More than half of the Nifty 500 universe has generated 10-bagger returns within a rolling five-year period over the last two decades, according to the latest note from Goldman Sachs.

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The brokerage analysed 10 major Emerging and Developed markets, covering 6,700 stocks, and looked for 10-baggers or stocks that have generated at least 10 times returns during the above mentioned timeframe.

What came to light is that 269 stocks, or 54 percent of the Nifty 500 universe have generated 10-bagger returns, which is the highest proportion of multibaggers among the 10 markets analysed. This proportion is also higher than the 30 percent average for stocks within Emerging Markets and 20 percent for Developed ones.

The 269 multibagger stocks that Goldman Sachs highlights have these six traits in common:

High realised growth rates

High capital return-ratios

Midcap / Smallcap bias

Inexpensive starting valuations

Domestic sector orientation

High promoter holding

Goldman Sachs further said that India offers a compelling long-term beta and outsized alpha opportunities within the Emerging Market basket, having delivered the largest proportion of multibaggers.

The brokerage further mentioned that nearly 40 percent of the current BSE 200 stocks have generated more than 20 percent annualised returns over the last two decades, which is double of the 20 percent stocks that have done so for the broader MSCI Emerging Markets basket.

Indian equities have had positive returns now for the eighth year running. The Nifty 50 index is trading close to its all-time high, even though its returns this year have been in single-digits. Do these stocks still have more room to run? Well, historical data does suggest so, as mentioned in this piece by CNBC-TV18's Sonal Sachdev.

Among others that feature in the list of top picks include Rajesh Exports, Blue Dart Express, Triveni Turbine, Westlife Foodworld, and VIP Industries.

First Published:Jun 5, 2023 6:23 AM IST