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Making multi bagger returns is very easy during market crash. Just follow below steps.

top 10 multibagger stocks for next 10 years

  • Focus on small cap companies.
  • Buy cheap based on PE, PS ratios.
  • Buy companies with good business models.

It's very common for quality stocks to trade at ridiculous valuations during market crash. For example - Pokarna was trading at PE of 1.7 (median PE is 12) and PS of 0.3 (Median PS is 1.4) in last week of March 2020. So you can see that valuations were very cheap. Even though companue earnings would have remained flat, it would have delivered 5x returs in next couple of years due to PE and PS expansion. With 100% EPS growth, stock would have delivered 10x returns. You could have bought entire company for aroud 100 cr. On 28 Jan 2022, Valuation of company increased to around 2000 cr.

Similar thing happened with Tata ELXSI.

What not to do during crash

  • Do not buy large cap stocks. These stocks do not fall heavily during market crash. That's why upside is also limited when turnaround happens in market.
  • Do not buy stocks that have not fallen drastically.
  • Do not over diversify. Take concentrated bets.

For example Tasty bites stock did not fall sharply during covid crash. So returns in next couple of years were not high.

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