3 Multibagger Stocks To Buy For Good Returns In A Target Period of 3 Months

Multibagger stocks are continuously in popularity since they have the potential to provide multiple returns compared to their current or actual price. ICICI Securities, a domestic brokerage company, has put a buy call on Indian Energy Exchange Ltd, MindTree Ltd, and Balrampur Chini Mills Ltd amid the current market turmoil. These are multibagger stocks, meaning they have returned more than 100% to their shareholders in 1 year. The brokerage has set a three-month target period for these stocks, with Mindtree Ltd's target price of Rs 4,148, Indian Energy Exchange's target price of Rs. 232, and Balrampur Chini's target price of Rs. 445.

Mindtree Ltd (MINLIM)

The brokerage has said "After displaying a spectacular up move during CY20-21 the IT sector has taken a breather. Our preferred pick in the IT space is Mindtree, which is forming a potential double formation in the vicinity of long term 52 weeks EMA. Hence, it offers a fresh entry opportunity with favourable risk reward."

"The stock has undergone a slower pace of retracement as over past four months it retraced less than 50% of prior six weeks rally (1951- 4938), indicating inherent strength that bodes well for the next up move. We believe the ongoing base formation has set the stage to resolve higher and head towards Rs 4148 as it is the 50% retracement of mid January-February rally (4760- 3555), placed at Rs 4150," the brokerage has noted.

The stock has risen from Rs 1734.75 on March 2, 2021 to Rs 3,886.95 on March 2, 2022, 2:41 IST, resulting in a multibagger return of +2,156.10 (124.29 percent) in one year.

Indian Energy Exchange (INDEN)

ICICI Securities has claimed that "The share price of IEX is seen rebounding after taking support at 80% retracement of major up move (Rs 152-335) and in vicinity of 52 weeks EMA signalling fresh entry opportunity and favourable Risk Reward at current juncture. We expect the stock to regain upward momentum, and head towards Rs 232 as it is 50% retracement of January-February decline ((Rs 272-192)."

The brokerage has said "The stock has already taken four months to retrace just 80% of its preceding two months up move (Rs 138-335). A shallow retracement signals a robust price structure and a higher base formation."

This stock rose from Rs. 100.92 on March 2, 2021 to Rs. 212.80 on March 2, 2022, 2:40 pm IST, giving a multibagger return of +111.53 (110.51 percent) in one year.

Balrampur Chini Mills (BALCHI)

As per the brokerage "The sugar stocks have remained in structural uptrend forming higher peak and higher trough in the long term chart. The stock after the last one month's breather is seen forming higher base around the last year highs placed around Rs 380 levels."

The brokerage has further noted that "The stock has managed to hold above upward sloping support trend line joining lows since March 2020, highlighting elevated buying demand that signifies inherent strength. We expect the stock to maintain positive bias and head higher towards Rs 445 levels as it is 80% retracement of the recent breather (Rs 456-366)."

This sugar stock has risen from Rs 189.10 on March 2, 2021 to Rs 406.80 on March 2, 2022, 2:32 IST, representing a multibagger return of +217.70 (115.12 percent) in a year.

Disclaimer

The stocks have been picked from the brokerage report of ICICI Securities. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.