Shree Hari Chemicals – Multibagger Analysis

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

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

image_thumb1

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 Responses to “Shree Hari Chemicals – Multibagger Analysis”

  1. chirag Says:

    I’m closely tracking it. The only concern is when this period of supernormal profit will cool once commodity prices cool.

  2. Neal Gar Says:

    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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