A term coined by legendary investor Peter Lynch in his 1988 book ‘One up on Wall Street’, ‘multibagger stocks’ are stocks that generate returns multiple times over the initial cost.
For example, a twenty bagger stock is the one that has given a return of 20 times the investment - an investment of Rs. 100 turns into Rs. 2000.
Multibagger stocks are often associated with companies having tremendous growth potential, demonstrating sound management and excellent research and development skills.
However, sometimes in the case of excessively overvalued stocks, multibagger stocks might reflect an economic bubble developing in a country as well.
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Some of the Best Examples of Multibagger Stocks (yields Regular Dividends):
- Coal India
- M&M Financial
- IOC (Indian Oil Chemicals)
- Indigo Paints
- CDSL
- NTPC
- ONGC
- Gland Pharma Ltd.
- SBI Life
- Bharat Electronics (BEL)
- CRISIL
- ICICI Securities Ltd.
- ITC
- BPCL
- Power Finance Corp
- Burger King
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