Cheap stocks are not always good stocks.

Cheap stocks can be attractive, but a low price or low P/E alone doesn’t make a stock a good investment. When looking for a potential multibagger, I’d focus more on the business and its growth. Are sales and profits consistently increasing? Is cash flow improving? Are ROE and ROCE staying healthy? Is the company expanding capacity because demand is growing? Are margins improving as the business gets bigger? I’d also check promoter holding and whether shares are pledged, along with FII/DII ownership trends. The industry itself matters too. A strong business operating in a market with a long growth runway can have much more room to grow. Sometimes a stock looks expensive simply because investors are already pricing in future growth. So instead of asking, “Is the P/E low?”, ask: “Can the company grow its earnings fast enough to justify the current valuation?”