Talbros Automotive Components Ltd. – Multibagger Analysis

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

Screener URL: http://www.screener.in/company/505160

CMP: 103.00

Warren Buffett Checklist

History of Consistently Increasing Sales, Earnings & Cash Flow Flat for past 3 years. image
Durable Competitive Advantage Branded clients exists. image
Future Growth Drivers Automotive growth of India should contribute to this company’s growth. image
Conservative Debt (long term debt < 3 Net Profit) Above 3X image
Debt Equity Ratio, Current Ratio 0.9 (high) image
Return on Equity must be Above Average 17% image
Low CAPEX required to maintain current operations Moderate. image
Management is holding / buying the stock 51% & Increasing in past 3 years.  image
Price is Under Valued (< intrinsic value) Considering past 3 years growth, the Intrinsic value is in par with CMP.  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 13 (high), PB 1 (good) image
Cash Flow Positive, Net Profit % greater than 8% Yes.  Not. image
Paying Dividends, Tax Yes. image
EPS Growth Rate 3 year average only 10% image
Jump in Trailing Result EPS Trailing Year EPS is lower than Previous year. image
Jump in Quarterly Result EPS Trailing Quarter EPS is lower than Previous month. image
Expected Gain in 5 Years Only max of 2X expecting high growth in next 2 years.  After 2 years one should sell the stock as market expected to fall. image
Price Movement Graph, 52 Week High & Low 100/33 (good)  image
Volume Analysis Good.  image
Power of Brand Moderate.  image
Corporate Governance, Reputation of Leaders Yes.  image
Fraud reported Not in current search  image


Considering the value parameters, we cannot see the company hae any potential in becoming a multibagger.





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.

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