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Making 10x returns in Indian stocks is not difficult if you choose right horses.

top 10 multibagger stocks for next 10 years

• Ksolves
• Jyoti Resin
• Hindustan Foods
• Birlasoft+KPIT
• Route mobile and Tanla platforms
• CDSL
• Campus Activewear
• Happiest minds
• Tata ELXSI
• Polycab
• Zomato
• Trent
• Tube investment
• Varun Beverages
• Bajaj Finance

Now I will discuss why I think these stocks can turn 10x baggers by 2030

Jyoti Resin and adhesives

Market cap is 1.4k Crore

Why I like this stock

• It is similar to pidilite industries
• It is a small cap stock
• Sales and PAT are growing rapidly
• debt free
• Networth increased by 4x from 2016 to 2020
• PAT increased by 19x in last 5 years

Hindustan Foods

On 10 March 2023, Market cap of Hindustan Foods is 6k Crore. But PE is 100 so valuations are rich but I expect to perform exceptionally well by 2030. I will recommend buy on every dips. Buying at PE of less than 75 is recommended since it is a small cap stock growing at impressive rate in terms of topline. Generally if mid cap growth stock is trading below 50, I am happy to buy it. And if large cap growing stock is trading below 30 PE, I am happy to buy it.

Promotors are holding 65% in this company, FPI and public is holding 14% each. Generally I like stocks where promotor holding and Institutional investors holding is high.

Top reasons why I like this stock

• Small Cap with market cap of 6100 Crore
• Consumer stock with interests in food and beverages, home care, beauty, personal care, healthcare, leather and pest control.
• FMCG contract manufacturer for leading companies

Birlasoft+KPIT mobile

birlasoft (7.6k Crore) - PAT and revenue has doubled over last 5 years

Route mobile

Route mobile market cap is 8.4k Crore

Why I like this stock

• Revenue and PAT has grown by 4x in last 5 years
• International operations

Tanla platforms

Tanla has market cap of 8.5k Crore

Why I like this stock

• Revenue and PAT has nearly doubled in 3 years
• International operations
• The client list includes Reliance, BPL, Hexacom, Airtel and Essar.

CDSL

On 10 March 2023, Market cap of CDSL is 10k crore and I expect that by 2030 Market Cap of CDSL will become 1 Lakh Crore delivering 10x returns to investors. Reasoning behind this is that number of stock market investors will grow by 10x in the same period. Another reason is CDSL and NSDL is a duopoly in Indian stock market. So there is an entry barrier.

Top reasons why I like this stock

• High entry of barrier
• Duopoly of NSDL and CDSL in Indian Markets
• Low market cap of around 10k Crore

Campus Activewear

Market cap is 12k Crore

• Revenue has been growing by 26% CAGR since last 4 years
• PAT is growing by 40% CAGR since last 4 years
• High return on equity of 29%
• Motilal Oswal mid cap fund is bullish on this

You can also look at Mirza International which has market cap of 3.7k Crore. Metro brands is also good company.

Happiest Mind

• Happiest Mind (12k Crore) - 238% CAGR over last 4 years

Tata ELXSI

On 10 March 2023, Market cap of Tata ELXSI is 39k Crore.

Top reasons why I like this stock

• Top notch management from TATA
• Global customers
• Clients from Electrical Vehicle industry
• High growth stock

Polycab

Market Cap is 44k Crore.

Why I am bullish on this stock

• Exporting to 60+ countries
• Sells cables, pumps, pipes, Solar products, fans and home appliances, Switchgear and LED
• PAT growing at 31% CAGR and revenue at 17% CAGR
• 23 Manufacturing facilities

Zomato

Zomato market cap is 45k Crore

• Revenue of Zomato has increased 10x in last 5 years
• Revenue for 2022 was 4.6k Crore. So It is trading at 10x price to sales ratio
• Even though company is making losses, Balance sheet is strong as there is negligible debt
• In Feb 2023, Deepinder Goyal said that revenue will grow 10x in next 5 years

Trent

Market cap is 47k Crore Top reasons why I like this stock

• top notch management from TATA
• Revenue and EPS have grown with 15% CAGR over last 5 years
• consumer stock
• operates Westside, Zudio, Landmark and Star Bazaar

Tube investments

Market cap is 51k Crore Top reasons why I like this stock

• Top notch management from Murugappa group
• Exposure to Electric Vehicle Industry
• Promotors, FII and MFs hold more than 80% in this company

Risks

• Growth was stagnant from 2019 to 2021. But this was mainly due to Covid disruptions

It's recommended to buy this stock on dips.

Varun Beverages

Market cap of https://varunpepsi.com/ is 87k Crore. This stock may give returns similar to monster beverages in USA.

Top reasons why I like this stock.

• Sole Franchise of Pepsi in India
• Consumer company selling products like Pepsi, Mirinda, Mountain Dew, 7Up, Tropicana, Slice, Lemon, Orange, Aquafina, Lipton Ice Tea, Mango Shake, Cold Coffee, Kesar Badam
• CAGR growth of 50% in PAT
• Selling in more than 6 countries including India
• Strong expansion plans within India

Bajaj Finance

Bajaj Finance market cap is 355k Crore.

Bajaj Finance is already multi-bagger. But it can still make your money grow by 10x from hereon.

Why I am bullish on Bajaj Finance

• PAT has become 3x in last 5 years
• Apart from consumer loans, it also provides housing finance and stock broking solutions
• Top notch management from Bajaj Group

IT Stocks

Market Caps

• Cigniti tech (2k) - Revenue and profit have nearly doubled
• Latent View (7k Crore) - Profit and revenue have doubled in last 5 year period
• birlasoft (7.6k Crore) - PAT and revenue has doubled over last 5 years
• Sonata(10k Crore) - Profit and revenue have doubled in last 5 year period
• Happiest Mind (12k Crore) - 238% CAGR over last 4 years
• Persistent (35k Crore) - Profit and revenue have doubled in last 5 year period
• MPhasis(38k Crore) - Profit and revenue have doubled in last 5 year period
• Coforge (25k Crore) - Profit and revenue have doubled in last 5 year period
• L & T Infotech + Mindtree (137k) - PAT and revenue has doubled over last 5 years
• LTTS (38k Crore) - PAT has doubled over last 5 years but revenue growth is less
• Info edge (44k Crore) - Growing at 14%
• Redington (13k Crore) - Profit has doubled but not revenue
• eClerx (7k Crore) - 10% CAGR growth
• Zensar (6k Crore) - 12% CAGR growth
• Cyient (10k Crore) - Very marginal growth

From above list, I like Birlasoft and Happiest Mind

Few comments

Mostly investors assume that certain stocks will perform really good based on brand name. e.g. HDFC asset management company, ICICI Prudential, HDFC life insurance etc all these are good companies but there is no good growth as of now.

Another thing to remember is that some stocks may have given good returns in the past. but growth has become stagnant e.g. TCS, Infosys, Reliancem, ITC etc. Usually the market cap of these stocks is very high so growth becomes difficult.

Sometimes we feel that a stock is really good just because it has given good return in last 1 year. e.g. SKF India, Butterfly gandhimati, TTK Prestige are good companies but there is no good growth. Company's topline and bottomline cagr growth should be at least 15%.