default on its debt obligations. • The solvency ratio is one of many metrics used to determine whether a company can stay solvent. • Other solvency ratios include debt-to- equity, total-debt-to-total-assets, and interest coverage ratios
4. • Pledging of shares is one of the options that the promoters of companies use to secure loans. • To meet working capital requirement, personal needs and fund other ventures or acquisitions. • A promoter shareholding in a company is used as collateral to avail a loan.
5. • negative cash flow. Situation where the cash outflows during a period are higher than the cash inflows during the same period. • Negative cash flow does not necessarily means loss, and may be due only to a mismatch of expenditure and income.
6. • Promoter holding signifies the percentage of shares that are held by the promoters of a company. • Promoters and promoter groups are entities which have a significant influence on a company. • They may have a major or even a controlling stake in the company and may also hold senior executive positions.
7. How to Pick Such Stocks- 1.We can opt such stocks by self analysis. 2. We can use expert advice, Some Multibagger stocks picking Services. 3. We can use google, to download the reports of the company and can anlyze the report. The best method to Pick such stocks is using Stock Screener. 1.Free tool to download research report. 2.Detail analysis of each company. 3.Include each & every Ratio, which will be really helpful.
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11. Thank You