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Is Kanchi Karpooram a Multibagger?

Is Kanchi Karpooram a Multibagger?

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.

NSE CodeKANCHI.NS
BSE Code538896
URLhttps://www.kanchikarpooram.com/
CMP270
Free ReportYes
Publish DateNov-15-2019

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:

Capitalization115 Croregreen
History of Consistently Increasing Sales, Earnings & Cash FlowYes.green
Durable Competitive AdvantageModerate.yellow
Future Growth Drivers / Sector GrowthModerate.yellow
Conservative Debt (long term debt < 3 Net Profit)Yesgreen
Debt Equity Ratio, Current RatioBoth are Goodgreen
Return on Equity must be Above Average55% (Excellent)green
Low CAPEX required to maintain current operationsModerateyellow
Inventory Turnover Ratio, Debtor Days, ROCEIncreasing. Moderateyellow
Management is holding / buying the stockYesgreen
Market Price < Intrinsic ValueYes.green
Stock Price is consolidating (now)Yesyellow
Stock Price is growing in past years along with EPS growthYesgreen
Consolidated PE, PB Ratio, PEG RatioPE 4, PB is 2X,  PEG 0.2green
Cash Flow Positive, Net Profit % greater than 8%Cash Flow: NegativeNet Profit: Yesyellow
Paying Dividends, TaxYesgreen
EPS Growth Rate30% abovegreen
Jump in Trailing Result EPSYesgreen
Jump in Quarterly Result EPSYes.  But recent 2 q-o-q not increasing in profitsyellow
Expected Gain in 5 Years200-300%

(If smallcap/midcap market restores)

yellow
Price Movement Graph, 52 Week High & LowOkaygreen
Volume Analysis2000yellow
Power of BrandModerateyellow
Corporate Governance, Reputation of LeadersVery small company.  Cannot measure this.yellow
Fraud reportedNot in current search.green

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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