𝗡𝗘𝗫𝗧 💸లక్షని కోటి రూపాయలు చేసిన 100X Multi bagger stocks ఇవే | must watch🔥

Brief Summary

This video discusses strategies for identifying potential multibagger stocks, focusing on characteristics of companies that have delivered 100x returns in the past. It emphasizes the importance of understanding business fundamentals, identifying sectors with long-term growth potential, and entering at reasonable valuations. The video also highlights the significance of niche market focus, strong distribution models, and sustainable growth through internal cash generation rather than debt.

  • Identifying potential multibagger stocks
  • Understanding business fundamentals
  • Identifying sectors with long-term growth potential

Intro

The video introduces the concept of identifying stocks with the potential to deliver 100x returns (100 baggers). It contrasts the high investment required for regular investments to reach a corpus of one crore rupees versus the potentially lower investment needed if one can identify and invest in multibagger stocks. The video emphasizes that simply picking stocks based on names is insufficient; thorough understanding and conviction in the company's business are essential to achieve such high returns. The presenter shares that the video will provide insights from a research report on characteristics of past 100 baggers and potential future ones, cautioning viewers against blindly following stock tips without proper research and understanding.

Multibagger explanation

The presenter shares data on the prevalence of multibagger stocks in the Indian stock market over the last 15 years. Out of 1000 listed stocks, approximately 270 have delivered returns exceeding 10x, while 32 stocks have achieved 100x returns. The presenter highlights the potential for wealth creation through multibagger stocks, noting that, on average, a ₹1 lakh investment in a 10x stock would have grown to ₹15 lakhs, and a 100x stock would have grown to ₹784 lakhs. This data underscores the importance of identifying and holding onto fundamentally strong companies for long-term wealth creation.

The Sectors with most of the Multibaggers

The video identifies the sectors from which most 100-bagger stocks have emerged. Out of 26 sectors with 100-bagger stocks, seven sectors account for the majority (117 out of approximately 180) of these high-return stocks: financial services, healthcare, capital goods, chemicals, auto and auto ancillaries, FMCG. The presenter attributes this concentration to long-term structural tailwinds in these sectors, suggesting that investing in fundamentally sound companies within sectors with sustained growth potential increases the likelihood of achieving 100x returns. Additionally, the video notes that the number of 100-bagger stocks has increased since 2008 due to favorable entry valuations following the market downturn. A correlation of -0.95 exists between entry valuation and 100-bagger returns, meaning that overpaying at entry significantly reduces the chances of achieving such high returns.

Key Parameter 1 and the Stocks

The presenter discusses key characteristics of stocks that have delivered high returns, noting that many of these stocks were either overlooked, out-of-glamour, or underwent significant business transformation, such as moving from commodity products to specialized offerings. The presenter suggests that NBFCs (Non-Banking Financial Companies) currently fit this profile, as they have been largely ignored by the market following the IMFS issue, leading to attractive valuations. The presenter believes that regulatory changes by the RBI could lead to an uptick in NBFC stocks, particularly those with strong parentage and good business practices, such as Shriram Finance and various microfinance companies.

Key Parameter 2

The video highlights the importance of companies focusing on niche segments. Examples of companies that have delivered 100x returns by focusing on niche markets include Asia Motors (Royal Enfield in the two-wheeler market), Balakrishna Industries (off-road tires), Symphony (air coolers), and Garvare (high-tech fish nets). The presenter identifies potential niche-focused companies in the current market, such as Azad Engineering, ThenSJS, Exigo (confirmed tickets and buses), and Sweet Dreams (women's premium nightwear).

Key Parameter 3 and the stocks

The presenter discusses the significance of companies building strong "modes," such as brand recognition, distribution networks, dealership depth, and consistent quality service. An example is shared of Siras Entware, which has delivered returns exceeding 550 times in the last 20 years by focusing on brand awareness and dealer incentives in semi-urban markets. The presenter identifies companies currently building such modes, including Kajara Ceramics (distribution network), Devyani International (QSR space), and Thyrocare (diagnostic space with a distribution model in Tier 1 and Tier 3 cities). The video also cautions against companies growing rapidly by leveraging debt, citing Unitech as an example of a star stock that destroyed wealth due to unsustainable debt-fueled growth.

Key Parameters for the future Multibaggers

The video provides filters to avoid investing in risky, rapidly growing stocks. The first filter involves selecting companies with a market capitalization between ₹300 crore and ₹10,000 crore to ensure data accessibility and clear disclosures. The second filter requires companies to have an average revenue and profit growth of at least 10% CAGR over the last five years. The third filter focuses on return ratios, requiring an average return of at least 12% over the last three years and a 3% increase in return on equity (ROE) compared to the previous three years. Additionally, the video emphasizes the importance of operational efficiency, specifically asset-to-cash flow conversion (CFO). The presenter also highlights the importance of qualitative parameters, referencing Part 2A and 2B of their Fundamental Analysis series, and shares a list of 13 stocks from the research report that exhibit characteristics of potential 100-baggers, while cautioning viewers to conduct thorough research before investing.

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Transcript

Full transcript of “𝗡𝗘𝗫𝗧 💸లక్షని కోటి రూపాయలు చేసిన 100X Multi bagger stocks ఇవే | must watch🔥”. Click a timestamp to open the video at that moment. Need another video? Use the YouTube transcript generator.

0:02 Please note this. If we want to create a corpus of one crore rupees for the next 10 years, if we invest in a regular way, we should invest 38,500 per month. If we invest in a product that gives 15% return, that means we have to invest 46,20,000 rupees from our pocket. If we say that we will save for one crore rupees and pick up 100 bags of stocks, then it is enough to invest just one lakh rupees. This is very sweet to hear, isn't it, but let's talk practically. If it was that easy to pick up 100 bags of stocks, then everyone would invest in only 100 bags and multiply their assets manifold. As retail investors, we should not think about 100 bags of stocks related to giving up.

0:49 Actually, I read a fantastic research report this week. I felt that after reading this, we should share it with them because in this research report, they said that in the last 15 years, there are stocks in India that have given 100 bagger returns. They did deep research on those stocks that gave 100 bagger returns. We all know that each individual company plays on its own characteristics. But actually, there are common characteristics in the stocks that have given 100 bagger returns. They found out that. I felt that if we share this, whoever we are, we will also make that 100 baggers. In fact, if we hit one, two, three 100 baggers in life, our life will be set. In fact, we actually made the right allocation. Generation Wealth

1:34 Create It would be. And in this research report, they not only share the characteristics of those 100 actual backers, but also share a list of stocks that have the potential to become the next 100 actual baggers by using them. I will also present them to you. But before presenting them, a small cautionary note is that anyone, even many newbies, who watch this video, if you are thinking that I will earn 100 bag returns just by looking at stock names on social media, then you are thinking very wrongly because when will 100 baggers be created? You can invest in 100 bags. But if you want to earn 100 baggers, you need to build a full-fledged conviction related to that company. You need to build a business understanding. All these are very important. Only then can we earn 100 bagger returns. So it's not just names. What we

2:20 need is how to find out those 100 bags. How to catch them. If you give us fish, we can eat it only once. Imagine that we have taught you how to fish. We can eat it multiple times. So how to do that fishing? The part that is there is these 100 baggers. I have shared with you all the details needed for identification in this video. This is a very, very interesting report. Watch the video till the end and while explaining each characteristic to you, I also shared with you which companies among the listed companies we currently see that have such a characteristic . Let's talk not only about this list, but also about many companies related to it. Watch the video till the end without skipping, you will get a lot of info and our team puts a lot of effort into bringing you such information while watching the video. If you find that effort helpful, all we ask on this channel is that you like the video . And if this is your first time visiting our Money

3:06 Parts channel, be sure to subscribe to our Money Parts channel and activate all notifications by clicking the bell icon next to it to improve your financial knowledge . Let's dive deep into this topic now [Music] For those of you who are direct stock investors, I 'll share a solid date with you first. Concentrate and try to listen. Hey, out of every 1000 stocks listed in the Indian stock market, how many stocks have delivered returns above 100 backers? Just guess. My guess is random. Before reading this data, it was completely wrong. I want to see how many of you guys will guess the right or approximate number. Try to comment in the comment section below, 10, 15, whatever you feel

3:51 . In our Indian stock market, the number of stocks that have delivered returns above 10 baggers in the last 15 years is 27.7%, which means more than 270 stocks. I actually thought that the number would be very low. Which is fantastic. 270 stocks out of 1000 stocks have delivered returns above 10 baggers in the last 15 years. If we look at the number of stocks that have delivered returns above 25 baggers, it is 13.1%, 1%. If we look at the number of stocks that have delivered returns above 50 baggers, it is 6.7%. If we look at the number of stocks that have delivered returns above 75 baggers, it is 4.5% and if we look at the number of stocks that have delivered returns above 100 baggers, it is 3.2%. So, 3.2% seems very low

4:38 . But personally, for every 1000 stocks, 3.2% or 22%, meaning 32 stocks deliver 100 bag returns, seems like a fantastic number to me. And in fact it created a huge hope that if we pick up companies with solid fundamentals at the right valuation in the Indian stock market, this data tells us why we shouldn't sell them. They also shared another interesting data point: "We don't have 10 bags, we have 25 bags, 50 bags, whatever." If these 10 bagger stocks deliver returns, on average over the last 15 years, if you invest 1 lakh, these stocks would have given a return of up to 15 lakhs. On average, some may have given 20 lakhs, some may have stopped at 10 lakhs. If you look at the average, you would have created wealth of up to 15 lakhs.

5:26 If there are 25 bagger stocks, the average wealth created by 10 to 25 backer stocks is 34 lakhs, while the average wealth created by 50 backer stocks is 60 lakhs. You will understand why this data says that when you go to 100 baggers . If we look at the wealth of stocks that delivered an average of 75 baggers, it would be 85 lakhs, and if it delivered 100 baggers, it would be 1 crore 20 lakhs, but the stocks that delivered 100 baggers did not get that 20 crore 30 lakhs. Do you know how much wealth these stocks have created on average? 784 lakhs is fantastic. That is, we talked about it in the beginning. If we get one, two or three solid 100 buckets in our life, our life is set. And in fact, if we get something like this, our life is

6:11 set. Even if we get 20 buckets, 30 buckets, we can create substantial wealth. [Music] And I will share another interesting data point. Look, this actually makes our work a little easier. Now, if we look at which sectors these stocks that delivered 100 back returns came from, there are stocks from 26 sectors that delivered 100 back returns. The majority of the stocks are in the 180-100 range. 117 of the 100 backer stocks come from only seven sectors. What are those seven sectors? First, financial services, second, healthcare, third, capital goods, fourth, chemicals, fifth, auto and auto ancillaries,

6:56 sixth, FMCG, seventh. Now, what is in this research data is that the reason why we have more backer stocks in these seven sectors is that the long-term structural tail wins in these seven sectors are due to which the majority of the companies are delivering 100% returns to us from these sectors . So, based on this, what is our takeaway point? If we invest in any sector and that sector has a very long-term tail and growth opportunity, if we pick up a good company in it and if we get that mega trend right, we can also earn 100% returns. The second point is that what their research shows is that if we actually look at the count of 100 back stocks, they say that if we look at eight before 2008 and eight after,

7:42 that count has increased substantially since 2008 . The reason for that is entry valuations. We all know that in 2008, resistance came. All stocks fell like crazy. Nobody was owning stocks. At that time, no one cared about the stock market. At that time, all stocks were trading at very, very cheap valuations. Therefore, whatever the entry point was, whatever the entry valuation was, it played a very critical role. In fact, they did another research on 100 bagger returns. When they took the correlation of our entry valuation versus 100 bagger returns, the correlation was -0.95. This means that if we overpay the valuations at entry, our chances of getting 100% returns will be greatly reduced. So remember that the valuations you enter now will play a very, very critical role in your future returns

8:27 . [Music] And let me share another interesting data point . These are the stocks that have delivered the highest returns, compared to stocks like Lobaz Finance Hewals, because they are structurally growing stocks. The characteristics of the majority of the 100-bag stocks are either overlooked stocks, out-of-glamour stocks, or stocks that have seen business transformation, i.e. moving from commodity products to specialized products. However, the companies that have seen such transformation have mostly delivered 100-bag returns . What do you think of such companies in the current market conditions? I will also share my personal opinion . Comment what you think in the comments section below. Personally, I thought that NBFCs were clearly at that stage

9:13 . Because NBFCs also play a very critical role in the financial services sector. After the IMFS issue, they started completely ignoring NBFC . This sector has completely become an overlap sector. Therefore, all of these valuations are very attractive to us. And recently, the RBI has also implemented some regulatory changes related to NBF, after which we have started seeing a slight uptick in NBF stocks . I personally believe that even in NBFC, we have a very strong pedigree, meaning that there are many companies with that parentage, companies that are doing very good business, we have many stocks like Shriram Finance, there are many NBFC microfinance companies that are available at good valuations. My personal view is that you should try it once and you might make a multiple of 100 bucks from here. Bye,

10:00 how was the date we talked about so far? If you liked it and forgot to like the video, then definitely try to like the video, guys. Next, some of the stocks that have delivered 100 bag returns are what kind of stocks they are, that is, companies that focus on Misha's business. Most of the successful companies are multi- baggers, which are said to have delivered 100 bag returns . What they are saying is that they shared multiple examples . The first example is Asia Motors, if we look at the two-wheeler market, Bajaj Hero, if we play the volume game, then Asia Motors, say Royal Enfield, Bullets, or whatever segment you have, I would say that it has created 187 times wealth for its shareholders. And similarly, when it comes to other examples, it is said that most of the companies that focused on your segment, such as Balakrishna Industries focusing on off-road tires,

10:47 Symphony focusing on air coolers, and Garvare focusing on high-tech fish nets, have delivered on 100 bag returns . So in our present market, what companies do we have that are focused on the niche segment? If I recall from the back of my mind, Azad Engineering operates in a very niche segment . There is a company called ThenSJS that also has a niche business model, if you look at the listed companies . Then we have a company called Exigo, whose valuations are very expensive, but they have confirmed tickets and buses, so we can book railway tickets, book bus tickets, and operate in a segment where there are very few competitors. I can remember in the back of my mind that there was a company that operated in that segment. And also, one interesting company among the smaller companies is Sweet Dreams, which

11:35 we can say is focusing on the women's premium nightwear segment . Trying to create that segment . So, if they are able to create that segment, if they are successful, then definitely that will create substantial wealth, but if not, it is a different case all together. If you personally know how companies operate in your segment, try to share them in the comments section below in our listers base . I am sharing openly as much as I can. If you also share, our viewers will also find a list of such companies . So they can also work for such companies, right? If you know, please try to share . Now, they are saying that not only companies that focus on this segment, but also companies that have built such modes, whether it's a brand mode or a distribution mode or dealership depth or constant quality service, are also seen in stocks that have 100-day returns

12:21 . They shared an example of that with Siras Entware. Actually, even in a market where there are many large players, Siras Entware is not only focused on the brand but also on dealership- related, that is, paying good attractive incentives to dealers and focusing on brand-related awareness and brand availability in the semi-urban market. All of this is helping Siras Entware deliver returns more than 550 times in the last 20 years . If we talk about companies that are creating such a mode in the no-present market, we see Kajara Ceramics as a company that is building a very good strong distribution mode. If we talk about the QSR space, I see that Divya. And if we talk about the diagnostic space,

13:06 we see that Thyraka has built a similar distribution model in Tier 1 and Tier 3. There are many such companies. If you know of any other companies that are expanding rapidly in the distribution space, please share them in the comments section below. Now, going back to the C100 baggers, they are sharing another important point, which is that sometimes we see these 100 bagger related characteristics. Companies may initially show us slow returns, but later, as that mode becomes stronger for them, we are talking about increasing those multiples . And another caution they are saying is that there are 100 bags that have suddenly increased, meaning that the debt is also increasing on their balance sheet, and we are being told to be careful with companies that are growing rapidly

13:52 because they are saying that if they show us fire, they will flare out . As an example of this, they are telling a story about Unitech . So, those who are very old investors know that Unitech was a star stock at one time, a stock that delivered 200 times return to the right investors, but what happened to them when their growth grew while increasing debt? Now, the stock has destroyed more than 90% of the wealth of the last one. And many retail investors who entered at the peak of the valuation are the ones who got their hands burned. Unitech may be the one who got their hands burned. If we look at Sujalan now, it has grown a lot recently, but at one time, it was one of the wealth destroyers, Rajesh Exports JCap. They also shared similar examples. This research

14:44 data tells us that while there are companies that are growing by leveraging their balance sheets with debt, there are also companies that are very cash-intensive and generate cash. Even if the balance sheet size is not that strong initially, the companies that are growing through internal accruals and generating cash as the going-at-home business grows are the ones that have delivered returns that are majorly long- standing 100% of the returns . Now, if we think of such accidents as 100 baggers, they have shared a good filter to prevent us from burning our hands by investing in stocks that are growing very rapidly. When it comes to the filter parameters, the first thing they want to do is filter out companies with a market capitalization of between Rs 300 crore and Rs 10,000 crore . Because when it comes to the issue of below 300 crores, we do not have easy access to data related to it and also the disclosures are not that clear. Therefore, by filtering from 300 crores to 10,000 crores, we can see that the next revenue growth and also the profit growth will be 10% CJR in the last five years on average, one

15:30 year and half years, but if there are companies with an average CJR growth rate of 10%, we should filter them out. When it comes to the next return ratios, we should see that the average of that 12% in the last three years and the actual return generated in the previous three years is 3% above that, let's say the last three years before the last three years. Suppose they delivered 9% in the past and are now generating 12%, we will see that 3% additional RE. If we filter out those companies that are growing, we will be able to award accidents that are mostly accidents, if we filter out such companies and when it comes to operational efficiency, i.e., asset to cash flow conversion (CFO), we will be able

16:20 to award accidents that are mostly accidents . Companies have various parameters, we have already talked about their characteristics, don't we? Suppose we have put this filter on them, we can avoid junk stocks, stocks that are rising suddenly and falling in the future, and stocks with such risks. This is on top of quantitative parameters. When it comes to qualitative parameters, look at what I am showing on the screen. These points are actually the major points covered in Part 2A and 2B of our Fundamental Analysis series. We can also see them in the research report. If anyone has not seen those parts, try to watch them once. That is very important. Many people focus on quantitative parameters. Actually, the returns we get are related to qualitative parameters, but if you want to see qualitative parameters in any stock, those videos will help you a lot. Now, I

17:17 told you that they shared the list of stocks that are shown in that report, which are the characteristics of the 100 stockholders overall, which are the characteristics that they saw in the companies. Coming to the list, they shared 13 stocks in this report, and I am showing you the names of those stocks here on the screen . This is the data of this report. Don't blindly invest in companies selected based on their filters. Try to do full-fledged research. If I were asked if I personally liked any of these 13 companies, I would say I like it and I also have some allocation. Okay, I liked Labs. And when it comes to the rest of the companies, some of them seem expensive to me personally, so it depends on the valuation, that is, the opinion of each individual . Okay, according to this filtered out data, these are the companies, try to work on them further, and also in the middle of the video, we talked about many companies related to them, not only them, but also our viewers are sharing very good companies with you in the comment section below,

18:05 try to see it once. Most of the time, I get ideas from our viewers in our comments section. Many people also do very good work with our viewers . So take a look, overall you will get a lot of good ideas from this video . One thing again, I said at the beginning of the video and I also say at the end of the video, if you are thinking of investing just based on the names of stocks and earning 100 baggers, then your perception is completely wrong. You will never get 100 baggers. You can invest in 100 baggers, but remember that you will not get 100 baggers. When you get 100 baggers, it will come if you work hard. And if you think this video will be helpful to many of your friends and family, be sure to share it. If you liked the video, like the video. If this is your first time visiting the channel, please subscribe to our Money Purse channel and

18:50 activate the bell icon next to it to follow and not miss any such videos. I, Sai Krishna Patri, will come to you with another good video, Till Then Boya Boya Take Care.

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