Tata Metaliks – Multibagger Analysis

Tata Metaliks – Multibagger Analysis

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.

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

Screener URL: http://www.screener.in/company/?q=513434

Moneyworks4me URL:

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.

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Warren Buffett Checklist

History of Consistently Increasing Sales, Earnings & Cash Flow Flat as it is a Turnaround company. image
Durable Competitive Advantage

India’s largest pig iron producer.

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Future Growth Drivers Few challenges exists. image
Conservative Debt (long term debt < 3 Net Profit) Not. image
Debt Equity Ratio -2.22 (Horrible)  image
Return on Equity must be Above Average Not. image
Low CAPEX required to maintain current operations Moderate. image
Management is holding / buying the stock 50% holding. Flat. image
Price is Under Valued (< intrinsic value) Not. image
Stock Price is consolidating (now) Yes. image
Stock Price is growing in past years along with EPS growth Moderate.  Company turned profitable in recent past. image

Additional Futurecaps Checklist

Consolidated PE, PB Ratio PE 3.5 (Good); PB –0.3 (Bad) image
Cash Flow Positive, Net Profit % greater than 8% Yes. Not. image
Paying Dividends, Tax Not. Not. image
EPS Growth Rate 100  image
Latest Quarter EPS Growth 100% above. (turnaround story) image
Expected Gain in 10 Years If the turnaround story persists, there is 20% growth forecast able making 1-15 times returns.  image
Price Movement Graph, 52 Week High & Low 52wh is 145 & 52wl is 33  image
Volume Analysis Moderate in volume  image
Power of Brand Yes. Part of Tata Steel.  image
Corporate Governance, Reputation of Leaders Yes.  image
Fraud reported Not in current search.  image

 Declaration

As you can see the above value parameters does not say it as multibagger.

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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.

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