V Mart Retail Ltd. – Multibagger Analysis

Warren Buffett Checklist

History of Consistently Increasing Sales, Earnings & Cash Flow Yes. 30% above in Sales & Profit each year. image
Durable Competitive Advantage

Low-band price & targeting tier II cities.  Bigger competitors exists butthoug

image
Future Growth Drivers Company is growing. Starting 2+  stores every year. 30% growth rate per annum. image
Conservative Debt (long term debt < 3 Net Profit) Total Liabilities 48 Crores.  Current Net Profit 25 Crores.  Debt < 3XProfits. image
Return on Equity must be Above Average Above 15% image
Low CAPEX required to maintain current operations Moderate. image
Management is holding / buying the stock Yes. image
Price is Under Valued (< intrinsic value) Not.  Price is quoting at 5X of book value. image
Stock Price is consolidating (now) Moderate. image
Stock Price is growing in past years along with EPS growth Yes. image

Additional Futurecaps Checklist

PE, PB Ratio PE 245, PB 5 – Both are Over priced.  But growth & price-up move opportunity exists. image
Cash Flow Positive, Net Profit % greater than 8% Not.  Net Profit % less than 8%.  But company have aggressive growth. image
Paying Dividends, Tax Yes. image
EPS Growth Rate 30% – In part with Sales & Profit. image
Expected Gain in 10 Years 10 Times & More if same growth & profit levels can be maintained.  image
Power of Brand Not Much. image
Corporate Governance, Reputation of Leaders Yes image
Fraud reported Not. image

 Declaration

Here by we declare that, the stock V Mart Retail is a Multi-bagger.

Allocation

2-3% of Total Portfolio & On installments.

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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