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Basant Agro Tech – Multibagger Analysis

Basant Agro Tech – Multibagger Analysis

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Company manufactures fertilizers and seeds.  Renowned philanthropist 130 years old “Bhartia Group” Akola (India) and international business tycoon Mr. C.L. Jhunjhunwala were instrument in the inception of Basant Agro Tech (I) Ltd with its public issue in 1990. From then on, skilled entrepreneurship and advance manufacturing techniques ensured the company growth exponentially.

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

Screener URL: http://www.screener.in/company/524687

CMP: 8

Warren Buffett Checklist

History of Consistently Increasing Sales, Earnings & Cash FlowSales, Profit are increasing yearly & quarterly basis. But Cash Flow does not show steady growth.image
Durable Competitive Advantage Company has its own brands.image
Future Growth DriversModerate.image
Conservative Debt (long term debt < 3 Net Profit)Liabilities far higher than latest Net Profit.  Company should face interest-payment issue in long term.image
Debt Equity Ratio1.5 which is very high in this segment.image
Return on Equity must be Above Average15% aboveimage
Low CAPEX required to maintain current operationsNot. There is high cash flow for financing activities.image
Management is holding / buying the stockHoldingimage
Price is Under Valued (< intrinsic value)Considering 20%-30% EPS growth rate, the price is slightly under-valued.image
Stock Price is consolidating (now)Not. The stock is peak at 52 week high.image
Stock Price is growing in past years along with EPS growthYes.image

 

Additional Futurecaps Checklist

Consolidated PE, PB RatioPE: 4, PB: 1 – both are good.image
Cash Flow Positive, Net Profit % greater than 8%Negative cash flow; Net Profit % is less than 8%.image
Paying Dividends, TaxYes.image
EPS Growth Rate30% which is good.image
Jump in Trailing ResultsNot.image
Quarterly Results GrowingYes.image
Expected Gain in 10 Years15-20X in 10 years if the current growth is maintained with no interest / debt issues.  PE resizing to 10 applied. (Sector Average)image
52 Week High & LowCompany has appreciated 400% from 52weeklowimage
Volume AnalysisHigh Volume for a small cap company.image
Power of BrandCompany has its own brands.image
Corporate Governance, Reputation of LeadersReputed Leaders exists.image
Fraud reportedNot yetimage

Declaration

Company is not a clean multibagger as it has rough edges.

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Allocation

1-2% 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.

About Futurecaps

Futurecaps is a 12+ year experienced Indian Stock Market Advisory with SEBI Registration.

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4 Replies to “Basant Agro Tech – Multibagger Analysis”

    1. Hello Amit,

      CCL Products have good EPS growth, but higher PE & Already peaked 4 times in past 1 year.
      Accumulation on correction is good.

      Regards,
      FC

  1. Dear FC, can you share your kind views on HOV SERVICES , lot of news about its us subsidiary…and its 1 billion $ valuation

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