Looking at the stock market, we can say the market has suffered in the last 2 years as the pandemic made various sectors do bloodbath. However, the stock somehow also gained, all thanks to IPOs and multibagger stocks. In 2022, the market in its initial days facing ups and down, Sensex and Nifty are falling and reclaiming their points. These ups and downs in the stock market ha potential to create a situation for stocks to turn into multibagger stock. But, what are stock with good retruns such multibagger, and how to identify Multibagger stocks?
What is multibagger stock?
Multibaggers are stocks that offer investors several times their initial investment. These are equities that are inexpensive yet have solid fundamentals, making them excellent investing opportunities. Multibagger stocks have good corporate governance and scalable enterprises.
Market in 2022
2022 seems to have different market scenarios compared to 2021 as the year was a one-sided trade whereas, 2022 could be choppy as the market condition. 2022 seems good for sector-specific trade. The years would be good for sectors such as Pharmaceuticals, Entertainment, EVs, Infrastructure.
Dr. Reddy's Laboratories Ltd.
This is a pharma stock, the stock witnessed a good moment post-COVID-19 as it goes Rs 2000 to 5000 and now stocks are retracing. If you Currently, stocks are trading at Rs 4708 and with has the potential target of RS 6000 could be possible in next one year. The company is also engaged in various development related to COVID-19 such as Generic COVID-19 Merck drug, and Sputnik Vaccine. Dr. Reddy's Laboratories shares were also in the spotlight last year when the pharma major announced that it had reached an agreement with Citius Pharmaceuticals in the United States to sell its rights to an anti-cancer medication.
GMR Group is a multinational company based in New Delhi, India. It includes various enterprises such as GMR Infrastructure, GMR Energy, GMR Airports, and GMR Enterprises. Here, we have taken GMR infrastructure stock as potential good returns stock in 2022. As we have seen, there are various projects are going around across the country such as airports, railways, and GMR names can be seen across the projects. GMR Infra stock has seen a breakout after a long year of consolidation, which means having good momentum with volume. Volume tells that investors are interested such as big brokers, FIIs, mutual funds, and they are buying it that means they know something that we don't. We know technical but they know fundamentals, however, this shows something is happening.
Kopran Ltd. is another stock from the pharmaceuticals group. The company manufactures Sterile Cephalosporins and Carbapenems, in its state of the art facility. Manufacturing of Sterile API needs excellent facility and quality systems that the company has. Last year, the company got Patent for 20 years for an API product NITROXOLINE, for the invention titled IMPROVED, COST EFFECTIVE PROCESS FOR PRODUCING NITROXOLINE. Currently, the stock is trading at Rs 319. With a target between Rs 500 and Rs 550 for this that is almost 30 to 40% returns. For the past three years, the firm has shown an excellent profit increase of 70.85%. The company's debt has been reduced by $30.00 million. The company is almost debt-free. With a solid interest coverage ratio of 9.59, the company is in good shape. The PEG ratio of the company is 0.87.