Multibagger stock ideas: How I Found 3 Multibagger Stocks in 2025 Using This Simple Strategy

 Back in late 2024, I was tired of losses. Penny stocks I blindly chased either flatlined or collapsed. But one night while rechecking old watchlists, I noticed a pattern — the same 3 factors repeated in every successful stock I missed.

So in early 2025, I built a simple system using just 3 filters. No complex algorithms. No fancy tools. The result? Within six months, I had picked three multibagger stocks — and I’m sharing everything with you today.

Step 1: Filter Smallcaps Backed by Strong Promoters

I began screening stocks under Rs.500 crore market cap where the promoter holding was above 60% and increasing over time.

This signaled that the people running the company had skin in the game.

 

Key Metrics to Check:

Promoter holding trend (last 4 quarters)

Pledged shares (preferably 0%)

Insider buying activity

 

Step 2: Detect “Pre-Breakout” Volume Spikes

The second signal? Unusual volume.

Not huge spikes that everyone sees — but steady increases in delivery volume with price still flat.

I used free tools like:

Screener.in: to track delivery volume & financials

Chartink: for volume + RSI scan

TradingView (free): to plot 50/200 EMA crossovers

 

This helped me catch the accumulation phase before a breakout.

 Step 3: Positive Operating Cash Flow + Low Debt

Too many smallcaps show paper profits but bleed cash.

I only selected companies with:

Positive operating cash flow for at least 2 years

Debt to equity < 0.5

Consistent or growing ROCE above 15%

Case Study 1: XYZ Industries Ltd (Stock name hypothetical)

I picked this stock in January 2025 at ₹18. Today it trades above ₹68.

Why I Picked It:

Promoters increased stake from 58% to 63%

Quarterly cash flow turned positive for the first time in 3 years

Consistent delivery volume increased 3x while price stayed below 20rs

 

 Case Study 2: Kinetic Infra Ltd (Stock name hypothetical)

Bought at RS.42 in March 2025, now at RS.119.

Why It Worked:

Company cleared all debts by December 2024

Insider buying from CFO in Jan–Feb 2025

Revenue grew 70% YoY with positive EBITDA margins

 

 Case Study 3: BioLeaf Agrotech Ltd (Stock name hypothetical)

This was the sleeper pick. Bought at ₹7.40, now above ₹29.

Triggers:

Smart money accumulation shown by delivery volume

Launched new agro-tech patent pending product in Q1 2025

Operating cash flow turned ₹18 crore positive from –₹6 crore

Mistakes I Avoided This Time

 Didn’t rely on tips from Telegram/YouTube

 Avoided high-debt companies with low promoter holding

 Didn’t chase momentum blindly without understanding fundamentals

My Final Thoughts

This strategy isn’t magic. But it filters out junk and highlights stocks with real long-term potential. You don’t need to be a pro — just consistent and logical.

 You can start by applying this filter to your own watchlist — and maybe, you’ll catch your own next multibagger.

 Also Read:

Top Semi conductor sector stocks for multibagger returns in 2025

 

FAQs About Multibagger Stock Picking in 2025

Q1. How do I know if a penny stock has multibagger potential?

Look for low debt, rising promoter holding, and positive cash flows. Volume buildup before a breakout is another clue.

Q2. Is it safe to invest in smallcaps under 100rs?

Only if you research properly. Many smallcaps are risky, but some with strong fundamentals can multiply your investment.

Q3. Should I rely on stock tips from social media?

No. Most tips are biased or promotional. Always DYOR (Do Your Own Research).

Q4. What’s the minimum capital to start with such strategies?

Even 5,000rs–10,000rs is fine if you manage risk and diversify wisely.

About the Author

Piyush Sharma is a long-term equity investor and founder of MultibaggerStockIdeas.com. With over 15 years of experience in Indian stock markets, he shares research-backed investment insights, personal lessons, and practical strategies for identifying multibagger stocks early.