Hi doston! Angel One ke is podcast mein aapka swagat hai.
Doston, stock market ke baare mein baat karte hue sabhi experienced aur seasoned investors aapko ye advice zaroor denge - ki stock markets mein aap overnight rich nahi ban sakte.
Stock markets se paise generate karne ke liye you require patience, hard work, and a very balanced mindset. Lekin iske saath hi aap stock market news mein aise stocks bhi dekhoge, which gain hundreds of percentage points over a few years. Chaliye uss category of stocks ko kisi aur din discuss karenge.
Today, we are discussing multibagger stocks!
Kyunki yesterday also, we were discussing multibagger stocks. Kal main Nitin ke ghar ke bahar khadi hokar usse baat kar rahi thi. Yaar lockdown ke time par no one wants to risk getting infected, hai ki nahi. And nitin had come across this word multibagger stocks, but didn’t have the time to google it. So he asked me instead. Fir baat hote hote we ended up on his rooftop, discussing the subject in great detail.
Lost track of the conversation, did I? Multibagger stocks ki baat kar rahe the - toh ye multibagger stocks kin stocks ko bolte hain? Basically, woh stocks jinpar returns investment se kai times zyada hote hain.
Nitin ke according this sounded like a stylish way of investing. Lekin usne mujhe next question ye poocha, ki multibagger stocks mein invest kaise kiya jaye - in other words, how to identify them?
And this is exactly what we are talking about today - how can you choose multibagger stocks in 2021?
Toh chalo shuru karte hain.
Doston multibagger stocks pick karne ki sabse badi problem ye hoti hai, ki any stocks come to be known as multibagger stocks only after they have clocked a few hundred percentage returns. Lekin tab tak, they have already grown by large margins. Isliye, multibagger stocks ek retrospective term hai. For example, aap kisi event ko accident tab tak nahi bol sakte jab tak woh accident actually na ho jaye, hai ki nahi.
But don’t let this dishearten you, kyunki multibagger stocks are not exactly accidents - and prudent investors can see them coming from far away. Toh chaliye dekhte hain, hot to choose multibagger stocks in 2021.
Secret number 1 - Look at high margin businesses.
Basically, behind every multibagger stock is a company that is in a business jisme margins are big, and they are bigger than what most other companies enjoy in their industries. For example, india me telecom industry bahut thin margins par operate karti hai.
Lekin some polymer industries, technology businesses and more recently, some pharmaceutical businesses have emerged as some high margin businesses in India.
Secret number 2 - Understand the business, and where its competitive advantage comes from Doston agar koi business kisi country me operate kar raha hai, toh most probably there will be one to two more businesses operating in that industry - nahi toh the first business will become a monopoly, haina. Jab kisi industry mein do ya zyada businesses hote hain, toh there is competition between them - competition to get more and more customers, more revenues, and a bigger piece of the pie in general.
Multibagger stocks ke underlying businesses usually koi na koi significant competitive advantage ke saath operate karte hain. For example, ek mutual fund house ne satellite images use karke ek retain business chain ke parking traffic se uske stock prices predict kiye the. Technology ka innovative use was a significant competitive advantage here.
So look for businesses which demonstrate significant advantage in terms of technology, management or resources compared to its competitors.
Number 3 - Look at the senior management and promoter holding
Doston multibagger stocks ke business ke peeche industry mein kuch influential figures hote hain. Because these companies work on high margins, have a capable management steering the company, and demonstrate significant competitive advantage, their stocks usually have a high promoter shareholding.
Capable management ke aur bhi symptoms hote hain - for example, industry laws aur regulations ke saath timely compliance aur obligations fulfilment. Never fall for stocks that show promising returns but have a grey management holding the reins of the business.
And lastly, number 4 - Observe how the cash flows
Multibagger stocks ka Earnings Per Share ratio high hota hai - ye isliye, kyunki such businesses often operate on a model that allows them to expand without consuming a significant chunk of their margins.
For example, imagine a company jiske zyadatar expenses operational expenditures hain, and few expenses are capital expenditures. Aisi company ko expand karne mein small investments lagenge, and the returns will be comparatively and potentially larger.
Toh doston, these are some of the ways in which you can identify multibagger stocks in 2021. Kya aap koi aise shares ke baare mein jaante hain, which exhibit these characteristics? Then time to revisit them with a fresh perspective!
Lekin dhyaan rahe, ki not all businesses that check these boxes will be multibagger stocks.
Multibagger stocks ko identify kar paane mein you might also need some industry experience, and some solid fundamental analysis skills.
Did you enjoy this podcast? Then you will definitely enjoy our other podcasts on various ways in which stock markets can help you identify the right avenues for investments.
If you are looking for more knowledge, then make sure that you visit www.angelone.in. Milte hain next podcast mein! Tab tak ke liye, goodbye from angel broking, and happy investing!
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