Dynemic Products – Multibagger Analysis

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

Screener URL: http://www.screener.in/company/532707

CMP: 57.00

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Dynemic Products Ltd. is an ISO 9001:2000 & HACCP Certified Company. We are one of the major manufacturer and exporter in India, offering complete range of Food Colors, Lake Colors, Blended Colors, FD&C Colors & Dye Intermediates.

Warren Buffett Checklist

History of Consistently Increasing Sales, Earnings & Cash Flow Yes. image
Durable Competitive Advantage Moderate. image
Future Growth Drivers Moderate. image
Conservative Debt (long term debt < 3 Net Profit) Yes. image
Debt Equity Ratio, Current Ratio 0.53 (Moderate) image
Return on Equity must be Above Average 22 (Very Good) image
Low CAPEX required to maintain current operations Not. image
Management is holding / buying the stock Yes. Increased 1% over 2 years. image
Price is Under Valued (< intrinsic value) Yes. image
Stock Price is consolidating (now) Yes. image
Stock Price is growing in past years along with EPS growth Moderate image

Additional Futurecaps Checklist

Consolidated PE, PB Ratio PE 6 (Very Good)  PB 0.2 (Good) image
Cash Flow Positive, Net Profit % greater than 8% Yes. Yes. image
Paying Dividends, Tax Yes. image
EPS Growth Rate 300% in past year. Up & Down before that. image
Jump in Trailing Result EPS 10% image
Jump in Quarterly Result EPS 10% image
Expected Gain in 5 Years Considering average growth of 10-20% & PE resizing to 20 the company should give 15-20  times returns. image
Price Movement Graph, 52 Week High & Low 69/13 image
Volume Analysis Less than 15k (Good) image
Power of Brand Moderate. image
Corporate Governance, Reputation of Leaders Yes. image
Fraud reported Not in current search. image
Read Analysis Report for Future Plans, Capacity expansion Expansion plan on card, increasing debt otherwise. link image

Declaration

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Allocation

2-3% of 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.

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