American Investor and Business tycoon, Warren Buffet once said, “Price is what you pay. Value is what you get.” The statement underlined the importance of investing in the right kind of stocks that would give good returns and create wealth—the ultimate purpose of investment.
Stock investments although, come with their own share of risk – some which we are prepared for and others which we are not. This is why we need someone to guide us through the available stocks and sift through those promising a lot but delivering a little. These advisors and consultants, through years of experience and a lot of studies, understand what would work best as per our risk appetite and make suggestions that help us grow financially.
In our search for such stock advisors, we found one that has earned quite a significant amount of credibility in a very short time – Multibagger Securities Research & Advisory Pvt Ltd. Started in 2017, it is an ISO 9001 certified SEBI Registered Investment advisor, incorporated mainly for quality research & advisory in Indian equity markets with a special focus on identifying Multibagger Stocks.
The firm does not provide intraday trading tips because it considers that as a gamble instead of science. After its inception, the company has been growing very well and has earned both domestic and international clients.
The main focus of Multibagger Securities is on equity research in general and in finding Multibagger stocks in particular. This means that the company looks for stocks that have the potential to become Multibaggers, instead of looking for 30-40% returns. It has been able to identify some big multi-baggers like Swiss Glascoat, Chaman Lal Setia Exports, KPR Mills, Mold-Tek Packaging, Maithan Alloys, etc. In 2017 the trademarks department of Govt of India gave the company the ‘Exclusive’ rights to use the word ‘Multibagger.’
Currently, the company provides only one type of service for long term investors. In this package, it is providing 12 undervalued quality small-cap stocks which have the potential for huge re-rating in few years. In future, the company wishes to launch different variations of this service to suit a different kind of investors.
The Central Force
Manish Goyal is the CEO of Multibagger Securities Research & Advisory Pvt Ltd. He is a Chartered Accountant by qualification and is a person with a long term vision and a passion to excel in whatever he does.
After becoming a CA, he worked as Finance Manager in Ranbaxy Laboratories Ltd. from 2006 to 2010. But soon realised that he would trade quality time and life any day over just money. Thus, he quit his job and chose Stock Market Investing as his professional career. “Here in the stock market, instead of me, my money works, and my time remains free for more creative, quality, and productive thinking,” says Manish
A Value/Fundamental Investor, Manish does not believe in Technical analysis because he thinks that charts cannot decide on a company’s future. There are a lot of factors (PE, ROE, ROCE, Dividend yield, Debt Equity, etc.), which he uses to establish that a particular stock is undervalued or not. To get investing ideas, he starts with a stock screener to filter out overvalued stocks, and then furthers research to identify the best and safest undervalued stocks.
“I found the value investing approach the best in the stock market compared to other approaches such as Technical Analysis or Growth story approach. The reason behind lies in the value investing approach, where you have a lot of margin of safety and the downside risk is minimal. Growth stocks are riskier compared to that, and Technical analysis-based stocks are most risky,`` explains Manish.
Investment Solutions for Every Palette
Multibagger Securities is helping aspiring customers/investors in many different ways. Firstly, on its website, it has provided a lot of ‘Dos’ and ‘Don'ts’ of the stock market which helps investors avoid some typical mistakes of the average investor. There are a few great books at the website free of cost which help investors in learning the basic science of investing.
In addition to that, the company gets in direct touch of its customers through WhatsApp and gives them personal guidance whenever required. Gradually its customers are learning how to ignore the noise of the stock market world and focus on what is relevant.
As is obvious, technology has been a great partner for the company in providing the services. Multibagger Securities believes that the partnership of technology and finance industry can do wonders for stakeholders in terms of accessibility, profitability, and reliability. It has launched a Mobile Application also. “We will also come out with more ideas as to how to use technology to make our services more efficient and effective,” adds Manish
The dynamic nature of the market forces keeps advisors as well as investors on their toes. Manish feels that as the markets are evolving, and so are investors and investing approaches. What was considered to be the safest and fool-proof investing approach a few decades ago, is not the safest strategy now. Success in the stock market investing is all about thinking and remaining ahead than others. Investing is an art and science. There is not a fixed set of principles to follow. Citing an example, he says, “Yes Bank, which was a darling of investors till 2018 but had to be taken over by the government in 2020. Investors need to be alert as to what new developments are taking place and improvise their investing strategies according to that.”
Being cautious and well-informed is essential to stay afloat in the market. “My advice to entrepreneurs will be to make stock market research more scientific and research-based instead of news/noise based. Keys to success in this business are transparency, integrity, and hard work. No fake promises should be made to the clients, and investment advice should be given considering the client’s financial and social position. New entrepreneurs should follow all types of guidelines and rules of SEBI,” says Manish
Multibagger Securities is planning to open a new branch in Chandigarh soon. The company is also contemplating to apply for PMS services in future and may go in other related fields of capital markets like stockbroking etc. “Our near term mission is to outperform all our competitors in terms of CAGR of our suggested stocks. In the long term we want to be an industry leader,” concludes Manish.
Quote: “Our company gives importance to high standards of services to our clients, corporate governance, integrity, and hard work.”
Quote: “We have set for ourselves a mission of becoming the biggest wealth creators for our customers in terms of CAGR in the next 5 years.”
Quote: “I started this company so that I can help people on a larger scale in becoming successful investors/entrepreneurs and live a quality life at the same time.”
Quote: “Our vision is to become an industry leader in equity research and advisory.”