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November 2, 2014

6

Welspun Syntex – Multibagger Analysis

by Futurecaps Advisor

Welspun Syntex Limited was established in 1983 and is the flagship company under the Welspun umbrella. Since its inception WSL. has grown manifold and today is amongst the largest manufacturers and exporters of Polyester Texturised Filament Yarn, Nylon Filament Yarn from India.

With plants located at Silvassa and Palghar (Thane), India WSL. is well equipped to meet the domestic as well as international demand.

image

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

Screener URL: http://www.screener.in/company/?q=508933

CMP: 26.00

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)

Not. image

Debt Equity Ratio, Current Ratio

1.65, 1.48 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

65%.  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 5.17, PB 31 image

Cash Flow Positive, Net Profit % greater than 8%

Yes. No. image

Paying Dividends, Tax

Dividends: No, Tax: Yes image

EPS Growth Rate

20% image

Jump in Trailing Result EPS

Yes. image

Jump in Quarterly Result EPS

Yes. image

Expected Gain in 5 Years

10-12 times image

Price Movement Graph, 52 Week High & Low

30/6 image

Volume Analysis

66000 (High) image

Power of Brand

Yes. image

Corporate Governance, Reputation of Leaders

Moderate. image

Fraud reported

Not in current search image

Annual Report

Expansion Plans on Card link image

Declaration

Based on the Value & Growth parameters, the company hold Multibagger properties.

image_thumb1

 Allocation

1-2% of 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.

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6 Comments Post a comment
  1. vithal
    Nov 2 2014

    Sir
    Explain term :exptd gain in 5 yr : 10-12 times means. Is it eps or ronw or price growth ?

    Reply
  2. NIveditha
    Nov 3 2014

    Dear FC,

    what is your view on Indraprashta Medical Corp?

    Regards,
    Niveditha

    Reply
  3. M Prabhu
    Nov 10 2014

    What a timing to the recomendation… since the recomendation, it is been flying… could i have their future expansion if could update…

    Reply
  4. Thanveer
    Nov 13 2014

    Dear Future caps,

    I have noticed a company named Suditi Industries in Textile Business. What I impressed most is that their unique way of business Expansion.

    Last year they got Apparel Right in India of FIFA world cup 2014, after the success of that event they have tied up with many prestigious Premier league football Club that includes Real Madrid, Arsenal & Manchester City as well they are in talk with couple of more clubs.

    By doing so they are aiming to find a new market segments as well as create a brand value of their Retail brand named “Riot”. They have around 15 retail outlets in India and tied up with many Retail Chains and online stores. If you read their last annual report we can understand that They are expecting 20 to 30% revenue growth in current fiscal year.

    Apart from this I have noticed 75% of the company shares holding by promoters in that around 70% holding by Single promoter.

    And for the dividend side last year they have given 0.50 Rs/Share dividend for 25% public share holders. Promoters hadn’t taken any. That is showing management friendly attitude towards the minority retail share holders.

    I wish you have a go through on it and will give your valuable feedback. Thanking you.

    Reply
  5. Dec 7 2014

    Coral Labs was posted on 29th Nov as a Multibagger now on Dec 6th it has been removed from your site. I purchased based on your recommendation now I am confused if reliable.

    Reply
  6. nitin
    Dec 16 2014

    1 ) Company listed only in BSE

    Yes

    2) Promoters are holding less than 55 % stake in this company.

    The latest is 30% this has increased cannot say how much by. I think its definitely more than 35%

    3) Another listed company is the single largest share holder in this company.

    http://www.larsentoubro.com/lntcorporate/uploads/ConsolidatedReportAR2009-10.pdf

    L&T owns 26%

    4) Company reported continuous growth in its top line for the past five years.

    Yes. http://www.screener.in/company/?q=517059#pl

    5) More than 20 % of company’s income coming from exports .

    check the report yes. 20% is coming form exports.

    http://www.salzergroup.net/files/Annual_Report_2011-2012.pdf

    6) In the last ten years , company never skipped dividend

    Never skipped a dividend in 10 years

    7) Company trading at less than 2 times of its book value .

    Book value is 94.
    Stock is trading at 179 or 152 as of early morning when Value picker came with the recommendation

    So … Yes it is.

    8) Company’s current market cap( Full) is less than one time of its last year top line.

    Last year topline is 244 Cr.
    Market Cap right now is 184 Crore.

    9) Company’s debt equity ratio is less than 0.5

    Need Your help guys here. I dont know how to get this.

    10) For one of its products , company is the largest producer in Asia and market leader in India.

    http://www.business-standard.com/company/salzer-electron-1889/annual-report/director-report

    11) For one of its major products , company is the only approved supplier to a well known government organisation ( This government organisation reported more than Rs.2000 Cr profit in last year)

    Nuclear Power Corporation India Ltd. Is the government entity
    http://www.slideshare.net/RENUGOPALV/salzer-electronics-ltd-internship-project

    Check in the bottom

    12) For another main product, Company entered into a technical collaboration with a foreign company .This foreign company is buying back 50 % of this company’s production ( of this particular product)

    The Company has also entered into technical and financial collaboration with M/s. Plitron Manufacturing Inc., Canada(Leading Manufacturing of Transformers in North America), in 1995 for manufacturing Toroidal Transformers With 50% Buy-Back.

    13) It is neither a loss making nor an already recommended company

    Yes and Yes.

    Reply

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