V Mart Retail 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.
https://futurecaps.com/tag/multibagger/
Futurecaps is a SEBI Registered Research Analyst providing Multibagger service to Indian Stock Market.
Warren Buffett Checklist
| History of Consistently Increasing Sales, Earnings & Cash Flow | Yes. 30% above in Sales & Profit each year. |  |
| Durable Competitive Advantage | Low-band price & targeting tier II cities. Bigger competitors exists butthoug |  |
| Future Growth Drivers | Company is growing. Starting 2+ stores every year. 30% growth rate per annum. | |
| Conservative Debt (long term debt < 3 Net Profit) | Total Liabilities 48 Crores. Current Net Profit 25 Crores. Debt < 3XProfits. | |
| Return on Equity must be Above Average | Above 15% | |
| Low CAPEX required to maintain current operations | Moderate. | |
| Management is holding / buying the stock | Yes. | |
| Price is Under Valued (< intrinsic value) | Not. Price is quoting at 5X of book value. |  |
| Stock Price is consolidating (now) | Moderate. | |
| Stock Price is growing in past years along with EPS growth | Yes. | |
Additional Futurecaps Checklist
| PE, PB Ratio | PE 245, PB 5 – Both are Over priced. But growth & price-up move opportunity exists. | |
| Cash Flow Positive, Net Profit % greater than 8% | Not. Net Profit % less than 8%. But company have aggressive growth. | |
| Paying Dividends, Tax | Yes. | |
| EPS Growth Rate | 30% – In part with Sales & Profit. | |
| Expected Gain in 10 Years | 10 Times & More if same growth & profit levels can be maintained. | |
| Power of Brand | Not Much. | |
| Corporate Governance, Reputation of Leaders | Yes | |
| Fraud reported | Not. | |
Declaration
Here by we declare that, the stock V Mart Retail is a Multi-bagger.
Allocation
2-3% of Total Portfolio & On installments.
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.
