Nucleus Software Exports Ltd. – Multibagger Analysis

Nucleus Software Exports Ltd. – Multibagger Analysis

Nucleus Software is a leading global IT products and solutions company that delivers consistent value to mission critical business processes of Banking and Financial Services sector. With a robust portfolio of IT products and solutions for the BFSI industry that has been delivering value consistently over the last 27 years, Nucleus Software is one of the pioneers who have successfully taken the India IT product story to the world map.


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

Screener URL: http://www.screener.in/company/531209

CMP: 232.00

Warren Buffett Checklist

History of Consistently Increasing Sales, Earnings & Cash FlowYes. But not too impressive.image
Durable Competitive Advantage Moderate.image
Future Growth DriversNext 2 years an IT boom should happen.  This could benefit the company.image
Conservative Debt (long term debt < 3 Net Profit)Yes.image
Debt Equity Ratio, Current Ratio0 (Very Good)image
Return on Equity must be Above Average17 (Good)image
Low CAPEX required to maintain current operationsNot.image
Management is holding / buying the stockPromoter holding 57%.   No increase in past 3 years.image
Price is Under Valued (< intrinsic value)Yesimage
Stock Price is consolidating (now)Yes.image
Stock Price is growing in past years along with EPS growthYes.image

Additional Futurecaps Checklist

Consolidated PE, PB RatioPE 11 (average); PB 2 (average)image
Cash Flow Positive, Net Profit % greater than 8%Yes. NP% is 20%.image
Paying Dividends, TaxYes. Yes.image
EPS Growth Rate50% for immediate past year & 30% from previous.image
Jump in Trailing Result EPSModerate.image
Jump in Quarterly Result EPSFlat.image
Expected Gain in 5 YearsIf the 30% growth is maintainable the company should give 15-20X returns including PE-resizing.  (Please note that in 2 years recession is forecasted, need to sell & reenter from bottom)image
Price Movement Graph, 52 Week High & Low270/80image
Volume AnalysisHigh Volumeimage
Power of BrandModerate.image
Corporate Governance, Reputation of LeadersYes.image
Fraud reportedNot in current search.image


Considering the recent past EPS jumps & overall good expectation on IT market, we declare it as a multibagger.



2-3% of your portfolio.


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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