Waterbase – 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.
Company URL: http://www.waterbaseindia.com/
CMP: 64.00
The Waterbase Limited is an aquaculture unit located at Nellore, Andra Pradesh 170 KM North of Chennai, India. Waterbase is promoted by ‘Thapar Group’, a well known business conglomerates in India. Waterbase exports shrimps in different forms to quality conscious markets of Japan, USA and Europe – IQF, Block Frozen and Cooked. We also supply value-added shrimps to the customer needs. Our process plant is FDA listed, EU approved and Processing is as per HACCP guidelines.
Warren Buffett Checklist
| History of Consistently Increasing Sales, Earnings & Cash Flow | Yes. |  |
| Durable Competitive Advantage | Moderate. | |
| Future Growth Drivers | Looks good for next 2 years. | |
| Conservative Debt (long term debt < 3 Net Profit) | Not. |  |
| Debt Equity Ratio, Current Ratio | 0.15 (Good) | |
| Return on Equity must be Above Average | 18% (Good) | |
| Low CAPEX required to maintain current operations | Yes. | |
| Management is holding / buying the stock | Flat. |  |
| Price is Under Valued (< intrinsic value) | Moderate. | |
| Stock Price is consolidating (now) | Down 50% from 52wh | |
| Stock Price is growing in past years along with EPS growth | Yes. | |
Additional Futurecaps Checklist
| Consolidated PE, PB Ratio | PE 14 (Good); PB 2.5 (Moderate) | |
| Cash Flow Positive, Net Profit % greater than 8% | Yes. Not. | |
| Paying Dividends, Tax | No Dividends. Tax Okay. (Dividend Reinvesting need to be analyzed) | |
| EPS Growth Rate | 30% | |
| Jump in Trailing Result EPS | Yes. | |
| Jump in Quarterly Result EPS | Yes. | |
| Expected Gain in 5 Years | 5-7 Times based on growth rate of 20%. PE is already peaked. | |
| Price Movement Graph, 52 Week High & Low | 98/8 (Already 10 bagger) | |
| Volume Analysis | High Volume | |
| Power of Brand | Moderate. | |
| Corporate Governance, Reputation of Leaders | Good. | |
| Fraud reported | Not in current search. | |
| Read Analysis Report for Future Plans, Capacity expansion | link | |
Declaration
Multibagger. But price at PE. Do your homework too.
Allocation
1-2% of portfolio. Consider installment buying.
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.
I had sold at 50Rs. Then it jumped upto 95rs again it has corrected upto 68Rs. Similar business like Avanti Feeds. Will think of buy it again.
We prefer the agri-stocks will get impacted on a bad monsoon (not heavy on this stock) Or during all-sell at nifty peak within 2 years. 🙂
would be great if u add model portfolio feature in site with recent buy & sell trades
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can we buy now.. according to last results .. investors are ellign the stock from 98 to 52.. is it worth to hold ?
How is the situation now for this company, I have been to the region near nellore and surrounding areas where Shrip and Fishes are grown, its nice to see people give oxygen mill and organic feed and all such things to the shallow ponds for respiration and feed. In this context, Mr. Chandra babu, CM also is looking to give new sops to the industry and promote export oriented logistic trade to tiger shrip and all, so long term looks moderate and still ground level things are not happening thought they have to in a few years, will all this help the company or only the farmers and industry? Any more left in this monopoly or will competition come in, in that area also?