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Waterbase – Multibagger Analysis

Waterbase – Multibagger Analysis

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

Screener URL: http://www.screener.in/company/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 FlowYes.image
Durable Competitive Advantage Moderate.image
Future Growth DriversLooks good for next 2 years.image
Conservative Debt (long term debt < 3 Net Profit)Not.image
Debt Equity Ratio, Current Ratio0.15 (Good)image
Return on Equity must be Above Average18% (Good)image
Low CAPEX required to maintain current operationsYes.image
Management is holding / buying the stockFlat.image
Price is Under Valued (< intrinsic value)Moderate.image
Stock Price is consolidating (now)Down 50% from 52whimage
Stock Price is growing in past years along with EPS growthYes.image

Additional Futurecaps Checklist

Consolidated PE, PB RatioPE 14 (Good); PB 2.5 (Moderate)image
Cash Flow Positive, Net Profit % greater than 8%Yes. Not.image
Paying Dividends, TaxNo Dividends.  Tax Okay.  (Dividend Reinvesting need to be analyzed)image
EPS Growth Rate30%image
Jump in Trailing Result EPSYes.image
Jump in Quarterly Result EPSYes.image
Expected Gain in 5 Years5-7 Times based on growth rate of 20%.  PE is already peaked.image
Price Movement Graph, 52 Week High & Low98/8 (Already 10 bagger)image
Volume AnalysisHigh Volumeimage
Power of BrandModerate.image
Corporate Governance, Reputation of LeadersGood.
Fraud reportedNot in current search.image
Read Analysis Report for Future Plans, Capacity expansionlinkimage

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.

About Futurecaps

Futurecaps is a 12+ year experienced Indian Stock Market Advisory with SEBI Registration.

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6 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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