Upcoming Multibagger Penny Stocks to Watch in 2025

Upcoming Multibagger Penny Stocks

In the investing world, penny stocks are the ones that are often seen with the tag of high-risk high-reward investments. However, hidden among the pool of penny stocks are potential gems poised for growth and turn into multibaggers.

Yes, you heard it right! Today, we are going to explore the world of Upcoming Multibagger Penny Stocks in 2025. So, buckle up and get ready for an exciting journey through the world of penny stocks.

What are Penny Stocks?

Penny stocks are stocks that are generally traded at a low price, in some instances lower than Rs.10 per share. These stocks attract less demand as compared to other stocks, resulting in decreased liquidity and lower market capitalisation. However, they should not be underestimated; sometimes, they provide multibagger opportunities and become chart-toppers in the stock market. However, with high reward comes high risk. Penny stocks are very volatile in nature; they experience drastic price changes quickly, which makes them perfect for risk-taking investors looking for short-term gains.

Investors often think that with Rs 50,000, they can buy 50 stocks priced at Rs 1000 each. However, in the case of a penny stock priced at Rs 4-5, they can buy 12000 stocks with the same Rs 50,000, resulting in more shares. Top Penny stocks can provide multifold returns, making them multibagger stocks. The key is to find the correct stock that can present these upcoming high returns.  Such multibagger penny stocks can be identified by analysing the company’s fundamentals, background, and products. Don’t just buy stock based on the price; you have to consider various factors before investing in any penny stocks, as investing in top penny stocks comes with high risk.

• Stocks with very low prices, sometimes even lower than Rs.10, are considered penny stocks.
• These stocks entail high risk due to drastic price variations.
• Besides the risk, penny stocks also possess the potential to become multibagger stocks.

Read more: Multibagger Penny Stocks for 2025

What are Multibagger Stocks?

Multibagger stocks are stocks that provide multifold returns on initial investments. 10x, 20x, and 50x returns are some of the common rates of return that an investor expects from a high-quality multibagger stock. They are selected from the pool of stocks that showcase growth potential in the long term. The term multibagger was first coined by an American investor, Peter Lynch, in his book “One Up On The Wall Street”.

Multibagger stocks entail qualities such as strong fundamentals, significant market share, market dominance, etc. These qualities attract demand from investors and propel potential multibagger stocks to higher price levels, providing multifold returns on the initial cost of investment.

• The term “Multibagger” was coined by Peter Lynch.
• Multibagger stocks refer to stocks that can provide multifold returns on the initial cost of investment.
• These stocks possess high growth potential, which results in massive price appreciation over the long term.

Recommendations for multibagger stocks by Univest

Univest is India’s leading stock market advisory platform that provides the best multibagger recommendations to investors based on the research of its SEBI-registered research analysts. To receive recommendations for multibagger stocks, investors must subscribe to Univest’s 1-year or 5-year subscription plan through its tech-enabled mobile application.

Univest users who subscribe to the 1-year and 5-year plans receive recommendations for investing in multibagger stocks. These recommendations are provided by the research analysts of Univest, which can provide up to 5X returns on the initial investment.

• Univest is the leading stock market advisory app in India.
• It provides recommendations for multibagger stocks to 1-year and 5-year plan subscribers.

Best Upcoming Multibagger Penny Stocks in 2025

Here we are doing most of your job. Here is the curated list of the top 10 multibagger penny stocks, in which you can invest and enjoy high returns.

Best future multibagger penny stocks

S.no	Stocks Name	Market Capitalization(in Cr)	P/E Ratio	5 Years Returns (%)
1.	IRFC Ltd.	2,05,502	34.03	541.53
2.	Trident Ltd.	20,057.7	47.46	498.79
3.	Yes Bank Ltd.	78,640.23	61.19	-85.53
4.	Exide Industries Ltd.	40,146	45.79	113.89
5.	Bajaj Hindusthan Sugar Ltd.	4,587	NA	337.80
6.	South Indian Bank	8,049.57	7.21	82.55
7.	Urja Global Ltd.	1,224	494.82	813.04
8.	Facor Alloys Ltd.	151.16	NA	308,42
9.	Airan Ltd.	331	30.81	69.99
10.	Centum Electronics Ltd.	2,607	87.11	335.62

1. Indian Railways Finance Corporation Ltd.

Indian Railway Finance Corporation is a public sector undertaking under the administrative control of the Ministry of Railways. It was established on 12th December 1986 to source and provide funding to the Indian Railways. The principal task of the Indian Railway Finance Corporation is to borrow funds from various financial markets at the best rates to fund the expansion of Indian railways.

Key Indicators of IRFC:

As the backbone of India’s transportation sector, this company has the potential to grow as the country’s infrastructure expands. IRFC is trading at 3.88 times the book value. It has a market capitalisation of 1,97,923 cr. with an ROE and P/E of 12.7% and 30.72, respectively. The 52-week high and low of IRFC ranges from Rs. 229.00 to 65.75.

2. Trident Ltd.

Trident Ltd. is the primary manufacturer and exporter of yarn, towels, paper, and chemicals. It was primarily established as Abhishek Industries Limited on 18th April 1990, but it changed its name to Trident Limited on 18th April 2011. It is headquartered in Barnala, Punjab.

Key Indicators of Trident Ltd.:

It has a market capitalisation of 17,765 cr. with an ROE and P/E of 8.16% and 54.0 respectively. The 52-week high and low of Trident Ltd. range from Rs. 52.90 to Rs. 32.4.

3. Yes Bank

Yes Bank is a full-service commercial bank that started operating in 2004. It caters to retail, corporate, and MSME sectors through its varied set of offerings and tech-driven approach. Even after a turbulent past, Yes Bank is on the path to recovery, making it an attractive prospect for investors looking for a turnaround story.

Key Indicators of Yes Bank:

It has a market capitalisation of 65,766 cr. with an ROE and P/E of 3.18% and 45.2respectively. The 52-week high and low of Yes Bank ranges from Rs. 32.8 to Rs. 14.1.

4. Exide Industries

EXIDE Industries Ltd. is one of the largest manufacturers and sellers of the widest range of acid storage batteries in the world. Along with battery production, it is also involved in battery storage services. It operates in a wide range of sectors, including automotive, power, telecom, infrastructure, and other significant sectors of the Indian economy.

Key indicators of EXIDE Industries Ltd.:

It has a market capitalisation of 44,592 cr. with an ROE and P/E of 7.05% and 51.0 respectively. The 52-week high and low of EXIDE Ltd. range from Rs. 620.35 to Rs. 241.7.

5. Bajaj Hindusthan Sugar Ltd.

Shri Jamnalal Bajaj established this company as “Hindustan Sugar Mills Limited” on 24th November 1931. It was renamed as Bajaj Hindustan Sugar Ltd. in 1988. With a focus on the sugar industry, this company could see growth as the demand for sugar and its by-products increases. It manufactures ethanol, a green fuel whose demand is growing quickly and is crucial in the energy market.

Key Indicators of Bajaj Hindustan Sugar Ltd.

It has a market capitalisation of 4,756 cr. with an ROE and P/E of -1.90% and -57.3, respectively. The 52-week high and low of Bajaj Hindustan Sugar Limited range from Rs. 46.1 to Rs. 22.5.

6. South Indian Bank

South Indian Bank was the first private bank in Kerala to be registered as a scheduled bank under the RBI Act and is one of the leading private banks in Kerala. It was incorporated on 29th January 1929 and was converted to a public limited company on 11th August 1939 as one of the leading banks in South India. South Indian Bank has the potential to grow alongside the region’s economy. It has a good capital adequacy ratio of 17.25% and has delivered a profit of 94.96% in the past three years. The bank has successfully executed a renewed business strategy and has lower non-performing assets.

Key indicators of South Indian Bank.:

It has a market capitalisation of 6,523 cr. with an ROE and P/E of 13.8% and 5.39, respectively. The 52-week high and low of South Indian Bank range from Rs. 36.9  to Rs. 21.2.

7. Urja Global Ltd.

Specialising in renewable energy solutions, Urja Global Ltd is one of the leading developers and operators of renewable energy in India. Also, they operate as the approved channel partner of the Ministry of New and Renewable Energy (MNRE). This company could benefit from the increasing focus on sustainability and clean energy. Urja Global Ltd. is an emerging company primarily present in the solar energy segment. Since the demand for renewable energy is increasing, the company is working in a strong and growing field. A good option considering a potential upcoming multibagger penny stock

Key indicators of Urja Global Ltd.:

It has a market capitalisation of 1,052 cr. with an ROE and P/E of 1.18% and 400, respectively. The 52-week high and low of Urja Global Ltd. range from Rs. 41.8 to Rs. 8.78.

8. Facor Alloys Ltd.

Facor Alloys was founded by Shri Durgaprassad ji Saraf in 1955. Today, it is one of the largest producers and exporters of Ferro Alloys in India. With a focus on the alloy industry, Facor Alloys Ltd. could see growth as sectors such as automotive and construction expand.

Key indicators of Urja Global Ltd.:

It has a market capitalisation of 117 cr. with an ROE and P/E of -8.52% and -20.59, respectively. The 52-week high and low of Facor Alloys Ltd. range from Rs. 12.25 to Rs. 5.85.

9. Airan Ltd.

Engaged in the manufacturing of electrical equipment, Airan Ltd could benefit from the growing demand for electricity and power infrastructure. 

10. Centum Electronics Ltd.

Centum Electronics Designs, manufactures, and exports electronic products. With a strong focus on electronic products, Centum Electronics Ltd could see growth as the demand for electronics continues to rise. It also has good cash flow management and a high promoter holding (58.80%).

These stocks are considered some of the best penny stocks for future multibaggers. However, it is important to conduct thorough research and consider the risks associated with penny stocks before investing.

Key indicators of Centum Electronics Ltd.:

It has a market capitalisation of 2,430 cr. with an ROE and P/E of  -3.65% and -294.29, respectively. The 52-week high and low of Centum Electronics Ltd. range from Rs. 2099 to Rs. 1273.

Read more: Penny Stocks Under Rs 5 in 2024

The reasons why you can always consider investing in penny stocks

is highlighted by its affordability. As the market capitalisation of penny stock companies is low, you can easily get more shares at a reasonable price. The room for growth is expected to be much higher in penny stocks as they are already trading at a low price. If investment in these stocks is based on research and in-depth analysis, there is a chance that these penny stocks can become upcoming multibagger penny stocks.

But, as said, with reward comes Risk.

Penny stocks often carry their fair share of risk, as most of these stocks are junk, and most companies are no good in any sense and are often involved in scams. So, there is always a doubt of getting blindsided by the potential returns they can generate. Moreover, once you buy a penny stock, it is tough to sell it at a decent price because these stocks carry significant liquidity issues. Hence, the bid-ask price will force you to sell at a low price, which will eventually result in your loss.

So, the TIP 

Here to be aware and safe from the risks involved in penny stocks is to do your research, identify the potential catalysts of the stocks, invest in companies with high market capitalization, beware of the pump and dump scheme, and always take guidance and help from research analysts to get better insights. 

Multibagger Penny Stocks 

Combined with the potential for multifold results, penny stocks, when they give high returns, are called multibagger penny stocks. That’s right! Don’t underestimate their low prices because these stocks have the potential to grow multiple times over, hence the term “multibagger.” Multibagger penny stocks are those diamonds in the rough, trading at low prices (often less than Rs 5 per share) with the potential to become valuable assets in the future. They are like tiny seeds that, when nurtured with the right conditions (favourable market trends, company growth, industry boom), can grow into mighty trees, yielding abundant returns.

But investing in the best penny stock’s future multibagger is not everybody’s cup of tea; it requires a hawk’s eye to spot the potential through research and the willingness to hold onto them for the long term. At the same time, it is important to remember that not all penny stocks will turn into multibaggers; the ones that do can bring substantial returns and add a touch of excitement and thrill to your investment journey.

• Multibagger penny stocks are penny stocks that have the potential to offer multi-time returns.
• All penny stocks do not provide multibagger opportunities.

Key Takeaways For Upcoming Multibagger Penny Stocks For 2025

1. Penny stocks are stocks that are priced lower and have low market capitalisation value. These stocks are usually found under the mid and small-cap stocks category. 
2. The volatility in penny stocks is very high, which allows short-term traders to gain from these price fluctuations. 
3. The low prices of penny stocks can be attributed to their weak demand from investors. 
4. Besides all the risk involved, these stocks can offer exponential returns to investors due to ample room for growth. 
5. Multibagger stocks are stocks that can offer multifold returns to investors on the initial cost of investments. 
6. Identifying and investing in multibagger penny stocks is a cumbersome task, but with the right strategy and analysis, these penny stocks can provide great returns. 
7. To earn exponential returns from multibagger stocks, investors must have a long-term investment horizon to allow these stocks to reach their maximum potential. 
8. Investors must ensure that they do thorough research before investing in potential multibagger penny stocks and avoid being involved with pump-and-dump schemes. 

Top Multibagger Penny Stocks in the Last 1 Year

S.no	Stocks Name	Market Capitalization(in Cr)	P/E Ratio	5 Years Returns (%)
1.	Avance Technologies Ltd	190.3	201.98	4900
2.	Empower India Ltd	320	72.56	1373.68
3.	Softrak Venture Investment Ltd	66	NA	Infinity
4.	Mena Mani Industries Ltd	78.1	145.11	-41.09
5.	Unitech Ltd	3,118.63	NA	812.70
6.	Blue Chip India Ltd	21	NA	1015.15
7.	Aerpace Industries Ltd	226.33	NA	152.84
8.	Comfort Intech Ltd	317.7	24.26	58.88
9.	Vivanta Industries Ltd	56	53.54	-36.44
10.	Jai Mata Glass Ltd	19	NA	500

Read more: Multibagger Penny Stocks for 2026

Conclusion For Upcoming Multibagger Penny Stocks For 2025

Investing in penny stocks can be an amazing opportunity, but it comes with its own set of risks. While some penny stocks have the potential to become multi-baggers, not all of them will succeed. It is essential to do research, consider the company’s fundamentals, and consult with financial experts, such as the best stock market advisor, before investing in penny stocks.

The list provided above is not exhaustive, and there are many other penny stocks worth considering. It is important to diversify your investments and not pull all your money into penny stocks. Keep an eye out for market trends, and always be prepared to hold onto your investments for long periods of time to maximise your chances of success. 

Remember, the key to successful investing in penny stocks is to be well-informed and make decisions based on sound judgement. Never fall into the trap of market sentiment. With careful planning and smart investments, you may find some Upcoming Multibagger Penny Stocks that can be a valuable addition to your investment portfolio.

FAQs For Upcoming Multibagger Penny Stocks For 2025:

1. Can I earn big returns from penny stocks in the short term?
   Yes, penny stocks offer the opportunity to earn returns in the short term because of the high volatility in their prices. But, with high earning potential comes a huge downside, and considering the intensity of price changes, short-term trading in penny stocks can be very risky. Hence, investors must trade according to their risk tolerance, and they can also seek advice from financial advisors.
   

2. How can I identify potential multibagger penny stocks?
   Identifying the right multibagger penny stocks is a difficult task because of the amount of risk involved in penny stocks investment. Therefore, investors can use tools such as stock screeners and explore financial websites. These resources are very useful for investors who are looking to invest in potential multibagger penny stocks.
   

3. Do multibagger stocks guarantee returns?
   No multibagger stocks do not guarantee profits because in the stock market, return and risk always go hand in hand. Thus, investing in multibagger stocks also carries the risk of a decrease in prices that are triggered by various factors. Considering a long-term horizon, multibagger stocks can be affected by the negative performance of the company or a macroeconomic turndown in an economy. Other macro and micro factors also affect the performance of a multibagger stock. Thus, investors should always consider the risk of multibagger stocks and invest strategically in them.
   

4. How can I differentiate between a penny stock and a large-cap stock?
   The crucial differentiators between a penny stock and a large-cap stock are:
   Market cap: A large-cap stock has a very high market cap value, typically more than 20,000 Cr., while penny stocks usually fall under the category of mid and small-cap stocks, which have market cap ranging from below 5000 Cr. to 20,000 Cr.
   Growth Potential: Penny stocks have a significant growth potential to turn into a multibagger stocks. On the other hand, large-cap stocks are already at their pinnacle of growth; hence, the growth rate in these stocks is stagnant.
   Volatility: Penny stocks are very volatile in nature, and their prices fluctuate drastically over a short period of time. In contrast, large-cap stocks have minimal volatility as compared to penny stocks because these stocks have a long performance history, and investors show strong confidence in these stocks, thus providing stability to them.

5. What are the key factors that affect the performance of multibagger stocks?

          Key factors that influence the performance of multibagger stock: 

• Profitability – Profitability is the prime factor that investors analyse before investing in stocks because a profitable company gives a positive indication to investors that the organisation is earning profits and is using shareholder’s money in an efficient and effective manner. However, if companies bear losses for a sustained period of time, then investors feel insecure about the company’s future, and they tend to liquidate their stock holdings. In short, companies that can earn consistent profits can become multibagger stocks because such companies are able to build trust and credibility amongst investors. 
• Market dominance: While choosing potential multibagger stocks, it is important that investors research the market share of the company because this can assist them in analysing the future revenue growth and stability of the company. A higher market share indicates that the company has acquired a large base of customers, which can lead to revenue generation and decreased production costs due to higher demand. If a company showcases a decrease in market share, then it is possible that the customers are shifting to other options and they are not satisfied with the goods and services of the company, which may lead to a decrease in revenue and stock prices. 
• Fundamentals: Performing fundamental analysis before choosing a multibagger penny stock is an important task. Profit and loss statements, cash flows and balance sheets are the key fundamentals of a company that investors must analyse before choosing potential multibagger stock.