As soon as you see this, you will catch the tail of the multi-bagger, the one who earned Rs 11,85,62,00,000 from the share market gave Brahmastra.

Finding Multi-Bagger Stocks: Mohenesh Pabrai is called the Warren Buffett of India. This is because he has built a portfolio of over Rs 1,185 crore by following the methods of billionaire investor Warren Buffett. Apparently they have some magic that allows them to do this. Warren Buffett is an example of how the stock market can be milked. He has told in many interviews and seminars how he earned so much money. Many of his statements are as true as the scriptures from a stock market perspective, such as – if you want to make money in the stock market, you must be fearful when people are greedy, and when people are fearful, you must be greedy. Should. .

Today we are talking about Mohenesh Pabrai. He has also made thousands of crores of capital following Warren Buffett. He recently shared a formula, which could prove to be Brahmasutra for any investor. If one or two of the thousands of companies listed on the Indian stock market meet this criteria, consider yourself to have won the lottery. So let’s know what is that criterion or formula?

Low cost stock
Mohenesh Pabrai did not advise anyone to invest money, but he explained how he chooses companies himself. He said that he looks for companies whose stock price is very low, but the company’s earnings are good. Note that ‘low price’ here does not mean penny stocks which are priced at Rs 2-4. This means that the company’s valuation is good, but the stock price is relatively low. So how would it be known?

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Actually, there are some indicators in the market, which tell the story of the company and the share. One such indicator is P/E. This is the ratio that almost every serious investor looks at before buying a stock. Stocks with a P/E near 20 are generally said to be good. But Pabrai says he prefers to invest in stocks with low P/E ratios.

What does P/E mean?
This is called the price-to-earnings ratio. Getting into too much of a technical definition can get you into trouble. So, we can understand this thing in one sentence – if a company earns equal to its market cap in just 1 year, the price to earnings (P/E) ratio will be 1. If it is done in 2 years, it will be 2. If it earns equal to its market cap in 5 years, the P/E ratio will be 5.

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Mohnesh Pabrai says he only buys undervalued companies. Companies that have a low P/E ratio. This means that whatever companies they invest in, they earn well and grow very quickly. If the company grows rapidly, the share price will also increase rapidly. Pabrai invested in Rain Industries when its revenue was 2 billion (2,000,000,000) dollars and its market cap was 200 million (200,000,000) dollars. Earnings in excess of market cap. After all, this part was being sold at a low price at that time. Pabrai took full advantage of this.

What stocks currently have a low P/E?
According to Screener.in, these stocks are currently trading at a very low P/E. Please note here that we are not suggesting to invest money in these stocks. If you want to invest money, you should consult your broker or a certified professional. Because investment decisions are not made solely on the basis of P/E ratio. So here are the stocks with low P/E ratio-
– Maharashtra Apex – 0.62
– Athena Global – 0.73
– Dhoot Indalfin – 1.28
– Vipal Limited – 1.78
– Key Corporation – 3.41
– Swadeshi Politics – 5.24

(Disclaimer: This news is published for informational purposes only. If you want to invest in any of these shares, consult a certified investment advisor first. News 18 Your profit or loss shall not be liable.)

Tags: share market