Did put in lot of efforts please do appreciate and share the link with as many as possible... let's educate all our investor friends out there
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There is no one way to identify good stocks!
1. There is no easy way to find a good stock.
2. One has to analyse multiple factors to find a good stock, more the no. of factors satisfied better the stock is. Although presences of large no. of factors doesn't guarantee success.
3. Patience to HOLD the stock for 5-10 years is a MUST. There is no standard time.
Source : http://sharemultibaggerstocks.blogspot.in/?m=1
4. Just because stock is cheap, doesn't mean it's a multi-multibagger.
5. One has to accept failure if idea doesn't work & move on to next idea.
6. Never put all your money on 1 idea , Always have 5-10 shares in ur portfolio. Don’t have too many stocks in your portfolio too.
7. Start small, do not waste your hard earned money. It's a long term process. Ability & experience in analysing stocks is a must.
8. High risk appetite, mental flexibility, open mindedness & ability to deal with corrections with patience are important characteristics as an investor.
Source : http://sharemultibaggerstocks.blogspot.in/?m=1
Factors to be seen in a good stock.
1. Promoters: Good investor friendly & ethical promoters is a must, ex- Godrej group.
2. Debt levels: The debt-equity ratio of the company must be less than 1 or must be reasonable, ex- Godrej Consumer.
3. Unique Business Model (Economic Moat): Ex- Delta Corp runs a Casino in Goa, a monopoly in India.
4. Business opportunity, scalability & sustainability: Ex: Maruti, for years it's business has scaled & sustained in a good way.
5. Great Brand & Brand Recall: Ex- Manpasand Beverages has a brand named "Mango Sip" with it which is performing wonderfully, now it has come with a brand named "coco sip" which also may outperform.
6. Nature of business: Cyclical or non - cyclical. Ex- Tata steel is a cyclical business but outperforms it's peers.
Source : http://sharemultibaggerstocks.blogspot.in/?m=1
7. Past performance: It's tough to estimate future performance of a company but one can easily analyse past performance as data are available with a click of the hand. Ex- Solar Industries.
8. Good Quaterly Performance: High quarter on quarter growth is a big requisite in a good stock. Ex- Emaami.
9. EPS & PE Ratio: High EPS & low PE Ratio in comparison to Industry is a must in a value pick. Ex- Talwalkar.
10. RoE & RoCE: High RoE & RoCE is very important to stock performance. Ex- Cera Sanitaryware.
11. Capex Outlay: High Capex doesn't mean the company will always do well, with change in Capex the capacity utilisation is also necessary. Ex: Linde, where cause of increase in capacity utilization now, the stock will perform well in near future.
12. Market Cap & size of addressable market: Do remember that all big companies like Google, Facebook, Apple started very small with then became huge.
Source : http://sharemultibaggerstocks.blogspot.in/?m=1
13. Shareholding Pattern: Free float should be high so that stock is a bit volatile, being that said the promoter's stake also should not be negligible(tells us about their confidence in own business).
14. High Gross Margins: Gross profits to turnover ratios must be high & consistent in growth.
15. High Asset Turnover- This is a must so that company performs well.
16. Structural changes in management: Sometimes big structural changes in mgt makes a stock a potential multibagger because of the high potential of the new management & sometimes because it leads to value unlocking too.
17. Low price to book value: This leads to huge value unlocking with is recently being seen in Uflex.
Source : http://sharemultibaggerstocks.blogspot.in/?m=1
18. Stock price in relation to net current asset value: Ex- Pilani Investments, if stock prices are low in relation to net current assets will wonderful point to be noticed for a multibagger share.
19. Phase of its life cycle journey: Whether the stock is in sunrise, growth, maturity or sunset stage is really important to a company. Always select a stock in sunrise or early growth stage.
20. Exponential growth: The big point of a multibagger stock is that it grows exponentially, prices grow from 2, 4, 8, 16, 32, 64, 128, 256..... the thing is these stock are not visible to investors till the prices cross 64 or 128.
21. Disruption Technologies: A movement of the business from manual to digital is a huge + point..... though the prises may decrease in short term, will have a humongous effect on volume in longer term.
One has to read company’s past 5 annual reports to get a better understanding of companies vision, past performance & future plans.
Source : http://sharemultibaggerstocks.blogspot.in/?m=1
1 comment:
I really thank you for sharing the blogs with us. I request you to keep blogging and sharing information about Indian stock market because it is really helpful.
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