On the Hunt for Multibaggers, Episode 2

Adding 4 new stocks to the list of potential multibaggers

Stocks that give returns that are several times their costs are called multibaggers. In this new series, "On the Hunt for Multibaggers," we will identify and track potential multibagger stocks.

Our selection process will include:

• Strong Growth: Companies exhibiting robust growth in expanding markets.

• Proven Profitability: Profitable companies with established, successful business models.

• Valuation Metrics: Reasonable P/E ratios and PEG ratios around or below 1.

• Healthy Profit Margins: Companies with decent net profit margins.

• High ROIC: Great Return on Invested Capital, a crucial metric for sustained growth.

• Minimal Dilution: Companies with no significant share dilution.

In each episode, we will introduce new potential multibaggers and revisit previous picks to assess to see if the selection process was effective and what were their return. The investment horizon is 10 years.

Please note, this is for informational purposes only and is not intended as investment advice.

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I-Tech

I-Tech is a Swedish company that specializes in innovative antifouling technology for the marine industry, primarily known for its product Selektope. This unique antifouling agent prevents barnacle growth on ship hulls and other submerged surfaces, maintaining vessel efficiency and speed by mitigating biofouling. The primary application of I-Tech’s technology is in marine coatings, which are used on ships, boats, and maritime structures to reduce drag, improve fuel efficiency, and lower maintenance costs, positioning the company at the forefront of sustainable marine solutions. Please note that this is a micro-cap company with a market capitalization of approximately $50 million. As a relatively young company, it has the potential for higher returns, but it also comes with increased risk.

Country: Sweden

Sector: Industrials

Metrics

• 2024 growth 23.1% / 2025 growth 18.8%

• PE 16.0x / PEG 0.69

• Net profit margin 20.2%

• ROIC 14.8%

• Buyback 0% / year

• Leverage -2.1x EBITDA (net cash position)

Calculated future total shareholder returns 17.3% / year

Calculated 10y performance 391% (x5)

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