The relentless investments by domestic investors have resulted in an unprecedented rally in smallcap stocks. However, some of these stocks are still trading below their 5-year average price-to-earnings ratio (P/E). Analyzing the valuation, we have shortlisted 10 multibaggers that are worth considering. Neuland Laboratories, Quick Heal Technologies, Welspun Enterprises, PTC India Financial Services, ITD Cementation India, Responsive Industries, Indraprastha Medical Corporation, Anant Raj Ltd, Capacit’e Infraprojects, and Mishtann Foods are the 10 shortlisted stocks with an annual turnover of over Rs 100 crore. This article provides insights into the financial performance of each of these stocks and the outlook for smallcap stocks in 2024.
A study of 20-year data dissecting the performance of Dalal Street’s biggest multibaggers shows that most stocks that compounded by a minimum of 25% during the period hail from traditional manufacturing companies. Topping the list is PI Industries, whose stock has compounded at a gravity-defying CAGR of 55% to 6,485 times.
