Ruby Mills – Multibagger Analysis

Ruby Mills – Multibagger Analysis

Screener URL: http://www.screener.in/company/503169

CMP: 303

Warren Buffett Checklist

History of Consistently Increasing Sales, Earnings & Cash FlowYes. But not steady.  Should be a 2 year hold multibagger.image
Durable Competitive Advantage Moderate.  Cotton Business prospects are dull in our view.image
Future Growth DriversFor next 2 years it should be good.image
Conservative Debt (long term debt < 3 Net Profit)Not.image
Debt Equity Ratio, Current RatioHigh Debt.  CR good.image
Return on Equity must be Above Average17%.image
Low CAPEX required to maintain current operationsGood.image
Management is holding / buying the stock75% good.image
Price is Under Valued (< intrinsic value)Yes.image
Stock Price is consolidating (now)Yes.image
Stock Price is growing in past years along with EPS growthNot.image

Additional Futurecaps Checklist

Consolidated PE, PB RatioPE 4, PB 0.9image
Cash Flow Positive, Net Profit % greater than 8%Yes.image
Paying Dividends, TaxYesimage
EPS Growth Rate30% in past & trailing.image
Jump in Trailing ResultsYesimage
Quarterly Results GrowingYesimage
Expected Gain in 5 YearsFor 5 years we cannot comment as the growth is not steady.  For 2 years it should give 2-4X returns.image
Price Movement Graph, 52 Week High & LowNot Bad.image
Volume AnalysisLow Volume which is Good.image
Power of BrandNot impressive brand.image
Corporate Governance, Reputation of LeadersOkay.image
Fraud reportedNot in current search.image


Even though there is trailing, quarterly EPS jumps, the company growth is not steady, high debt & so on.   Hence we are not confident to declare it as multibagger.


About Futurecaps

Futurecaps is a 12+ year experienced Indian Stock Market Advisory with SEBI Registration.

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