Investment Opportunities in Multibagger Stocks: Analysis and Recommendations
As many stocks have experienced significant corrections in the last four weeks, some investors might be considering whether now is the right time to invest in stocks that could potentially turn multibaggers in 2020. Based on a few research and analysis, several stocks that have seen drastic falls in the last month can be potential investment opportunities.
Recommended Stocks for Multibagger Potential
Here are some stocks that have fallen drastically in the last four weeks and could be considered for multibagger potential in 2020:
1. IBULHSGFIN Indiabulls Housing Finance Limited
Currently trading at Rs. 91.80, compared to its last month's price of 321.50, this stock has seen a significant price drop. Despite this, it is still trading at a very bottom level and could potentially turn into a multibagger. The correction in Indiabulls Housing Finance Limited has been substantial, but it might soon see a turnaround.
2. TATACHEM Tata Chemicals Limited
With the current price at Rs. 241.00, compared to its last month's price of 743.95, TATACHEM has experienced a notable decline. However, this could signal a potential upside for investors looking for multibagger opportunities.
3. EQUITAS Equitas Holdings Limited
Recent price movements show a drop from Rs. 114.45 to the current Rs. 39.05. Despite the significant correction, Equitas Holdings Limited could emerge as a multibagger if the underlying fundamentals improve.
4. EDELWEISS Edelweiss Financial Services Limited
The current price at Rs. 34.55, down from Rs. 97.15 last month, presents a compelling case for potential multibagger status. Rebound may be imminent if integration and/or market conditions improve.
5. INDUSINDBK IndusInd Bank Limited
INDUSINDBK has witnessed a significant price drop from Rs. 1135.00 to Rs. 426.00. This large correction means it is now trading at a much more affordable level, making it a potential multibagger candidate.
Additional Recommendations
In addition to the above stocks, some other recommendations from the analysis include:
1. Bajaj Finance
With a potential for high returns in the long term, Bajaj Finance is a top recommendation. The stock has seen a smaller correction compared to others, indicating a possible upside.
2. LIC Housing Finance
Another top pick, LIC Housing Finance, offers significant potential for returns. Similar to Bajaj Finance, it is expected to perform well in the long run.
3. Raymond
Famous for diversified business operations, Raymond provides another good entry point for multibagger stocks.
4. Jamna Auto and Marksman Pharma
These companies also present promising opportunities, although more information is needed to provide a detailed analysis.
Market Trends and Analysis
It's important to note that market trends and variables like economic indicators play a crucial role in determining the performance of stocks. The automotive sector has faced significant challenges, including sales declines and the fallout from ILFS saga, which has affected the NBFC sector. Moreover, risk aversion has increased among financial institutions due to the frequent mention of the word 'recession'.
Despite the current pessimism, such situations often provide opportunities for investors to make substantial gains. It's crucial to monitor key economic indicators such as IIP (Index of Industrial Production) and electricity generation, which reflect the overall health of the economy. Additionally, the ongoing trade war situation and the election year in the USA might lead to increased volatility in global trade.
While it may seem that there are turnarounds in the automobile and financial sectors that could generate handsome profits over the next couple of years, it's essential to keep an eye on the overall market scenario.
Note: This article contains general investment information. It is not financial advice. Please conduct your own due diligence and be mindful of the risks involved. Many factors may impact the performance of these stocks, including but not limited to economic conditions, market trends, and company-specific factors.
- Kavya Saxena