Kovai Medical Center and Hospital (KMCH) is a 750- bedded Multi-Disciplinary Advanced Super Specialty Hospital nestled in a serene atmosphere of over 20 acre piece of land. The location enables the patients to enjoy the rule of quietude, away from the hustle and bustle of city life.
Analysis URL: http://www.screener.in/company/?q=523323
Warren Buffett Checklist
|History of Consistently Increasing Sales, Earnings & Cash Flow||Yes.|
|Durable Competitive Advantage||
Cannot judge this parameter.
|Future Growth Drivers||Yes. Indian specialty hospitals are in up trend. New and new players like Manapuram too entering into this segment. Company is expanding.|
|Conservative Debt (long term debt < 3 Net Profit)||Yes.|
|Return on Equity must be Above Average||Yes. It is 30% and our average requirement is 15%.|
|Low CAPEX required to maintain current operations||Yes. Investing Cash flow required, but it is low compared with Operating Cash flow.|
|Management is holding / buying the stock||Yes. 50% is current holdings.|
|Price is Under Valued (< intrinsic value)||Average. Price is quoting around 3 times of book value, which is not too good, but still adaptable.|
|Stock Price is consolidating (now)||Yes.|
|Stock Price is growing in past years along with EPS growth||Yes.|
Additional Futurecaps Checklist
|PE, PB Ratio||PE 13; PB 3; Moderate.|
|Cash Flow Positive, Net Profit % greater than 8%||Yes.|
|Paying Dividends, Tax||Yes.|
|EPS Growth Rate||30%. We are happy to see 50% growth.|
|Jump in Trailing Results||Yes. But only 30%.|
|Quarterly Results Growing||Q-Q 20% growth in sales & 100% growth in profits.|
|Expected Gain in 10 Years||10X in 5 years through EPS growth & PE resizing on limelight. In 10 years it could cross 40X.|
|Volume Analysis||Low volume. Good for price fire.|
|Power of Brand||Hospital Reputation good. It can attract patients & students.|
|Corporate Governance, Reputation of Leaders||Yes.|
|Fraud reported||Not in current search.|
Here by we declare that the stock has multibagger properties.
3% to 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.