ASHU DUTT'S "MULTIBAGGERS - YES YOU CAN BE RICH! VERY RICH! - http://www.ashudutt.com/books.aspx

EXCERPTS FROM ASHU DUTT'S "MULTIBAGGERS - YES YOU CAN BE RICH! VERY RICH! - http://www.ashudutt.com/books.aspx
 THE VALUATION MULTIBAGGER
Stocks turn into multibaggers when there is a combination of 3 factors
- The stock is undervalued (or has great fundamentals or a major structural change like new capacities or a change in its business cycle is taking place but the market has not taken note)
- The market has not noticed the sector and/or the stock for various reasons including not enough research coverage etc
- You expect the market to take notice
Take for example the movement of stocks once a sector falls in favour. And any sector can fall in favour. At various times, Technology, Real Estate, Sugar, Power, Infrastructure etc have been in favour and the gains have been spectacular
AVOID “FAVORITE” SECTORS
It is impossible to find multibaggers in market favourites (which by definition means that someone else already picked them up early enough and have a multibagger).  So if autos are market favourites, there will be few multibaggers here.  Once a market rushes to buy up a stock, it overprices it and leaves little chance to get a multibagger
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