Talbros Automotive Components Ltd. – Multibagger Analysis

Talbros Automotive Components Ltd. – Multibagger Analysis

Company URL: http://www.talbros.com/

Screener URL: http://www.screener.in/company/505160

CMP: 103.00

Warren Buffett Checklist

History of Consistently Increasing Sales, Earnings & Cash FlowFlat for past 3 years.image
Durable Competitive Advantage Branded clients exists.image
Future Growth DriversAutomotive growth of India should contribute to this company’s growth.image
Conservative Debt (long term debt < 3 Net Profit)Above 3Ximage
Debt Equity Ratio, Current Ratio0.9 (high)image
Return on Equity must be Above Average17%image
Low CAPEX required to maintain current operationsModerate.image
Management is holding / buying the stock51% & Increasing in past 3 years. image
Price is Under Valued (< intrinsic value)Considering past 3 years growth, the Intrinsic value is in par with CMP. image
Stock Price is consolidating (now)Yes. image
Stock Price is growing in past years along with EPS growthYes.image

Additional Futurecaps Checklist

Consolidated PE, PB RatioPE 13 (high), PB 1 (good)image
Cash Flow Positive, Net Profit % greater than 8%Yes.  Not.image
Paying Dividends, TaxYes.image
EPS Growth Rate3 year average only 10%image
Jump in Trailing Result EPSTrailing Year EPS is lower than Previous year.image
Jump in Quarterly Result EPSTrailing Quarter EPS is lower than Previous month.image
Expected Gain in 5 YearsOnly max of 2X expecting high growth in next 2 years.  After 2 years one should sell the stock as market expected to fall.image
Price Movement Graph, 52 Week High & Low100/33 (good) image
Volume AnalysisGood. image
Power of BrandModerate. image
Corporate Governance, Reputation of LeadersYes. image
Fraud reportedNot in current search image


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.

About Futurecaps

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

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