कैसे ढूंढें Multibagger Stocks! Strategy से Selection तक with Puneet Khurana

In this Face2Face video, we dive into the fascinating world of investing in small companies—especially unlisted stocks and SMEs—and explore the opportunities and risks that come with them. The guest, Chintan, shares his journey from being a computer engineer to becoming an entrepreneur and investor after moving back to India. He simplifies the often-intimidating subject of unlisted investing, making it easier to understand for anyone curious about this lesser-known space.

Chintan explains that investing in unlisted shares isn’t like buying regular stocks on the exchange. These companies usually operate outside the spotlight and without much regulation, which makes things like price discovery and liquidity more challenging. That’s why he believes these kinds of investments are more suitable for high-net-worth individuals or those who have a strong financial foundation and can handle risk.

He breaks down the difference between unlisted shares, SMEs, and startups, noting that each comes with its own level of risk, reward, and complexity. For anyone looking to get into this space, he strongly advises doing your homework—digging into financials, understanding market dynamics, and being aware of the regulatory environment—because transparency can be an issue, and some companies may not be as financially healthy as they appear.

The conversation also touches on the different types of investors, like angel investors, venture capitalists, and pre-IPO investors. Each has a different role and investment time frame, which helps set expectations for potential returns. Chintan points out that in India, only a handful of unlisted investments really deliver outsized returns, so the strategy often relies on a few winners making up for the rest.

When it comes to choosing the right company, Chintan recommends looking at things like:

Total addressable market (TAM)

Sector trends

Government policy tailwinds

Financial strength

And perhaps most importantly, the credibility of the promoters

He also encourages comparing unlisted companies with listed peers to understand valuations better, using trailing twelve-month numbers instead of future projections. And while quick profits may sound tempting, he says a minimum investment horizon of 2 to 3 years is ideal.

Chintan also stresses the value of learning from others—connecting with experienced investors, working with merchant bankers for due diligence, and striking the right balance between conviction and caution.

In short, this session is like a mini masterclass on unlisted investing. While there’s definitely potential for big returns, it’s not a space to rush into. It takes time, research, and a good understanding of the risks involved. If you’re considering stepping into this space, go slow, stay informed, and always do your own due diligence.