Top 5 Multibagger Stocks That Could Turn ₹1 Lakh into ₹10 Lakh

 

Investing in equities is about seizing the growth story of India, and if you’re eyeing multibagger stocks—i.e., shares that can multiply many times over your initial investment—you’ve come to the right place. In this blog, we’ll explore five stocks that show the potential (not guarantee!) to turn an investment of around ₹1 Lakh into roughly ₹10 Lakh over a 5-10 year horizon—assuming the business executes, the economy cooperates, and you stay invested patiently.

We’ll start with what makes a multibagger, then dive into each of the five companies and the sectors they operate in, followed by a comparison of key metrics, before wrapping up with good practice tips and a friendly “what to watch out for” style conclusion. Meanwhile, remember that while the growth possibilities in India are immense, so are the risks—especially for companies outside the large-cap comfort zone.

Let’s begin by asking: what exactly is a “multibagger stock”?

What are multibagger stocks, and why do they matter?

The term “multibagger” was coined by legendary investor Peter Lynch in his book One Up on Wall Street, referring to stocks that give returns many times over the original purchase price—for example, 10×, 20×, or even more. Wikipedia+2ClearTax+2

In India, with a fast-growing economy, a large young population, and rapid structural change, the potential for multibag returns exists—especially in sectors that are emerging or undergoing disruption. ClearTax+2 smallcase+2

That said, chasing the tail-end of hype is dangerous: many potential multibaggers fail due to weak business models, overvaluation, or execution missteps. Groww+1

So the takeaway: finding a multibagger means finding a company with scalable business, a strong moat, good management, preferably moderate debt, and importantly, a long-term view. If you can invest, say, ₹1 Lakh now and the stock becomes a 10-bagger over, say, 7-10 years, you’re looking at approx. ₹10 Lakh—hence this blog’s focus.

How we picked the Top 5

Here’s a quick snapshot of our criteria:

• Companies with business models in growth sectors (e.g., clean energy, infrastructure, industrials)

• Mid-to-small cap companies (so that a growth runway exists)

• Strong fundamentals (revenue growth, ROE/ROCE, debt under control)

• Visible catalysts (policy tailwinds, global demand, export potential)

• Valuation still reasonable (not fully frothy)

We’re not promising that any of these will definitely become 10-baggers—they are simply candidates to study. As always, do your own homework (DYOW) and align with your risk tolerance.

Stock 1: HBL Engineering Ltd (formerly HBL Power Systems)

Why this company?

HBL Engineering has been making steady progress in the engineering/defense/railway systems space in India. According to Screener, as of recent, the company has a market cap of approximately ₹27,000 Crore, revenue of ~₹2,751 Crore, profit of ~₹640 Crore, P/E of ~41.2, and ROCE of ~27.3%. Screener

Recently the company secured a contract worth ~₹133 crore from the railways for the “Kavach” safety system—showing its foothold in critical infrastructure. The Economic Times

 

What’s the growth story?

• India’s railway modernization & safety push is strong: the government is investing heavily in signaling, evacuation, and safety systems.

• HBL is placed in segments like batteries, defense electronics, and railway safety systems—all with tailwinds.

• If HBL can scale revenues and maintain margins while keeping debt in check, the growth runway is significant.

The risks/what to watch

• Being mid-cap, it will likely face headwinds if macro slows.

• Execution risk: converting orders into profits, maintaining margin discipline.

• Valuation: a P/E of ~41 is not cheap—growth expectations are built in.

Why we picked it as a candidate

If HBL can grow, say, 20-25% per annum over the next 7-10 years, volume and margin expansion could turn it into a multibagger—pushing something like ₹1 Lakh into ₹5-10 Lakh in a favorable scenario.

Summary: HBL is a high-growth bet with solid fundamentals; worth watching for multibagger potential.

Stock 2: CG Power & Industrial Solutions Ltd..

Why this company?

CG Power & Industrial Solutions (CGPOWER) is a large-cap engineering player in India, with a market cap ofa market cap of ~₹1,16,000 Crore as of November 2025. The Economic Times +1Economic Times+1
Key metrics: P/E ~109, P/B ~29, ROE in the 25-30%range. Value Research Online +11

 

The growth story & catalyst

• CG announced a major investment of ₹748 crore for a new switchgear manufacturing facility,facility, which is expected to double its production capacity in Western India. The Times of India

• The Indian infrastructure push, “Make in India,”India,” power-equipment localization, and and export potential are all favorable.

• The company’s long legacy (since 1937) and the Murugappa Group backing give credibility.

The risks/whatat to watch

• Valuation is already quite rich (P/E ~100+); much of future growth may be priced in.

• Execution risk: largeMacro-sensitive-cap earlier growth may be moderate now; scaling further is tougher.

• Macro-sensitive business: power sector delays, commodity inflation, and and exchange rate swings can hurt margins.

Why included?included?

Given the scale and recent expansion, CGPOWER might still deliver multibagger returns if it can maintain its growth and take advantage of capacity expansion. A more conservative bet compared to pure small-cap, but still with meaningful upside.

Summary: CGPOWER offers structural growth in engineering & pthe engineeringower sector, though valuation and risk need monitoring.

Stock 3: Elecon Engineering Co. Ltd.the engineering. Ltd.

Why this company?

As per the “best multibagger stocks” list compiled by Smallcase, Elecon Engineering was was featured as one of the companies with multibagger potential, operating in heavy electrical equipment (gearboxes, material handling) for sectors like cement, mining, and defense. se. smallcase+1

 

Growth story & catalysts

• Industries like mining, cement, and and infrastructure are seeing renewed demand in India – Elec—Eleconon serves them.

• Export potential: Indian engineering firms are increasingly able to sell to overseas markets.

• If Elecon improves margin and—Eleconmargin and controls debt, the growth runway is significant.

Risks & considerations

• Small/mid cap: more risky than large cap; higher volatility.

• Business cycles in heavy engineering are lumpy—orderws—order books fluctuate.

• Need for strong cash flows and execution track record; any misstep can hit investor sentiment.

Why included?ded?

Because companies like Elecon may offer higher “multiple” potential—if they execute, the upside could be strong. For someone aiming for ₹10 lakhlakh from ₹1 lakh,lakh, this type of company may tick the box.

Summary: Elecon is a more aggressive pick with higher ra higherisk/higher reward profile in heavy engineering.

Stock 4: Lloyds Metals & Energy Ltd.a higher.

Why this company?

Lloyds Metals & Energy appears in multibagger lists for 2025 among Indian stocks. smallcase+1 The company operates in steel, mining, and energy generation—sectors thate central to India’s infrastructure and industrialisationindustrialization push.

 

Growth story & catalysts

• India’s steel & mining sectors are expected to grow given government focus on infrastructure, manufacturing, urbindustrializationmanufacturing, andanization.manufacturing, and

• If Lloyds can capitaliseurbanization.capitalize on demand, low cost, efcapitalize and low-cost,ficient operations, there’s potential for strong earnings growth.

• Mid/small cap: so with early entry, the “multiplier effect” can be stronger.

Risks & what to watch

• These sectors are commodity-intensive and low-cost, and cyclical: global price swings, input cost inflation, andcommodity-intensiveinflation, and regulatory risks (mining license, environment) can hit earnings.

• As with any small/mid cap, liquidity, corporate governance, andgovernance, and promoter transparency become important.

• The marketThe market may have already priced part of the growth; the runway may be shorter than expected.

Why includedincluded?

If you’re willing to take more risk for potentially higher reward, Lloyds could be one of those companies that deliver multi‐bag returns. But you’ll want to keep a close eye on execution and risk factors.

Summary: Lloyds is a high-risk, higher-return candidate in the commodity/industrialincluded?the commodity/industrial space—worth—worth considering in a balanced multibagger watch list.

Stock 5: PTC Industries Ltd.

Why this company?

Listed among the “popular multibagger stocks in India for 2025” by multiple sources, PTC Industries operates in precision manufacturing for aerospace, defense, and power sectors—niche but high value addition. www.bajajfinserv.in+1

 

 

Growth story & catalysts

• In a strategic economy like India, defense and aerospace are receiving increased government and private sector attention.

• Precision manufacturing is a high-skill area—if PTC scales, the margins and valuations could expand.

• Early entry into such companies (when still underappreciated) may provide a “multiplier effect.”

Risks & key watch points

• Very niche business: revenue growth may be lumpy; order book visibility matters.

• Subject to regulatory/order risk: defense contracts, export controls, global competition.

• As with many small/mid caps, risk of dilution, management missteps, and market sentiment swings.

Why included?

For an investor who wants a “”moonshot”-style multibagger (with higher risk), PTC is the kind of company to keep on the radar. If it executes well and markets reward it, the upside could be meaningful.

Summary: PTC is the speculative multibagger pick—higher risk but potentially higher reward.

 

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Comparing Key Metrics of the Five Stocks

Here’s a simplified table (for reference only) comparing some of the key metrics and risk-profiles of the five stocks mentioned:

Company	Market Cap*	P/E (approx)	ROCE / ROE (recent)	Sector	Risk Level
HBL Engineering	~₹27,000 Cr	~41.2	ROCE ~27 % / ROE ~20.6 % Screener	Engineering / batteries / rail systems	Moderate
CG Power & Ind. Sol.	~₹1,16,000 Cr	~100+	ROE ~26-30 % Value Research Online	Electrical equipment / power sector	Lower risk but rich valuation
Elecon Engineering	Medium cap	—	—	Heavy equipment / material handling	Higher risk
Lloyds Metals & Energy	Medium cap	—	—	Steel / mining / energy	High risk
PTC Industries	Small/mid cap	—	—	Precision manufacturing / aerospace/defence	Very high risk

* Market caps are approximate and subject to change.
Note: “—” indicates that publicly available recent data may be limited.

This table is for reference only and should not be taken as a buy/sell recommendation.

 

What you must keep in mind when aiming for multibag returns

• Time horizon matters: Multibagger returns rarely come overnight. You may need 5-10 years or more of holding.

• Patience & discipline: As the story suggests, you may ride through volatility. Don’t panic during dips.

• Diversification is key: Even if you pick 5 multibagger candidates, maybe only 2 or 3 will work out. Do not go “all-in” on one.

• Fundamentals matter: Growth stories are good, but check balance sheet, debt, promoter quality, industry dynamics.

• Valuation matters: Sometimes a company is good, but the stock is already priced for perfection; upside may be limited.

• Sector & macro risk: Infrastructure, commodities, engineering are more cyclical; policy or global factors can change quickly.

• Exit strategy & review: While the aim may be long term, you should review regularly — if business fundamentals deteriorate, be ready to change your view.

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Why aiming for ₹1 Lakh → ₹10 Lakh is realistic (yet ambitious) in India

• Consider: A stock that delivers ~25 % CAGR over ~10 years will roughly multiply 10× (since (1 +0.25)¹⁰ ≈ 9.3×).

• India’s economy is still relatively under-penetrated in many sectors; growth potential is higher than many mature markets.

• Structural themes like infrastructure, manufacturing, defence, renewable energy, export competitiveness all provide tailwinds.

• Historical examples show that some stocks in India have delivered 10-bag or even 20-bag returns over multi-year spans. Navbharat Times+1
  That said, all successful multibaggers had strong business execution, favourable industry dynamics, and sometimes a bit of luck.

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What could derail the multibagger dream?

• Business model failure or disruption.

• Promoter/managment issues (governance risk).

• Sector downturn (for commodity/infra companies).

• Global headwinds (commodity inflation, interest rate shocks, currency risk).

• Overvaluation — paying too much up front reduces margin for error.

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Final thoughts

So there we have it — five Indian stocks that, in our view, could turn an investment of approximately ₹1 Lakh into around ₹10 Lakh in the coming years — provided the growth story plays out, you stay invested, and you ride through ups and downs. Of course, none of this is guaranteed — as the disclaimer reminds us, this is purely educational and not financial advice.

If I were to pick a personal favourite among the five for “balance of risk & reward”, it would be HBL Engineering — because it sits in an exciting segment (railways/defence), shows solid fundamentals, and has more room to grow. For the bold investor who can handle volatility, PTC Industries might be the one to watch. CG Power is more stable but perhaps less “explosive” given the large base and higher valuation. Elecon and Lloyds are higher risk but higher reward if you get the timing right.

Remember: the key is to build a watch-list, track business performance (earnings, orders, margins, debt), review annually, and let compounding work its magic. If you do this, you give yourself a chance to participate in India’s growth story — and maybe, just maybe, turn that ₹1 Lakh into ₹10 Lakh.

🔒 Disclaimer

This article is meant purely for educational and informational purposes only. It should not be considered financial, investment advice. Always do your own research or consult a certified financial advisor before making any investment decisions. The stock market involves risk, and past performance does not guarantee future results.