10 MultiBagger Mid Cap – Small Cap Stock Ideas

If you are into Indian stock markets, here are some stock recommendations for you. I personally hold most of these stocks and hence your risk is mine as well. I am not providing detailed analysis of these companies but that’s out there for you to explore on websites such as Moneycontrol.com

Indian Stock Recommendations

Please note that, I am not talking about ‘trading’ here but long term investment here. Long term for me is at least a 1 year term.

Here is my list with their recommended entry prices in the bracket (In some cases it is my own entry price for these scrips).


1. Shriram City Union Finance (765)

2. Kitex Garments (58)

3. SpiceJet (38)

4. DQ Entertainment (18.50)

5. Escorts (64)

6. Acrysil India (80) – After Bonus adjustment

7. Kwality Dairy (31)

8. Manappuram General Finance (35)

9. NIIT (33)

10. APM Industries (13)

I shall keep updating on what am I doing with these ‘multi-baggers’ in the next months. Currently the target for each of these stocks would vary from 75% to 300% within a 12 to 24 months investment window.

Disclosure: I hold some of these stocks and I may have vested interest in these companies. Please do your own research before investing.

(I was staying away from the stock markets for a couple of years now but made a re-entry seeing some good opportunity in the recent bull run)

Update on January 02, 2014

It has been about 15 months since I recommended the above stocks. I still hold some of them while I have recently sold most of these stocks in the current fluctuating markets. I wouldn’t be tracking most of the stocks again but would like to provide the following update on how they fared.

Stock name (Recommended price, High since)

Shriram City Union Finance (765, 1230) – Still going strong

Kitex Garments (58, 83.85) – Still going strong

SpiceJet (38, 48.30) – Bound to various government regulations and recommend to enter only at very cheap levels

DQ Entertainment (18.50, 47.95) – Still going strong

Escorts (64, 145.15) – Still going strong

Acrysil India (80, 240) – Still going strong

Kwality Dairy (31, 38.70) – Hold

Manappuram General Finance (35, 46) – No more attractive due to gold woes

NIIT (33, 33) – So so

APM Industries (13, 28.85) – Still going strong

Those stocks that are marked as ‘Still going strong’ are good for holding for long term, in my opinion

Happy Investing!

73 Replies to “10 MultiBagger Mid Cap – Small Cap Stock Ideas”

  1. Dear Mr. Ajith

    Good information about u r recomended stocks…now u quit from some of them…so what u buy new ???

    pls. update or recomend new good stocks for long term.

    Regards

    Sunil

    1. Dear Sunil,
      After exiting some of the above stocks, I entered NHPC (flat), Kothari Products (flat), Simran Farms (big mistake), Sintex (exited at ~60% profit), Shilpi cable (exited at 80% profit).

      Since, I invest in smaller quantities (due to my age profile), the returns are not that great in absolute numbers.

      I am not an analyst nor someone who is qualified to recommend stocks. This post was more of what I was doing in equities at that time πŸ™‚

      In mid-caps, I plan to buy Sintex, Jyoti Structures and Shilpi Cable on correction. I have shortlisted a few more but not really spending time to do research there in.

      Thank you,
      Ajith

  2. Dear Mr. Ajith

    Where you seen market after election result..which are good pics in small / Mid cap or any equity as per u r study…Hope now you have a time for reaserch as this is a best time to earn money from stocks.

    I have accumulate Himadri Chemicals @ 17-18, Prospectus of this co. is quite good…you also check the same if you have time….

    Thnx

    1. Sunil,
      I have no clue to be frank. However, the current run-up doesn’t concur with any of the economic indicators – including IIP, Agricultural outputs, trade deficits etc. I feel that the market is going up purely based on the assumptions that there may be a change at the center and NDA may get majority. I am staying away from any investment since earlier this year though I might have lost the ride (almost 20% up since last few months).

      I plan to enter the market only after the election results and a possible 10-12% correction.

  3. Dear Mr. AJITH PRASAD

    I WOULD LIKE TO SHARE ONE EXCEL SHEET WITH YOU AND NEED YOUR GUIDANCE. I AM UNABLE TO ATTACH THE SAME HERE. PLS PROVIDE ME UR EMAIL ID TO SEND THE ATTACHMENT.

    I HAVE CHECKED UR EARLY RETIREMENT PLAN, IT’S TOO GOD AND UNBELIEVABLE.

    REGARDS

    SUNIL BHAVSAR

  4. Pingback: My Stock Portfolio
  5. I am looking for few low cost stocks or small cap stocks which has the potential of making large cap in future to create wealth since I got small capital.

  6. Dear Mr. Ajith.

    Wish you Happy New Year.

    Good to hear you something about stocks after long silence….

    Any new stocks ( Multibagers) in your Radar??? Like Kitex..

    I am tracking Kwality dairy ..Technically it is strong and it may reach above Rs. 200 level in coming yrs (3-4).

    Pls. share your stock ideas frequently.

    Regards

    Sunil Bhavsa
    8866020872 – whatsapp & 9825009938

  7. Just saw your site. I too am starting to invest at my late age. I would appreciate if you could share your views with me too. You seem to have some intuitive wisdom. Do share with me, if you can please. Thank you. Ajith.

  8. hi ajith can you tell mw something about Dr datson Labs is it a multibagger as its seeing continues UC since pas few sessions. is it the right time to enter such scripts?
    thanks

  9. SIR, I HAVE BEEN HOLDING 10000 NHPC @ 36.50.I AM CONFUSED NOW AS IT HAS NOT PERFORMED SINCE LAST FIVE YEARS BUT BADLY BEATEN LIKE WASHERMAN’S DOG IN LAST 5 YEARS, TRADING AT ALMOST HALF OF THE PURCHASE PRICE. SHOULD I ACCUMULATE MORE AT PRESENT MARKET RATE ? HOLD ? OR SALE ? PLS. PLS GUIDEME.

    1. I guess you purchased for 36 when the IPO was announced. Not to worry as NHPC has a Face Value of 10 rs and the Promoter holding is above 85% which is a healthy sign for the stock.
      It should be matter of concern if there is a drastic change in promotors holdings but since it still has 85% of promotor holdings that’s a positive sign. So it would be better to hold and buy on dips to average it.. Its a good long term bet.

      1. I had NHPC and booked minor loss on that some time back. I don’t think it’s a great appreciation story, looking at its massive debt. Personally, I avoid state owned companies (except a couple) as their fate is pretty much linked to the policies.

  10. Sir im small investor can invest 2000-5000 monthly pls suggest 5 stocks where to start sip for 5 -7 yrs so by that fund i can do marriage of my daughter.

    1. Anand,
      Probably you shouldn’t directly put your money into stocks but go for 3-4 equity mutual funds in a SIP manner. Because, if it’s the stocks, just in case things go wrong with one or two companies out of the 5 you are invested in, you may be in trouble with respect your goals. So, think about SIPing the combination of a large cap fund, a diversified fund, a mid-small cap fund and a balanced fund.

      If you are sure on stocks, consider some companies with steady growth and neat long term charts. Some of the stocks I can think of are: Asian Paints, Axis Bank, Castrol, Lupin Laboratories, Pidilite, Supreme Industries, Yes Bank etc

  11. Dear Ajith,

    Whats your suggestion on the below:

    C mahindra Expo
    Himdari chemicals
    Goenka Diamonds

    for 1-2 years.

    Thanks

  12. Dear Mr Prasad

    Thanks for you blog, it’s quite informative I bought Sanwaria @10.rs, two years back. Today it’s 6.55, don’t know what to do. Please advice.

    1. Pasting what I replied to another query…

      The markets are currently highly overvalued. However, some of the stocks that I feel are fairly priced from growth/valuation point of view are:

      Midcaps
      =======
      Atul Auto
      Aurobindo Pharma
      Avanti Feeds Ltd
      Cera Sanitaryware
      Kaveri Seed Company
      Mayur Uniquoters
      Zensar Technologies Ltd

      Large caps
      ==========
      Axis Bank Ltd
      HCL Technologies
      HDFC (Not Bank)
      ICICI Bank Ltd
      Reliance Industries Ltd
      State Bank Of India
      Tata Motors DVR

      Do your own research before investing in any of them. I have vested interest in the stocks that I talk about πŸ™‚

  13. SIR,

    I AM NEW INVESTER. I AM INTERESTED IN PENNY STOCKS WHICH HAVE A GOOD POTENTIAL MULTIBAGGER IN THE FUTURE. KINDLY HELP.

    MANOJMON V

    1. I don’t really invest a lot in Penny stocks. Currently, I hold only “Sundaram Multipap” among the Penny counters. Bought this after someone recommended it. To be frank I haven’t done much research into it and the exposure is really small πŸ™‚

  14. Hi, Ajith Prasad
    Good Day.

    What would be your take on ROLTA – as the stock has been beaten down in the current market turmoil. thank you and best regards.

    1. With the kind of debt it has and hence poor interest coverage, it’s not an investment stock for me. However, I have seen how this stock behaves over the last 15-16 years. It’s something that you pick in deep down market as a bargain hunt and exit with multi-fold gains when the bull run peaks after several years. I doubt if that happens this time.

      1. Most of these companies are either debt ridden or slow growth ones. I personally wouldn’t put my money into them. They may perform in a strong bull market but once beaten down in a bearish trend, it’s hard to recover. Just my view!

  15. Sir like to know wich stocks should I buy fr 2016. U are genius in research of stocks. Pls guide me. I am a new investor in market. Waiting fr yr reply.

    1. I don’t have any multibagger ideas. For my long term portfolio, I am picking Tata Motors DVR, ICICI Bank, Axis Bank, Aurobindo Pharma, HCL Technologies, Reliance, L&T, Ultratech etc on regular basis (in a SIP mode). There are many others that I am holding.

      PS: Do your own analysis before jumping in. I am just writing about what I am picking.

    1. It’s always published at the following link: http://ajithprasad.com/my-stock-portfolio/

      Recently added, ICICI Bank, Lupin, Tata Motors DVR, Aurobindo Pharma and Time Technoplast in the portfolio. Also picked some Suzlon and BILT as risky bets. I think ICICI Bank, Tata Motors DVR, Lupin, IDFC Bank etc are at excellent valuations now.

      Please note that I am just openly publishing my holdings and my views. These are not necessarily recommendations for you. Please do own research before investing.

    1. Ajith,

      What is ur view about prima plastics? I have been tracking this stock closely and has a fairly good business model.
      It is on the heels of nilkamal and other plastic manufactures.

      Is this good for long term?

  16. I am impressed with your recommendation. but provide few
    stock of 5 to 10 rupees ,multifaceted in future.

    Dr. A.K Srivastav

    1. There aren’t many penny stocks that are good. However, I am betting on two ‘potential’ turn around companies. Suzlon and Subex. I am already holding Subex and plan to accumulate Suzlon. Do your own research further before investing.

      1. Hi ajith,
        Good work…thanks for sharing all such info.
        Needed your views on below of stock in my radar:
        Union bank ( for 1/1.5 year holding)
        Dilip buildcon ( just launched; few week holding)
        Usher agro (till good return; too risky)
        KCP
        D B corp

        Appreciate your view.

        Regards,
        Hiren

        1. I do not track many of these stocks except DB Corp which I think is reasonably good. They will continue to grow in terms of their online ad income, in my opinion. However, I see that majority of the promoter stake is pledged which is the only issue I see.

  17. I am impressed with your posts. Pl notify me of your new posts. I’ll also definitely follow you at regular intervals

  18. Dear Sir,
    kindly suggests the stocks for long term investments(usually 10 to 15 years).I have an amount Rs.1.3 Lakhs for onetime investments & for monthly investments in Rs.5000/=.

    Thanks Sir,
    T.Arunkumar

    1. The following 12 stocks will be great safe bets for long term and will create a diversified portfolio across industries. Keep picking them on a regular basis and at every market dip, add more. Most of these stocks have run up a lot and hence don’t put bulk money into any of them at the moment.

      Asian Paints Ltd
      Bajaj Auto Ltd
      Bajaj Finance
      HCL Technologies Ltd
      HDFC Ltd
      HDFC Bank
      Hindustan Unilever Ltd
      Lupin Ltd
      Maruti Suzuki Ltd
      Pidilite Industries
      Yes Bank Ltd
      Zee Entertaintment Ltd

  19. Sir,
    I am interested about multibagger stock recommendation. I am novice here. Want your valuable advice. Hope you will not dishearten me.

    Thanking you.

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