Tata Metaliks – 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.
https://futurecaps.com/tag/multibagger/
Futurecaps is a SEBI Registered Research Analyst providing Multibagger service to Indian Stock Market.
Established in the year 1990, Tata Metaliks began its commercial operations in 1994. Growing from strength to strength over the last two decades, the Company today has emerged as one of the biggest pig iron manufacturing and selling companies of India, with an annual production capacity of 345,000 tonnes.
Company URL: http://www.tatametaliks.com/
CMP: 102.70
Warning
This is a turned around company with past quarters with losses and most recent 2 quarters shows positive turnarounds. Company reserve also turned negative.
Warren Buffett Checklist
| History of Consistently Increasing Sales, Earnings & Cash Flow | Flat as it is a Turnaround company. |  |
| Durable Competitive Advantage | India’s largest pig iron producer. |  |
| Future Growth Drivers | Few challenges exists. |  |
| Conservative Debt (long term debt < 3 Net Profit) | Not. | |
| Debt Equity Ratio | -2.22 (Horrible) | |
| Return on Equity must be Above Average | Not. | |
| Low CAPEX required to maintain current operations | Moderate. | |
| Management is holding / buying the stock | 50% holding. Flat. | |
| Price is Under Valued (< intrinsic value) | Not. | |
| Stock Price is consolidating (now) | Yes. | |
| Stock Price is growing in past years along with EPS growth | Moderate. Company turned profitable in recent past. | |
Additional Futurecaps Checklist
| Consolidated PE, PB Ratio | PE 3.5 (Good); PB –0.3 (Bad) | |
| Cash Flow Positive, Net Profit % greater than 8% | Yes. Not. | |
| Paying Dividends, Tax | Not. Not. | |
| EPS Growth Rate | 100 | |
| Latest Quarter EPS Growth | 100% above. (turnaround story) | |
| Expected Gain in 10 Years | If the turnaround story persists, there is 20% growth forecast able making 1-15 times returns. | |
| Price Movement Graph, 52 Week High & Low | 52wh is 145 & 52wl is 33 | |
| Volume Analysis | Moderate in volume | |
| Power of Brand | Yes. Part of Tata Steel. | |
| Corporate Governance, Reputation of Leaders | Yes. | |
| Fraud reported | Not in current search. | |
Declaration
As you can see the above value parameters does not say it as multibagger.
Considering its recent quarter turnaround, it could possibly become a multibagger. Investors with high-risk appetite with strict-diversification can try this.
Allocation
1-2% of 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.
