A Thread 🧵🧵on HOW TO FIND MULTIBAGGER STOCKS?
Here's a small GIFT from me to help you uncover PROMISING STOCKS and EVALUATE any company on your own.
😀Happy investing💥💥
Here's a small GIFT from me to help you uncover PROMISING STOCKS and EVALUATE any company on your own.
😀Happy investing💥💥
1. Promoter Holding- Look for companies where promoters hold over 50% stake. Strong promoter ownership signals confidence and alignment of interests.🎯
2. Debt/Equity Ratio- Keep an eye on companies with a debt/equity ratio below 0.5. Low debt levels indicate financial stability and resilience.🎯
3. P/E Ratio- Seek companies with a P/E ratio below 20. A moderate P/E suggests reasonable valuation relative to earnings.🎯
4. ROCE, ROE, ROIC- Look for companies with robust returns: ROCE, ROE, and ROIC exceeding 20%. High returns signal operational efficiency and profitability.🎯
5. Operating Profit Margin- Focus on companies with OPM above 20%. Strong margins reflect operational efficiency and pricing power.🎯
6. Sales Growth (3 yrs)- Target companies with sales growth exceeding 20% over the past 3 years. Consistent revenue growth indicates market traction and demand.🎯
7. Interest Coverage Ratio- Ensure companies have an interest coverage ratio above 5. Healthy interest coverage signifies the ability to meet interest obligations.🎯
8. Market Cap/Sales Ratio- Look for companies with a market cap/sales ratio below 2. A lower ratio suggests undervaluation relative to revenue.🎯
😀😀😀Happy Hunting! 🚀🚀🚀
😀😀😀Happy Hunting! 🚀🚀🚀
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