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Madhav Marbles – Multibagger Analysis

Madhav Marbles – Multibagger Analysis

Incorporated in the year 1989 as a 100% Export Oriented Unit, Madhav Marble & Granite Ltd. is a leading processor and exporter of premium quality granite and marble.

The company operates its Granite Division from South India(Salem, Tamil Nadu). The Region known for its rich reserves of metamorphosed granite. In conformity with its commitment to excellence, the company has installed the most sophisticated and environment-friendly granite processing machinery imported from Italy

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Company URL: http://www.madhavmarbles.com/

Screener URL:  http://www.screener.in/company/515093

CMP: 40.00

Warning:

Madhav Marbles & Aro Granite have similar valuations.  Past 3 years shows Peak-Low-Peak trend.  We expect these sector companies to show high growth in next 2 years.  Once after that the stock should be exited.  Not long term multibagger.

Warren Buffett Checklist

History of Consistently Increasing Sales, Earnings & Cash FlowYes.image
Durable Competitive Advantage Moderate.  Other better players exists.image
Future Growth DriversInfrastructure growth of India should benefit this company.image
Conservative Debt (long term debt < 3 Net Profit)Yes.image
Debt Equity RatioIt is 0.image
Return on Equity must be Above AverageROE is around 6.  Very low.image
Low CAPEX required to maintain current operationsYes.image
Management is holding / buying the stockPromoter holding is 40%.  There is a slight decrease in holdings from past 3 years.image
Price is Under Valued (< intrinsic value)Yes.image
Stock Price is consolidating (now)Not.image
Stock Price is growing in past years along with EPS growthYes.image

Additional Futurecaps Checklist

Consolidated PE, PB RatioPE 5, PB 0.25 (Very Good)image
Cash Flow Positive, Net Profit % greater than 8%Yes. Yes.image
Paying Dividends, TaxYes. Dividend Yield is 3%image
EPS Growth Rate50% on average.image
Jump in Trailing ResultsYes. 15%.image
Quarterly Results GrowingYes. 50%.image
Expected Gain in 5YearsConsidering the growth of 30% and PE resizing to 10 it can provide 5-8 times returns in 5 yearsimage
Price Movement Graph, 52 Week High & Low40, 13image
Volume AnalysisLess than 10 thousand. Good.image
Power of BrandYes.image
Corporate Governance, Reputation of LeadersNot.  Some shadows exists.image
Fraud reportedSome fraud traces exists LINK 1 LINK 2image

Declaration

Here by we declare that Madhav Marbales have Multibagger qualities.  But considering few bad reports, it is a High Risky Multibagger.  Need thorough analysis before investing.

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Allocation

1-2% of 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.

About Futurecaps

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

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6 Replies to “Madhav Marbles – Multibagger Analysis”

  1. Madhav Marbles & Aro Granite have similar valuations. Past 3 years shows Peak-Low-Peak trend. We expect these sector companies to show high growth in next 2 years. Once after that the stock should be exited. Not long term multibagger.

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