Intrinsic Value of 20 Indian Stocks – HDFC Bank, SBI, Reliance Industries, Adani Ports, Tata Motors, Ashok Leyland, Infosys, TCS, Sun Pharma, Dr. Reddy, Meghmani Organics, Jiya Eco, Wonderla Holidays, PSP Projects, Associated Alcohol, SRG Housing, CanFin Housing, Maithan Alloys, Bhageria Industries, Caplin Point, Veto Switchgears, KEI Industries, Gulf Lubricants, Acrysil, BCL Industries, Hester Bioscience, Aster DM & More

One should not take decision based on Price.  It should be based on Price & Growth aspects.  That is the reason Big Investors like Warren Buffet relies on Intrinsic Value & Fair Value.

Intrinsic Value is the present value of the company after applying the past growth rate for the future next 10 years.

Fair Value is discount of 30% on Intrinsic Value.

Rule of Thumb

  • If the CMP is less than Fair Value then BUY.
  • If the CMP is greater than Fair Value & less than Intrinsic Value then HOLD.
  • If the CMP is greater than Intrinsic Value then SELL

Intrinsic Value & Fair Value of Largecaps

Company CMP Intrinsic Value Fair Value Recommendation
HDFC Bank 1289 971 680 Sell
SBI 332 187 131 Sell
Reliance Industries 1546 1747 1223 Hold
Adani Ports 368 681 477 Buy
Tata Motors 175 Loss Loss Sell
Ashok Leyland 80 60 42 Sell
Infosys 733 490 343 Sell
TCS 2216 1865 1306 Sell
Sun Pharmaceuticals 430 678 475 Buy
Dr. Reddy’s Laboratories 2896 8844 6191 Buy

Intrinsic Value & Fair Value of Smallcaps & Midcaps


Company CMP Intrinsic Value Fair Value Recommendation
Meghmani Organics 56.65 539.32 377.53 Buy
Assoc.Alcohols 185.6 781.22 546.86 Buy
PSP Projects 495.55 1682 1177.4 Buy
KEI Inds. 474.95 1375.16 962.61 Buy
Gulf Oil Lubricants 812.1 1197.69 838.38 Buy
Tata Elxsi 827.85 277.79 194.46 Sell
Automotive Axles 819.6 1304.42 913.09 Buy
Acrysil 95.2 334.84 234.39 Buy
BCL Industries 74.45 1231.71 862.2 Buy
Bharat Parenterals 168 4183.17 2928.22 Buy
Sandhar Tech 250.1 372.92 261.05 Buy
Aster DM Health 162.7 131.47 92.03 Sell
Hester Bios 1452.1 3100.36 2170.25 Buy
Bella Casa 119.75 357.1 249.97 Buy
Bhageria Indust. 116.85 605.03 423.52 Buy
SRG Housing 83.1 1128.7 790.09 Buy
Can Fin Homes 395.35 354.21 247.95 Sell
Jiya Eco-Product 26.65 730.91 511.64 Buy
Veto Switchgears 36.55 -266.29 -186.4 Hold
Caplin Point Lab 294.6 938.35 656.85 Buy
Maithan Alloys 464.85 -1193.73 -835.61 Hold
Wonderla Holiday 246.9 595.92 417.15 Buy

PSP Projects Multibagger Analysis (Warren Buffet Way)

In this post we can analyze PSP Projects based on Warren Buffet methodology.

NSE Code PSPPROJECT.NS
BSE Code 540544
URL http://www.pspprojects.com/
CMP 540
Free Report Yes
Publish Date Oct-30-2019

PSP Projects is a multidisciplinary construction company offering a diversified range of construction and allied services across industrial, institutional, government, government residential and residential projects in India. They provide our services across the construction value chain, ranging from planning and design to construction and post-construction activities to private and public sector enterprises.

Warren Buffet, Value & Growth Checklist

Following are the Checklist parameters:

Capitalization 2000 Crore green
History of Consistently Increasing Sales, Earnings & Cash Flow Yes. green
Durable Competitive Advantage Yes. green
Future Growth Drivers / Sector Growth Yes. green
Conservative Debt (long term debt < 3 Net Profit) No, company have slightly higher debt red
Debt Equity Ratio, Current Ratio Debt Equity Ratio is 0.17

Current Ratio is 1.5

green
Return on Equity must be Above Average 27% (Good) green
Low CAPEX required to maintain current operations Moderate yellow
Inventory Turnover Ratio, Debtor Days, ROCE Moderate yellow
Management is holding / buying the stock Yes green
Market Price < Intrinsic Value Yes. Intrinsic Value at Rs. 1128 Intrinsic Value Calculator green
Stock Price is consolidating (now) No.  Price is at Peak levels due to QR Jumps which Indicate a 100% Returns on Bull Market. However a slash in earnings will cut 50% of Price too as we are currently in Bear Market yellow
Stock Price is growing in past years along with EPS growth Yes. green
Consolidated PE, PB Ratio, PEG Ratio PE Good, PB is 5X,  PEG is good yellow
Cash Flow Positive, Net Profit % greater than 8% Cash Flow: Negative

Net Profit: Yes

yellow
Paying Dividends, Tax Yes green
EPS Growth Rate 20% above green
Jump in Trailing Result EPS Yes green
Jump in Quarterly Result EPS Yes green
Expected Gain in 5 Years 300-500% green
Price Movement Graph, 52 Week High & Low Okay green
Volume Analysis 13000 yellow
Power of Brand Yes, Company has good Brand & Promoters green
Corporate Governance, Reputation of Leaders Yes green
Fraud reported No. green

Summary

Based on the above analysis we can see PSP Projects have Multibagger Stock properties & One can Invest during 2019 year.  Company aligns with Warren Buffet principles of Value & Growth Investing.  It  can be considered as Low Risk Moderate Returns investment.

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Disclaimer Futurecaps is an independent equity research team. Use of the information herein is at Investor’s own risk. This is not an offer to sell or solicitation to buy any securities and Futurecaps will not be liable for any losses incurred for the investment based on the advice.  The Investor is advised to do due diligence in the scrip mentioned.  None of Futurecaps Advisors hold 1% above Holdings of this company.

 

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