Today in this post we will talk about one way by which multibagger stocks can be found.
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So are you also looking for multibagger stock then stay with us in this story
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Friends, when a stock becomes a multibagger, when the company is growing at high growth speed, then the company's stock goes on running.
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Stocks of only those companies become multibagger companies which are growing at a very high growth rate.
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So the first point is growth, if a company has high growth then that company can become a multibagger in the long run.
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Next return on equity and return on capital, if a company is earning more than 15% return on capital employed and return on equity for the last 10 years
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So it should be understood that this company is a good company for long term investment.
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The chances of such companies becoming multibaggers are high.
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Next Debt, when a company has more debt, that company uses its earnings to pay interest
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Due to which the company is not able to grow
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If the company does not have a debt, then the chances of the company growing will increase.
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Because the profit that the company will earn will be invested in its own business.
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Because of this, companies that do not have debt are better
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If you are seeing these three things in a stock, then it should be understood that there will be more chances of it becoming a multibagger of the stock.