What are some stocks that are going to be multibaggers in 2020? - The Legend of Hanuman

What are some stocks that are going to be multibaggers in 2020?


What are some stocks that are going to be multibaggers in 2020?

No one knows before hand what stock will turn out to be a multibagger.

  1. Radhakrishan Damani, saw four of his top five bets bleed profusely. D-Mart gained 15.56 per cent for the year, but Delta Corp, India Cements, Food & Inns and Advani Hotels all declined between 17 & 21 %
  2. US-based investor Mohnish Pabrai, with a portfolio worth Rs 2,000 crore, saw his holding in Sunteck Realty rise 19.19 %. But other stocks in his portfolio such as Rain Industries, Kaveri Seed, Edelweiss Financial and Kolte-Patil Developers fell up to 40%.
  3. Value investor Anil Kumar Goel – often referred to as the Sugar Baron – saw his holdings like Dhampur Mills, Triveni Engineering, Dwarikesh Sugar work for him, rallying 48-62 %. Another holding, KRBL, stayed flat.
  4. Vijay Kedia had a good year, with four of his top five holdings performing well. The list included Sudarshan Chemicals (up 19 per cent), Vaibhav Chemicals (14.52 per cent), Cera Ceramics (up 13.68 per cent) and Repro India (up 1.24 per cent). This was when midcap and smallcap indices ended lower for the year.
  5. Among his recent investments, Kedia purchased 10 lakh shares in JMC Projects on August 30 and 2.5 lakh shares in Neuland Laboratories on September 27.
  6. Chennai-based Dolly Khanna, known for her stock selection in manufacturing, textile, chemicals and sugar segments, saw three of her popular stocks — Rain Industries, NOCIL and Nilkamal – fall between 12 and 26 per cent.
  7. Porinju Veliyath of Equity Intelligence India had exposure to 12 stocks and a networth of over Rs 26.6 crore. Four of these holdings — Archies, Emkay Global, Praxis Home Retail and Kaya – fell 37-52 per cent last year. Shalimar Paints, another major portfolio, gained 12.16 per cent for the year.
  8. Ashish Kacholia had DFM Foods, Vaibhav Global and NIIT working for him. His top holding, NOCIL, did not do well.
  9. Big Bull Rakesh Jhunjhunwala, major investments are in Titan Company, in which his holding is valued at Rs 6,943.4 crore, followed by Crisil, Escorts, Lupin and Federal Bank. In 2019, while Titan and CRISIL gained 28 per cent and 20 per cent, respectively, Escorts, Lupin and Federal Bank did not deliver.
  10. Few investments made on his wife’s name (Rekha Jhunjhunwala), too, had bad times, as her key holdings NCC, Delta Corp and TV18 Broadcast all bled.

From these excerpts it is crystal clear that no one knows before hand what will turn out in future. The whole point of finding a multibagger, is you make investments in 5–7 stocks in sound businesses, wherein there is lot of potential for growth along with good corporate governance and strong financials.

Over the period you need to weed out the losers and keep adding on the winners. That’s how an investment turns out as a multibagger, eventually only 2–3 will outshine, however the gains from these 2–3 will make more than the losers (provided you cut them off well within time).

And multibaggers happen over time not just in a year. It is a patience game as well.


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