Multibagger Penny Stock of 2020

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          The recent market crash due to COVID19, has dragged the value of many small cap and mid cap shares to multi years low. As a result, making them available at mouth-watering price. Many shares have converted into penny stock. 

          Penny Stock are those stocks which trades at low price. Generally they are traded at below 10rs. Penny stock are very risky investment. One should invest in it with a mindset that you might loose all your money. But what if I say you that it can give 100 times return. 

          Usually I don't recommend penny stock investment but today in this post, I would like to give you one penny stock which I think can become multibagger based on my analysis, because it has good fundamental. It has potential to outperform in nearby future and can become turnaround story. The stock is TRIDENT LTD.




TRIDENT LIMITED        

          It is engaged in manufacturing, trading and selling textiles (yarn, terry towel and bedsheets), paper, chemicals and energy. It is incorporated in 1990. It is small cap company with market capitalization of arounf 2500 Cr. It has its customer base in more than 100 countries.
  • It is undervalue stock. It is trading at 0.80 times its book value which make it attractive.
  • Company has reduced its debt over past 5 years.
  • Diversified businesses.
  • Current ratio has been good. 
  • Its interest payment on its debt are well covered by EBIT.
  • It has been maintaining good dividend payout.
  • Promoter holding is around 71% with no pledging of shares.
  • Compounded profit growth of 5 years is 13.35%.
  • Over a period of 5 years, revenue has grown at rate of 6.29%..
  • Earning per share has grown from 0.24 to 0.74 in last 5 years.
  • ROCE has improved from 9.5% to 15.4% in last 3 years.
  • Selling their products on popular e-commerce portals like Amazon. 
  • Experienced Management team.
          Finally I would say that this is a time to hunt for multibagger stock. Thus I have searched this which I am having in my portfolio. The risk is very high in this stock so reward might also be very high. Hope for the best.


Please do your research before investing.


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