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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/590021

CMP: 648.00

Warren Buffett Checklist

History of Consistently Increasing Sales, Earnings & Cash FlowYes.image
Durable Competitive Advantage Moderate.image
Future Growth DriversModerate.image
Conservative Debt (long term debt < 3 Net Profit)Okay.image
Debt Equity Ratio, Current RatioHigh.image
Return on Equity must be Above Average28%image
Low CAPEX required to maintain current operationsModerate.image
Management is holding / buying the stockHolding 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 growthYes.image

Additional Futurecaps Checklist

Consolidated PE, PB RatioPE 10, PB 3image
Cash Flow Positive, Net Profit % greater than 8%Yes. Yes.image
Paying Dividends, TaxYes. Yes.image
EPS Growth Rate50% – 3 year averageimage
Jump in Trailing Result EPSYes.image
Jump in Quarterly Result EPSYes – 400%image
Expected Gain in 5 Years30-40 times if current EPS growth is sustainable applying PE-resizing to 30.image
Price Movement Graph, 52 Week High & Low777/101image
Volume Analysis173 (Very low to execute buy order)image
Power of BrandModerate.image
Corporate Governance, Reputation of LeadersYes.image
Fraud reportedNot in current search.image
Annual ReportFuture Plans good – expansion with borrowing in card.  Be watchful though as in 2 years economy can turn bad. LINKimage

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.

About Futurecaps

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

NEVER MISS our 5-Paid-Multibaggers which are Hand-picked using Warren Buffet strategies!

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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