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.

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

CMP: 121.00

Warren Buffett Checklist

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

Additional Futurecaps Checklist

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

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.

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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.

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