Orbit Exports – Multibagger Analysis
In this post we can analyze Orbit Exports as a multibagger stock.
Warren Buffett Checklist
|History of Consistently Increasing Sales, Earnings & Cash Flow||Yes.|
|Durable Competitive Advantage||
|Future Growth Drivers||Company has shown 10% to 20% Sales Growth even during tough economic periods.|
|Conservative Debt (long term debt < 3 Net Profit)||Debt accounts to 23 Crores & Latest Net Profit is around 22 Crores.|
|Return on Equity must be Above Average||Exceptional ROE of 30+ for past 3 years.|
|Low CAPEX required to maintain current operations||Moderate CAPEX needed.|
|Management is holding / buying the stock||Yes. Promoter Stakes are increasing for past 2 years.|
|Price is Under Valued (< intrinsic value)||Not.|
|Stock Price is consolidating (now)||Not. Price is closer to 52 week high, but expected as Market is Booming.|
|Stock Price is growing in past years along with EPS growth||Yes. EPS is growing 25% above each year & Stock Price aligns with it.|
Additional Futurecaps Checklist
|PE, PB Ratio||PE: 6.5; PB: 2 (Acceptable Values for a Growth Stock)|
|Cash Flow Positive||Yes|
|Paying Dividends, Tax||Paying Tax & Dividend Yield closer to 2.5%|
|EPS Growth Rate||25% on average, which is good|
|Expected Gain in 10 Years||10 Times & More|
|Power of Brand||Branding attracts more sales, more profit margins!|
|Corporate Governance, Reputation of Leaders||Corporate Governance: Yes|
Here by we declare that Oribit Exports is a Multibagger Stock.
One can expect 5-10 times returns if the stock follows current growth trend.
2.% of your Portfolio.
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.