Identifying Cheap Multi-Baggers in 2017: Market Insights and Analysis
The stock market can be a lucrative investment for those who can identify the right opportunities. In November 2017, a few companies stood out as potential multi-baggers—stocks that could drastically increase in value within a relatively short period. This article examines some of the best investment choices mentioned by an avid investor, along with his analysis and rationale.
Introduction to Multi-Baggers
A multi-bagger is a stock that experiences significant growth, often doubling or more in value. Identifying multi-baggers is crucial for investors looking to secure substantial returns in a relatively short time frame. However, it requires a keen eye for market trends, strong financials, and robust management.
Investment Opportunities in 2017
MIRC Electronics Limited
MIRC Electronics Limited is one of the recommended stocks for a 5-8 month investment horizon. As an investor, this company's balance sheet, Return on Investment (ROI), price-to-earnings (P/E) ratio, and management have been thoroughly reviewed and found to be favorable.
Bhansali Engineering Polymers Ltd.
Bhansali Engineering Polymers Ltd. is another potential multi-bagger. Its diversified business and the recent commissioning of power generation units suggest strong potential for growth. The company's financials and management have been praised, making it a viable investment option.
Rain Industries
Rain Industries is a third contender for multi-bagger status. With a strong track record of profitability and a diversified portfolio, this company appears to have solid fundamentals. The investor believes that one of these three companies is likely to yield significant returns in the coming year.
Menon Pistons: A Sure-Shot Multi-Bagger
One stock that stands out for sure-shot multi-bagger potential is Menon Pistons. This company is characterized by minimal debt, a robust client base including major industry players, and a consistent track record of profitability. Menon Pistons' strong financial position and growth potential make it an attractive investment. However, it is important to conduct independent research before making any investment decisions.
PMC Fincorp: High Potential, High Risk
For those seeking high-risk high-reward investments, PMC Fincorp presents an intriguing opportunity. With a current share price (CMP) around Rs. 0.40 and a lifetime high of Rs. 122.35 on October 27, 2014, this stock is recommended for a minimum 2-3 year target period, with a potential target price of Rs. 3.5. This significant upside potential comes with a corresponding risk, making it a suitable choice for experienced and risk-tolerant investors.
Rattan Power: Long-Term Investment
Rattan Power is undergoing a transformation. Despite recent share pledges, the company has shown impressive growth in sales and a reduction in losses. It is noteworthy that this is a capital-intensive industry, which may not yield quick returns but has the potential to create substantial wealth in the long run. Rattan Power's diversified business and recent developments make it a promising long-term investment.
Conclusion
Identifying multi-baggers is a challenging but rewarding task for financial investors. In 2017, the recommendations mentioned in this article provided potential opportunities, including MIRC Electronics Limited, Bhansali Engineering Polymers Ltd., Rain Industries, Menon Pistons, PMC Fincorp, and Rattan Power. Each stock carries its own unique set of advantages and risks. As an investor, thorough research and a clear understanding of the market are essential for making informed decisions.
Disclaimer: Please conduct your own research and consult financial advisors before making any investment decisions.