Waterbase – Multibagger Analysis

Waterbase – Multibagger Analysis

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

Screener URL: http://www.screener.in/company/?q=523660

CMP: 64.00

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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. image

Durable Competitive Advantage

Moderate. image

Future Growth Drivers

Looks good for next 2 years. image

Conservative Debt (long term debt < 3 Net Profit)

Not. image

Debt Equity Ratio, Current Ratio

0.15 (Good) image

Return on Equity must be Above Average

18% (Good) image

Low CAPEX required to maintain current operations

Yes. image

Management is holding / buying the stock

Flat. image

Price is Under Valued (< intrinsic value)

Moderate. image

Stock Price is consolidating (now)

Down 50% from 52wh image

Stock Price is growing in past years along with EPS growth

Yes. image

Additional Futurecaps Checklist

Consolidated PE, PB Ratio

PE 14 (Good); PB 2.5 (Moderate) image

Cash Flow Positive, Net Profit % greater than 8%

Yes. Not. image

Paying Dividends, Tax

No Dividends.  Tax Okay.  (Dividend Reinvesting need to be analyzed) image

EPS Growth Rate

30% image

Jump in Trailing Result EPS

Yes. image

Jump in Quarterly Result EPS

Yes. image

Expected Gain in 5 Years

5-7 Times based on growth rate of 20%.  PE is already peaked. image

Price Movement Graph, 52 Week High & Low

98/8 (Already 10 bagger) image

Volume Analysis

High Volume image

Power of Brand

Moderate. image

Corporate Governance, Reputation of Leaders

Good.  

Fraud reported

Not in current search. image

Read Analysis Report for Future Plans, Capacity expansion

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Declaration

Multibagger. But price at PE. Do your homework too.

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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.

8 Replies to “Waterbase – Multibagger Analysis”

  1. 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.

    1. 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. 🙂

  2. 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?

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