Amara Raja Batteries – Multibagger Analysis
We had noticed that Amara Raja Batteries Ltd. is a common multibagger from repuded analysts. We are publishing our Value/Growth aspect based view on the stock.
Warren Buffett Checklist
|History of Consistently Increasing Sales, Earnings & Cash Flow|
|Durable Competitive Advantage|
|Future Growth Drivers|
|Conservative Debt (long term debt < 3 Net Profit)|
|Return on Equity must be Above Average|
|Low CAPEX required to maintain current operations|
|Management is holding / buying the stock|
|Price is Under Valued (< intrinsic value)|
|Stock Price is consolidating|
Additional Futurecaps Checklist
|PE, PB Ratio|
|Cash Flow Positive|
|Paying Dividends, Tax|
|EPS Growth Rate|
|Expected Gain in 10 Years|
|Power of Brand||Branding attracts more sales, more profit margins!|
|Corporate Governance, Reputation of Leaders|
Considering the above aspects we declare Amara Raja Batteries Ltd. as a potential multibagger.
Considering the large cap capitalization, A group, reputation we can invest up to 10% in the stock. 5%, 3%, 2% break up investment advised.
Futurecaps recommends 20 to 25 multibaggers per year, we recommend a 25% to 50% allocation of your savings in equity. The stocks recommended here are gone through Analysts of several years experience in stock market. Although they were successful in predicting future multibaggers, the overall stock market is a risky game. So we recommend the reader to put his/her own thoughts & invest wisely.