Every Stock market investor wants to know about the next set of Multibagger Stocks that will multiply their wealth. In this article we present 11 multibagger stocks in India that continue to offer value in 2018.

Odds for finding multibagger stocks have improved in 2018

Investors quest for the next basket of multibagger stocks have driven marketers to liberally tag this phrase against every research report and TV program, so much so that this phrase has turned into a cliché.

Spotting multibagger stocks in normal markets however, can be an extremely difficult. Unverified reports indicate that 1 out 15 multibagger stocks recommended in TV programs actually turn out to be a multibagger.

In severely depressed markets however – when every stock, good or bad, has been beaten down – the odds for finding multibaggers tend to improve.

The Indian equity market, particularly the mid and small cap space, has witnessed unprecedented volatility in 2018. Rising interest rate, trade tensions between US and China, implementation of long term capital gain tax (LTCG), auditor issues, etc. all have negatively impacted the market performance. Given this context, we feel this may be a good time to renew our quest for multibagger stocks.

What are multibagger stocks?

Multibagger stocks is an extremely loosely defined phrase that has now turned into a cliché thanks to the marketers.

Loosely speaking, it refers to a stock whose market capitalisation (or value) has grown multiple times. So for example, if a stock has doubled its market cap – it will be a two-bagger, and the one that has multiplied value 10 times will be a ten-bagger and so on.

MRF for example, gave 1651% returns between June 2001 and April 2018 – it can be referred as a 17-bagger stock.

Multibagger stocks that offer value in 2018

In the remaining part of the article we present our selection of multibagger stocks that continue to offer value to investors.

Methodology used to pick multibagger stocks in this article

Instead of trying to figure the next set of multibagger stocks, we have taken a slightly different approach.

We identify good businesses that are already multibaggers in 2018, and yet continue to offer value, suggesting more potential upside in future.

We ran 2 screens, first to identify stocks that have turned out to be multibaggers in 2018.

Our objective criteria for selecting multibagger stocks was:

Minimum past 3 year returns of 100% & positive return in past 1 year.

Within this population, we ran a 2nd screen to filter quality businesses – stocks having consistent sales and earnings growth over past 10 years, combined with strong balance sheet, cash flows & profitability, and yet offer value.

The result is the following basket of 11 multibagger stocks that continue to offer value in 2018

1. KSE

KSE Limited manufactures compound cattle feed. The Company also extracts oil from copra cake by solvent extraction process and refines the same to edible grade and in dairying, including ice cream.

The Company operates through three segments, which Include Animal Feed Division, Oil Cake Processing Division and Dairy Division.

Its Dairy Division consists of milk and milk products, including ice cream. It offers ice cream under the brand name, VESTA. The Company is engaged in the field of milk procurement, processing and marketing of liquid milk and milk products. Its milk products include KS Milk and KS Curd.

Its cattle feed products include K.S Supreme pellet, K.S Delux plus pellet and K.S Super. The Company also offers products, including K.S. PAAL and KS Ghee.

The Company’s manufacturing units include Swaminathapuram, Vedagiri, Palakkad, Koratty, Konikkara and Thalayuthu.

2. SagarSoft

Sagarsoft (India) Limited is an India-based provider of business information technology (IT) services, consulting, technology and generation services. The principal business activity of the Company is software development and consultancy services. The Company’s geographic segments include Exports and Domestic.

The Company offers various solutions, such as mobile competency, enterprise Web applications, testing and quality assurance, analytic and business intelligence, and workforce solutions.

Its methodology includes domain expertise, execution models, engagements models and delivery models.

Company’s execution models includes agile execution approach, rapid prototype approach, waterfall model, Kanban methodology and V-model.

Its delivery models include onsite and offshore.

It is engaged in delivering critical applications targeted at Retail, Pharmaceutical, Entertainment, Utilities, Digital Marketing, Financial Services, E-Commerce, Information Technology and Insurance.

3. Maithan Alloys

Maithan Alloys Limited manufactures and expors of all three bulk Ferro alloys, including Ferro Silicon, Ferro Manganese and Silico Manganese. Company has a captive power plant and also generates and supplies wind power.

• Ferro manganese is alloy of manganese and iron, which is used primarily in stainless steel and flat products.
• Silico manganese is an alloy of manganese, silicon and iron, which is used in all steel products, with higher quantities in 200 series stainless steel, alloy steel and manganese steel.
• Ferro silicon is an alloy of silicon and iron, which is used in special steels and in small quantities in mid steel.

Its subsidiaries include Anjaney Minerals Limited and AXL Exploration Private Limited, which are engaged in export, import, production, processing, sale, purchase, distribution and dealing in metals and minerals.

4. Shri Jagdamba Polymers

Shri Jagdamba Polymers Ltd. is based in Ahmedabad, India. The company has an installed capacity of 1000 MT per month to process woven polypropylene/polyethylene fabrics on both circular as well as sulzer looms. More than 80% of production is exported to the USA, Europe and several other countries.

Product range includes PP Woven Bags, FIBC, Box Bags, Silt-fence, Ground Cover, Fabrics, Geotextile, Lumber Cover, etc.

The company has targeted to double its capacity to 2000 MT per month in next five years by installing higher end products to cover several other areas of the global market. Plans have also been laid to put up captive wind power generation. As a part of backward integration plans are being finalised to put up in-house additive unit and machinery workshop.

5. Venky’s

Venky’s (India) Limited produces day-old layer and broiler chicks for the poultry markets of North India. The Company offers a range of products, such as day old commercial chicks, grown up commercial broiler, refined oil and de-oiled cake for poultry feed.

Its segments include Poultry and Poultry Products, Animal Health Products and Oilseed.

The Poultry and Poultry Products segment consists of production and sale of day old broiler and layer chicks, specific pathogen free eggs, processed chicken products and poultry feed.

The Animal Health Products segment produces and sells medicines, pellet feeds, and other health products for birds. Its animal health products manufacturing facility is located at Pune.

The Oilseed segment produces and sells edible refined soya oil and soya de-oiled cake.

6. Goa Carbon

Goa Carbon Limited manufactures and sells calcined petroleum coke.

The Company is a supplier to aluminum smelters, graphite electrode and titanium dioxide manufacturers, as well as other users in the metallurgical and chemical industries.

The Company’s calcination plant of approximately 75,000 tons per annum capacity is located in southern Goa, over 40 kilometers away from the Mormugao port.

The Company also has approximately two other plants, at Bilaspur in Chattisgarh, which has a capacity of over 40,000 tons per annum of calcined petroleum coke, and at Paradeep in Orissa, which is over eight kilometers away from the Paradip port and has a capacity of approximately 125,000 tons per annum of calcined petroleum coke.

The Company’s subsidiary is GCL Global Resources SGP Pte Ltd., which is a holding company.

7. Associated Alcohol

Associated Alcohols & Breweries Limited is a distillery company. Company manufactures alcoholic liquor. It operates through Potable Alcohol segment. Company also bottles vodka and Scotch whisky for international brands.

It has presence in all varieties of potable alcohols, country liquor (CL), rectified spirits (RS), extra neutral alcohol (ENA), distilled grain spirit, Indian made foreign liquor (IMFL) in the whisky, brandy, rum, gin and vodka categories, and bottling scotch whisky for other international brands.

It manufactures and markets in house brands, such as Red & White, James McGill, Bombay Special (in the whisky segment), London Bridge (in the gin segment) and Jamaican Magic in the rum category.

Its licensed brands include Smimoff Vodka, Captain Morgan rum, HAIG Scotch whisky, Masterstroke whisky, Glen Drummond single malt Scotch whisky and Royal Crown whisky. It has a production capacity of 42 million liters per annum.

8. N R Agarwal Industries

N R Agarwal Industries Limited manufactures paper, paper boards and newsprint. It is also involved in duplex boards, and writing and printing business. Company develops and manufactures finished paper products by recycling of waste paper, and marketing in domestic and international markets.

Its products include duplex boards, which include Grey Back Unit I, Grey Back Unit IV, White Back Unit I, White Back Unit III; writing and printing papers, which include NR Excel Specification Sheet (SS), NR Excel NSS, NR Maxima SS, NR Maxima NSS and NR Classic NSS, and newsprint, which includes NR Hi-Speed News Print.

In addition, the Company owns a cogeneration power plant to produce power, as well as steam in all units of board, news print, and writing and printing paper required for pulp and paper process. It has approximately five manufacturing plants located at Valsad, Gujarat.

9. Dynemic Products

Dynemic Products Limited is a food colour manufacturing company. It manufactures and markets dyes and intermediates. Company manufactures and distributes food colours, lake colours, blended colours, and food drug and cosmetic (FD&C) colours.

Its segments include Domestic and Export.

The Company offers a range of salt free dyes for inkjet industry. It also offers salt free dyes and natural food colours.

Company’s lake colour products include lake quinoline yellow, lake tartrazine, lake erythrosine, lake allura red, lake carmoisine, lake amaranth and lake indigo carmine.

Its blended color products include egg yellow, lemon yellow, strawberry red, moss green, raspberry red, pea green, tomato red, orange red and rose pink, among others.

Dyes intermediates include pyarazolone-based dyes intermediates, naphthalene-based dyes intermediates and benzen-based dyes intermediates.

It provides bulk packing to small packing. The Company’s plants are located at Ankleshwar.

10. Mangalam Organic

Mangalam Organics Limited is an India-based chemical manufacturing company. Company manufactures and sells Camphor, Sodium Acetate and by-products, Terpene Chemicals, Synthetic Resins and Phenol formaldehyde (PF) resins.

The Company’s Terpene products include Camphor Technical, Camphor A Grade, Camphor Fluffy Grade, Camphene, Dipentene, Sodium Acetate Trihydrate, Camphor Oil, and Pine Oil 870 & 880.

The Company offers camphor tablets under the brand name mangalam.

Its Resin products include Terpene Phenolic Resin, Alkyl Phenolic Resin 1, Alkyl Phenolic Resin 2 and Gum Rosin.

The Company exports its products to Europe, the United States, Africa and the Middle East.

The Company’s manufacturing units are located at Kumbhivali Village, Taluka Kahalapur, Khopoli, District Raigad, Maharashtra.

11. JSW Steel

JSW Steel Limited primarily manufactures iron and steel products. Its segments include Steel; Power (used mainly for captive consumption), and Others, which includes cement, mining and construction activities.

Its product portfolio in flat and long steel products includes hot rolled (HR) coils, sheets and plates; cold rolled coils and sheets; galvanized products; galvalume products; non-grain oriented electrical steel (CRNGO); pre-painted galvanized products (color coated sheets/coils); pre-painted galvalume products; wire rods; special steel bars/wires; rounds and blooms, and angles.

Its colour coated products include JSW Pragati, JSW Colouron and JSW Colouron+. Its galvanized products include JSW Vishwas and GALVOS.

It has plants in over six locations in India, including Vijayanagar in Karnataka, Salem in Tamil Nadu, and Tarapur, Vasind, Kalmeshwar and Dolvi in Maharashtra.

Conclusion

In this article, we discussed 11 multibagger stocks that continue to offer value in 2018. We expect many of these could provide decent returns going forward.

For most individuals, ability to spot and invest properly in one or two multibagger stocks could be life changing.

Severely depressed markets change the odds of spotting multibaggers in favour of the investor. Prevailing market conditions provides us with that opportunity.

It’s time to take concentrated bets in a few handpicked businesses that we understand, for reaping handsome gains going forward.

The post 11 multibagger stocks that continue to offer value in 2018 appeared first on ViniyogIndia.com.