A Multibagger Stock is an equity share that yields returns several times over its initial purchase cost. Investment guru Peter Lynch coined the term in his book “One Up on Wall Street.”
These stocks are typically associated with companies with high growth potential. The stock issuing company is backed by strong management and innovative products. Let’s look at some of the BSE smallcap companies offering multi-bagger returns.
Best BSE Smallcap Stocks with Multibagger Potential
Here is a list of companies that have given multi-bagger returns.
1. Lloyds Enterprises Ltd
Lloyds Enterprises Limited was incorporated on October 15, 1986. It operates in the manufacturing sector, specifically in metals, chemicals, and their products. Their product portfolio includes Sponge Iron, Iron Ore, MS Ingot, MS Bars & Rods, MS Billets, Power, Coal Ash, Fly Ash, and Bet Ash.
The company is currently trading at around Rs 32 on the price chart. It has delivered a return of 302.38% in the last 52 weeks. In 2024, the company’s net income stood at Rs 117.55 crores.
2. Gallantt Ispat Limited
Gallantt Ispat Limited, previously known as Gallantt Metal Limited, is a steel company that manufactures sponge iron, steel melt shops, rolling mills, and pellets.
The company’s manufacturing plants are in the Purvanchal region of Uttar Pradesh and the earthquake-recovered area of Kutch in Gujarat.
In the last year, Gallantt Ispat stock has returned 413.96%. This bse smallcap share price is around Rs 51.95.
3. Som Distilleries
Som Distilleries Limited offers a range of alcoholic products. The company’s portfolio includes spirits, beers, and ready-to-drink beverages. It also offers Rectified Spirits (RS) and Ethyl Neutral Alcohol (ENA).
From its inception as a white-label bottling unit in the mid-1980s, Som Distilleries has expanded to multiple locations.
Some of Som Distilleries flagship brands are Hunter, Woodpecker, Pentagon Gold Edition Whisky, White Fox Vodka, Milestone Blue and Legend Premium Whisky, Black Fort Rum, Pentagon Rum, and Milestone Brandy.
Som Distilleries returned 60.10% over the last year. The stock is currently priced at Rs 290.90.
4. R Systems International Limited
R Systems International Limited is into digital product engineering. The company specializes in automation, AI, and data design. Their services cater to Tech and Independent Software Vendors, Healthcare, Manufacturing, Logistics, Automotive, Telecom, Media and entertainment, and the Financial Services sectors.
In the last one year, the stock generated 67.20% returns. At present, it is trading at Rs 409.55.
5. Sonata Software
Sonata Software is a global IT services company. It specializes in digital transformation solutions. The company offers innovative cloud, data, and dynamic modernization services across various industries.
The company’s diverse team is spread across the United Kingdom, European Union, APAC countries, and ANZ.
Although the returns over the last 52 weeks stood at 22.51%, the company, despite being small, holds a strong market and displays a strong revenue.
6. Swadeshi Polytex
Swadeshi Polytex Limited specializes in real estate transactions and development. The company’s portfolio includes real estate activities, including acquiring, selling, leasing, and developing land, plots, buildings, factories, and warehouses. The company operates both in rural and urban settings.
Over the last year, Swadeshi Polytex Ltd. gave a return of 731.49%. The stock is currently priced at Rs 323.95. The 52-week low of this company’s stock is Rs 35.
Conclusion
Investing in Multi-Bagger Stocks can be highly lucrative but also comes with risks. It requires identifying companies with suitable characteristics that are undervalued by the market but have solid fundamentals and growth prospects. Although we have provided a few stocks here, you need to conduct your research. You can visit Dhan to start investing.
