Is Kanchi Karpooram a Multibagger?

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https://futurecaps.com/tag/multibagger/

Futurecaps is a SEBI Registered Research Analyst providing Multibagger service to Indian Stock Market.

We are publishing this Analysis based on the Query from our Paid Subscriber.  The company have good Trailing results & seems to lure lot of investors.

Let us analyze in Warren Buffet way on the Financials.

Kanchi Karpooram Limited (KKL), a Public Limited Company, manufactures Camphor, its derivatives, Gum rosin, Value Added Resins and Fortified Rosin. Over the last 25 years, it has a proven track record for quality, competitive price and timely supply to a variety of customer across industries. The main product Camphor has been well accepted by customers. Besides Camphor and its derivatives, KKL’s products such as Gum rosin and Rosin Derivatives, also enjoy an enviable share in the market, including some of the most trusted brands across the world.

Warren Buffet, Value & Growth Checklist

Following are the 25 Checklist parameters:

Capitalization	115 Crore
History of Consistently Increasing Sales, Earnings & Cash Flow	Yes.
Durable Competitive Advantage	Moderate.
Future Growth Drivers / Sector Growth	Moderate.
Conservative Debt (long term debt < 3 Net Profit)	Yes
Debt Equity Ratio, Current Ratio	Both are Good
Return on Equity must be Above Average	55% (Excellent)
Low CAPEX required to maintain current operations	Moderate
Inventory Turnover Ratio, Debtor Days, ROCE	Increasing. Moderate
Management is holding / buying the stock	Yes
Market Price < Intrinsic Value	Yes.
Stock Price is consolidating (now)	Yes
Stock Price is growing in past years along with EPS growth	Yes
Consolidated PE, PB Ratio, PEG Ratio	PE 4, PB is 2X,  PEG 0.2
Cash Flow Positive, Net Profit % greater than 8%	Cash Flow: NegativeNet Profit: Yes
Paying Dividends, Tax	Yes
EPS Growth Rate	30% above
Jump in Trailing Result EPS	Yes
Jump in Quarterly Result EPS	Yes.  But recent 2 q-o-q not increasing in profits
Expected Gain in 5 Years	200-300% (If smallcap/midcap market restores)
Price Movement Graph, 52 Week High & Low	Okay
Volume Analysis	2000
Power of Brand	Moderate
Corporate Governance, Reputation of Leaders	Very small company.  Cannot measure this.
Fraud reported	Not in current search.

Summary

Based on the above analysis we can see Kanchi Karpooram have Multibagger Stock properties.  Company aligns with Warren Buffet principles of Value & Growth Investing.  It  can be considered as Low Risk Moderate Returns investment.  However, investor has to do more due diligence on the stock before investing.

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