Multibagger stocks are investments that generate returns exceeding 100 percent of the original investment, often increasing in value multiple times within a relatively short timeframe.
The price-to-earnings (P/E) ratio measures a stock’s share price relative to its earnings. A high P/E may suggest overvaluation and a low P/E indicates better value, as investors pay less for each rupee of earnings.
Here are a few Multibagger stocks currently trading at a P/E ratio below the industry average.
B & A Packaging India Limited
With a market capitalization of Rs.217 crore, the share price of B & A Packaging India Ltd closed at Rs.437.00 per share on Tuesday, rising 1.5 percent from its previous close.
The stock has provided multibagger returns of more than 105 percent in the last 6 months and is currently trading at a price-to-earnings ratio of 16.2, below the industry average of 28.0, with EPS (earnings per share) of Rs.27.0.
Looking ahead to the company’s financial performance, revenue grew by 11 percent to Rs.34.47 crore in Q1 FY25 from Rs.31.13 crore in Q1 FY24. During the same period, net profit surged 132 percent to Rs.3.45 crore, compared to Rs.1.49 crore.
Shakti Pumps (India) Ltd
With a market capitalization of Rs.9,036 crore, the share price of Shakti Pumps (India) Ltd closed at Rs.4,484.15 per share on Tuesday, hitting the 5 percent upper circuit limit from its previous close.
The stock has delivered multibagger returns of over 220 percent in the past 6 months and nearly 415 percent over the past year. It is currently trading at a price-to-earnings ratio of 38.7, below the industry average of 45.1, with earnings per share of Rs.119.
Looking ahead to the company’s financial performance, revenue experienced an impressive growth of 403 percent, reaching Rs.568 crore in Q1 FY25, up from Rs.113 crore in Q1 FY24. During the same period, net profit skyrocketed by 9,200 percent to Rs.93 crore, compared to Rs.1 crore.
Jindal Saw Limited
With a market capitalization of Rs.23,483 crore, the share price of Jindal Saw Limited closed at Rs.735.00 per share on Tuesday, falling 1 percent upper from its previous close.
The stock has delivered multibagger returns of 101 percent in the past year and is currently trading at a price-to-earnings ratio of 13.3, below the industry average of 22.3, with earnings per share of Rs.57.9.
Looking into the company’s financial performance, revenue saw growth of 12 percent, reaching Rs.4,939 crore in Q1 FY25, up from Rs.4,410 crore in Q1 FY24. During the same period, net profit surged by 71 percent to Rs.416 crore, compared to Rs.244 crore.
Written by – Siddesh S Raskar
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
