1. The answer to the said question that how one identifies a multibagger is straight from the horses mouth like Rakesh Jhunjhunwala and Raamdeo Agrawal, Director, Motilal Oswal Financial Services.

2. Rakesh Jhunjhunwala of Rare Enterprises is of the opinion that one must check the opportunity available to the business and the entrepreneurs involved in the business. One also need to check the capital required for the business and whether the business has a scalable model or not and what is the company’s valuation.

3. Raamdeo Agrawal, Director, Motilal Oswal Financial Services is of the view that one has to buy a multibagger stock free of cost i.e. purchase price has to be insignificant to whatever is the expected value in the next 4-5-6 years." He further states that one has to be lucky also in getting the multibagger as market has a high probability of spoiling the chances.

4. He further states that a multibagger gets irrational quote from the market in three steps and as a result the companies goes from being undervalued to fairly valued to being irrationally valued.