– Multibagger Stock Analysis 2023 In this article, we can see Atam Valves Ltd as a Potential Multibagger Stock as on September 2023. CompanyWebsiteLocationLeadersHighlightsAwardsProductsP&LPositivesNegativesChecklistSummary Atam Valves Ltd AVL is engaged in the manufacturing, production and sale of all types of valves, cocks, boiler mounting, pipe fittings, sanitary fitting, and fabrication of steel and iron orContinue reading “Atam Valves Ltd”
VALUE STOCKS
Value Stocks are those whose Price is trading below their Value. The Value is determined by Value Investing Method Intrinsic Value Calculation. The Value Investor buys & holds the stock anticipating in future the price will reflect the value & provide him with profits.
VALUE STOCKS INDIA
These are the Value Stocks available in India trading below their Intrinsic Value of 50% more Discount as of 2020! You can get the Entire Stock List in Screener here.
VALIANT ORGANICS | Value Stock India 2020 | Valiant Organics is a Member of Value Stocks India 2020 due to the Factors of Increasing Sales, Profits & Trading below Intrinsic Value. The company is engaged in the business of Manufacturing of chemicals for Agro Intermediate and Pharma. How to Identify Value Stock | Learn Intrinsic Value Calculator |
IOL CHEMICALS | Value Stock India 2020 | IOL Chemicals is a Member of Value Stocks India 2020 due to the Factors of Increasing Sales, Profits & Trading below Intrinsic Value. The company is engaged in the manufacturing and selling of APIs / bulk drugs and specialty chemicals. It gained 100% Returns since our Recommendation here. How to Identify Value Stock | Learn Intrinsic Value Calculator |
GUJARAT THEMIS BIOSYN | Value Stock India 2020 | Gujarat Themis Biosyn is a Member of Value Stocks India 2020 due to the Factors of Increasing Sales, Profits & Trading below Intrinsic Value. The company is engaged in the activities pertaining to manufacturing of pharmaceuticals and medicinal chemicals How to Identify Value Stock | Learn Intrinsic Value Calculator |
KAVERI SEED COMPANY | Value Stock India | Kaveri Seed Company is a Member of Value Stocks India due to the Factors of Increasing Sales, Profits & Trading below Intrinsic Value. The company is a key stakeholder in fueling Green Revolution that begins with the seed, the most decisive input in agriculture. The Full Recommendation is here. How to Identify Value Stock | Learn Intrinsic Value Calculator |
CUPID | Value Stock India 2020 | Cupid is a Member of Value Stocks India 2020 due to the Factors of Increasing Sales, Profits & Trading below Intrinsic Value. The company is engaged in business of dealing, marketing and manufacture of rubber contraceptives and allied prophylactic products. How to Identify Value Stock | Learn Intrinsic Value Calculator |
STOVEC | Value Stock India 2020 | Stovec is a Member of Value Stocks India 2020 due to the Factors of Increasing Sales, Profits & Trading below Intrinsic. The company is engaged in Textile Machinery & Consumables,Graphics Consumables and Galvanic. The Company is a Technology and Market leader in Rotary Screen Printing Industry in India. How to Identify Value Stock | Learn Intrinsic Value Calculator |
SEAMEC | Value Stock India 2020 | Seamec is a Member of Value Stocks India 2020 due to the Factors of Increasing Sales, Profits & Trading below Intrinsic Value. The company operates Multi Support Vessels for providing support services including marine, construction and diving services to offshore oilfields and bulk carrier vessel for providing bulk carrier services. How to Identify Value Stock | Learn Intrinsic Value Calculator |
By choosing Value Stocks you are Buying a BMW at the Price of a Maruthi! Futurecaps has created Multiple Millionaires over the Past 10 Years through Value Investing methods of Warren Buffett.
SCREENER PARAMETERS
Following are the Core Screener Parameters for the above Value Stocks India.
- Ensure Price to Intrinsic Value is having 50% discount at least. The Intrinsic Value is calculated based on the Past EPS Growth method as explained below. This will ensure that the Investor is picking an Undervalued stock.
- Ensure NPM (Net Profit Margin) is greater than 12%. This is to validate that the company is making profit at the base minimum level.
- Ensure ROE is greater than 12 too. It will act as an Insurance for the Investor
VALUE STOCKS PARAMETERS
Following are the Additional Parameters to Consider while Picking a Value Stock:
- INTRINSIC VALUE is the most important component to consider while picking a Value Stock. Intrinsic Value is a Fundamental Analysis Component & identified by Finding the Past 3 Year EPS Average, Calculating the 10 Year Future Price, Discounting back to Current Year & Compare with Current Price to make the Investment Decision. You can find more on Intrinsic Value here. Undervalued & Overvalued stocks are determined based on Intrinsic Value.
- GROWTH RATE The Investor should ensure EPS Growth Rate of the company. This is an evidence that the company is Insured to provide expected or higher returns in the future.
- LOW DEBT While waiting for multiple years for the Value Realization, a common accident the Investor makes is Skipping the Debt factor. For a high debt company, the chances of going bankrupt are high & the recession situations will accelerate the troubles. So it is important for the Value Investor to enter only Low-debt Or Zero-debt companies.
- MANAGEMENT INTEGRITY is an equally important factor. A fraud management can turn the company upside-down like Satyam & Yes Bank in the past. Make sure the Management is Prudent & Integrity holder.
- SECTOR GROWTH Since the Value Investing involves holding the stock for multiple years, it is also important to ensure the sector growth. Never invest in a de-growth sectors like motor cars which is getting bypassed with electric cars.
- CAPITALIZATION If you are looking for Multibagger Returns then Smallcap & Midcap Capitalization would add value. Example: IOL Chemicals, Caplin Point which gave 100-200% returns are from Smallcap Sector. Largecap sector have very less chance to provide Multibagger returns. Example: Icici Bank, HDFC Bank, Reliance Industries, SBI are all largecap stocks which rarely give 100% returns.
- TIME FACTOR The Investor has to give Ample Time for the Value Stock to truly reflect on its value. This can take in the order of years.
INTRINSIC VALUE FORMULA
If you wanted to be a VALUE STOCKS INVESTOR in stock market, You MUST learn the INTRINSIC VALUE FORMULA. This formula was created by Benjamin Grahim who is the Mentor of Warren Buffett.
Futurecaps has optimized the formula for Indian Stock Market. You can watch the Video below on How to Calculate the Intrinsic Value.
Book Summary: Interpretations of Financial Statements
This is my Personal Best Book Recommendation.Here is the Diamond Summary of the Book.
The book is written by Mary Buffet who is the Daughter-in-law of Warren Buffet. In my opinion this book is better than the book named Warren Buffet Way because it allows easily implementable patterns.Warren Buffett is still in 2020 the Top Investor in the World & thus his Principles are definitely to be learnt well & applied in your investing life. The book focuses on the Importance of Financial Statements, Ratios & Deriving valid conclusions based on the Interpreted Financial Ratios as below.
- Durable Competitive Advantage or Economic Moat is the Key of Successful Multibaggers which Warren Buffett choose. The Durable Competitive Advantage is something which gives the Company an upper hand than the competitors. For example for the company Microsoft the Windows product is Irreplaceable by the User due to the Skill & User friendliness it has developed & is called Durable Competitive Advantage because it causes Repeated business of Upgrading. Economic Moat is Synonymous with Durable Competitive Advantage.
- Operating Profit Margin is an Important Financial Ratio which Warren Buffett looks for & Ensure it is at least greater than 40%. He believes if the Operating Profit Margin is greater than 40% then the company is enjoying Huge Economic Moat.
- Net Profit Margin is Next Important Financial Ratio which Warren Buffett uses. He prefers to have Net Profit Margin greater than 20% to called as a Good Profit Making company!
- Sales Growth Warren Buffett prefers companies should have Sales Growth above 20% every year. By applying Power of Compounding the company can reach 300 Times in 20 Years time period after adding all the Capital Growth and PE Resizing due to Blue Chip Realization & Mutual Funds Investing.
- Customer Bargaining Power The author Mary Buffett mentions that Warren Buffett prefers to stay away from Businesses which give the Customer a lot of Bargaining Power as it can Impact the Profitability of the company. For example take Airlines sectors, the repeated business is not possible as Customer switches the Airlines based on Price Offer Discounts. As per Buffett these businesses will have Low Operating Profits compared to other businesses sectors.
- Hold Forever The default holding period of Warren Buffett is basically forever. He is holding Coca-Cola for last 50 years and enjoying the Capital Growth & Dividend Income. Buffett says if you don’t feel comfortable owning a stock for 10 years, then you should not own it for 10 minutes!
- Repeated Buying Another notable point of Warren Buffett is that he will be buying more on the Stock whenever it has a Price Crash in the Market. As per Warren Buffett you have to Eat more Potatoes when Potatoes are selling at discount & this will contradict with many newbie investors coming from Day Trading or Short-Term Investing mentality.
- R&D Expense If a company is spending too much on Research & Development, then it means the Industry is very Competitive in nature. Warren Buffett prefers to stay away from such companies & sectors as he believes down the line the company is heading for bankruptcy. For example, High R&D was the reason Warren Buffett stayed away from Intel Corporation the Tech Computer CPU Giant the same reason.
- Interest Expense If the company is having High Interest Expense it means the company is in Capital Intensive sector & Warren Buffett prefers to stay away from those business. Please note that Banking & NBFC companies have High Debt thereby increasing their Interest Expenses.
- Interest Coverage Ratio This ratio ensures that the company is loading enough Cash from the Net Profit to pay back the Interests it owes for. Minimum 2 is the value Warren Buffett is okay with the company. Interest Coverage Ratio 2 means the company can afford to pay back 2 times of the Interest from the Net Profit generated.
- Cash in Hand Warren Buffett wants to see More Cash in the Cash Flow Statement so that He thinks More Cash is a Visible Sign that the Company is having growing Reserves.
- Reserves & Surplus should be Increasing every year & Warren Buffett ensures that the Reserves are Not growing through Bond Selling or Debt Increase by the company which are Crooked ways. Otherwise the Company is termed Credible.
- Inventory Warren Buffett likes to have companies with Growing Inventory aligned with Growing Sales. This ensures that the Sales figures are credible.
- Capital Expenditure Buffett prefers to have companies with less expenses Capital Expenditure. If the Capital Expenditure is below 25% of the Net Profit then it is a Good Durable Competitive Advantage company.
- Current Ratio Warren Buffett prefers to see companies with Current Ratio above 2. Current Ratio formula is the Current Assets divided by Current Liabilities. Current Assets are the Sales generated from Customers & Current Liabilities include the Expenses like rent, fueling, salary, supplier payment etc.
- Dividend Warren Buffett prefers to have Less Dividend paying companies as he believes the Company can Re-invest the Dividends in Growth of company which will Increase the Value tremendously in the future years.
- Share Buybacks If the company is buying back its own shares then Warren Buffett loves the company as the EPS is growing too. For example, Microsoft is such a good stock in US which buys back its own shares.
- ROE Return on Equity is Important Ratio which Warren Buffett wanted to see. He prefers to have Minimum 12% for ROE ratio as according to him A Good Company will use its Money Wisely & Offer higher Returns to the Equity capital. His favorite stock Coca-Cola was earning ROE of above 30% every year for the past 30 years.
- Intrinsic Value devised by his Guru Benjamin Grahim is the Main Formula used by Warren Buffett to find the Value of the company. This formula with examples are well defined in the bottom.
Book Summary: Value Investing from Graham to Buffett and Beyond
Following are the Core Snippets from the Book which Consists of 2 Parts mainly.
Value Stocks are Identified through Fundamental Values analysis.
Value Stocks are Bought after Margin of Safety calculation
Value Stocks Portfolio Allocation is made based on Diversification Interest of the Investor
Value Stocks Selling is performed based on Fundamental Valuation change.
Valuation of a Stock
Valuation of a Stock is performed after analyzing the following:
- Cash and equivalents of the company
- Accounts Receivables which the customers owe to the company
- Inventories are goods and materials that a business holds for the ultimate goal of resale.
- Plant which are used for manufacturing purpose & negated depreciation in the past
- Property like office buildings, real estate etc.
- Equipment including machines, computers etc.
- Goodwill and intangible assets include the Reproduction Cost for Competitor to replace this business
RECOMMENDED READS
R&D
Market this week 30-9-2023
The market closes unchanged despite turbulence; FII selling continues in week ten. The very volatile week that concluded on September 29 was driven by F&O expiry, while global indications like the strengthening dollar, rising US bond rates, and skyrocketing crude oil prices had minimal effect on the major Indian indices. The market remained under stressContinue reading “Market this week 30-9-2023”
Ashapura Minechem Ltd
– Multibagger Stock Analysis 2023 In this article, we can see Ashapura Minechem Ltd as a Potential Multibagger Stock as on September 2023. Company Website Location Leaders Highlights Awards Products P&L Positives Negatives Checklist Summary Ashapura Minechem Ltd Ashapura Minechem Ltd is engaged in the mining, manufacturing, and trading of various minerals and their derivativeContinue reading “Ashapura Minechem Ltd”
Market this week 15-9-2023
5% decline in Electronics Mart India following promoter selling of 2.5% interest After its promoter, Pavan Kumar Bajaj sold a 2.5 percent stake in the electronics retailer, shares of Electronics Mart India fell 5% on September 22. According to the NSE’s bulk data, on September 21 Pavan Kumar Bajaj sold 96.18 lakh equity shares inContinue reading “Market this week 15-9-2023”
Aptech Ltd
– Multibagger Stock Analysis 2023 In this article, we can Aptech Ltd as a Potential Multibagger Stock as on September 2023. Company Website Location Leaders Highlights Awards Products P&L Positives Negatives Checklist Summary Aptech Ltd Aptech Ltd. is a pioneer in the non-formal education and training business in the country with a significant global presence.ItContinue reading “Aptech Ltd”
Market this week 15-9-2023
Titagarh Rail gains on positive outlook, HSBC raises the target price to Rs 750 On September 15, Titagarh Rail Systems stock was trading 3 percent higher, boosted by the company’s strong development prospects. On the company’s shares, which has increased by over 64 percent year to date, HSBC Securities has advised a ‘Buy’ recommendation. TheContinue reading “Market this week 15-9-2023”
Angel One Ltd
– Multibagger Stock Analysis 2023 In this article, we can Angel one Ltd as a Potential Multibagger Stock as on September 2023. Company Website Location Leaders Highlights Awards Products P&L Positives Negatives Checklist Summary Angel One Ltd Angel One Ltd is a diversified financial services company and is primarily engaged in the business of stock,Continue reading “Angel One Ltd”
Market this week 8-9-2023
On stronger August sales and manufacturing statistics, Force Motors shares are trapped at a 5% upper circuit. On September 7, Force Motors shares were stuck above a 5% upper circuit after the company reported higher sales and production in August than the previous month. There were 19,402 pending buy orders, but no sellers were available.Continue reading “Market this week 8-9-2023”
Ahasolar Technologies Ltd
– Multibagger Stock Analysis 2023 In this article, we can analyze Ahasolar Technologies Ltd as a Potential Multibagger Stock as on September 2023. Company Website Location Leaders Highlights Awards Products P&L Positives Negatives Checklist Summary Ahasolar Technologies Ltd Ahasolar Technologies Limited is engaged in the business of CleanTech enabling Energy Transition through Digital Transformation. PiyushkumarContinue reading “Ahasolar Technologies Ltd”
Adani Green Energy Ltd – Multibagger Stock Analysis 2023
In this article, we can analyze Adani Green Energy Ltd as a Potential Multibagger Stock as on August 2023. Company Website Location Leaders Highlights Awards Products P&L Positives Negatives Checklist Summary Adani Green Energy Ltd Adani Green Energy Limited is a holding company of several subsidiaries carrying business of renewable power generation within the groupContinue reading “Adani Green Energy Ltd – Multibagger Stock Analysis 2023”
5 Bear Market Case Studies
Most of our clients have understood the facts that: Here are some case studies from 2020 bear bottom on our multibaggers: As you can see from above: What you have to do? This is the path of Celebrity Investors. No Trader became rich through stock market – Investing is the real purpose of stock marketContinue reading “5 Bear Market Case Studies”
5 Green Energy Stocks for Multibagger Returns – Indian Stock Market 2023 – Futurecaps
5 Green Energy Stocks for Multibagger Returns – Indian Stock Market 2023. 5 Green Multibagger Stocks FREE Multibagger – Get herehttp://futurecaps.com/free?ref=5green Master Mind Training – Trial herehttp://futurecaps.com/mm Tracking & Updates – Register herehttp://futurecaps.com/community Past Performance | View herehttp://futurecaps.com/perf Subscription Plan (Immediate 2 Multibaggers) – Buy herehttp://futurecaps.com/subs Facebook – Follow herehttps://www.facebook.com/futurecapsstocks Twitter – Follow herehttps://twitter.com/futurecaps
Can I buy Adani stocks now.. WAIT!
Adani stocks had a heavy deterioration in value after the Hidenburg Short position over Accounting Fraud & Manipulation in the stock. LINK Lot of people are happy about it – as they missed the past-bull-rally in Adani stocks! 🙂 Let us come with an accurate view on the events: Some of the Over-valuation samples ofContinue reading “Can I buy Adani stocks now.. WAIT!”
Market this week 30-12-2022
Kotak expects GMR Infra to rise 10% as a result of potential debt reduction. With a ‘buy’ rating and a target price of Rs. 43, Kotak Institutional Equities is positive on GMR Airports Infrastructure and anticipates a 10% increase from current levels. The likelihood of the company’s debt reduction is a major driver of theContinue reading “Market this week 30-12-2022”
Tata Motors Ltd -Multibagger Stock Analysis 2022
In this article, we can analyze theTata Motors Ltd as a Potential Multibagger Stock as on 2022 November. Company Website Location Leaders Highlights Awards Products P&L Positives Negatives Checklist Summary Tata Motors Ltd Tata Motors Group is a leading global automobile manufacturer. Part of the illustrious multi-national conglomerate, the Tata group, it offers a wideContinue reading “Tata Motors Ltd -Multibagger Stock Analysis 2022”
Market this week 16-12-2022
Sapphire Foods increases after a 10.7% equity trade. Operator of KFC and Pizza Hut Sapphire Foods saw a rise of almost 2 percent in early trading on December 15 after a bunched trade involving 10.7 percent of the company’s stock. Promoter organisations and a private equity fund reportedly sold some of their shares. The stockContinue reading “Market this week 16-12-2022”
State Bank of India -Multibagger Stock Analysis 2022
In this article, we can analyze the State Bank of India as a Potential Multibagger Stock as on 2022 November. Company Website Location Leaders Highlights Awards Products P&L Positives Negatives Checklist Summary State Bank of India Ltd State Bank of India is a Fortune 500 company. It is an Indian Multinational, Public Sector banking andContinue reading “State Bank of India -Multibagger Stock Analysis 2022”
Market this week 9-12-2022
For Rs. 410 crores, JSPL buys the power plant from Monnet Power. According to sources with knowledge of the situation, Jindal Steel & Power Ltd. has purchased a Monnet Power Company under-construction facility for Rs. 410 crore through the insolvency resolution procedure. Adani Power was one of the candidates for the plant. The 1,050 MWContinue reading “Market this week 9-12-2022”
Market this week 2-12-2022
Gains for Axis Bank come from lender assurances that the growth upswing can continue Axis Bank’s stock increased on November 25 as a result of analysts’ positive reactions to the lender’s long-term outlook at the annual analyst day meeting on November 24. According to the brokerage company ICICI Securities, the lender’s management proved its capacityContinue reading “Market this week 2-12-2022”
Market this week 18-11-2022
Paytm block sales: Analysts remain bullish on the stock despite post-lock-in selling pressure On November 17, after Softbank, a significant shareholder in the firm, started selling its interest, shares of One 97 Communications, the parent company of Paytm, experienced a new round of selling that brought the price to a level last seen in MayContinue reading “Market this week 18-11-2022”