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October 12, 2014

3

Dynemic Products – Multibagger Analysis

by Futurecaps Advisor

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

Screener URL: http://www.screener.in/company/?q=532707

CMP: 57.00

image

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

image_thumb1

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.

Read more from Multibaggers
3 Comments Post a comment
  1. Bhavin Mehta
    Oct 12 2014

    FC, glad to see that one of my stock is declared multibagger by you.

    Reply
    • Oct 12 2014

      Yes Bhavin. We missed it long time. ๐Ÿ™‚

      Reply
  2. Rahul
    Oct 18 2014

    Thanks i hold this and have booked partial profits. Your recommendation gives hope that this will gain support hereon

    Reply

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