Suven Life Sciences – Multibagger Analysis
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.|
|Durable Competitive Advantage||
Brands, Patents play the game.
|Future Growth Drivers||Company has increasing customer base.|
|Conservative Debt (long term debt < 3 Net Profit)||Liabilities stand around 87 and Net Profit around 145 crores, surely safer in debt side.|
|Return on Equity must be Above Average||Latest ROE is around 22.|
|Low CAPEX required to maintain current operations||Capital Intensive to moderate level.|
|Promoter %, Management is holding / buying the stock||65% Promoter Holding with No pledging.|
|Price is Under Valued (< intrinsic value)||Yes. (compared with current market peak scenario)|
|Stock Price is consolidating (now)||It is rising though.|
|Stock Price is growing in past years along with EPS growth||Yes.|
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.|
|Cash Flow Positive, Net Profit % greater than 8%||Yes.|
|Paying Dividends, Tax||Yes.|
|EPS Growth Rate||30% to 50% as consistent rise. Very Good.|
|Expected Gain in 10 Years||10x to 20x if similar growth rates are maintainable.|
|Power of Brand||Branding attracts more sales, more profit margins!|
|Corporate Governance, Reputation of Leaders||Yes.|
Here by we declare that Suven Life Sciences as a multibagger.
2-4% 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.