How Stock Market Advisors Pick Multibagger Stocks

1. How Stock Market Advisors Pick Multibagger Stocks? You must have heard a lot about multibaggers or multibagger penny stocks. While some investors see them as a great way to build wealth, others consider them the most risky investment asset. Both are actually correct. If not chosen wisely, investing in penny stocks can also result in losses. So, the key to success here is to identify the right multibagger stocks at the right time. Doing it on your own can be difficult unless you are a stock market expert. But you can consider hiring trusted stock market advisors for this. Before we move further to understand how stock market advisors pick multibaggers, let’s discuss what multibagger stocks are: What are Multibagger Stocks? Multibagger stocks are the stocks that provide multi-fold returns over a period of time. These are usually undervalued stocks that have not given very high returns in the past years for some reason. But, they have high growth potential and can lead to wealth generation for investors if they can patiently hold their investments for longer periods. Let me explain this with a simple example. Suppose you plant a one-feet bamboo and you water it daily. Its height remains the same for the first years, the second years, and even for the forth year. But in the fifth year, it grows rapidly and becomes a mature 100-feet bamboo tree. During all these years, the plant strengthens its roots and starts visibly growing only when it is strong enough to stand. That’s exactly what happens with multibagger stocks. You might have to wait so long to see results, but once it grows, you might get 2x, 5x, or even 10x returns. How Do Stock Market Advisors Identify Multibagger Stocks? The real challenge is not to invest in multibaggers, but it is to identify multibagger stocks at the right time. For someone with rare market knowledge, it might be difficult to identify multibagger stocks during the initial stage. This is where Sana Securties’ stock market advisors can help you. Here’s how our financial experts identify multibagger stocks and recommend potential stocks that align with your investment goals: 1. Focusing on Emerging Sectors We start by looking at a larger picture, i.e. the entire sectors or industries, which are rapidly emerging or are in high demand. Since the last few years, sectors like EV, renewable energy, AI, technology, etc, are in high demand. Hence, businesses in these sectors are expected to grow at a rapid pace. Our stock market advisors stay updated with market conditions and keep an eye on undervalued businesses in such

2. emerging sectors. A stock that has not performed well in the past might go up in the future if that particular sector is growing fast. However, that’s not the only factor. 2. Looking for Undervalued Stocks One very important factor to keep in mind when finding multibagger stocks is to ensure that the stock is undervalued. Many stocks stay under-the-radar, i.e. unknown by most people, for a long period. These are usually small or mid cap companies that have not been catched by analysts or media channels so far. Identifying a multibagger at this stage can benefit you the most as once the stock is recognized by analysts, it is no more undervalued and its price starts growing rapidly. 3. Looking at The Business Model (It Must be Scalable) When putting money in the stock market, keep in mind that you are investing in a business and not just in s stock. Rather than just looking at the stock prices, its history, etc, look at the business model. This is what our financial experts at Sana Securities do. We look at the business model of companies and ensure that it is scalable before recommending a particular stock as a potential multibagger to our clients. 4. Analyzing Financial Ratios The stock market advisors at Sana Securities also analyze various financial ratios and other factors to determine the business’s financial performance and growth potential. Financial ratios like Return on Equity (ROE), Return on Capital Employed (ROCE), and Debt-to-Equity ratio, can help get valuable insights into the company’s financial health. In order to become a multibagger, a stock should have strong financial metrics. A good ROE and ROCE indicate that the business has efficiently used the capital. Similarly, a low debt-to-equity ratio is a sign of the company’s financial stability. 5. Ensuring The Stocks are Not Yet in News Once a stock is recognized by analysts and is in media, its price may rise very fast. In order to get the most out of multibagger, it is important to identify them in the initial stage when the stocks are not in limelight. Our stock market advisors look at undervalued companies with strong finances and scalable business models and consider various factors to identify if they can potentially turn into multibaggers. Why Choose Sana Securities as Your Stock Market Advisory? Sana Securities is a SEBI-registered financial advisory company founded by Rajat Sharma, who has been working in the investment field since 2011. We offer customized advisory services for every segment of investors. Whether you are a beginner trader or an HNI with a good experience in trading, hiring Sana Securities as your financial advisor can enhance your investment journey.

3. Our stock market advisors have thorough market knowledge and years of experience in portfolio management. We can help you choose the right mutlibagger stocks and other investment assets according to your long-term financial goals. For any further information, get in touch with us now!