How to find Multibaggers ? All the multibagger stocks have many common factors, namely: 1. They have a small market cap (less than ₹1000cr, smaller the better). 2. The stock is illiquid. They are not tracked by brokerage houses and there is no/negligible institutional investor present. 3. They have a first generation management. (Like Sunil Mittal of Bharti, Dhirubhai Ambani of Reliance, Poddar of Mayur Uniquoter, etc.) 4. Zero debt or Debt to equity ratio of less than 0.5. 5. High ROE (return on equity) and High ROCE (return on capital employed) 6. Low P/E ratio. (It's not a norm but chances are high since P/E re-rating exponentiates your return. There are many high PE stocks which go further up but that judgement will come from experience and knowledge. It can't be taught.) 7. Ethical and Efficient Management - The single most important factor to watch out for while hunting for a m...
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