Patels Airtemp (India) – Multibagger Analysis
Patels Airtemp was incorporated in 1973. It fused technical expertise with innovative to achieve a remarkable growth and an efficacious nationwide presence. The growth saga was further strengthened in 1993, when it became a Limited entity and thus was born, Patels Airtemp (India) Limited.
PAT was the result of the conscious and dedicated efforts of a team of committed Engineers and Promoter – Directors. As experienced of over three decades in the field of design and manufacturing was instrumental in its upbringing. Today, PAT stands proudly as one of the leading manufacturers of high quality engineering products.
Company URL: http://www.patelairtemp.com/
Screener URL: http://www.screener.in/company/?q=517417
CMP: 123.00
Warren Buffett Checklist
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History of Consistently Increasing Sales, Earnings & Cash Flow |
Not. The Sales are flat. |  |
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Durable Competitive Advantage |
Not impressive. | |
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Future Growth Drivers |
Moderate. |  |
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Conservative Debt (long term debt < 3 Net Profit) |
Not. | |
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Debt Equity Ratio, Current Ratio |
0.3 (Moderate) | |
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Return on Equity must be Above Average |
10% (Bad) | |
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Low CAPEX required to maintain current operations |
Moderate. | |
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Management is holding / buying the stock |
Holding 45%. But increased in past year. |  |
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Price is Under Valued (< intrinsic value) |
Not. | |
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Stock Price is consolidating (now) |
Average. | |
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Stock Price is growing in past years along with EPS growth |
Yes. | |
Additional Futurecaps Checklist
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Consolidated PE, PB Ratio |
PE 14 (High for a small cap) | |
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Cash Flow Positive, Net Profit % greater than 8% |
Yes. Not. | |
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Paying Dividends, Tax |
Yes. Yes. | |
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EPS Growth Rate |
–10%, –5%, –40% | |
|
Jump in Trailing Result EPS |
Not. | |
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Jump in Quarterly Result EPS |
Not but decline. | |
|
Expected Gain in 5 Years |
1-2X for the max. | |
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Price Movement Graph, 52 Week High & Low |
143/39 (already peaked for the year) | |
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Volume Analysis |
Good. | |
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Power of Brand |
Moderate. | |
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Corporate Governance, Reputation of Leaders |
Okay. | |
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Fraud reported |
Not. | |
Declaration
Under the value & growth grounds of past, we cannot call it as a Multibagger.
Allocation
0%
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.