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September 17, 2014

3

Anuh Pharma – Multibagger Analysis

by Futurecaps Advisor

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.image

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

Screener URL: http://www.screener.in/company/?q=506260

CMP: 316

Warren Buffett Checklist

History of Consistently Increasing Sales, Earnings & Cash Flow

Yes. image

Durable Competitive Advantage

Claims as largest produce of macrolides in the country. image

Future Growth Drivers

Moderate. image

Conservative Debt (long term debt < 3 Net Profit)

Yes. image

Debt Equity Ratio, Current Ratio

0. Impressive. image

Return on Equity must be Above Average

21%. image

Low CAPEX required to maintain current operations

Moderate. image

Management is holding / buying the stock

65%. Slightly increasing over years. image

Price is Under Valued (< intrinsic value)

Moderate. image

Stock Price is consolidating (now)

Yes. image

Stock Price is growing in past years along with EPS growth

Yes. image

Additional Futurecaps Checklist

Consolidated PE, PB Ratio

PE 15, PB 3 image

Cash Flow Positive, Net Profit % greater than 8%

Yes. Yes. image

Paying Dividends, Tax

Yes. Yes. image

EPS Growth Rate

30% in latest year. image

Jump in Trailing Results

Yes. image

Quarterly Results Growing

Yes. 50% above. image

Expected Gain in 5 Years

Considering the growth of 40% as standard, the company should give 8-10 times in 5 years. image

Price Movement Graph, 52 Week High & Low

3x difference only. image

Volume Analysis

Low volume. Good. image

Power of Brand

Moderate. image

Corporate Governance, Reputation of Leaders

Yes.  image

Fraud reported

Not in current search.  image

Declaration

Considering the above qualities, we declare the stock as a potential  multibagger.

image_thumb1

Allocation

2-3% 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.

Read more from Multibaggers
3 Comments Post a comment
  1. harsha
    Sep 18 2014

    hi,

    can you please rate or advice on these companies/ which is best

    neuland labs
    anuh
    aarti indus
    bodal

    Reply
  2. ram
    Sep 19 2014

    how to calculate Conservative Debt plz explain in detail

    Reply
  3. ram
    Sep 19 2014

    sir,how to calculate conservative debt plz explain

    Reply

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