Rakesh Garhwal

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 multibagger. Since, it's an intangible factor and can't be found by equations or

" I retired from my 35 years Services in 2006 and received Rs. 60 Lakhs from my Company towards consolidated Retirement benefits. That was the time when I came in contact with a Leading Share broker and Investment Advisor . Influenced by his LONG TERM VALUE INVESTING THEORY IN GREAT STOCKS OF EQUITY MARKETS ,then sit tight , forget the investments for a few years - to SEE THE REAL GROWTH , I made a " S.I.P. type " buying in the Shares of following BLUE CHIP Companies, investing Rs.10 Lakhs in EACH Stock as and when recommended..(total savings INVESTED Rs.80 Lakhs). 1. Year 2007 : RELIANCE COMMUNICATIONS @ Rs.730.00 a share. "Reason "given: Largest investor/ fastest growing in the Telecom Sector. 2. Year 2008 : VIDEOCON @ Rs. 755.00 a Share. "Reason": Largest Player in Electronics with their TV and other Products finding a place in most of The Indian Homes and tremendous Growth Potential of Consumer Goods. 3. Year 2009: JP ASSOCIATES @ Rs. 260