Talbros Automotive Components Ltd. – Multibagger Analysis

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

Screener URL: http://www.screener.in/company/?q=505160&con=1

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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