Archive for July, 2014

Muthoot Finance – Multibagger Analysis

July 25, 2014

Muthoot Finance focuses mainly in the gold loan segment.  The company also an emerging player in the money transfer, wealth management services.

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Website: http://www.muthootfinance.com/

Analysis URL: http://www.screener.in/company/?q=533398

History of Consistently Increasing Sales, Earnings & Cash Flow Had 100% growth in every years except 2013-14.  (Tremendous growth impacted due to new RBI rules) image
Durable Competitive Advantage

Company faced a hit due to RBI rules.

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Future Growth Drivers Gold Price peaking should bring back the sheen of this stock price. image
Conservative Debt (long term debt < 3 Net Profit) Not. image
Return on Equity must be Above Average Yes. image
Low CAPEX required to maintain current operations Yes. image
Management is holding / buying the stock 80% is the promoter holding image
Price is Under Valued (< intrinsic value) Not. image
Stock Price is consolidating (now) Not. image
Stock Price is growing in past years along with EPS growth Not.  Company is revolving around the IPO price. image

Additional Futurecaps Checklist

PE, PB Ratio PE at 9 & PB at 1.5 which is good. image
Cash Flow Positive, Net Profit % greater than 8% Cash Flow is Positive, But operating cash flow is negative.  Net Profit is just around 8%. image
Paying Dividends, Tax Yes. image
EPS Growth Rate Not. image
Expected Gain in 10 Years    image
Power of Brand Have a good brand.  image
Corporate Governance, Reputation of Leaders Yes.  image
Fraud reported Not. image

 Warning: This is a gold-price dependent player.  Gold Price is trading 30% down from peak.  Restoring of Gold Price to the Peak should make this company gain 3X-5X profits.

Declaration

Here by we declare that Muthoot Finance is a multibagger contingent to gold-price peak.

Allocation

2% to 3% of your portfolio.

Disclaimer

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.

KRBL Ltd. – Multibagger Analysis

July 25, 2014

KRBL is the company famous for Basmati Rice brand India Gate.With a 120 year heritage and an existence since 1889, KRBL Ltd. is India’s first integrated rice company with a comprehensive product chain.

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Company web site: http://www.krblrice.com/

Analysis link: http://www.screener.in/company/?q=530813&con=1

Warren Buffett Checklist

History of Consistently Increasing Sales, Earnings & Cash Flow Yes. image
Durable Competitive Advantage

Yes. Through power of brand.

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Future Growth Drivers Export Boost through new governance laws. Plus, company focusing on seed-research, tie up with retail chain market in India and abroad should boost future income. image
Conservative Debt (long term debt < 3 Net Profit) Debt stands around 344 crore & Latest Net Profit at 255 crore.  Sure to cover enough by 3x. image
Return on Equity must be Above Average 17% is the ROE which is above 15% average image
Low CAPEX required to maintain current operations Moderate capex cash flow visible image
Management is holding / buying the stock Promoter Holding is impressive at 58% & No buying or selling visible. image
Price is Under Valued (< intrinsic value) Yes. image
Stock Price is consolidating (now) Yes. image
Stock Price is growing in past years along with EPS growth Yes.  But not too impressive image

Additional Futurecaps Checklist

PE, PB Ratio PE at 8 and PB at 2 which are very good in current boost market. image
Cash Flow Positive, Net Profit % greater than 8% Yes. image
Paying Dividends, Tax Yes.   image
EPS Growth Rate Latest growth 100%; Average growth 30%.  image
Expected Gain in 10 Years 4-5 times.  image
Power of Brand Branding attracts more sales, more profit margins!  image
Corporate Governance, Reputation of Leaders Pass  image
Fraud reported Nil image

 Declaration

Here by we declare that KRBL is a potential multibagger positioned at right price.

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Allocation

2-3% of total portfolio.

Disclaimer

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.

Suven Life Sciences – Multibagger Analysis

July 9, 2014

Suven Life Sciences, in the business of design, manufacture and supply of Bulk Actives, Drug Intermediates & Fine Chemicals, catering to the needs of global Life Science Industry, is committed to provide customers with products fulfilling customer’s needs and expectations.

Company website: http://www.suven.com/ 

Analysis link: http://www.screener.in/company/?q=530239

Warren Buffett Checklist

History of Consistently Increasing Sales, Earnings & Cash Flow Yes. 30% average growth consistently over years. image
Durable Competitive Advantage

Brands, Patents play the game.

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Future Growth Drivers Company has increasing customer base. image
Conservative Debt (long term debt < 3 Net Profit) Liabilities stand around 87 and Net Profit around 145 crores, surely safer in debt side. image
Return on Equity must be Above Average Latest ROE is around 22. image
Low CAPEX required to maintain current operations Capital Intensive to moderate level. image
Promoter %, Management is holding / buying the stock 65% Promoter Holding with No pledging. image
Price is Under Valued (< intrinsic value) Yes. (compared with current market peak scenario) image
Stock Price is consolidating (now) It is rising though. image
Stock Price is growing in past years along with EPS growth Yes. image

Additional Futurecaps Checklist

PE, PB Ratio PE stands around 9 which is attractive compared with other peers.  PB ratio is 4 and no better bargains possible in peak market situations. image
Cash Flow Positive, Net Profit % greater than 8% Yes. image
Paying Dividends, Tax Yes. image
EPS Growth Rate 30% to 50% as consistent rise. Very Good. image
Expected Gain in 10 Years 10x to 20x if similar growth rates are maintainable. image
Power of Brand Branding attracts more sales, more profit margins! image
Corporate Governance, Reputation of Leaders Yes. image
Fraud reported No. image

Declaration

Here by we declare that Suven Life Sciences as a multibagger.

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Allocation

2-4% of your portfolio.

 Disclaimer

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.