One of the leading manufacturers of Active Pharmaceutical Ingredients (API’s). Registered in 1960, the company has grown several folds and earned recognition besides gaining the trust of a strong customer base. Today it is one of the largest producers of macrolides in the country.
Company URL: http://www.anuhpharma.com/
Screener URL: http://www.screener.in/company/506260
Warren Buffett Checklist
|History of Consistently Increasing Sales, Earnings & Cash Flow||Yes.|
|Durable Competitive Advantage||Claims as largest produce of macrolides in the country.|
|Future Growth Drivers||Moderate.|
|Conservative Debt (long term debt < 3 Net Profit)||Yes.|
|Debt Equity Ratio, Current Ratio||0. Impressive.|
|Return on Equity must be Above Average||21%.|
|Low CAPEX required to maintain current operations||Moderate.|
|Management is holding / buying the stock||65%. Slightly increasing over years.|
|Price is Under Valued (< intrinsic value)||Moderate.|
|Stock Price is consolidating (now)||Yes.|
|Stock Price is growing in past years along with EPS growth||Yes.|
Additional Futurecaps Checklist
|Consolidated PE, PB Ratio||PE 15, PB 3|
|Cash Flow Positive, Net Profit % greater than 8%||Yes. Yes.|
|Paying Dividends, Tax||Yes. Yes.|
|EPS Growth Rate||30% in latest year.|
|Jump in Trailing Results||Yes.|
|Quarterly Results Growing||Yes. 50% above.|
|Expected Gain in 5 Years||Considering the growth of 40% as standard, the company should give 8-10 times in 5 years.|
|Price Movement Graph, 52 Week High & Low||3x difference only.|
|Volume Analysis||Low volume. Good.|
|Power of Brand||Moderate.|
|Corporate Governance, Reputation of Leaders||Yes.|
|Fraud reported||Not in current search.|
Considering the above qualities, we declare the stock as a potential multibagger.
2-3% 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.