Bharat Rasayan – Multibagger Analysis

Bharat Rasayan established in 1989 is a privately managed organization having manufacturing units in and around Mumbai INDIA. We are a part of the broader Shah Group of Companies. Bharat Rasayan serves a wide range of industries including but not limited to Pharmaceuticals, Bulk Drugs, R&D, Petrochemicals, Flavors & Fragrances and Specialty Chemicals. We provide Custom manufacturing/Contract manufacturing of diverse compounds to meet the unique needs of every client. In addition we offer a number of Grignard Reagents, Pharma / Drug intermediates and solvents on a regular basis.

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Company URL:

http://www.bharatgroup.co.in/

http://www.bharatrasayan.net/

Screener URL: http://www.screener.in/company/590021

CMP: 648.00

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) Okay. image
Debt Equity Ratio, Current Ratio High. image
Return on Equity must be Above Average 28% image
Low CAPEX required to maintain current operations Moderate. image
Management is holding / buying the stock Holding 75%. Flat. (no pledging) 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 Yes. image

Additional Futurecaps Checklist

Consolidated PE, PB Ratio PE 10, PB 3 image
Cash Flow Positive, Net Profit % greater than 8% Yes. Yes. image
Paying Dividends, Tax Yes. Yes. image
EPS Growth Rate 50% – 3 year average image
Jump in Trailing Result EPS Yes. image
Jump in Quarterly Result EPS Yes – 400% image
Expected Gain in 5 Years 30-40 times if current EPS growth is sustainable applying PE-resizing to 30. image
Price Movement Graph, 52 Week High & Low 777/101 image
Volume Analysis 173 (Very low to execute buy order) image
Power of Brand Moderate. image
Corporate Governance, Reputation of Leaders Yes. image
Fraud reported Not in current search. image
Annual Report Future Plans good – expansion with borrowing in card.  Be watchful though as in 2 years economy can turn bad. LINK image

Declaration

It is a potential multibagger.

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Allocation

2-3% of current portfolio.

Disclaimer

Futurecaps recommends 100 to 150 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 thoughts on “Bharat Rasayan – Multibagger Analysis

Add yours

  1. FC, in recent weeks, many chemical companies like Poddar Pigments, Dynamic Industries, Bhageria Dyechem, Shree Hari Chemicals are down sharply.
    Any comment on this downtrend?

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