In a market flooded with tips, trends, and volatility, it’s easy to miss stocks that quietly turn into multibaggers over time. But if you study India’s top wealth creators, whether it’s Page Industries, Astral Poly, or Balkrishna Industries, you’ll notice a pattern: the stock price often follows the numbers.
Their common traits: high earnings growth, capital efficiency, and improving margins while still being reasonably priced.
Based on historical multibagger patterns, we’ve curated three practical stock screens that help identify such opportunities early. These screens are inspired by Pranjal Kamra’s investing philosophy, focusing on business quality, valuation, and smart money signals.
Take the first step towards potential wealth growth. Run the exact queries discussed in the article on Finology Ticker, one of the best stock screeners available, to view the complete list of stocks that match today for free.
1. The Undervalued Growth Catch-Up
What It Finds:
Companies where profits are growing fast but the stock price hasn’t caught up yet.
Why It Works:
Stocks that stay flat for years despite improving earnings are like springs being compressed. When the market finally notices, the rerating is fast and big. Think 3x–5x moves in just a few years.
Real Pattern:
When a stock trades close to its 5-year average PE but earnings suddenly jump 20–25%, it often signals a quiet compounder about to get loud.
Query:
PE Ratio < PE 5yr Avg * 1.15 AND EPS 5yr CAGR > 5 AND EPS Growth Y1 > 20 AND ROCE 5yr Avg > 12 AND Debt to Equity Y1 < 1 AND Promoter Pledging Q1 < 1 AND MCAP > 500 AND MCAP < 50000 AND Net Profit 5yr CAGR > 15
Run this on Finology Ticker to see which companies currently fit this profile.
Investor Tip:
Don’t chase momentum. Instead, use Ticker to track earnings strength and valuations together, especially for companies that are improving under the radar.
2. The High-ROCE, Low-Debt Performer
What It Finds:
Companies with high return on capital (ROCE), low debt, and steady sales growth are hallmarks of capital-efficient businesses.
Why It Works:
Businesses that earn ₹25+ on every ₹100 invested, and do it without borrowing, often grow steadily for years. They don’t need hype; they let numbers do the talking. Many past multibaggers were built on this foundation.
Real Pattern:
Companies like Pidilite and Astral started as small caps with high ROCE and zero debt, then compounded into giants. This screen helps spot similar businesses early.
Strong ROCE + low debt + promoter skin in the game =sustainable compounding.
Query:
ROCE 5yr Avg > 25 AND Debt to Equity Y1 < 0.5 AND Net sales 5yr CAGR > 18 AND Promoter Holding Q1 > 40 AND Promoter Pledging Q1 < 1 AND Net Profit 5yr CAGR > 15 AND MCAP > 1000
You can run this exact screener on Finology Ticker for free and explore stocks that match your criteria.
Pranjal Kamra says that “Compounding isn’t about catching the next rocket. It’s about finding reliable engines that keep running,”. Companies with high ROCE and clean balance sheets tend to do exactly that.
3. The Free Cash Flow + Margin Expansion Play
What It Finds:
Companies that are generating solid free cash flow, expanding margins, and reinvesting wisely are well-positioned.
Why It Works:
A rising operating margin often means better pricing power or cost control. Combine that with free cash flow, and you have a business that funds its growth, safely and steadily.
Real Pattern:
Stocks like Page Industries saw multibagger returns when their margins expanded and cash flows surged. If a company is growing margins and generating cash, it signals internal strength. And the market rewards that, often with a rerating.
Query:
FCFF 3yr Avg > 100 AND ROIC Y1 > 12 AND Dividend Payout 5yr Avg < 30 AND Operating Margin Q1 > Operating Margin Q2 AND Operating Margin Q2 > 15 AND MCAP > 1000 AND Promoter Pledging Q1 < 1 AND ROCE 3yr Avg > 15
To see current stocks matching this query, just run it on Finology Ticker’s stock screener.
Bonus Tip:
In Finology Ticker’s stock page, you can get an in-built DCF valuation calculator to value a company using Free Cash Flow and its growth.
Why These Patterns Work
These screeners focus on what really matters:
- Earnings growth that’s ahead of market recognition
- Profitability is measured through ROCE, margins, and cash flows
- Clean promoter behaviour and balance sheets
- No hype, just strong fundamentals
Each of these traits has been seen in real multibaggers before they became famous. By turning these into simple screeners on Finology Ticker, you’re basically reverse-engineering success.
Final Thoughts
Multibaggers aren’t found in tips or Telegram groups. They’re discovered in financial statements long before the market catches on.
The good news? With tools like Finology Ticker, you no longer need to be an analyst to do this.
Many long-term investors use Ticker’s screener to save their screens and then run them every few weeks, helping them stay alert without reacting to daily market noise.
As Pranjal Kamra says, “Good investing is boring. But it works.” Start with proven filters, ignore the noise, and let the numbers guide you.
The next multibagger might already be on your screen; you just need the right lens to spot it.
Finology is a SEBI-registered investment advisor firm with registration number: INA000012218.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
