Accelya Kale Solutions – Multibagger Analysis

Welcome Back! Here we are analyzing the scope of Accelya Kale Solutions Ltd. as a Multibagger.

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Link: http://www.screener.in/company/?q=532268

Company: http://www.accelyakale.com/

About: Accelya Kale Solutions Limited is part of the Accelya Group, a leading solutions provider to the Airline and Travel industry. Formerly known as Kale Consultants Limited, the company became part of the Accelya Group in 2011.

As part of the Accelya Group, we help over 200 airline customers streamline their financial processes. We also help them gain insights on business performance using decision support tools and data analytics.

Warren Buffett Checklist

History of Consistently Increasing Sales, Earnings & Cash Flow image
Durable Competitive Advantage Company is a leader in Airline and Travel industry with a growing product portfolio.  The increasing sales & profit every quarters is a visible evidence of it’s durable competitive advantage. image
Future Growth Drivers The airline industry is expected to grow further, but major hindrance is fuel price.  The company is involved in cost optimization products & should not severely affect with the industry problems. image
Conservative Debt (long term debt < 3 Net Profit) Company have short term liabilities equivalent to current net profit, so pass. image
Return on Equity must be Above Average We recommend 15% ROE, the company shown around 26% ROE, so definite pass. image
Low CAPEX required to maintain current operations Company is with Low CAPEX. image
Management is holding / buying the stock Promoters are increasing the holdings. image
Price is Under Valued (< intrinsic value) Considering the growth factor, the intrinsic value falls above 3 times current rate image
Stock Price is consolidating Not really, it is a high move up stock. image

Additional Futurecaps Checklist

PE, PB Ratio Current PE Ratio is around 10 & the latest result should induce 30% reduction in PE Ratio.  PB Ratio is 3 times zoomed, but okay with such growth scrips. image
Cash Flow Positive Net Cash Flow is negative due to Investing & Financing activities. image
Paying Dividends, Tax Yes.  Dividend Yield is around 5% which is very good. image
EPS Growth Rate 100%! 100% is the growth rate & for such an emerging brand it is really excellent one. image
Expected Gain in 10 Years Taking average EPS Growth as 50%, expected PE Peak after 10 year as 20, there exists chances to double the price every 3 years.  We can calculate around 15-20 times returns in 10 years. image
Power of Brand Branding attracts more sales, more profit margins!  Company is building a brand & should emerge as a top player within 10 years. image
Corporate Governance, Reputation of Leaders Yes. image

Declaration

Considering the above quality aspects we would like to declare Accelya Kale Solutions Ltd. as a Multibagger.

Allocation

For the total stock capital, we recommend 5% allocation around current price range & increase by 2.5% on 30% down cases.

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.

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One Response to “Accelya Kale Solutions – Multibagger Analysis”

  1. gaurav Says:

    where v can see ur future caps

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