5 High-Potential Multibagger Stocks to Watch in 2025

Top 5 Multibagger Growth Stocks to Watch in 2025

The stock market in 2024 has been nothing short of a rollercoaster. Packed with volatility, the year saw small-cap and mid-cap stocks shine in the first half, delivering extraordinary returns. However, the later months served as a stark reminder of the importance of corporate earnings. Stocks relying solely on narratives or missing earnings estimates faced severe corrections.

Despite this, many stocks managed to post impressive gains of over 100%, with a few standout growth stocks topping the list. These multibagger stocks still show potential for continued growth in 2025.

Here, we highlight five such stocks. The selection is based on specific criteria to identify fundamentally strong, high-growth opportunities:

Screening Criteria:

1. Stock price return: Over 100% in the past year.
2. Sales and profit CAGR: Exceeding 15% over the last three years.
3. ROE and ROCE: Above 15%.
4. P/E ratio: Below 40, ensuring reasonable valuation.
5. Debt-to-equity ratio: Less than 1.
6. Promoter holding: Over 50%, signaling strong confidence.
7. Market capitalization: Above ₹1,000 crore, avoiding illiquid small caps.

This process identified stocks with solid fundamentals, strong growth potential, and reasonable valuations. Let’s dive into the top five picks.

1. Mazagon Dock Shipbuilders

Mazagon Dock has delivered an impressive 117.3% return in the last year, supported by robust financial growth. Its revenue and profit after tax (PAT) have grown at a CAGR of 32.7% and 55.6%, respectively, over the past three years.

Specializing in warship and submarine construction for the Indian Navy, the company benefits significantly from government support through the “Make in India” initiative and Defense Production Policy.

Growth Triggers:

• A ₹398.7 billion order book (as of September 2024).
• Recent contracts worth ₹61.7 billion from ONGC for wellhead platforms and pipelines.
• Planned capex of ₹40–50 billion over the next 3–4 years.
• Expansion into maintenance, repair, and heavy engineering equipment to diversify revenue streams.

Challenges:
The company faces prolonged project timelines and reliance on foreign equipment suppliers, which can cause delays and cost fluctuations.

2. Oil India Limited

Oil India has soared 150% in the last year, with sales and profit CAGRs of 21.7% and 21.6%, respectively, over three years. Trading at a P/E ratio of just 10x, the stock remains attractively valued.

Growth Drivers:

• A production target of 4 million tonnes of oil and 5 bcm of natural gas within two years.
• Expansion of Numaligarh Refinery to boost capacity to 6 mmtpa by December 2025.
• Capex plans of ₹100–120 billion (including NRL) for FY25.

With its focus on upstream and downstream operations, Oil India is well-positioned for growth despite challenges like environmental regulations and geopolitical risks.

3. Godfrey Phillips

Godfrey Phillips, part of the regulated sin sector, has defied odds to deliver a stellar 188% return in the past year.

While its core business remains tobacco, the company is diversifying into confectionery and exports, achieving 30% growth in confectionery sales in FY24. It is also developing new-generation products to adapt to evolving regulations.

4. Authum Investment & Infrastructure

Authum’s stock price jumped 124% in the past year, driven by a remarkable turnaround in its business focus. From just ₹206 million in sales in FY20, it recorded ₹25,867 million in FY24.

Key Highlights:

• Strategic acquisitions, including an open offer for Prataap Snacks.
• A balanced approach to investments, aiming for a 60:40 equity-to-credit ratio.
• Plans to achieve an ROE of 16–20% across all platforms.

5. Ganesh Housing

Ganesh Housing has emerged as a top performer, delivering over 200% returns in the last year. With a 3-year sales CAGR of 74% and profit CAGR of 85%, the company is a standout in the real estate sector.

Growth Initiatives:

• A land bank of 500 acres, primarily in Ahmedabad.
• Large-scale projects like the Million Minds SEZ and Malabar Retreat, with significant revenue potential.
• Expected growth rate of 20–25% CAGR over the next decade.

Conclusion

Investing in growth stocks has consistently proven rewarding in India’s dynamic stock market. With the country’s rising middle class, urbanization, and untapped markets, high-growth companies are well-positioned to thrive.

While past performance doesn’t guarantee future success, these five stocks exhibit strong fundamentals and clear growth trajectories. For long-term investors, these picks represent promising opportunities for wealth creation in 2025 and beyond.