After delivering stellar returns in 2024, a group of 13 high-profile multibagger stocks has faced a brutal reality check in 2025, with prices plummeting between 40% and 60%. This sharp reversal has wiped out billions in market value, leaving retail investors wondering if the “multibagger dream” is over or if this is a golden buying opportunity.
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The “Boom to Gloom” Reversal: What Went Wrong?
The crash of 2024’s top performers wasn’t a random event. Market analysts point to three primary triggers that turned these winners into laggards:
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Valuation Fatigue: Stocks like Newgen Software and Kaynes Technology were trading at nearly 60x EV/EBITDA at their peaks [10:07]. When valuations become this “expensive,” even slight earnings misses trigger massive sell-offs.
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Sector-Specific Headwinds: For IT and product companies, a reduction in discretionary tech spending in the US and Europe significantly cooled growth projections.
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The FPI Exodus: Massive selling by Foreign Portfolio Investors (FPIs) in early 2025 hit mid-cap multibaggers the hardest, as liquidity dried up in favor of safer “Value” stocks.
The 2025 Crash List: From Peak to Pit
While 133 stocks were labeled multibaggers in 2024, these 13 have seen the most significant “mean reversion.”
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| Stock Name | 2024 Rally (%) | 2025 Crash (%) | Current Status |
| Insolation Energy ☀️ | 393% | 63% | Hit by solar policy shifts. |
| Orchid Pharma 💊 | 153% | 57% | Margin pressure in API segment. |
| Newgen Software 💻 | 118% | 50% | Valuation reset despite 20% growth [09:16]. |
| Transformers & Rectifiers⚡ | 391% | 48% | Profit booking after massive run-up. |
| Kaynes Technology 🏭 | 184% | 44% | Supply chain and high-entry multiples. |
| Zen Technologies 🛡️ | 207% | 43% | Lumpy defense order execution. |
Key Performance Figures: 2025 Market Correction
| Metric | Details |
| Highest Correction | 63% (Insolation Energy) |
| Average Sector Fall (Midcap) | 22% |
| Newgen Support Zone | ₹750 – ₹800 [06:32] |
| Promoter Holding Trend | Generally Decreasing [07:53] |
| Ideal Entry Valuation | 20x – 25x EV/EBITDA [11:47] |
The Newgen Case Study: Growth vs. Price
Take Newgen Software as an example. The company is still fundamentally strong, maintaining 20% revenue growth and 25% margins [09:25]. However, the stock crashed because it was simply priced too high for its reality. Experts suggest that while the growth story is intact, investors should wait for the stock to consolidate in the ₹750 to ₹800 range before making fresh entries [06:32].
Conclusion
The 2025 crash is a reminder that a great company isn’t always a great stock if you buy it at the wrong price. If you are holding these stocks, look for signs of consolidation rather than “averaging down” in a falling market….
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Disclaimer: Stock market investments are subject to market risks. The data provided is based on market closing prices as of late 2025. Please consult a SEBI-registered financial advisor before making any investment decisions.
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