Market

Making a comeback! Prabhudas Lilladher lists 30 ex-multibaggers that are showing promise

Updated : January 17, 2020 06:17 AM IST

Balkrishna Industries rose around 2,400 percent from Rs 59 in 2010 to hit its record high of Rs 1,467 in August 2018. Since then it has fallen 36 percent.

MindTree surged 704 percent, from Rs 147 in 2010 to hit its fresh high of Rs 1,182 on September 18, 2018. Since then it has fallen 33 percent since then.

Other criteria included current share pledge less than 20 percent and promoter holding more than 35 percent.

With markets consistently hitting record highs, a number of stocks that were under pressure has started showing promise. Brokerage firm Prabhudas Lilladher in a report identifies multi-baggers of the past from the mid, small and microcap universe that have corrected significantly from their 10-year high but are now bouncing back with strong fundamentals intact.

The brokerage has named 30 such stocks including Balkrishna Industries, MindTree, Motilal Oswal Financial Services, Natco Pharma, Hexaware Technologies, Shriram City Union Finance, Ajanta Pharma, Can Fin Homes, Tata Elxsi, and IIFL Finance, among others.

"Our sole purpose is to provide powerful insights into Indian equity markets to enable investors to identify opportunities that can otherwise be overlooked. The research output is based on comprehensive frameworks and methodologies where we analyse various quantitative parameters as required for a particular research theme ranging from fundamental, technical, derivatives, consensus, market and price data to global comparatives and broader macro trends," it said in its report.

Balkrishna Industries rose around 2,400 percent from Rs 59 in 2010 to hit its record high of Rs 1,467 in August 2018. Since then it has fallen 36 percent.

IT firm MindTree surged 704 percent, from Rs 147 in 2010 to hit its fresh high of Rs 1,182 on September 18, 2018. Since then, it has fallen 33 percent since then.

Methodology

The brokerage has included micro, small and midcap companies trading at attractive valuations relative to their large-cap peers, post the flight to safety driven large-cap rally.

It has ensured that the stocks have been listed on the bourses for a minimum of 10 years ensuring evaluation of long term performance track record and business characteristics.

The list includes stocks whose market capitalisation has grown 5x or returned 400 percent in the last 10 years to identify stocks that have been multi-baggers in the previous cycle but have corrected due to reduced risk appetite or macro factors not related to long term fundamentals of the company. The stocks in the list are trading at least 35 percent below their all-time high price achieved in the last five years.

Other criteria included current share pledge less than 20 percent and promoter holding more than 35 percent.

Disclaimer: CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

Have you signed up for Primo, our daily newsletter?

It has all the stories and data on the market, business, economy and tech that you need to know.

To keep watching CNBC-TV18, India's No. 1 English Business News Channel, call your Cable or DTH Operator and subscribe now for just Rs. 4 per month. You can also subscribe to CNBC-TV18 Prime HD for Re 1/- per month.Find out more

Making a comeback! Prabhudas Lilladher lists 30 ex-multibaggers that are showing promise

You May Also Like

HDFC Bank Q3: Gross NPAs seen in the range of 1.35-1.4%

How China tariffs on US commodities, energy stand after Phase 1 trade deal

US-China phase I deal no real surprise, phase II to be difficult, says Port Shelter Investment Mgmt

Trending on CNBC-TV18

recommended for you