I am not writing this like a “professional blogger.”
This is just me sharing what I’ve genuinely learned over the last 10 years by watching hundreds of interviews of Shankar Sharma, Basant Maheshwari, and others.

Honestly, when I used to invest only in large-caps—because I was following Ramdeo Agrawal’s style—my returns were stuck around 10–12%.
But when I slowly shifted toward the logic of the Shankar Sharma Multibagger Strategy, my returns started shooting up… 30–40% type.

And no magic… it’s just common sense + trend + small caps.

Let me put everything I learned in a simple, human way.

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Why Small Caps? (The Core of the Shankar Sharma Multibagger Strategy)

The truth is:
Nifty grows like this → slow, steady.
Small caps grow like this → sharp upward spikes.

Small caps fall harder too, but when they rise…
they outperform everything.

Even the small-cap index itself has given 30–40%+ returns in multiple cycles.
So imagine catching the right companies inside that index.

That’s where the game begins.

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The Parameters I Noticed Again and Again (Across Interviews)

This is based on what HE said + what I concluded after years of watching.

Here’s the simple table:

Small-Cap Stock Checklist

Factor	What to Look For
Market Cap	₹100 Cr – ₹5,000 Cr
Top Line (Revenue)	Must be growing consistently
Bottom Line (Profit)	Profit must grow, quarter after quarter
ROE	Preferably 20–25%+
Cash Flow	Operating cash flow must be positive
EPS Growth	If earnings double, stock often doubles
OPM	Higher the better; 20–30% is strong
Product Potential	Will the product survive 10–20 years?

This is literally the foundation of the Shankar Sharma Multibagger Strategy.

Shankar never says “deep analysis,”
but these are the patterns that keep repeating.

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PE Ratio? Forget It (for Small Caps)

In one of the interviews, the message was clear:

PE doesn’t matter much in the small-cap world.

A company can look expensive at PE 80 and still go to PE 200.

In small caps, PE is not the deciding factor.
Growth is.

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When to Sell? (The Most Important Learning)

This one point blew my mind.

Shankar Sharma believes in enjoying life with money — not holding stocks forever like “Mandir ka Prasad.”

Key point:

• When your stock gives 100% return, book 20–25% profit.
• If quarterly earnings fail twice, exit.
• There is no emotional attachment to a stock.
  Company is not your relative.

This is simple but extremely powerful.

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The 50-Stock Portfolio Logic That Changed My Mind

This was one of the smartest things I heard.

Imagine:

• You invest in 50 good-quality small caps
• ₹1 lakh each → ₹50 lakh total

Now:

• Even if 10–15 stocks go nowhere
• Even if 5–10 stocks fall
• All you need is 4–5 multibaggers

If 5 stocks go 20×,
your ₹5 lakh becomes ₹1 crore alone.

The remaining 45 stocks will balance out with normal returns.

This is the real multibagger mathematics nobody talks about.

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Trend Investing — The Real Shankar Sharma Multibagger Strategy

Shankar doesn’t pretend to be bullish or bearish all the time.

He literally says:

“If the market is going up, I say it’s going up. If it is going down, I say it is going down.”

Straight-forward.
No drama.

His style is:

• Book profits when markets enter euphoria
• Move money to gold, FD, bonds
• Wait for markets to cool
• Re-enter aggressively when the trend resumes

This is the cycle rotation that creates multibagger returns.

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My Personal Experience Applying His Strategy

I also booked profits when markets hit lifetime highs.
Shankar did 70–80% cash…
I did around 50–60%.

Then, when dips came, I slowly redeployed.

This trend + patience approach has grown my portfolio faster than any high-level “MBA strategy.”

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Small Caps Will Outperform — Long Term Reality

As long as India keeps growing:

• Small caps will always fall more
• But they will also rise way more
• And the gap between small caps and Nifty will remain

This gap is where multibaggers grow.

And honestly, if someone doesn’t want to research—
just buy a small-cap mutual fund or ETF.

But the real thrill?
Picking your own small caps using the Shankar Sharma Multibagger Strategy.

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Conclusion

After 10 years of watching and learning, one thing is clear:

👉 Small caps + trend + smart profit booking = multibagger returns

If you want financial freedom,
you must learn from people who already walked that path —
like Shankar Sharma, Basant Maheshwari, and othersThis strategy has worked for me,
and I genuinely believe it can help anyone who applies it with discipline.

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DISCLAIMER

This article is for educational purposes only. It is not financial advice. Please consult your registered financial advisor before making any investment decisions.