STOCKPRO MULTIBAGGER STOCK ‘WATERBASE’ ANALYSIS (FROM THIS DIWALI TO NEXT DIWALI)

Before going ahead with the topic, Let’s remind you a year back when we posted two Stocks during last Diwali, One was AAVAS (Aavas Financiers Ltd) and another was CREDITACC (CreditAccess Grameen Ltd) and all these two stocks super-passed our targets impressively.

Let’s have a look at AAVAS (Aavas Financiers Ltd) & CREDITACC (CreditAccess Grameen Ltd) stocks. The date at which we posted the Stock was 14th of November and posted to start accumulating in the price range of 670. Bought at 670 at today it’s trading around 1000 points up.

The another Stock which we posted was CREDITACC (CreditAccess Grameen Ltd) and we started accumulating the Stock somewhere around 325-330 price range.Today we stand at a time when the Stock made a high of around 680, almost 100 per cent return from the accumulation price range.

For this Diwali we have filtered out one more such Stock for all of you, and the Stock is WATERBASE (Waterbase Ltd). You may observe that very recently in the month of August was seen the huge loss and may see a double bottom.

So before putting our hard earnings in this Stock, we must check what this company really does..!!! And what is the background of this company.

  • They are basically in Shrimp Feed.
  • There are among very few companies (Avani Feeds, Apex Frozen, Waterbase, Coastal Corp, Zeel Aqua, Flora Corporati, Shantanu Sheo) in business of aquaculture.
  • If you look at Avanti Feeds recently it has given very good numbers and very recently it has been thru massive downtrend at present, the company was correcting.
  • Waterbase is in accumulation zone and the first target what we are excepting somewhere around 120 and if it crosses this level, it has the capacity to go way ahead.

Pros:
Promoter’s stake has increased
Company has been maintaining a healthy dividend payout of 24.76% which is pretty good.

Cons:
The company has delivered a poor growth of 9.68% over past five years.

Balance SheetIf you see the balance sheet ,the borrowing is consstntly going down.

  • Reason for the Selection of this Stock:
  • Technically Strong for long-term.
  • The current price is near to it’s 52 weeks low.
  • Fundamentals are pretty good.
  • Consistent Sales Growth.
  • Return on capital employed (ROCE) is around 26% which is very impressive.
  • ROE is around 19% which is also not bad.
  • If you look at operating profit margin, they standing decently around 16%.

Balance Sheet

If you see the balance sheet ,the borrowing is consistently going down.

Cash Flow

Profits are 61 crore

*Disclaimer: All these recommendations are given by StockPro-Team for educational learning purposes. Please talk to your financial adviser before investing. We will not be responsible for your profits and losses. )

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2 Comments

  1. Very good fundamentals
    Thankyou

  2. Appreciate this post. Will try it out.

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