Monthly SIP is the Best Option!

November 24, 2018

If people ask me What to do with the Current Market Problems, I can say Only one-thing: Convert those Problems to Opportunity!

The current problem here referred is the New Monthly Lows happening to Smallcaps & Midcaps.

Even my portfolio is showing 10% loss!

One cannot avoid such problems.  But in reality We should be seeing the Fundamentals instead of the Market Price. 

If the Fundamentals are Falling.. that is a Real Problem!

If the Stock Prices are Falling.. that is an Opportunity!

The Opportunity!

Imagine if you invested in a scrip of rs. 100 expecting it to be 500% returns in 5 years. 

Now the price felled to rs. 50! But the fundamentals are intact & better!

What you should do?

In this case you should buy more as now the Returns Possibility is 1000%!!  It just doubled!!

(rs. 50 to 500)

So how you would know which is the Best Price?

The only option is SIP!

Systematic Monthly Investments on Growth Scrips ensures that You will Sweep all the Low Prices.

Ensure that you Divide your Yearly Corpus on stocks Equally too!

Spend Less Time in Market

It is a well know fact that those who spend more time in market will gain less!

So focus more on your Career, Make more Savings, SIP in Growth Scrips, Give few years, Allow the Tree to Grow, Reap from the Super Gains!!

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New Multibagger #4 Released

November 5, 2018

Dear Paid Subscribers, Please check your Mail for the New Multibagger released.

The company is in electrical segment, with high growth in the past, available at 60% discount from peak, should be a  5X multibagger in next 5 years.

Note 1 All the 4 recommended scrips in past 3 months are available in the recommended price range.   So you can start buying all these 4 multibaggers now too. This market crash is a good portfolio opportunity for long term vision investors. #portfolio

Note 2: Only 1% people make money in stock market – they are long termers. Remaining 99% short-termers, medium-termers, traders & IPO flippers gets washed away in a Bear Market! #wisdom

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October 13, 2018

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Wonderla Holidays – Multibagger Analysis

October 6, 2018

In this post I would like to provide Analysis on Wonderla Holidays.  The company was listed almost 5 years back & still trading at approximated price after Inflation.

Wonderla Holidays

CMP: 286.70

Website: https://www.wonderla.com/

Wonderla Holidays Limited operates three largest amusement parks in Kochi, Bangalore and Hyderabad; and the Wonderla resort in Bangalore under the brand name Wonderla.

Promoted by Kochouseph Chittilappilly (of V-Guard) link

It is a Sad Truth that the Investors did not got the V-Guard kind of Appreciation from this stock, which they expected a lot.  There can be multiple factors into it like IPO-overpricing, Growth-perspective, Asset-intensive operations, GST-issues etc.

However, due to the Promoter Reputations on High Quality, Corporate Governance, Humanity aspects, the stock has attracted high profile investors like NR Narayana Murthy.

So let us look into the business & value parameters to determine any multibagger potentials.

Business Evaluation

The company generates income from the 3 main parks in kochi, bangalore & hyderabad. Interestingly, the food business constitutes 39% of the revenue.

Positive Factors

Company is expanding to Chennai.  plus, adding more rides, in-house manufacturing & improving efficiencies to existing parks.  All together these will ensure 150-20% revenue growth in coming years.

Company also have advantage of surplus land which ensures further expansion in coming 10 years.  Low Utilization would be a parameter to evaluate.

GST impacted current year Sales, but the latest quarters are improving.

Company has Low Debts which is good in one sense & bad in another view that Leveraged Growth is not there.

Company is adding RFID, No-Queue solutions in the Technical Arena to increase the Footfalls.

No Pledging of shares.

Problem Areas

Considered as Holiday Tiger – Revenue goes double during June quarter there by increasing NPA / Idle resources during other periods.  Scope of Corporate Outing, Official Programmes rendering during Weekdays would increase the ROE.

High PE is one problem with this stock.

High PEG ratio is a derived problem.

Low ROE.

Limited Lows

One advantage I can see is that the Promoters are buying back Wondera stocks due to the bear market so one can expect the lows are limited.

Warren Buffett Checklist

History of Consistently Increasing Sales, Earnings & Cash Flow
Yes
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Durable Competitive Advantage
Yes
image

Future Growth Drivers
Moderate.
image

Conservative Debt (long term debt < 3 Net Profit)
Yes
image

Debt Equity Ratio, Current Ratio
DER is Zero, Current Ratio is Average.
image

Return on Equity must be Above Average
No

image

Low CAPEX required to maintain current operations
Moderate

image

Management is holding / buying the stock
Yes
image

Price is Under Valued (< intrinsic value)
No
image

Stock Price is consolidating (now)
Yes
image

Stock Price is growing in past years along with EPS growth
Yes
image

Additional Futurecaps Checklist

Consolidated PE, PB Ratio
PE is high, PB is okay
image

Cash Flow Positive, Net Profit % greater than 8%
Yes
image

Paying Dividends, Tax
Yes
image

EPS Growth Rate
Good
image

Jump in Trailing Result EPS
Yes, But Moderate

image

Jump in Quarterly Result EPS
Yes, But Moderate

image

Expected Gain in 5 Years
2X
image

Price Movement Graph, 52 Week High & Low
Yes
image

Volume Analysis
Good
image

Power of Brand
Yes
image

Corporate Governance, Reputation of Leaders
Promoters selling holdings is an Issue in Past.
image

Fraud reported
Not in current search
image

Annual Report
Good
image

Summary

Based on the analysis, I would declare that the Stock definitely has Multibagger properties with expected 2-3X returns in next 5 years.

However, buying it at 30-50% discounts would add margin of safety.

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Protected: The Man who screwed up himself Buying all the Growth stocks in the Market!

September 29, 2018

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Protected: Key to Survive this Bear Market!

September 23, 2018

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Caplin Point Laboratories

August 30, 2018

Thank you All for the Subscription Participation! Already 2 Multibaggers were released to the Subscribers. They have the Potential to become 5-10 Times Growth in next 5 Years!

3rd paid multibagger will be released soon!

Subscribe here >> https://futurecapsblog.wordpress.com/subs/

Meantime, I would like to Publish a Free Multibagger Analysis here.

Caplin Point Laboratories

NSE Code: CAPPL.NS

BSE Code: 524742

URL: http://www.caplinpoint.net/

About Company

Caplin Point was established in 1990 to manufacture a range of ointments, creams and other external applications.

The Company was listed in 1994 following its IPO which was oversubscribed 117 times, the proceeds of which were deployed in setting up a manufacturing facility at Pondicherry. Thereafter, the Company expanded its product range and increased its production capacity.

The Company focused on the emerging markets of Latin America, Caribbean, Francophone and Southern Africa and is today one of the leading suppliers of Pharmaceuticals in these regions, with over 2000 product licenses across the globe.

The Company is entering into the Regulated Markets for Injectables through its state of the art manufacturing plant, capable of handling Liquid Injectables in Vials,Ampoules, Lyophilized Vials and Ophthalmic dosages. The facility is approved by US FDA, EU-GMP, ANVISA-Brazil and INVIMA-Colombia.

Bull Factors

Consistent 33% Compounded Growth in Sales & Profits, this is really Awesome and it proves the Credibility of their Research & Sales capacity.

Innovative Products clocking around 500 and contributes to New products developments, Developments NSAIDs , Anti-Depressants, Anti-emetic, Anti- Coagulants, etc

Technological Improvements, R&D enhancement, QC support in analytical methods, Proper Adherence to Regulator requirements, Data Mining in Retail should enhance Increased Sales & Profit Efficiency.

Almost Zero Debt company, Less Interest paid, thus More Safer Investment.  Higher Capital Employed usage in 2017 is a remarkable factor.

Increase in Promoter Holdings, Shows good Sign of Confidence in Company & Future. Additionally, the high amount of Promoter Holding supports Increase in Price during good times.

Expansion into New Markets including Latin America, GDP growth in World, 17% Pharmaceuticals Market Growth in China ensures the 33%Growth will be Real in next 5 Years.

High Growth, OP, NP, ROE valuation parameters.

Traded at Discount currently, which is another Boon of Market Crash.  I see the Downside risk is limited.

Risk Factors

High in Book Value Ratio, which is usually a Curse of the High Growth companies.

Already a Multibagger of Past.

Generic Drug, Technology competition from Peers pose threat on revenue & PAT.

Currency Fluctuation risk.

Geographical Risk due to Excess exposure to Latin America regions.

Financials

P&L shows progress in Income & Profit

image

Balance Sheet shows displays Capital Employed increased 59%, Net Worth increased 62%.

image

Cash Flow Statement shows free Operating cash flow.

image

Warren Buffett Checklist

History of Consistently Increasing Sales, Earnings & Cash Flow Yes image
Durable Competitive Advantage Yes image
Future Growth Drivers Moderate. image
Conservative Debt (long term debt < 3 Net Profit) Yes image
Debt Equity Ratio, Current Ratio DER is Zero, Current Ratio is High. image
Return on Equity must be Above Average Yes image
Low CAPEX required to maintain current operations Moderate image
Management is holding / buying the stock Yes image
Price is Under Valued (< intrinsic value) Yes image
Stock Price is consolidating (now) Yes image
Stock Price is growing in past years along with EPS growth Yes image

Additional Futurecaps Checklist

Consolidated PE, PB Ratio PB is high image
Cash Flow Positive, Net Profit % greater than 8% Yes image
Paying Dividends, Tax Yes image
EPS Growth Rate Good image
Jump in Trailing Result EPS Yes image
Jump in Quarterly Result EPS Yes image
Expected Gain in 5 Years 5X image
Price Movement Graph, 52 Week High & Low Yes image
Volume Analysis Good image
Power of Brand Yes image
Corporate Governance, Reputation of Leaders Promoters selling holdings is an Issue in Past. image
Fraud reported Not in current search image
Annual Report Good image

Declaration

Based on the Value & Growth parameters, the company hold Multibagger properties.

image_thumb1

Note Free Multibaggers will not be tracked & Hence no follow-ups will be provided.

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Disclaimer

Futurecaps is an independent equity research Company. Use of the information herein is at Investor’s own risk. This is not an offer to sell or solicitation to buy any securities and Futurecaps will not be liable for any losses incurred for the investment based on the advise.  The report is purposefully kept concise.  The Investor is advised to do due diligence in the scrip mentioned.  None of Futurecaps Advisors hold 1% above Holdings of this company.

Futurecaps Investor Master Mind

August 18, 2018

Thank you All for the Subscription Participation! Already 2 Multibaggers were released to the Subscribers. They have the Potential to become 5-10 Times Growth in next 5 Years!

Subscribe here >> https://futurecapsblog.wordpress.com/subs/

Also, Futurecaps would like to remind few Master Mind Quotes which Survived Decades of Stock Market Investing.

Investor sees Value amateurs sees Price

Investor works for Tomorrow amateurs works for today

Emotional Fluttering is the reason 95% people lose money in stock market

Emotional Fluttering of these 95% People gives opportunity to the remaining 5% Investors to buy at low & sell at high

Noise Constitutes 95% of the investment arena eg: news, tv advisers, brokers, tips & short term investors

Market Moves Up or Down due to these Noises including short-term investors.

Fundamental Investor convert these Nose Problems to Advantage by Buying Low & Selling High using the tool  of Fundamental Analysis

Potato Theory says you should be happy to buy more stocks when it crashed as it multiplies the returns in future

Fundamental Analysis ensures the company have good foundation, growth perspective & led by prudent management

Long Term Compounding takes multiple years to happen

Investing is Passive Job while Trading is Active Job

Two Types of Investing are there – Wealth Creation & Income Generation

Stock Market Investing is meant for Long Term Investing where Companies use Investor money for Expansion thereby creating Wealth through Sales & Profits.

Short Term & Medium Term Investing only creates Wealth for Brokers, Advisers & Government

Income Generation strategy ensures one can reach Financial Freedom

Financial Freedom enables one to Self-Actualize the Life

Stock Market coupled with Income Generation strategies allow one to reach Financial Freedom in just 5 Years!  Ask How!

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Advanced Training

Investor Master Mind is a set of beliefs & responses carved into the sub-conscious mind so that the Decisions are in-line with Long Term Investing.  If you require Programming the Investor Master Mind please let us know.

Advisor: futurecapsadvisor@gmail.com

Fiberweb India – Multibagger Analysis

August 16, 2018

Thank you All for the Subscription Participation! Already 2 Multibaggers were released to the Subscribers. They have the Potential to become 5-10 Times Growth in next 5 Years!

3rd paid multibagger will be sent this week!

Subscribe here >> https://futurecapsblog.wordpress.com/subs/

Meantime, I would like to Publish a Free Multibagger Analysis here.

Fiberweb India

Name: Fiberweb (India) Ltd.

NSE Code: FIBERWEB.NS

BSE Code: 507910

URL: https://fiberwebindia.com/

Company established in 1985 and from 1996 manufactures high quality Spun Bond Polypropylene Non Woven roll goods and products thereof, used in Hygiene industry, Agriculture Crop Cover, Soil Cover, Medical and industrial clothing and many other innovative products, like Bags, Pillow ticks and Covers, Bed Covers, Curtains, Table Cloth, Garment Interlining, etc.

Bull Factors

Consistent Growth in Sales & Profits

German Technology under the hood, High Quality, Long Durability machines, Reducing Capital Expenditure

Zero Debt company, No Interest needs to be Paid

Increase in Promoter Holdings, Shows good Sign of Confidence in Future

100% Export Unit, Advantage of Indian Rupee Deprecation

No Tax Payable on Profits due EOU zone, Can Re-invest

Value Parameters Good

Risk Factors

Global Recession can impact Performance

Credibility of Promoters  is Questionable

Warren Buffett Checklist

History of Consistently Increasing Sales, Earnings & Cash Flow Yes image
Durable Competitive Advantage Yes image
Future Growth Drivers Moderate. image
Conservative Debt (long term debt < 3 Net Profit) Yes image
Debt Equity Ratio, Current Ratio Debt is Zero, Current Ratio is High. image
Return on Equity must be Above Average Yes image
Low CAPEX required to maintain current operations Moderate image
Management is holding / buying the stock Yes image
Price is Under Valued (< intrinsic value) Yes image
Stock Price is consolidating (now) Yes image
Stock Price is growing in past years along with EPS growth Yes image

Additional Futurecaps Checklist

Consolidated PE, PB Ratio Yes image
Cash Flow Positive, Net Profit % greater than 8% Yes image
Paying Dividends, Tax No Dividends. No Tax since EOU image
EPS Growth Rate Yes image
Jump in Trailing Result EPS Yes image
Jump in Quarterly Result EPS Yes image
Expected Gain in 5 Years Yes image
Price Movement Graph, 52 Week High & Low Yes image
Volume Analysis Bit Out of Range image
Power of Brand Yes image
Corporate Governance, Reputation of Leaders Promoters selling holdings is an Issue in Past. image
Fraud reported Not in current search image
Annual Report Okay image

Declaration

Based on the Value & Growth parameters, the company hold Multibagger properties.

image_thumb1

However, the Promoter Credibility Issues need to be focused & cleared before Investing.

Note Free Multibaggers will not be tracked & Hence no follow-ups will be provided.

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Disclaimer

Futurecaps is an independent equity research Company. Use of the information herein is at Investor’s own risk. This is not an offer to sell or solicitation to buy any securities and Futurecaps will not be liable for any losses incurred for the investment based on the advise.  The report is purposefully kept concise.  The Investor is advised to do due diligence in the scrip mentioned.  None of Futurecaps Advisors hold 1% above Holdings of this company.

I am Back!

August 3, 2018

Hope you remember me! There was a time where I used to post multiple multibaggers in this site.  Then SEBI came with the restriction on advisers – hence I discontinued public posting.

Now I have attained the necessary SEBI Certifications (NISM XV – Research Analyst Certification). So now I can post in public media.  My SEBI registration number is: 1800100568.

Fundamentals

As always, I wanted to keep the Noise out of the picture & rely on the fundamentals.  I use Warren Buffett Way of Analysing companies.

Current Situation

I really know the current situation where smallcaps & midcaps are thrashed to the floor. The reasons could be many – overvaluation, demonetisation, poor economy, greed, fear etc.

Luckily, I was able to sell all the holdings early 2018 itself.  I was seeing the over-valuation of NIFTY and the mad run on stocks during the time.  So I acted against the crowd & saved from disaster.

NOW, I can see lot of advisers are asking subscribers to sell their holdings at loss.  One adviser (with an audi car) released sell advice for one dozen stocks.  I cannot believe that how irrational & irresponsible they are to be a massive wealth destructor!

Root Cause

The root cause of problem lies with both adviser & investors.  Both parties wanted to be Rich quickly without having the fundamental learning, patience & long term vision.

In reality, only promoters & advisers became rich!

So if You wanted to become rich, You need to be a Long Term Investor!

Good Advisers

At the same time, I have seen good advisers (very few) who stopped giving buy-signals few months back itself.  They know the Valuations were high & parked the money out of stocks.

Long Term Vision

The people who made the losses are those without a Long Term Vision.  In stock market we are Investing on companies which are a Plant today, It will take real time of 5 years 10 years or even 20 years to become a Tree!

So if you wanted 10X, 20X or 100X returns, there should be Long Term Vision!!

Investment Mix

As I said previously, we should have an Investment % Mix of aggressive : safe proportion that will vary based on valuation.

During the OVERVALUTION times, I prefer to have the mix of 25:75 where 25% will be parked in equity and 75% in high yielding bonds, deposits, real estate etc.

During the UNDERVALUATION times, the mix can be adjusted to 50:50 levels.

During the RECESSION times, the mix can be 100:0 levels or even 125:0 levels where one can even take loans to invest.

CURRENT MIX is 50:50 as of Jul 2018.

Potato Theory

I believe in the old potato theory of Warren Buffet.. If you bought potato yesterday for rs. 10 and today it is rs. 5 you should be happy about buying it!

This is because the rationale investor is seeing the real gain in the future at Rs. 5000! So the lesser the price, the bigger is the gain %!

High Fee won’t Guarantee High Profit

It is not the High Advisory Fee that matters! It is the Investment Strategy X Invested Quantity X Invested Time X Patience going to give you High Profits & Build Wealth.

I have seen one high paid adviser taking rs. 1 lakh for the advise for 5 stocks per year.  The reason was few of the past recommendations gave 3X returns in 6 months.

Now that made the investors greedy and put more money in the next 5 stocks, eventually all of them were sold yesterday at loss price.  So the past gains also wiped off & the adviser fee too.

So a high fee does not guarantee success!

Paid Adviser Service

In the current times of panic, I can see real opportunities bubbling up, there are few scrips with good fundamentals, growth potential with right valuation range.

Hence I would like to restart the publishing at this moment.

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I will be having 2 Services now:

  • Free Service where multibaggers are published with basic information, no tracking
  • Paid Service where concentrated list of multibaggers will be published with details, tracking updates, educational & investment tips.

I wanted to keep the Paid Service at a Low Price of rs. 1999 per year, so that more retail investors can participate, no piracy & customer wins!

You can Purchase Subscription here!