Stocks under our Multibagger Stock Tips, must have following characteristics:-

1. High Return on Equity (ROE), Return on capital employed (ROCE) and healthy balance sheet.
2. Low or zero debt. Debt to equity ratio should be less than 1.
3. Business that have the potential to grow at the rate of minimum 20% or more in the coming years.
4. Business that have strong economic moat and competitive advantages.
5. Consistent profit growth for at least last 5 years and good earning visibility in future.
6. The stock should be traded at reasonable valuation.
7. Quality and experienced management with good past track record and execution capability.
8. Good Corporate governance and shareholder friendly management.
9. Good dividend payout ratio it would be better if dividend is increasing.
10. Net cash flow from operation should be positive. Increasing margin and profitability.
11. Sufficient promoter holding so that it reflects the confidence of promoters.
12. Pledging of promoter’s share should be zero or very low.

Above are only few parameters.Apart from those there are many variable parameters for selecting future multibagger stocks.