Introduction:
Multi-bagger stocks refer to equity shares that yield returns significantly surpassing their acquisition cost. Coined by Peter Lynch in his book 'One Up on Wall Street', these stocks epitomise undervaluation and robust fundamentals, making them lucrative investment prospects. A stock doubling its price constitutes a two-bagger, while a tenfold increase earns the moniker of a 10-bagger. Hence, multi-baggers denote stocks whose prices have multiplied several times over their initial investments.
Investors with a moderate risk appetite who seek to grow their capital aspire to acquire multi-bagger stocks. However, the challenge lies in recognising a multi-bagger, which often becomes apparent only in hindsight. Initially, such investments may appear risky, particularly in an overheated market. However, this wealth accumulation typically occurs over an extended period, facilitated by gradual compounding, requiring the patient mindset of an investor.
Top multi-bagger stocks on NSE India for investment in 2024
Identifying multi-bagger stocks requires careful perusal of the stock market and various stocks. You need to consider factors such as the stock performance in previous quarters, earning ratios and price multiples, the debt level of the company, etc.
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Below is the list of the best multi-bagger stocks listed on the National Stock Exchange (NSE) of India. You can add these stocks to your portfolio with a long-term investment horizon:
1. Varun Beverages Limited
Varun Beverages Limited is an India-based beverage company that holds the title of being the second-largest franchisee of PepsiCo in the world (excluding operations within the United States). The company’s diverse product portfolio encompasses carbonated soft drinks, packaged fruit juices, drinking water, and energy drinks.
The company is among the best fundamentally strong companies on the NSE and can potentially deliver multi-bagger returns. As of 4 April 2024, Varun Beverages shares were trading for Rs. 1,514.55 at the NSE.
2. Adani Enterprises Limited
Adani Enterprises Limited is an Indian conglomerate operating across a broad spectrum of sectors, spanning energy, resources, logistics, and financial services. The company is a part of the prestigious Adani Group owned by the business tycoon Gautam Adani. The company has strong fundamentals and can turn out to be a multi-bagger stock.
The shares of Adani Enterprises Limited are listed on both the NSE and the BSE. As of 4 April 2024, these shares were trading for Rs. 3,210.80 per share at the NSE.
3. CCL Products (India) Limited
CCL Products (India) Limited specialises in the transformation of raw coffee beans into instant coffee powder or granules. As the largest coffee processor in the country, the company serves numerous top global private-label coffee players as its clients. Factors such as a niche industry, robust fundamentals, and strong volume growth make CCL products one of the best stocks for those searching for multi-bagger stocks.
As of 4 April 2024, the shares of CCL Products Limited were trading for Rs. 590.40 per share at the NSE. The stock has already zoomed by 106.98% in the last year.
4. The Federal Bank Limited
Federal Bank is a leading private-sector bank with its headquarters situated in Kerala. The bank offers a gamut of services to its customers, including retail banking, wholesale banking, treasury operations, etc. In the last quarter of FY23, the bank experienced robust advance growth, with a year-on-year increase of 21.34%. Factors like stable asset growth, robust fundamentals, and minimum NPAs increase the chances of the Federal Bank becoming a multi-bagger soon. As of 4 April 2024, The Federal Bank’s stocks were trading for Rs. 152.45 each at the NSE.
5. Tube Investments of India
Tube Investments of India is an engineering and manufacturing company with expertise in producing bicycles, chains, and various other metal-based products. The company’s stocks are listed and traded on both the NSE and the BSE. Considering the company’s robust fundamentals, P/E ratio, and EPS, it finds a mention on this list of the best multi-bagger stocks on the NSE India. As of 4 April 2024, the shares of this company were trading for Rs. 3,597.30 on the NSE.
To conclude
These are some of the top NSE stocks that have the potential to provide multi-bagger returns. However, you must consider your risk appetite and the prevailing market conditions before making a final investment decision.
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