(8) Capital Requirement Of Company
It is one of the good ways to identify & pick multi-bagger shares or equities. A small investor is always looking for quarterly presentations of the company to get a clear insight of Capex (capital expenditure) of the company.
Capex is the funds that are used by a firm to acquire or upgrade its physical assets like real estate property, industrial buildings, or equipment, etc. These are usually needed to undertake new projects or investments by firm.
A firm that can generate huge return through minimum capital expenditure should be preferred over other stocks. Equities of such firms can give multiple returns in coming years.
[Read Also: 20 Great Reasons To Invest Money In Stock Markets]
(9) Market Capitalization
It is one of the significant ways to identify and pick multibagger stocks. Market capitalization of a company is also an essential aspect to identify solid multibagger stocks.
A firm with large market capitalization will not be able to grow at an enough rate to boost its share price for multiple returns. On the other hand, small cap & medium cap companies can show tremendous growth potential in terms of revenue & profits.
You should try to research wealth generating super stocks in small cap or medium cap industries.
- Multibagger Stocks: Shutterstock