Is Kanchi Karpooram a Multibagger?

We are publishing this Analysis based on the Query from our Paid Subscriber.  The company have good Trailing results & seems to lure lot of investors.

Let us analyze in Warren Buffet way on the Financials.

NSE Code KANCHI.NS
BSE Code 538896
URL https://www.kanchikarpooram.com/
CMP 270
Free Report Yes
Publish Date Nov-15-2019

Kanchi Karpooram Limited (KKL), a Public Limited Company, manufactures Camphor, its derivatives, Gum rosin, Value Added Resins and Fortified Rosin. Over the last 25 years, it has a proven track record for quality, competitive price and timely supply to a variety of customer across industries. The main product Camphor has been well accepted by customers. Besides Camphor and its derivatives, KKL’s products such as Gum rosin and Rosin Derivatives, also enjoy an enviable share in the market, including some of the most trusted brands across the world.

Warren Buffet, Value & Growth Checklist

Following are the 25 Checklist parameters:

Capitalization 115 Crore green
History of Consistently Increasing Sales, Earnings & Cash Flow Yes. green
Durable Competitive Advantage Moderate. yellow
Future Growth Drivers / Sector Growth Moderate. yellow
Conservative Debt (long term debt < 3 Net Profit) Yes green
Debt Equity Ratio, Current Ratio Both are Good green
Return on Equity must be Above Average 55% (Excellent) green
Low CAPEX required to maintain current operations Moderate yellow
Inventory Turnover Ratio, Debtor Days, ROCE Increasing. Moderate yellow
Management is holding / buying the stock Yes green
Market Price < Intrinsic Value Yes. green
Stock Price is consolidating (now) Yes yellow
Stock Price is growing in past years along with EPS growth Yes green
Consolidated PE, PB Ratio, PEG Ratio PE 4, PB is 2X,  PEG 0.2 green
Cash Flow Positive, Net Profit % greater than 8% Cash Flow: NegativeNet Profit: Yes yellow
Paying Dividends, Tax Yes green
EPS Growth Rate 30% above green
Jump in Trailing Result EPS Yes green
Jump in Quarterly Result EPS Yes.  But recent 2 q-o-q not increasing in profits yellow
Expected Gain in 5 Years 200-300%

(If smallcap/midcap market restores)

yellow
Price Movement Graph, 52 Week High & Low Okay green
Volume Analysis 2000 yellow
Power of Brand Moderate yellow
Corporate Governance, Reputation of Leaders Very small company.  Cannot measure this. yellow
Fraud reported Not in current search. green

Summary

Based on the above analysis we can see Kanchi Karpooram have Multibagger Stock properties.  Company aligns with Warren Buffet principles of Value & Growth Investing.  It  can be considered as Low Risk Moderate Returns investment.  However, investor has to do more due diligence on the stock before investing.

Note: We only do 100 Point checklist on Paid Multibaggers which the Advisor Team also will be Investing.  Do not waste time with free multibaggers where you will not get tracking updates.  Visit Subscribe to know more.

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