However, as we stand in 2022, the market has shown one of the fastest recoveries of the decade. Talking about the figures, in the last 3 years, the Nifty has increased by 46 percent, while the Sensex has gained 40 percent.
Even in such critical times, there are companies that have survived and given good returns to their investors. Investors often call these companies multibagger stock,
Here are the top 5 multibagger stocks in the midcap space.
#1 Ruchi Soya Industries
The first multibagger stock on our list is Ruchi Soya Industries.
The stock has grown at a CAGR of 442% in the last 3 years and at the rate of 117% in the last 5 years.
Ruchi Soya is a leading FMCG company in India. It is a leading manufacturer and marketer of a wide range of edible oils, as well as a leader in soy meal.
It is the world’s largest producer of soy meal, with a presence in the upstream and downstream regions with safe palm farms.
Ruchi Soya has agreed to buy Patanjali Ayurved’s food retail business, which includes food product manufacturing, packaging, labeling and retailing.
After the acquisition, the name of the company will be changed to Patanjali Foods.
Following the acquisition, the company expects its combined food portfolio to generate 18% of total sales in 2023, up from 6% in 2022.
In its latest quarterly results, the company posted 37% growth in revenue 6.6 billion which stood on 4.8 billion in the March 2021 quarter.
Net profit fell 29% to Rs. 2.4 billion that stood on 3.1 billion in the same period a year ago.
#2 Tata Teleservices
Second on our list of multibagger stocks is Tata Teleservices.
The company’s shares have grown at a CAGR of 203% in the last 3 years and 84% in the last 5 years.
However, in 2022, the stock has gone up nearly 3,000% since the beginning 9 in January 2021.
What does Tata Teleservices do?
The company, along with its subsidiary Tata Teleservices (Maharashtra) Limited, is a leading provider of business digital connectivity and cloud solutions. It provides a complete range of ICT solutions for Indian enterprises.
According to media sources, Tata Sons announced that it will revive Tata Teleservices in May 2021 in a scheme known as Tata Tele Business Services (TTBS), which will cater to small and medium firms (SMEs).
Since then, the company’s shares have received significant interest.
In addition, the corporation is also looking at the 5G market to expand its operations.
In a recent move, Tata Teleservices opted to convert interest on total Adjusted Gross Revenue (AGR) dues 8.5 billion for equity, resulting in the government owning 9.5% of the firm.
In the latest quarterly result, interestingly, it recorded a revenue of stood at 2.7 billion with no minor changes 2.6 billion in the same period a year ago.
The company marked a net profit of 1.2 billion which was the same with no significant increase in a year.
#3 Tonal Platform
The third place on our list is secured by Tanla Platforms.
The stock has grown at CAGR or 178% in last 3 years and 103% in last 5 years.
Tanla Platforms (formerly Tanla Solutions) is a cloud communications company that helps companies interact with their consumers and intended recipients. It is a global supplier of A2P (Application to Person) messaging platforms.
In fact it has a monopoly in the OTP business.
The firm is one of the world’s top communication platform-as-a-service (CPaaS) providers, processing over 800 billion interactions every year.
Several high-profile investors have joined the firm in the last one year.
In addition, it has recently attracted many Domestic and Foreign Institutional Investors (FIIs), SBI Life Insurance Firm and Smallcap World Fund Inc had invested in the company in June 2021.
When the stock went public in 2007 265 per share, it nearly doubled in a year. But then after the market crises of 2008 and 2011, which lowered the share price to a minimum 2 till 2013.
The company’s success over the past three years has been outstanding. it was trading for less than Back on 30 December 2018. It has already reached a high level of 1,900.
Tanla Platforms announced an exclusive relationship with Kore.ai for five countries: India, the United Arab Emirates, Indonesia, Vietnam and the Philippines.
Kore.ai is a company that provides enterprise conversational AI software platforms and solutions.
This collaboration is an important step towards giving enterprises and brands the ability to enhance the digital experiences of their key stakeholders.
In its latest quarterly results, Tanla Platforms grew its revenue by 50% 3.6 billion that stood on 2.4 billion a year ago in the same period.
It registered a growth of 38% YoY in Net Profit with 1.8 billion that stood on 1.3 billion in the same period a year ago.
#4 Laurus Labs
The fourth stock on our list of multibagger stocks is Laurus Labs.
The company’s shares have grown at a CAGR of 98 per cent in the last 3 years and 34 per cent in the last 5 years.
Laurus Labs is a global pharmaceutical and biotechnology firm based in Hyderabad, India, with production facilities in Visakhapatnam, Hyderabad and Bengaluru.
It focuses on active pharmaceutical components, final dosage forms, synthesis and biotechnology.
The firm has recently suggested capex of 15-17 billion divestment to expand its operations over the next two years or until 2023.
Of the announced capital expenditure, 25% will be invested in developing manufacturing capacity, while the remaining 50% will be committed to augment India’s Active Pharmaceutical (API) capabilities. The remaining 25% will be used to expand capacity to meet the needs of the company’s contract manufacturing business.
The business intends to increase its worldwide market share to 25% or more in 15 API products, up from 25% in seven currently.
In its latest quarterly results, Laurus Labs marked the revenue of 13 billion which was the same in the same period a year ago.
and it recorded a net profit of There was no significant increase of 2.2 billion year-on-year (YoY).
#5 Trident
Fifth on our list is Trident.
The stock has grown at a CAGR of 84% in the last 3 years and at the rate of 39% in the last 5 years.
Trident Ltd. is a market leader in the production of Yarn Bath Linen Bed Linen Wheat Straw-based Paper Chemicals and Captive Power.
The company operates state-of-the-art manufacturing facilities at Barnala (Punjab) and Budni (Madhya Pradesh). The company has large customers in more than 100 countries.
Recently, the Board of Directors adopted the resolution to collect the funds and suggested an enabling resolution for shareholder approval, not for a greater amount. 5 billion by way of public or private sale of non-convertible debentures (NCDs) in one or more tranches.
Despite disruptions in the global supply chain due to the Russian-Ukraine war and a rise in global yarn raw materials, Trident displayed decent numbers in its March 2022 results.
In its latest quarterly result, it reported a 38% growth in revenue 18 billion which is Rs. 13 billion in the March 2021 quarter.
It registered a growth of 142% to Rs. to 1.7 billion 750 MA years ago in the same period.
Snapshot of Multibagger Shares from Equitymaster’s Stock Screener
Here is a quick look at the above mentioned companies based on some important financial parameters.
conclusion
Although profit may seem tempting, markets are quite unpredictable in the short term. To withstand such ups and downs, one must have the appetite to take a lot of risk.
It’s usually better to examine a company’s fundamentals rather than be seduced by short-term price increases. In this way the risk of the investment portfolio can be reduced.
The markets are extremely volatile now. As a result, you should be extremely careful when choosing To invest in multibagger stocks,
Remember that opportunity can come in the midst of any difficulty. As a result, if you invest wisely, you can benefit from the current environment.
If you want to invest, try to invest for a longer period to get maximum returns.
Happy investment!
Disclaimer: This article is for informational purposes only. This is not a stock recommendation and should not be treated as such.
This article is syndicated from equitymaster.com