Superhouse – Multibagger Analysis

Superhouse Group, is a multi-unit and multi-product conglomerate with brand leadership in the field of footwear manufacturing and exports. The Group is well equipped with the most modern machineries and a specialized workforce and produces all types of quality leather, leather goods and textile garments that are appreciated all over the world.

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

Screener URL: http://www.screener.in/company/523283

CMP: 236.00

Fundamental Analysis: LINK 1 LINK 2

Warren Buffett Checklist

History of Consistently Increasing Sales, Earnings & Cash Flow Yes. image
Durable Competitive Advantage Yes. image
Future Growth Drivers Good. image
Conservative Debt (long term debt < 3 Net Profit) High. image
Debt Equity Ratio, Current Ratio 0.8 image
Return on Equity must be Above Average 18% image
Low CAPEX required to maintain current operations Not. image
Management is holding / buying the stock 54%. 3 year flat. 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 6, PB 1.3 image
Cash Flow Positive, Net Profit % greater than 8% Yes. 5%. image
Paying Dividends, Tax Yes. image
EPS Growth Rate 20% on average. image
Jump in Trailing Result EPS Yes. image
Jump in Quarterly Result EPS Yes. 100%. image
Expected Gain in 5 Years 15-20 times (EPS Growth, PE resizing to 40) image
Price Movement Graph, 52 Week High & Low 295.00/50.00 image
Volume Analysis 18000 image
Power of Brand Yes. image
Corporate Governance, Reputation of Leaders Good. image
Fraud reported Not in current search. image
Read Analysis Report for Future Plans, Capacity expansion

Declaration

On the grounds of value & growth parameters, we declare the company has a multibagger.

Please note that the 5 year prediction won’t work stratightaway since within 1-2 years recession could come back.  Act judiciously.

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Allocation

2-3% of your 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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