10 Multibagger Stocks for 2022

BY: Pratyush Sahu

Since the pandemic began, not only the Indian stock exchange but markets all over the world has suffered a lot and made various sectors do a bloodbath. However, the stocks somehow also gained, all thanks to the IPOs and a few multibagger stocks. In this year 2022, the market is now in its initial stages and facing ups and downs, Sensex and Nifty are falling and again reclaiming their points, even now they are performing at their all-time highs. These fluctuation movements in the market create a strong platform for a few stocks to turn into mutibagger 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. These stocks have good corporate governance and scalable enterprises and can multiply the investors’ money if it’s held for a longer period of time.

Here are a few multibagger stocks to watch out for in 2022:

1. TATA POWER- It is an Indian electric utility company based in Mumbai, Maharashtra, India and is part of the Tata Group. The core business of the company is to generate, transmit and distribute electricity.

It aims to double its revenue by the year 2025 due to its strong presence in the solar rooftop, solar pumps, and upcoming electric vehicle business. Also, TATA Power is a fundamentally strong stock and holds great potential.

It is currently being traded at ₹238 with an increase of 186% in the year 2021.

2. TECH MAHINDRA- This company is focused on the next-gen technologies including blockchain, cybersecurity, AI, 5G & more. This stock is currently trading at ₹1727 with an ROE of 18.97%.

It has shown a growth of 83% in the year 2021 and is expected to grow more in the upcoming year.

3. SBI- It is an Indian multinational public sector bank and financial services statutory body which is the 43rd largest bank in the world and ranked 221st in the Fortune Global 500 list of the world’s biggest corporations of 2020, being the only Indian bank on the list.

It has reduced its bad loans & a healthy amount of buffer capital has improved the bank’s prospect with a better cash flow.

Its currently being traded at ₹511 with gains of around 82% in the year 2021.

4. LARSEN & TURBO- It is an Indian multinational conglomerate, with business interests in engineering, construction, manufacturing, technology and financial services and is counted among the world’s top five construction companies.

With the upcoming budget on its way in the next fiscal year, it is expected that the government of India will allow a significant amount for infrastructure activities. Also, L&T has far more chances than any other company to get those projects and contracts.

It is currently being traded at ₹1975 with an increase of 45% in the year 2021

5. ICICI BANK- It is an Indian multinational bank and financial services company with its corporate office in Mumbai, Maharashtra.

With the growing capitalisation, private banks are witnessing a recovery across all business segments i.e. retail loans, corporate loans as well as loans to small businesses.

It is currently being traded at ₹822 with an increase of 51% in the year 2021.

6. HCL- It is an Indian multinational information technology services and consulting company. As per various analysts, the stock is available at a discount to its peers like Infosys and TCS.

It is currently being traded at ₹1347 with an increase of 27% in the year 2021.

7. BHARTI AIRTEL- It is an Indian multinational telecommunications services company based in New Delhi, India. It operates in 18 countries across South Asia and Africa, as well as the Channel Islands.

Significant growth potentials can be seen as it is expanding its 4G coverage. Also, the upcoming 5G wave can be considered as a key factor to invest in this company.

It is currently being traded at ₹721 with an increase of 34% in the year 2021.

8. TCS- It is an Indian multinational information technology services and consulting company with its largest campus located in Chennai, Tamil Nadu, India. As of February 2021, TCS is the largest IT services company in the world by market capitalisation.

It is India’s biggest software exporter and can benefit investors due to the rising wave of tech adoption around the world.

It is currently being traded at ₹3858 with an increase of 21% in the year 2021.

9. RELIANCE INDUSTRIES- It is an Indian multinational conglomerate company. Its diverse businesses include energy, petrochemicals, natural gas, retail, telecommunications, mass media, and textiles.

It has seen its mainstay energy business recover and the digital services segment boom. Also, cracking the Rafael deal could create more business opportunities and benefit the investors.

It is currently being traded at ₹2512 with an increase of 31% in the year 2021.

10. PIDILITE INDUSTRIES- It is an Indian adhesives manufacturing company. It manufactures products that can be segmented into consumer products: art materials and stationery; food and fabric care; car products and adhesives and sealants; and speciality industrial products: industrial adhesives; industrial pigments; industrial and textile resins, leather chemicals, construction chemicals and other industrial chemicals.

On the earnings front, Pidilite Inds. has an excellent EPS Rank of 93, which indicates consistency in earnings. The earnings and sales for the stock have grown by 6% and 3%, respectively over the past three years. Its 3-years earnings stability is 12, on a 0 to 99 scale

It is currently being traded at ₹273 with an increase of 49% in the year 2021.

CONCLUSION

The year 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, and Infrastructure. Thus, the above-listed companies could prove to be the new multi-bagger for the investors.

Disclaimer: The above-mentioned companies are merely suggestions based on my analysis dated 12th January 2022. We are not a SEBI-approved institution so do your own analysis before investing and the sole responsibility for any loss is yours.

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