Bharat Rasayan – Multibagger Analysis

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/?q=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 Replies to “Bharat Rasayan – Multibagger Analysis”

  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?

    1. Bhageria went 50% down, so we increased the stake 40% more.

      Cannot find a solid reason for the dye-segment down trend other than market correction.

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