Kovai Medical Center and Hospital Ltd

Update: This stock really is Not a Multibagger.  Since the Valuation change it is No Longer a Multibagger in our view.  You can check other stocks from our latest Multibaggers pack.

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

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

Kovai Medical Center and Hospital (KMCH) is a 750- bedded Multi-Disciplinary Advanced Super Specialty Hospital nestled in a serene atmosphere of over 20 acre piece of land. The location enables the patients to enjoy the rule of quietude, away from the hustle and bustle of city life.

CMP: 313

Website: http://www.kmchhospitals.com/

Warren Buffett Checklist

History of Consistently Increasing Sales, Earnings & Cash Flow	Yes.
Durable Competitive Advantage	Cannot judge this parameter.
Future Growth Drivers	Yes.  Indian specialty hospitals are in up trend. New and new players like Manapuram too entering into this segment.  Company is expanding.
Conservative Debt (long term debt < 3 Net Profit)	Yes.
Return on Equity must be Above Average	Yes. It is 30% and our average requirement is 15%.
Low CAPEX required to maintain current operations	Yes.  Investing Cash flow required, but it is low compared with Operating Cash flow.
Management is holding / buying the stock	Yes.  50% is current holdings.
Price is Under Valued (< intrinsic value)	Average. Price is quoting around 3 times of book value, which  is not too good, but still adaptable.
Stock Price is consolidating (now)	Yes.
Stock Price is growing in past years along with EPS growth	Yes.

Additional Futurecaps Checklist

PE, PB Ratio	PE 13; PB 3; Moderate.
Cash Flow Positive, Net Profit % greater than 8%	Yes.
Paying Dividends, Tax	Yes.
EPS Growth Rate	30%.  We are happy to see 50% growth.
Jump in Trailing Results	Yes. But only 30%.
Quarterly Results Growing	Q-Q 20% growth in sales & 100% growth in profits.
Expected Gain in 10 Years	10X in 5 years through EPS growth & PE resizing on limelight.  In 10 years it could cross 40X.
Volume Analysis	Low volume.  Good for price fire.
Power of Brand	Hospital Reputation good.  It can attract patients & students.
Corporate Governance, Reputation of Leaders	Yes.
Fraud reported	Not in current search.

Declaration

Here by we declare that the stock has multibagger properties.

Allocation

3% to 4% 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.