Infotech Enterprises Ltd. – Multibagger Analysis
In this post, we would like to screen Infotech Enterprises Ltd. as a potential multibagger.
Infotech Enterprises provides leading-edge engineering solutions, including product development and life-cycle support, process, network and content engineering to major organizations worldwide. With over two decades of continuous growth, Infotech leverages a global delivery and collaborative engineering model to achieve measurable and substantial benefits for our clients. Whether your organization needs to design innovative products faster, optimize R&D costs, increase market share, enhance operational efficiency or maximize the return on investment in your networks, Infotech Enterprises is the ideal partner.
Infotech has 10,000+ associates across 36 global locations. We adopt a proactive approach to serve our clients with our best-in-class delivery centers in North America, Europe, Middle East and Asia Pacific. Our clients span multiple industries such as Aerospace, Consumer, Energy, Medical, Oil and Gas, Mining, Heavy Equipment, HiTech, Transportation, Telecom and Utilities and include 22 ‘Fortune 500’ and 27 ‘Global 500’ blue chip organizations.
Warren Buffett Checklist
Additional Futurecaps Checklist
|PE, PB Ratio||PE is half of Industry PE, so good. Price is quoting just 30% above Book Value, so good.|
|Cash Flow Positive||Company is maintaining a Positive Net Cash Flow.|
|EPS Growth Rate||20% to 30% EPS growth for past 3 years, Impressing!|
|Expected Gain in 10 Years||If the stock can maintain 30% growth rate every year, then in 3 years price should double, resulting in 8 times returns in 10 years. Company hold a Blue Chip shine during the time & can command high PE Ratio up to 20 (current is 8), so there is further 2x opportunity. So MAX GAIN expected is around 16 times.|
|Power of Brand||Branding attracts more sales, more profit margins! Our company is building a brand & quite possible to be a brand like Infosys, TCS in future.|
Considering the Performance, Value Factors we see Infotech Enterprises as a potential Multibagger.
Investment Decision is your sole responsibility. Futurecaps recommends proper diversification in your Portfolio.