Six companies listed in Samvat 2079 have given multibagger returns (compared to their issue prices) so far while most of the remaining are trading above their issues prices.
A bottoms-up stock analysis of companies with strong business momentum, healthy ROE/ROCE profile, at least 15% EPS CAGR for FY24-26F, and a forward PE/PBV valuation near mean/ below mean of the last 5-10 years shows 10 stocks can rally within 46-311% in 3 years.
While Cello World and Blue Jet Healthcare have already announced their IPO dates, companies such as Tata Technologies, Mamaearth, ASK Automotive, Protean eGov Technologies, Fedbank Financial Services, ESAF Small Finance Bank, Flair Writing Industries and Credo Brands Marketing, among others, are in the pipeline.
The Indian EMS industry has been at a nascent stage at only 0.6% of GDP in FY22. However, it is likely to catapult to a massive INR6t by FY27, replicating the success stories of other key sectors such as IT, specialty chemical, auto ancillary, and textile.