Orbit Exports – Multibagger Analysis

Orbit Exports – Multibagger Analysis

In this post we can analyze Orbit Exports as a multibagger stock.

Website http://www.orbitexports.com/

Analysis http://www.screener.in/company/?q=512626

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Warren Buffett Checklist

History of Consistently Increasing Sales, Earnings & Cash Flow Yes. image
Durable Competitive Advantage
  • Alternative Competitions Exists with Alok Industries, Welspun which are bigger in capitalization & market share; Company not yet in a Position to build Economic Moat.
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Future Growth Drivers Company has shown 10% to 20% Sales Growth even during tough economic periods. image
Conservative Debt (long term debt < 3 Net Profit) Debt accounts to 23 Crores & Latest Net Profit is around 22 Crores. image
Return on Equity must be Above Average Exceptional ROE of 30+ for past 3 years. image
Low CAPEX required to maintain current operations Moderate CAPEX needed. image
Management is holding / buying the stock Yes. Promoter Stakes are increasing for past 2 years. image
Price is Under Valued (< intrinsic value) Not. image
Stock Price is consolidating (now) Not.  Price is closer to 52 week high, but expected as Market is Booming. image
Stock Price is growing in past years along with EPS growth Yes.  EPS is growing 25% above each year & Stock Price aligns with it. image

Additional Futurecaps Checklist

PE, PB Ratio PE: 6.5; PB: 2 (Acceptable Values for a Growth Stock) image
Cash Flow Positive Yes image
Paying Dividends, Tax Paying Tax & Dividend Yield closer to 2.5% image
EPS Growth Rate 25% on average, which is good image
Expected Gain in 10 Years 10 Times & More image
Power of Brand Branding attracts more sales, more profit margins!  
Corporate Governance, Reputation of Leaders Corporate Governance: Yes image
Fraud reported Not. image

 Declaration

Here by we declare that Oribit Exports is a Multibagger Stock.

One can expect 5-10 times returns if the stock follows current growth trend.

Allocation

2.% 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.

7 Replies to “Orbit Exports – Multibagger Analysis”

  1. Today it is down 12% after posting Q4 result. I have bought this @109Rs.today (28-May-14). Please share your view on Q4 results.

    1. Hello Bhavin,

      The net profit q-q is down.
      We need to find out whether it is a temporary or recurring problem.

      Regards,
      Futurecaps.

      1. Thanks a lot for your reply. If this happen in Q1FY15 then I will sell it.
        I liked your blog very much especially style of presentation (warren buffet check list). You are doing this without charging anything is really appreciated and respected.

  2. Thank You Dear Bhavin for the good words.

    Actually, we do keep a NIFTY-PE Ratio watch for selling all the stocks.. So we just buy & forget stocks – as it is properly diversified, one stock won’t impact the entire portfolio. Our expectation is the SELL TRIGGER will happen around 2016. 🙂

  3. Hey ,

    This is a very nice blog. Really loved it. However just wanted to know if it is possible to know about a particular stock. I mean if i want to know about one particular stock which is in my watch list of stocks. Thanks

  4. Hi,

    At Rs 365, i’ve bought 650 Orbit export shares & i’m planning to keep it for at least 2 years. Presently it’s fluctuating between Rs 395 to Rs 410, i was thinking of buying few more stocks at around Rs 395 now. Should i do that ?.
    Thnx
    Drritiman

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