Multibagger Stocks: PSU Bank surges 10x in five years and there are more triggers ahead

Shares of state-run Indian Bank Ltd. are trading with gains of over 3% on Monday, November 3, extending their gains for the sixth day running.

With this, the stock has extended its year-to-date advance to 70%. The stock has been delivering positive annual returns since 2020. In the last five years, the stock has gained over 10x in value.

For the September quarter, Indian Bank's core income increased by 6% from last year, while its net profit grew by 11.5% on a year-on-year basis. Asset quality also improved from the previous quarter with an reduction in both gross and Net NPAs.

Indian Bank, along with other PSU lenders have see a significant upmove through last week, after the recent SEBI draft proposals, which indicate a change in the weightage of the top constituents of non-benchmark indices, which has increased the prospects of more stocks being included in the Nifty Bank index.

According to Nuvama Alternative & Quantitative Index, Indian Bank is one among the four potential lenders which could make the cut to be included in the banking index.

Indian Bank could receive inflows of up to $72 million, in case it becomes a part of the banking index, Nuvama Alternative stated in its note.

In addition to this, Nuvama Alternative also believes that Indian Bank has emerged as a strong contender for the MSCI inclusion in February 2026, which could attract inflows to the tune of $200 million.

14 analysts have coverage on Indian Bank, of which 12 have a "buy" rating and one analyst each has a "hold" and "sell" recommendation.

Shares of Indian Bank are trading 3.1% higher on Monday at ₹885. The stock has risen 15% in the last one month.