Suven Life Sciences – Multibagger Analysis

Suven Life Sciences – Multibagger Analysis

Suven Life Sciences, in the business of design, manufacture and supply of Bulk Actives, Drug Intermediates & Fine Chemicals, catering to the needs of global Life Science Industry, is committed to provide customers with products fulfilling customer’s needs and expectations.

Company website: http://www.suven.com/ 

Analysis link: http://www.screener.in/company/?q=530239

Warren Buffett Checklist

History of Consistently Increasing Sales, Earnings & Cash Flow Yes. 30% average growth consistently over years. image
Durable Competitive Advantage

Brands, Patents play the game.

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Future Growth Drivers Company has increasing customer base. image
Conservative Debt (long term debt < 3 Net Profit) Liabilities stand around 87 and Net Profit around 145 crores, surely safer in debt side. image
Return on Equity must be Above Average Latest ROE is around 22. image
Low CAPEX required to maintain current operations Capital Intensive to moderate level. image
Promoter %, Management is holding / buying the stock 65% Promoter Holding with No pledging. image
Price is Under Valued (< intrinsic value) Yes. (compared with current market peak scenario) image
Stock Price is consolidating (now) It is rising though. image
Stock Price is growing in past years along with EPS growth Yes. image

Additional Futurecaps Checklist

PE, PB Ratio PE stands around 9 which is attractive compared with other peers.  PB ratio is 4 and no better bargains possible in peak market situations. image
Cash Flow Positive, Net Profit % greater than 8% Yes. image
Paying Dividends, Tax Yes. image
EPS Growth Rate 30% to 50% as consistent rise. Very Good. image
Expected Gain in 10 Years 10x to 20x if similar growth rates are maintainable. image
Power of Brand Branding attracts more sales, more profit margins! image
Corporate Governance, Reputation of Leaders Yes. image
Fraud reported No. image

Declaration

Here by we declare that Suven Life Sciences as a multibagger.

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Allocation

2-4% 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.

5 Replies to “Suven Life Sciences – Multibagger Analysis”

  1. i request you to analysis cairn india . I think this company is most undervalued company and share price is very low becuase of group company performance and other issues.

    1. You got it right Govind!

      We like Cairn for its value parameters, But repel due to the Management Integrity troubles.

      If we choose to pick Cairn today & it proven profitable, tomorrow we will prick 10 scam-companies and make loss.. thus staying away from it. 🙂

  2. Thank you very much for your reply. How we missed out Avanti foods and please analysis haldyn glass another under valued share with strong financials.

    Govind

  3. Thanks Govind. Keep Posted. Learning & Sharing is best way of succeeding.

    Yes. Avanti wi missed – now it is high priced too – we have to make profit in the buy, not in sale – so cannot take that.

    Haldyn Glass looks attractive in prime-view; Will surely run a screener on that.

  4. Haldyn have latest 3 quarter with decreasing profits; Not a good sign as their coming year EPS will show decreasing trend. So not a good buy for now. Thank You.

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