Talbros Automotive Components Ltd. & Multibagger Analysis
Update: This stock really is Not a Multibagger up to date. Since the Valuation change it is No Longer a Multibagger in our view. You can check other stocks from our latest Multibaggers pack.
Futurecaps is a SEBI Registered Research Analyst providing Multibagger service to Indian Stock Market.
Company URL: http://www.talbros.com/
Warren Buffett Checklist
|History of Consistently Increasing Sales, Earnings & Cash Flow||Flat for past 3 years.|
|Durable Competitive Advantage||Branded clients exists.|
|Future Growth Drivers||Automotive growth of India should contribute to this company’s growth.|
|Conservative Debt (long term debt < 3 Net Profit)||Above 3X|
|Debt Equity Ratio, Current Ratio||0.9 (high)|
|Return on Equity must be Above Average||17%|
|Low CAPEX required to maintain current operations||Moderate.|
|Management is holding / buying the stock||51% & Increasing in past 3 years.|
|Price is Under Valued (< intrinsic value)||Considering past 3 years growth, the Intrinsic value is in par with CMP.|
|Stock Price is consolidating (now)||Yes.|
|Stock Price is growing in past years along with EPS growth||Yes.|
Additional Futurecaps Checklist
|Consolidated PE, PB Ratio||PE 13 (high), PB 1 (good)|
|Cash Flow Positive, Net Profit % greater than 8%||Yes. Not.|
|Paying Dividends, Tax||Yes.|
|EPS Growth Rate||3 year average only 10%|
|Jump in Trailing Result EPS||Trailing Year EPS is lower than Previous year.|
|Jump in Quarterly Result EPS||Trailing Quarter EPS is lower than Previous month.|
|Expected Gain in 5 Years||Only max of 2X expecting high growth in next 2 years. After 2 years one should sell the stock as market expected to fall.|
|Price Movement Graph, 52 Week High & Low||100/33 (good)|
|Power of Brand||Moderate.|
|Corporate Governance, Reputation of Leaders||Yes.|
|Fraud reported||Not in current search|
Considering the value parameters, we cannot see the company hae any potential in becoming a multibagger.
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.