Shree Hari Chemicals – Multibagger Analysis

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

Screener URL: http://www.screener.in/company/524336

CMP: 170.00

Warren Buffett Checklist

History of Consistently Increasing Sales, Earnings & Cash Flow Yes. image
Durable Competitive Advantage Moderate.  Growing company. image
Future Growth Drivers Moderate. image
Conservative Debt (long term debt < 3 Net Profit) Good. image
Debt Equity Ratio, Current Ratio 0. Very Good. image
Return on Equity must be Above Average ROE 94% image
Low CAPEX required to maintain current operations Moderate. image
Management is holding / buying the stock Promoter Holding 45%.  Management Increasing holdings for past 3 years. image
Price is Under Valued (< intrinsic value) Yes. image
Stock Price is consolidating (now) Not. image
Stock Price is growing in past years along with EPS growth Yes. image

Additional Futurecaps Checklist

Consolidated PE, PB Ratio PE 1.2 (Trailing) PB: 2 (Good) image
Cash Flow Positive, Net Profit % greater than 8% Yes. image
Paying Dividends, Tax Yes.  Past years have some differences but. image
EPS Growth Rate 100% for past 2 years. image
Jump in Trailing Result EPS Yes. image
Jump in Quarterly Result EPS Yes. image
Expected Gain in 5 Years Taking standard growth of 30%, and if persisting,  the company can provide 15-20 times returns. image
Price Movement Graph, 52 Week High & Low 52 week high is very high compared with 52 week low.  (certain investors will hesitate to buy the stock) image
Volume Analysis Less than 15 thousand. Good. image
Power of Brand Moderate.  Growing company. image
Corporate Governance, Reputation of Leaders Moderate. image
Fraud reported Not in current search. image

Declaration

Based on the strong EPS growth and Quality value parameters, Management confidence, we declare the stock as a Multibagger.

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Allocation

1-2% 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.

2 thoughts on “Shree Hari Chemicals – Multibagger Analysis

Add yours

  1. shree hari has posted bad results for sep becoz of this stock has come down to 107 but the interesting fact is that the promoters share holding has been increased.

    whats your opinion sir?
    shall we add on the dip or exit?

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