Saksoft Ltd. – Multibagger Analysis

Saksoft is a leading provider of Information Management solutions to successful organizations around the world. We deliver success by helping clients to consolidate, organize and manage the vast volumes of data they collect.

Company URL: http://www.saksoft.com/

CMP: 102.50

Warren Buffett Checklist

History of Consistently Increasing Sales, Earnings & Cash Flow	Yes. 30-50% growth every year.
Durable Competitive Advantage	Yes. Their IM, Managed Services should bring branded & iterated returns.
Future Growth Drivers	Increased customers towards cloud & managed services should boost the income of the company.  We expect tough times for the company around 2016-18 period, exit & re-invest advised during the period.
Conservative Debt (long term debt < 3 Net Profit)	Yes.
Return on Equity must be Above Average	Yes. Above 15%
Low CAPEX required to maintain current operations	Moderate.  Cash flow is negative.
Management is holding / buying the stock	Holding. 75% promoter holding which is impressive.
Price is Under Valued (< intrinsic value)	Yes.
Stock Price is consolidating (now)	Yes.
Stock Price is growing in past years along with EPS growth	Not really. It might take few more years for the stock to come into lime light, provided there is same growth level.

Additional Futurecaps Checklist

PE, PB Ratio	PE 6 Good PB 1.2 Good (Please note that some sites refer to Standalone PE at 17; while we are considering Consolidated PE & Financial values)
Cash Flow Positive, Net Profit % greater than 8%	Not Positive. Net Profit almost around 8%
Paying Dividends, Tax	Yes
EPS Growth Rate	40% average.  But latest quarter is not impressive.
Expected Gain in 5 Years	10.
Power of Brand	Yes.
Corporate Governance, Reputation of Leaders	Yes.
Fraud reported	Nil.

Declaration

Here by we declare that Saksoft holds multi-bagger properties.  But the recent quarter showing only 10% EPS growth & Latest PE ratio is high.  We have to wait some more time to get clarity on this stock.

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.