9 points to check before picking a multibagger

Harsha Jethmalani
moneycontrol.com

For most of us, investing in stock market is a fascinating investment option. We always look to invest in those stocks which can fetch handsome returns. Mutlibaggers are stocks which have the potential to earn multifold returns in a stipulated period of time. A stock that gives returns up to five-fold is called a five bagger, while the one which gives 10-fold returns is called a ten bagger. However, identifying them can be like finding needle in a hay stack. Moneycontrol.com takes help from SP Tulsian and PN Vijay to know the nitty-gritties of investing in multibagger stocks.

According to experts, following characteristic should be kept in mind while scouting for a multibagger:

> Look for companies having lower equity base because lower the equity base higher would be the valuations and earnings per share (EPS).

> Stocks where promoter