These midcap stocks can be the next multibaggers, according to Goldman Sachs

Jun 7, 2023

By: Rounak Jain

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Top multibagger picks

If you are looking for the next multibagger stock, global brokerage Goldman Sachs has released a list of mid-cap stocks that have the potential, based on criteria like earnings and profit growth, return on equity, valuations and more.

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Triveni Turbine

Triveni Turbine is a heavy electricals company that makes steam turbines. It has a 60 percent market share in this sector and its stock has delivered a 136 percent return in the last one year. It is currently trading at ₹400.

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Apparel has the most multibaggers

Apparel emerges as the category offering the most potential, with three of Goldman Sachs’ multibagger picks in this sector. This includes Rajesh Exports, VIP Industries and Vedant Fashions, which owns the Manyavar brand.

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Pizza Hut, McDonald’s and KFC operators in the list

Pizza Hut and KFC operator Devyani International, and McDonald’s operator Westlife Foodworld also feature in Goldman Sachs’ multibagger list. While Devyani International’s stock is trading at ₹179, Westlife Foodworld is trading at ₹834.

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Auto ancillary companies find a mention too

With the outlook for the auto sector brightening, auto ancillary companies like Uno Minda and Motherson Sumi also figure in the list. While Uno Minda’s shares are trading at ₹546, Motherson Sumi is trading at ₹3,140 currently.

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Betting on commodities and industrial players

Solar Industries and Kansai Nerolac Paints in the commodities sector, and industrial players Timken India and 3M India could also emerge as multibagger stocks, as per the brokerage. It’s worth noting that 3M India’s stock is currently trading at ₹24,145 apiece.

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On a firm footing

Footwear companies Metro Brands and Bata India are also on a firm footing, according to the brokerage. However, while Metro Brands’ stock has risen 66 percent in the last one year, Bata India’s stock has declined 14 percent.

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This aerospace stock could take off too

Aerospace company Bharat Dynamics is the lone pick from the critical aerospace and defence sector. Its stock has delivered a 46 percent return in the last one year and is currently trading at ₹1,050 apiece.

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One stock each from agri, financial services and specialty chemicals

Sumitomo Chemical, Aditya Birla Capital and Vinati Organics have also found a place on Goldman Sachs’ multibagger list in the mid-cap segment.

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