4 Potential Multibagger Stocks With Decent Dividend Yield

Multibagger stocks are the stocks that multiply in value in a short time say become 2 times or three times. These are not the bluechip entities and in fact are some of the evolving names in their industry that are on the path of creating their title. Also, to identify the multibagger you can compute the trailing EPS and revenue and use it to arrive at the current PE and price/ sales ratios. If the PE witnesses growth at a faster rate than the stock price there is a chance of being a multibagger.

Likewise, here are stocks that seem to show high probability of turning into multibaggers:

Potential Multibagger stocks

 

Potential multibagger stocks	P/E	Dividend yield	CMP
Global Education	8.85	2.12%	94.3
Cosmo Films	7.74	2.07%	1689.3
LKP Securities	8.35	2.02%	14.85
Ador Fontech	10.16	5.00%	73.85

Global Education

The company is into offering professional training and skill developments to corporates, teachers and students for human capital development and other various business support services to education institutions, students, corporates and banks. The company's financials look encouraging with net income in Fy22 nearly trebling to Rs. 10.85 crore. Also, its revenue has been gaining in a good way.

Another good this is it is indeed a debt free concern. The company in February announced dividend of Rs. 2 taking its dividend yield higher.

 

2. Cosmo Films:

This is another stock with potential to tun multibagger, the company is into plastics. One of the main strength of the scrip is the rising net cash flow and cash from operating activity. Also, on its book, the company has a manageable debt. The company in the Fy 22 declared a dividend of 350% taking the dividend yield at the current price of Rs. 1689.7 to over 2%. The multibagger stock has already handsome return and is supposedly seen to have more upside. The company also announced bonus share issuance in the ratio of 1:2.

3. LKP Securities:

This is a penny scrip quoting at just Rs. 14.85 per share as of writing this copy. The company offers a spectrum of services like equity broking in cash and derivatives; Internet-based trading; demat services, research debt and money market broking; merchant banking; currency loan against shares and margin funding etc.

The company's financials paint a healthy picture with net income for Fy 22 at Rs. 13.49 crore.

The company in a 1-year timeframe has given a return of 83% and its dividend yield is at 2.02% considering the latest declared dividend of Rs. 0.3 for which the stock shall turn ex-dividend on
June 10, 2022.

 

4. Ador Fontech:

Ador Fontech Limited focuses on consumables, equipment/automation and ancillaries, & services. Its product line includes welding-cutting equipment, automation, wear resistant product, welding electrode, filler rod & wire, fume extraction product etc. The company is seeing growth in net profit with increasing profit margin. Also, debt with the company is zero.

Considering the last year's dividend of Rs. 4, the dividend yield turns out to be a strong over5%.