Menon Bearings – Multibagger Analysis

Update: This stock really is Not a Multibagger up to date.  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.

Menon Bearings Ltd. established in 1991, is one of the few companies in the continent having fully integrated manufacturing facilities under one roof, to produce a wide range of critical auto components like bi-metal Engine bearings, Bushes & Thrust Washers for light & heavy automobile engines, two wheeler engines as well as for compressors, refrigerators, air conditioners etc. MBL is Listed on the BSE ( Bombay Stock Exchange ) & is globally positioned with business activities spanning 24 countries around the globe. Exporting 35 % of its production capacity, with exports growth at more than 25 % per annum, the engineering capabilities at MBL enjoys strong brand equity among leading OEMs all over the world.

Company URL: http://www.menonbearings.in/

CMP: 121.00

Warren Buffett Checklist

History of Consistently Increasing Sales, Earnings & Cash Flow	Yes.
Durable Competitive Advantage	Moderate.
Future Growth Drivers	Good.
Conservative Debt (long term debt < 3 Net Profit)	Yes.
Debt Equity Ratio, Current Ratio	0.55
Return on Equity must be Above Average	18%
Low CAPEX required to maintain current operations	Moderate to High.
Management is holding / buying the stock	Promoter Holding 75%, Flat
Price is Under Valued (< intrinsic value)	Yes
Stock Price is consolidating (now)	Moderate.
Stock Price is growing in past years along with EPS growth	Yes.

Additional Futurecaps Checklist

Consolidated PE, PB Ratio	PE 18; PB 3
Cash Flow Positive, Net Profit % greater than 8%	Yes. Yes.
Paying Dividends, Tax	Yes
EPS Growth Rate	30% average.
Jump in Trailing Result EPS	Yes. 50%.
Jump in Quarterly Result EPS	Yes. 100%.
Expected Gain in 5 Years	8-10 times.
Price Movement Graph, 52 Week High & Low	132.00/28.00
Volume Analysis	15000
Power of Brand	Moderate.
Corporate Governance, Reputation of Leaders	Yes.
Fraud reported	Not in current search.
Read Analysis Report for Future Plans, Capacity expansion	No serious expansion plans on card.. LINK

Declaration

Based on the value & growth factors, we declare the company as a moderate Multibagger.  But as the PE is 18 we prefer to invest at lower levels.

Allocation

2-3% of 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.