The Piotroski score is a way to determine some of the best value stocks. It is a score between zero and nine and is used to determine the strength of a company’s financial position. It considers factors such as profitability, liquidity, operating efficiency, cash flows, and debt situation. A score of zero is the lowest, while 9 is the highest.
Here are a few multibagger stocks with a high Piotroski Score:
Elecon Engineering Company
The company is involved in the design and manufacturing of material-handling equipment and incraft carriers. Ace investor Vijay Kedia holds a 1.9% stake in the company.
Elecon Engineering Company has a Piotroski score of 9 and has given multibagger returns of 158.39% in the past year, as its share price increased from ₹148.65 to ₹384.10 apiece. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares a year ago, the value of their holdings would have been ₹ 2.58 lakhs today!
Varun Beverages
The company has been associated with Pepsico since the early 90’s and is a key player in the beverage industry in India. It produces a wide range of non-carbonated drinks and packaged water sold under trademarks owned by PepsiCo.
Varun Beverages has a Piotroski Score of 8.00 and has given multibagger returns of 107.13% in the past year as its share price increased from ₹656.20 to ₹1359.20 apiece. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares a year ago, the value of their holdings would have been ₹ 2.07 lakh today!
Bharat Dynamics
Bharat Dynamics (BDL), is a Government of India enterprise engaged in the manufacturing of guided missiles and allied defence equipment.
The company has a Piotroski Score of 9.00 and has given multibagger returns of 108.44% in the past year as its share price increased from ₹ 462.15 to ₹ 963.30apiece. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares a year ago, the value of their holdings would have been ₹ 2.08 lakh today!
Mahindra CIE
Mahindra CIE Automotive Limited is a subsidiary of CIE Automotive S.A, Spain. Mahindra Vehicle Manufacturing Ltd. is a significant shareholder in the company. The company produces and sells automotive components to original equipment manufacturers and other customers in India and overseas.
It has a Piotroski Score of 8.00 and has given multibagger returns of 124.63% in the past year as its share price increased from ₹187.75 to ₹ 421.75 apiece. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares a year ago, the value of their holdings would have been ₹ 2.24 lakh today!
Usha Martin
The company manufactures and sells steel wires, strands, wire ropes, cords, and related accessories. In addition, it sells wire drawing and allied machines.
Usha Martin has a Piotroski Score of 8 and has given multibagger returns of 108.19% in the past year as its share price increased from ₹ 86.10 to ₹ 179.25 apiece. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares a year ago, the value of their holdings would have been ₹ 2.08 lakhs today!
Written by Simran Bafna
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