The Sure-shot way to make good money in the stock market is to invest in multi-baggers stocks at their initial stage. Multi-bagger stocks have the potential to generate significant returns of more than 100% over a period of time. but How to find these multi-baggers for 2025? In this article, I explained the effective framework for recognizing potential multi-baggers by analyzing key aspects and Unveiling the Top Multi-Bagger Stocks for 2025 India.
Before knowing about the best multi-bagger stocks for 2025 first, we have to first understand a little about multi-bagger stocks:-
What is multi-bagger stock?
If you invest your money in the stock market, you must have heard about multi-bagger stocks. Let us know what a multi-bagger stock is. To understand it in simple words, a multi-bagger comprises two words. Multi and bags Multi means that which becomes many instead of one. Multi-bagger stocks are those stocks that have given 100% or more returns from their price.
The best multi-bagger stocks for 2025 are as follows-
| SL.NO | COMPANY NAME | MAR CAP | STOCK GRAPH |
|---|---|---|---|
| 1. | JP power | 40.10 B | Click hear |
| 2. | Likhita infrastructure | 11.52 B | Click hear |
| 3. | HPL electric and power | 5.89 B | Click hear |
1. Jp Power
First, we’d like to know which Company we’re talking about. What are its financials or fundamentals? Why buy this stock? Jp power. This Company works in thermal or hydropower. Other than this Company operates in power transmission. Many big projects of companies this Jp power do. By reading the below information about this company, you can identify this is a good Multi-Bagger Stocks for 2025.
| SL.No | 2022 annual report | values |
|---|---|---|
| 1. | Revenue | 46.25 B |
| 2. | Operating expense | 6.80 B |
| 3. | Net income | 1.07 B |
| 4. | Net profit margin | 2.32 |
| 5. | EBITDA | 11.18 B |
| 6. | Effective tax rate | 65.380 % |
In which direction jp power financials are going?
Due to its financial improvement, This Company will become a multi-bagger here. We know that its debts to equity occurred in 2019-20. These are the Company’s quarterly results. September 2019 to September 2022 quarterly reserves are there.
If we see then almost, Its sales are multiplied 1.6 to 1.7 times. Acc to that, its expenses are multiplied. Its expenses increased. Therefore, there is little increase in operating profits. Operating margins shrank. Due to this, operating profits have remained the same with the increase in sales.
The good thing is that it is in company profits. Interest payments of the Company are less. Its description there is much difference in the Company. Deprivation and monetization expenses are almost the same.
The profit was negative before but because of heavy interest payments. That is converted into positive now. Slowly slowly, the Company EPS is +ve now. We can see that there is no profit or loss. Some minor negative glitches are also there Overall from some last quarters. Now it is generating a positive result.
If we sales then almost Sales are multiplied 8-9 times. Acc to that, its expenses are multiplied. Operating profits also doubled. Operating margins shrank slowly. It happens When your field becomes competitive, with some difference in figures.
Net profits from 2011 – TTM Operating margins shrank. So, in front of increasing revenues, You will see little difference in EPS. Its heavy interest payments From some time debt to structure increased Interest payment comes in control.
Consistently after giving negative performance From some last years company finally is generating positive EPS. This is a good Multi-Bagger Stocks for 2025.
The market cap of jp power
The market cap of the Company is 5448 crores. At this time, Jp Power is a small-cap company. The current price is 7.95rs, around 8rs. Stock created its high of 11.20 rupees, and The 52-week low is 4.45. Now stock P/E is 12.9. Industry P/E is 23.6. This Company is undervalued in its sector Book value of the Company is 15.6.
This is an attractive point because one year before, its book value was around 7,8,9 rupees. Increasing from that become 15.6. The simple Reason for that is Its sales and projects increased. Together with it, Company generates +ve EPS. Then, book value increase slowly.
Due to this Reason in this Company. I held it till now, and it’s increased its stack slightly. ROE and ROCE could be more attractive. As I told you, Whenever we talk about any penny stock, There are some problems. The price to book value is almost half. Promoter holding is 24%.
its performance in the last years
Last year the Company made sales of 6000 crores. The operating margin of the Company is 25.3%. Net profit margin 2.32%. Company TTS EPS is around 62 paise. The Company has a debt of 4,807 crores. In front of that, revenues are 3853 crores. Quick and current ratios both are in the comfortable zone. This shareholding pattern has changed in the last three years.
Quarters on quarters from December 2019. Up to September 2022, we can see Promoter shareholding was 29.74%. It is reducing from that it becomes 24%. Fiis were holding, increasing 0.54% from becoming 3.38%. Fiis holding that was 47.62%. Now it is 22.18%.
A little red flag is a public shareholding Increasing from 22% to 50%. This is not a good shareholding pattern. But again, one thing to be remembered. This is a penny stock in this as much as the stock market risk we can think of.
All the risks are associated with penny stocks. Before investing in such companies, consider so many times.
Whenever we invest in multi-bagger stocks, we mainly select companies with the potential to multiply 10-20 times. If you take the examples and see there are unlimited companies. That multiplied 50-100 times. You only need good stock selection and hold them patiently.
Whenever we select stocks With 10 to 20% up-down movement, we get worried and exit from that stock. The thing to remember is Whenever you are choosing multi-bagger stocks. There must be a strict reason for that.
Why did you equip any stock in your portfolio If we included it once? we have to hold it patiently. It should not happen with some up-down movement and We take an exit.
Sometimes it also occurs Whenever we invest in multi-bagger stocks, and Then some rare opportunity comes before us. Some such companies are in front of us. That keeps so significant potential. That holds the potential to multiply 100.This is a best Multi-Bagger Stocks for 2025.
2. LIKHITHA INFRASTRUCTURE
This Company is a small-cap company. It keeps the potential to multiply so many times. First of all, we will understand company business. What business does it have? What that business or industry will grow in the future? What are the government plans? That Company or industry will grow.
What is the presence of this Company in its sector? After that, We will see the company financials. So that we can understand, Can this Company become a good multi-bagger Multi-Bagger Stocks for 2025 from here? This is a very good Multi-Bagger Stocks for 2025.Let’s know more.
| SL.No | 2022 annual report | values |
|---|---|---|
| 1. | Revenue | 2.57 B |
| 2. | Operating expense | 591.97 M |
| 3. | Net income | 461.21 M |
| 4. | Net profit margin | 17.93 |
| 5. | EBITDA | 621.85 M |
| 6. | Effective tax rate | 24.98 % |
financial details of LKHITHA INFRASTRUCTURE
The Company’s market cap is 871 crores. It is a small-cap company. The current price of this is 442. 52-week low/high here, 480 tall, and a low of 236. What targets have I selected for this Company? How much holding period do I keep? All these information I will share everything with you.
Stock P/E is 16.4. Industry P/E is 25.1. The book value of a stock is 111. The price-to-book value is around 4. There is a minor dividend yield, and ROE and ROCE both are at reasonable levels.
The face value of a stock is 10This means there is no split in stock. Promoter holds excellently is good at 74.1. In October 2020, Its IPO came for the first time. Till now, promoter holding has been maintained very well. FII has a little holding of 0.32. The public has 25.6% shares.
its performance in the last years
Last year it made many make sales of 304 crores. It is an excellent ratio if we see deals according to the market cap. The operating margin of the Company is 22.8. The net profit margin is 17.7. That is very good according to any standards. Company TTM EPS is 27 andThe Company has no debt.
According to that, the current and quick ratios are both excellent. The Company has reserves of 200 crores. The Company’s yearly hipe from 2011 to TTM increased from 18 to 304 crores. As the expenses grew, operations Increased from one crore to 69 crores.
In the last three quarters, sales more than doubled operating profits. According to that, Operating margins increased. Net profit increased. According to that EPSise consistently increases from quarterly.
The Company is a small-cap company. In small-cap companies, increasing EPS is a good design. It is debt-free, a small-cap, and has an increasing EPS. Very much growth potential remains in the Company. The Company Likhitha Infrastructure Limited some time. This is a good Multi-Bagger Stocks for 2025.
Products and services of LKHITHA INFRASTRUCTURE
The Company’s business is the pipeline, laying erection, testing, and commissioning of Oil and Gas pipelines: city gas distribution projects and operation maintenance services. Only when oil and gas companies are there, they may be government or private companies when they must lay down a pipe.
Gas, oil, and business will increase significantly in the coming years. Because e-government in the year 2022 announced that the gas distribution network would cover more than 90% of the population.
Currently, the coverage of city gas distribution and the district level. Increasing from 50% reached 70%.Population relations should be covered more when you talk about India, which is a populous country.
If 70% is done, what will happen? But in this 20%, There are millions of people. This means crores of people When this much expansion occurs in any company.
Then there are LIKHITHA infrastructure companies That are small-cap companies. But they are market leaders in their sector. Which type of market leaders are they? We will see later. What achievements have they achieved? LIKHITHA Infrastructure is a market leader in its segment. We must pay attention to such companies.
One thing must be cleared The real growth in a portfolio or the stock market we get from the small cap. Small caps are not risky. The problem is we need to spend time selecting small caps. Small cap selection is very specialized work.
Every investor needs help to do this. If I start telling you, I will say to you multi-baggers. This stock will become a multi-bagger or not. There is profit of this once I show you. Which stocks of mine become multi-baggers?
If I can select consistently multi-bagger, Then only my thought process is aligned with multi-bagger. By only saying none of the stock become multi-bagger.
As LIKHITHA’s infrastructure is there, They are very few listened companies. Many investors need to talk about this. Some days earlier, an article came to Dalal Street about this.
I have seen Mostly financial magazines and newspapers, which gave tiny targets. But as we can see Company is in the very high growth phase.
In the coming years, there will be growth in this industry. Maintenance and operating services remain forever when this industry grows to its place. Such companies will remain relevant forever. We only need such Small-cap companies to keep so much potential. By selecting them and can hold for an extended period. This is the best Multi-Bagger Stocks for 2025.
3. HPL ELECTRIC & POWER LTD
The third is an Electric Company; I will compare it to Havells. I am comparing it to Havells because it is a market leader in this sector, and the product portfolio of these two is almost the same. And I will show how hpl electric is a multi-bagger stocks for 2025.
If we’re selecting a small-cap company in any sector and say that it can become the market leader of this sector, graduate from small-cap to mid-cap, or move from mid-cap to large-cap in the future, what is its position of it against the market leader? It is essential to see it one on one.
| SL.No | 2022 annual report | values |
|---|---|---|
| 1. | Revenue | 10.14 B |
| 2. | Operating expense | 2.72 B |
| 3. | Net income | 77.73 M |
| 4. | Net profit margin | 0.77 |
| 5. | EBITDA | 1.17 B |
| 6. | Effective tax rate | 43.99 % |
It is essential to realize its weakness as it is a small-cap company. It should not only be like that. We only include good points about the Company and neglect its shortcomings of the Company.
last ten years’ profit and loss statement of HPL ELECTRIC
From 2011, sales have doubled in the last ten years. The increase in sales operating profits has also increased nicely. Its operating marring has been more or maintained during the previous 10-11 years. One minor shortcoming is that the interest payment of the Company has also tripled in 10 years, along with Company’s non-cash expense, which is Depreciation.
When a Company generally upgrades its machinery, then there. Depreciation comes, so Company’s Depreciation has increased nine times in 10 years means Company has upgraded its machinery.
This Company has moved towards expansion in past years due to Depreciation and increased interest payments company’s net profit is maintained at approx. We can see its effects on earnings per share.
Why it is a better stock than Havells
Havells is the one-to-one comparison of both. I’ll keep highlighting the important points and also tell you points we can ignore Current stock price is 93 rupees, and Havells’ is 1244 Rs.
We can ignore this point entirely because the stock price doesn’t matter market cap of the Company is 600 Crores means it is a small or micro-cap company. Havells’ market cap of approx 78,000 Crores Stock’s PE is 17, and of Havells is 71.7. So if you compare it according to the PE ratio.
Book value is 121 Rs. and of Havells is 98.5 Rs. Price-to-book value ratio is more important than the book value. The Price book value of our Company is 0.79, and of Havells is 12.6 means Havells has a lot of favoritism from investors, creating a stock price of 12.6 times of book value.
Our Company’s stock is not trading on its book value, which is a sign of an undervalued company. That is when your Company is in a growth phase, and even then, it trades under its book value.
Now why is this happening that the PE ratio and Book value are so less? Let’s understand its Reason also. The Reason will be apparent to you in these 2 points when you compare the ROCE and ROE of our small-caps. Company with Havells Havells’ ROCE and ROE are significantly higher at 27.6% and 21.4%.
At the same time, only 6.10% and 1% of ROE companies are working. Now one justification that can be given here is that it increases depreciation expenses. Depreciation is a non-cash expense.
As I have said, it shows the Company’s expansion means when a company installs new machines or upgrades its machinery. Their depreciation expenses increase from their Company’s profitability and can be reduced, but it is a non-cash expense.
Remember that then we should come to the shareholding patterns. In sharing holding patterns, there 3 are essential points. The promoter holding of our Company is 72.2%, whereas that of Havells is 59.4%.
Still, Havells is a big company and will be on the favorite list of FII and DII holdings. Public shareholding in small-cap companies is 26%, and in Havells is 7.43%. The operating margins of both companies are excellent. Our Company is 13.2%, and Havells’ OPM is 10%. Net profit Margin is 0.77%, and of Havells is 8.59%.
Conclusion of this stock
The profit-loss ratio remains in our favor. Only our portfolio can beat the index when we let our profits grow and multiply them many times. This can give more returns than any mutual funds.
When discussing multi-bagger investing, Suppose you have invested in some company today. Firstly, the condition should not be like today. I have invested in it. So it will start growing tomorrow, only in some multi-bagger investing.
I have also experienced it when I purchase a stock, its price comes down after my purchase and remains down for a few years, but this does not matter. If our stock selection is good and we’ve done research-based investing, we only have to give the Company time to work on it. A lot depends on market movement also.
As you had seen in the case of HPL Electric, it was not at all when the market was taking a rally. Such companies like this sometimes don’t even follow market movements. Still, it would help if you had a firm conviction on that. If you have confidence in your selection, then you can comfortably stay in that investment Before going. so This is a good Multi-Bagger Stocks for 2025.
What are the Important rules for choosing a multi-bigger stock for 2025?
You’ll need to remember these critical points while creating a portfolio. I strictly follow these points in my Multibagger Growth Stocks Workshop. If you also understand these simple rules, then it will have two significant benefits.
First, your portfolio will go into the safe zone from where you will no longer get any tension. Secondly, now your portfolio will be moving forward in a balanced way, and you will always see your portfolio in green.
Defining Your Portfolio’s Focus and Direction
The first point is to give your portfolio direction. It means you should know which type of portfolio you are creating. You want to create a Small-Cap growth stock portfolio, or you want to create a Large-Cap portfolio, or you want to create a dividend-paying portfolio.
There is one more type of portfolio: a Multi-Cap portfolio. Multi-cap means that we select the companies of large-cap, mid-cap, and small-cap Multi-cap funds are also popular.
Creating a Pure Growth Stock Portfolio
mutual funds have rules to invest only in market caps more significant than a fixed value. But these limitations do not apply to a retail investor. We do not have so much fund that we cannot invest in any company.
That’s why we can create a single-growth stock portfolio aside from this multi-cap. One of the most significant benefits of creating a pure stock growth portfolio is that its profit/loss ratio is always in your favour.
Determining the Optimal Number of Stocks for Your Portfolio
First, you have decided in which direction I am taking my portfolio here, for example, Growth Stock Portfolio. Then, in the second step, you decide how much stock should be in your portfolio.
As I understood, no. of stocks should lie between 15 and 25, where the minimum number should be 15 and the maximum 25. I am saying 25 because If you see an investment of 1 year, You can only invest in 25 stocks in 1 year.
An ideal number is between 15 and 20 if you buy and keep them for one year. I am taking one year because the market will face many ups and downs and opportunities in one year. You can gradually take your research forward and be selective while selecting stocks for your portfolio.
Equal Allocation Strategy for Investing in Stocks
The next step is how much money we should invest in one stock. It has a straightforward rule Keep your allocations equal for all your stock. How much your fund is divided into the no. of stocks you have.
For the next year, I will invest this much money in the 15, 16, and 17. as stock you have. Now, you don’t have to think about investing how much money in which stock. Suppose your fund was 5 – 7 lakh. You divided it into 15 – 20 equal parts.
You can invest in stocks from approx 25,000 to 30,000. If you want to increase the allocation Best time for that is next year. When you start your investment next year, If you see some extra funds with you, you can increase and maintain that allocation for that year.
Choosing Between NSE and BSE for Buying Stocks
From whom should we buy NSE or BSE stocks? It doesn’t matter whether you buy it from NSE or BSE. Some stocks are listed on both, and others are detailed on anyone. From whichever exchange you get the best value, You can buy it from there. At last, it has to come into your Demat account.
Avoiding Stop Loss and Averaging Strategies
Now let’s come to the crucial step, No Stop Loss and No Averaging means once we have completed our allocation in any stock. After that, we don’t have to stop loss and Averaging. We stop loss when we don’t have any hope of growth of that stock. And if the price of this share goes below this, it will only go down, and your money or share can be finished.
We average when we think this stock will go up, and here we Suppose we purchased a share at 100 Rs. We are getting 70 Rs. Then we do the averaging here that The Average cost price of a share will be between 70 and 100 will be 85 Rs. Now, I would like you to understand both concepts.
If you make the Stop Loss, If you think the share will be going down only, not up, It means there was something wrong with basic research. If everything stays the same, There is no scam developing in the Company or no accounting problem developing.
Then also you are making stop loss just by seeing its price, then it’s a mistake. Once there is a change in the Company’s fundamentals till then, we should wait to make its stop loss because that share can be reverted at any time.
How to identify multi-baggers stock for 2025?
Firstly you have to research Which sectors and industries will be in demand in the coming times? You must have heard that the need for electric cars will increase significantly in the future times.
Due to the direction of electric vehicles, which sector companies will be in order? What are the things needed to make an electric vehicle?
For example, suppose there is a need for a battery. In that case, you can do research with the Company that manufactures the battery and bike the lion of that Company so that you can earn a lot of profit in the future.
In the coming time, everything will be digital. Everything will be digitized as digital payment is happening; IT tech stock will gain momentum. Whichever IT-related Company it is, the price of those shares will increase significantly. And when you have set the sector, you also have to select the Company.
Then, after choosing the Company, we have to see the Company. How much loan is left by the Company? Every Company has its growth and takes a loan for pension. View the Company’s value every year or quarter. If it is increasing, then the Company is terrible; if it is decreasing, it has improved significantly.
The higher it is, the higher the Company’s cash flow effect. A healthy cash flow reflects the growth of a company. Third risk Investing in multi-bagger stocks is fraught with risk. You may lose money if your analysis turns out wrong and the Company needs to perform as expected.
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Is investing in multi-bagger stocks for 2025 risky?
Yes, investing in multi-bagger stocks can be risky as it involves investing in companies that are relatively unknown or untested, with uncertain prospects for growth. However, the potential returns can be substantial, making it an attractive investment opportunity for many investors. It is important to do thorough research and analysis before investing and to have a diversified investment portfolio to manage risks.
Can multi-bagger stocks for 2025 be found in any industry or sector?
Yes, multi-bagger stocks for 2025 can be found in any industry or sector, including technology, healthcare, energy, and finance. The key is to identify companies with strong fundamentals, innovative products or services, and a solid growth potential, regardless of their industry or sector.
Should I invest in multi-bagger stocks for 2025?
Whether or not to invest in multi-bagger stocks for 2025 depends on your investment goals, risk tolerance, and financial situation. It is important to do your own research and analysis and consult with a financial advisor before making any investment decisions. Remember, investing in stocks always involves risks, so having a diversified portfolio and a long-term investment strategy is important.
What are some examples of multi-bagger stocks from previous years?
Some examples of multi-bagger stocks from previous years include Amazon, which grew more than 100 times in value from its IPO in 1997 to 2020, and Apple, which grew more than 60 times in value from its IPO in 1980 to 2022. Other examples include Netflix, which grew more than 200 times in value from 2002 to 2022, and Tesla, which grew more than 40 times in value from its IPO in 2010 to 2022.
What are some risks to consider when investing in multi-bagger stocks for 2025?
Some risks to consider when investing in multi-bagger stocks for 2025 include market volatility, regulatory changes, competition, economic downturns, and company-specific risks such as management changes, product failures, or lawsuits. It is important to consider these risks and to have a diversified investment portfolio to manage risks.
How long should I hold on to multi-bagger stocks?
The length of time you should hold on to multi-bagger stocks depends on your investment goals and strategy. Some investors may choose to hold on to multi-bagger stocks for several years, while others may sell their shares once they have achieved their desired returns. It is important to have a clear investment strategy and to monitor your portfolio regularly to make informed investment decisions.
What is the typical holding period for multi-bagger stocks?
The holding period for multi-bagger stocks can vary depending on the individual investor's investment goals and strategy. Some investors may choose to hold on to multi-bagger stocks for several years or even decades, while others may sell their shares once they have achieved their desired returns.
Should I focus on investing in a single multi-bagger stock or multiple stocks?
It is generally recommended to have a diversified investment portfolio that includes multiple stocks, rather than focusing on a single multi-bagger stock. This helps to manage risks and minimize the impact of any single stock's performance on the overall portfolio. A diversified portfolio can also provide exposure to a wider range of industries and sectors.
What are some common characteristics of multi-bagger stocks?
Common characteristics of multi-bagger stocks include strong revenue and earnings growth, expanding profit margins, a competitive advantage or moat, and effective management. These companies are often disrupting their industry with innovative products or services, and have a large total addressable market for their product or service.
Is it possible to predict which stocks will become multi-baggers?
While it is not possible to predict with certainty which stocks will become multi-baggers, it is possible to identify companies with strong fundamentals and growth potential. By conducting thorough research and analysis, investors can identify companies that are well positioned to take advantage of market trends and generate strong returns over the long term.
Are multi-bagger stocks suitable for all investors?
Multi-bagger stocks can be suitable for investors with a high risk tolerance and a long-term investment horizon. However, they may not be suitable for all investors, especially those with a low risk tolerance or a short-term investment horizon. It is important to understand your own investment goals and risk tolerance before investing in multi-bagger stocks.
Hi there, I’m shiv singh, a financial advisor at Tata Group with a Master’s degree in Commerce from SRCC – Shri Ram College of Commerce. With over three years of experience in the financial sector, I possess a wealth of knowledge and expertise that I share through my blog posts on FinancialMajestic.com. Join me as I simplify complex financial concepts and empower readers with valuable insights.