10 Multibagger Stocks Ideas 2022

As the year 2021 is about to end and you may be looking for some stocks that can give a multi-bagger return. We have curated a list of 9 multibagger stocks ideas that can give multi-bagger returns in 2022. We have included large caps, technology, cyclical and penny cap. This is not a recommendation to buy the stocks. It only gives you a framework and guidance to keep them on your watchlist. Do your own analysis before buying any stock.

Multibagger Stocks 2022 No #1 Subex

This is a fast-growing IT company with market capitalization of 3000 crore rs. It’s almost debt free, which is a very good thing. The most striking thing is Company has delivered good profit growth of 30.93% CAGR over last 5 years.  Here is the peer comparison:

The negative with the company is its ROCE is not great compared to peers. Compared to Tata Elxsi and Mphasis, its ROCE is only 15% and promoters holding is zero.The good thing is profit is just 16 crore, it has significant scope to increase in the future. Also, CAGR of profit for the last 5 years have been 64%.  Also, it is a net free cash flow generating company.  You can invest a small amount into it only. However, there are many better options compared to Subex. Also, it has given almost no return in the last 6 months.

Multibagger Stocks 2022 No # 2 Tanla Platform

It’s one of the largest CPaaS (Communications IT) players in India. Here are the fundamental details about the company.

Other details

Positives

• The company is almost debt-free.
• Good profit growth of 107.95% CAGR over last 5 years
• Debtor days have improved from 77.10 to 58.17 days.
• It is expected to give good quarter

Negatives

• Stock is trading at 23.49 times its book value which is more than the industry peers like Mphasis.
• Company has a low return on equity of 9.63% for last 3 years.
• It has moved 120 percent in 6 months.
• P/E is almost double of Industry P/E of 30.

Multibagger Stocks 2022 No # 3 Ambika Cotton

Textile sector is the focus of government and it’s covered in PLI scheme as well. In this segment Ambika Cotton is placed well compared to its peers.

Positives

• Company has reduced debt.
• Company is almost debt free.
• Company is expected to give good quarter
• Company has been maintaining a healthy dividend payout of 24.39%

Negatives

• The company has delivered a poor sales growth of 5.17% over past five years.
• Company has a low return on equity of 12.41% for the last 3 years.

Key Points

• Reasonable values of CMP/BV 1.73 compared to peers
• Return on Equity 17% is highest after Indo Count industries
• Debt-free
• RoE is also second based in the industry

It has also fallen significantly from the high of 2300 and currently hovering at 1900.

Multibagger Stocks 2022 No # 4 WIPRO

The company has surprised with its performance in the last one year. It’s growing fast after a change in management and is reasonably valued compared to its peers. Another positive is it has been in a long consolidation over the last 6 months and only delivered 13% return, whereas Tech Mahindra and L & T Infotech have delivered 49% and 85% returns.  With 5.66, its BV per share is one of the lowest in industries. Its PE is also almost half of the industry PE.

Our Verdict: The stock seems to be very good technically and fundamentally. HCL is another stock doing very good and with similar valuations. You can also think of adding these IT services companies for 2022.

Multibagger Stocks 2022 No # 5  ICICI Lombard

The insurance sector has not done well in the last 1.5 years and all of them have not participated in this current rally. They will immensely benefit if the sector revives. Among them ICICI Lombard  Return on Capital Employed in the highest in the industry and book value per share is also below the industry average.  It has given negative returns in the last 6 months. As the economy rebounds and transportation activities resume, the motor insurance business will go up.Considering its reasonable valuations, it is expected to deliver superior returns compared to peer stocks such as HDFC Life and SBI Life.

Multibagger Stocks 2022 No # 6  Balaji Amine

Balaji Amines Ltd specialises in manufacturing derivatives of speciality chemicals and Pharma Excipients, which are downstream products. It is the largest manufacturers of aliphatic amines in India.

Positives

• Company has reduced debt.
• Company is expected to give good quarter
• Company has delivered good profit growth of 32.75% CAGR over last 5 years

It has corrected significantly and its now in consolidation mode for some time. It’s time to start accumulating the stock.

Multibagger Stocks 2022 No #  7 ABM International * (Penny stock)

ABM International is primarily engaged in the import of plastic raw materials. The Company is also engaged in importing PVC Resin, finished leather and Urea, among others. Here are the basic details of the company:

Positives

• Company is almost debt free.
• Company is expected to give good quarter
• Company has delivered good profit growth of 25.95% CAGR over last 5 years
• Very high ROCE 66.4 % and ROE of 56 %

Negatives

• Stock is trading at 4.13 times its book value
• The company has delivered a poor sales growth of 3.38% over past five years.
• Company has a low return on equity of 6.50% for last 3 years.

Multibagger Stocks 2022 No #  8 Media Matrix Wordwide Limited 

MMWL is a leading Next Generation technology and service provider in the Value Added Services covering mobile and digital landscape.

Key Details

• Market Cap: ₹ 1,161
• Current Price: ₹ 10.25
• Market Cap₹ 1,161 Cr.
• Current Price₹ 10.2
• High / Low₹ 10.2 / 3.95
• ROCE21.5 %
• ROE7.17 %

Positives

• Company is almost debt-free.
• ROCE is 21.48% and high promoter holding is 60%
• Company has reduced debt.
• Company is expected to give good quarter
• Company has been maintaining a healthy dividend payout of 51.08%

Multibagger Stocks 2022 No #  9   Zenser Technologies

Zensar Technologies is a leading digital solutions and technology services company. It is a part of the Mumbai-based RPG group and is headquartered in Pune, India. It’s also a drone technology company.

Positives

• Its ROCE is 22.2 and ROE is 14.9 %
• Company has been maintaining a healthy dividend payout of 23.71%
• Corrected significantly and you can start accumulating.

Multibagger Stocks 2022 No #  10    Trident Limited

Trident Limited, the flagship company of the Trident Group, is a leading manufacturer of yarn, Bath Linen, Bed Linen and wheat straw-based paper, Chemicals and Captive Power. Currently, the company has manufacturing facilities in Barnala (Punjab) and Budhni (Madhya Pradesh).

Positives

• Company has reduced debt.
• Company is expected to give good quarter
• Company has been maintaining a healthy dividend payout of 51.08%