Multibagger Stocks for 2023: I’ve been following the Indian stock market for a while, and I can say that it’s a crazy place.
No one anticipated the latest comeback. The market recovered after falling for the entirety of 2022 in less than two months.
High-appetite investors returned and sought out the best small- and mid-cap stocks to purchase.
My point is that investors are always surprised by the stock market’s ups and downs.
Look at the graph below to see how the BSE Sensex has changed since 2000.
There are currently periods where the entire market has surged considerably, as seen in the chart above.
There were stocks that soared steadily for several months or even years during these bull market episodes. We refer to these stocks as momentum stocks.
Another well-liked method is called momentum investing, in which investors purchase outperforming assets while avoiding or offloading poor ones.
The foundation of this strategy is the idea that rising equities will stay rising, and vice versa. The idea is to take advantage of buying chances during an uptrend in order to keep up with the “momentum.”
In light of this, we present to you 5 Multibagger stocks for 2023 that have increased in value over the past 12 months.
These stocks are trading close to their 52-week highs and offer promising development prospects for the sector in which they participate.
These stocks should be on your radar for 2023. Let’s start now…
5 Multibagger stocks for 2023
#1 Fineotex Chemical- Multibagger stocks for 2023
Multibagger stocks are recognized to come from the chemical industry. That as well, in a little period of time.
Recent changes have improved the possibilities for India’s chemical industry. Several countries have embraced the China plus one strategy and moved some of their businesses to India to reduce their dependence on China.
Additionally, the recent European energy crisis has been advantageous for Indian specialised chemical industries.
Due to temporary business closures caused by an energy crisis, some client demand is migrating from Europe to India. It is crucial that you continue to monitor the top speciality chemical firms.
Fineotex Chemical is one such company that has played up to its name.
For the textile, construction, water treatment, fertiliser, leather, and paint sectors, Fineotex Chemicals manufactures supplemental and specialised chemicals.
As a top producer, Fineotex offers its clients all of the pre-treatment, dyeing, printing, and finishing goods needed for textile processing.
The share price of Fineotex Chemical has increased 168% in the last year.
The company has succeeded despite the intense market volatility since it increased revenues from new orders and delivered consistent performance in its key business segments.
Look at the financial information for the business in the table below.
Financial Snapshot
| Rs m, consolidated | FY18 | FY19 | FY20 | FY21 | FY22 |
|---|---|---|---|---|---|
| Revenues | 1,411.2 | 1,823.3 | 1,963.4 | 2,185.1 | 3,682.3 |
| Growth (%) | 11% | 29% | 8% | 11% | 69% |
| Operating Profit | 351.4 | 353.0 | 364.0 | 580.6 | 767.2 |
| OPM (%) | 25% | 19% | 19% | 27% | 21% |
| Net Profit | 227.0 | 225.2 | 130.8 | 425.9 | 551.7 |
| Profit Margin (%) | 16% | 12% | 7% | 19% | 15% |
| Total Debt | 47.5 | 21.9 | 30.4 | 34.8 | 19.1 |
| Debt to Equity (x) | 0.03 | 0.01 | 0.02 | 0.02 | 0.01 |
The company generally receives orders from textile businesses, but this year it diversified into other industries and received orders from FMCG industries.
The company’s management estimates that these new orders will result in additional revenues of Rs 1.5–2 bn, and it has guided for revenues of Rs 5.5 bn by the end of this year.
In addition, the business intends to raise installed capacity from 42,000 metric tonnes (MT) in 2020 to 1 lakh MT by the end of September 2022.
Additionally, the promoters have purchased a significant amount of shares according to the company’s most recent shareholding pattern.
Additionally, the business is included in Ashish Kacholia’s portfolio. Recently, he increased his exposure to the stock.
It seems like everything is working out for Fineotex. In addition, the business has no debt.
Financial results, share price performance, and overall growth prospects for Fineotex Chemical all appear promising.
#2 West Coast Paper Mills- Multibagger stocks for 2023
In 2022, most paper stocks increased. India opted to decrease its use of plastics in order to reduce plastic pollution, which has been good news for paper and businesses that produce paper products.
On July 1st, the plastic ban became effective. Since paper is an alternative to plastic, paper stocks profit from this.
The majority of states are removing lockdowns and announcing the reopening of schools and offices, which is another factor driving the increase in paper stock prices. The future of paper stocks appears promising as children return to using paper for reading and writing instead of PDFs.
Now, a dull industry like paper has experienced its fair share of protracted difficult times. But over the past year, it has consistently regained its spark.
West Coast Paper Mills is one of the stocks that increased the most out of the entire group.
The share price of West Coast Paper Mills has increased 161% in the last year.
The core organisation of the Kolkata-based SK Bangur Group is West Coast Paper Mills. Among other things, it produces writing and printing papers. At Dandeli, Karnataka, it has a 3.2 lakh metric tonne per annum (MTPA) plant.
The division that deals with paper and paperboard generates more than 95% of the overall revenue. View the company’s financial performance in the table below.
Financial Snapshot
| Rs m, consolidated | FY18 | FY19 | FY20 | FY21 | FY22 |
|---|---|---|---|---|---|
| Revenues | 17,102.0 | 19,791.5 | 24,928.6 | 22,445.3 | 33,776.7 |
| Growth (%) | 242% | 16% | 26% | -10% | 50% |
| Operating Profit | 3,803.6 | 5,309.2 | 6,698.3 | 2,773.0 | 6,955.4 |
| OPM (%) | 22% | 27% | 27% | 12% | 21% |
| Net Profit | 2,231.5 | 2,960.1 | 3,703.8 | (31.0) | 3,070.4 |
| Profit Margin (%) | 13% | 15% | 15% | 0% | 9% |
| Total Debt | 3,214.7 | 3,674.5 | 7,585.0 | 6,679.6 | 4,516.6 |
| Debt to Equity (x) | 0.38 | 0.33 | 0.55 | 0.48 | 0.27 |
Due to the purchase of Andhra Paper, the company earlier this month posted strong financial results for the June 2022 quarter.
Mutual funds are continuously and gradually increasing their stake in the company. As of June 2022, they owned 7.96% of the company. Up from 7.71% in June 2021, this.
The most recent West Coast shareholding pattern demonstrates that FIIs are optimistic about the business.
Currently, there are rumours that the price of paper may increase starting on September 1, 2022.
As they increase their capacity, backward integrated paper companies (like West Coast) have a bright future.
#3 Monte Carlo- Multibagger stocks for 2023
Multibagger stocks for 2023- A renowned manufacturer of branded clothing, Monte Carlo offers a wide selection of knitted, woven, and woollen clothing for adults, children, and infants.
The business has shown outstanding revenue and profit growth over the last few quarters.
Due to lower cotton prices and a significant increase in stores, the textile company just experienced record-breaking sales in the June 2022 quarter.
The business unveiled 11 new outlets for premium brands. By the end of March 2023, a total of 30 outlets are expected to be open.
The company reported in an exchange statement that when things began to normalise, it experienced solid demand across all revenue-generating categories.
Mr. Market has compensated Monte Carlo Fashions’ stockholders after taking note of the aforementioned points.
The share price of Monte Carlo has increased 144% in the last year.
The company’s qualification for the government’s production-linked incentive (PLI) programme for the textile industry is another factor in the improvements for this year.
In terms of overall performance, the corporation reported strong operating results for the fiscal year 2021–2022.
All segments contributed to the substantial rise, with kids and the cotton segment being particularly important.
The company’s net profit for the year totaled Rs 1.1 bn, a 72% increase and the highest in the company’s operating history.
Financial Snapshot
| Rs m, standalone | FY18 | FY19 | FY20 | FY21 | FY22 |
|---|---|---|---|---|---|
| Revenues | 5,759.5 | 6,563.8 | 7,256.1 | 6,220.2 | 9,043.2 |
| Growth (%) | -0.4% | 14% | 11% | -14% | 45% |
| Operating Profit | 1,309.3 | 1,165.8 | 1,359.4 | 1,357.3 | 2,055.1 |
| OPM (%) | 23% | 18% | 19% | 22% | 23% |
| Net Profit | 679.2 | 596.0 | 626.9 | 663.0 | 1,140.4 |
| Profit Margin (%) | 12% | 9% | 9% | 11% | 13% |
| Total Debt | 557.2 | 475.2 | 363.6 | 348.1 | 684.2 |
| Debt to Equity (x) | 0.11 | 0.1 | 0.07 | 0.06 | 0.10 |
#4 Maharashtra Seamless- Multibagger stocks for 2023
Multibagger stocks for 2023- Maharashtra Seamless, a 1988-founded company, is a member of the DP Jindal Group, along with Jindal Pipes and Jindal Drilling Industries.
The company’s facilities in Raigad, Maharashtra, are mostly used to produce seamless pipes.
It has the ability to produce seamless pipes with an outer diameter (OD) of up to 20 inches and holds the market share leadership position in the domestic seamless pipe market. There is not much rivalry in this market area.
The share price of Maharashtra Seamless has increased 163% in the last year.
What factors, then, account for this outstanding performance? Well, the promoters’ display of confidence by increasing exposure for the stock could be one major factor.
Maharashtra Seamless’ shareholding pattern reveals that the company’s promoters have raised their interest for four consecutive quarters. Usually, the purchase of shares by promoters is extremely good.
Its good financial standing is another factor. Look at its quarterly and annual results.
Financial Snapshot
| Rs m, consolidated | FY18 | FY19 | FY20 | FY21 | FY22 |
| Revenues | 21,814.4 | 30,517.9 | 26,448.3 | 23,083.4 | 42,003.0 |
| Growth (%) | 38.4% | 40% | -13% | -13% | 82% |
| Operating Profit | 3,760.7 | 7,374.4 | 5,905.2 | 5,528.3 | 7,231.0 |
| OPM (%) | 17% | 24% | 22% | 24% | 17% |
| Net Profit | 2,107.3 | 2,342.0 | 838.7 | 980.4 | 4,333.0 |
| Profit Margin (%) | 10% | 8% | 3% | 4% | 10% |
| Total Debt | 6,264.3 | 10,587.1 | 11,454.4 | 9,215.5 | 7,086.0 |
| Debt to Equity (x) | 0.21 | 0.34 | 0.36 | 0.28 | 0.19 |
Quarterly Performance
| Rs m, consolidated | Jun-21 | Mar-22 | Jun-22 |
|---|---|---|---|
| Revenues | 6,904.8 | 14,189.9 | 13,343.7 |
| Operating Profit | 1,582.4 | 1,996.6 | 2,448.1 |
| PAT | 958.2 | 988.1 | 1,532.3 |
#5 TCPL Packaging- Multibagger stocks for 2023
Multibagger stocks for 2023- Folding cartons, printed blanks and outers, litho lamination, blister packs, and flexible packaging items are produced by TCPL Packaging (Twenty First Century Printers) for usage in the food, FMCG, cigarette, alcohol, pharma, pesticide, and stationery industries.
The company has a benefit thanks to its established position in the market. The business has been active in the market for more than three decades and has positive relations with both consumers and suppliers.
The share price of TCPL Packaging has increased by 140% in the last year.
And it’s not difficult to deduce the motivations behind this rally…
Both FIIs and mutual funds continue to be optimistic on the stock. According to TCPL’s shareholding information, they have increased their exposure during the last three quarters.
The improvements can also be credited to improved capacity and general financial performance.
Through the installation of a second line at its flexible packaging plant, the company has increased its capacity.
The company’s financial performance is displayed in the following table.
Financial Snapshot
| Rs m, standalone | FY18 | FY19 | FY20 | FY21 | FY22 |
|---|---|---|---|---|---|
| Revenues | 6,980.5 | 8,158.1 | 8,897.8 | 9,038.2 | 10,760.2 |
| Growth (%) | 13.9% | 17% | 9% | 2% | 19% |
| Operating Profit | 877.0 | 1,057.3 | 1,280.9 | 1,362.7 | 1,590.2 |
| OPM (%) | 13% | 13% | 14% | 15% | 15% |
| Net Profit | 202.2 | 289.5 | 365.2 | 337.4 | 492.6 |
| Profit Margin (%) | 3% | 4% | 4% | 4% | 5% |
| Total Debt | 2,978.0 | 3,202.0 | 3,598.3 | 3,023.1 | 4,068.5 |
| Debt to Equity (x) | 1.38 | 1.33 | 1.34 | 1.01 | 1.18 |
Now that the corporation has added some debt for capex, debt is the only issue that still exists.
According to the management of the business, TCPL is in a good position to meet the rising demand from top brands for sustainable packaging solutions.
CONCLUSION
5 Multibagger stocks for 2023 India has been discussed in the article along with the company’s fundamentals and previous year’s track record of performance. Before investing, please double-check all relevant details. This article is only for informational purposes, and it should not be construed as an investment recommendation..
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