Lord Jesus Christ Says...

“If any of you wants to be my follower, you must turn from your selfish ways, take up your cross, and follow me. If you try to hang on to your life, you will lose it. But if you give up your life for my sake and for the sake of the Good News, you will save it.” Jesus Christ, Mark 8:34-35

5 Mar 2018


The idea is to identify companies trading at low PE levels and also companies with strong fundamentals. It is usually these type of stocks which give us multibaggers. In this post, we look at 1 stock that satisfy the following criteria:
i) Low PE
ii) High return on capital employed
iii) Low long term debt
iv) High promoter holding
The stocks that satisfy the above criteria usually give their investors multibagger returns in the long run. So invest in this company for minimum 2 years.
SNL is one of india’s leading needle roller bearings manufacturer having a wide range of needle roller bearings for automotive applications to serve OEMs and Aftermarket both in India and overseas.
·         PE Ratio: 12.86
·         ROCE: 50.21%
·         Promoter Holding: 73.45%
·         Long Term Debt to Equity Ratio: 0.09
The company has consistently increased its EBIDTA margin from 27.02% in FY14 to 32.09% in FY17 and the sales in this period have grown from 22.58 Crores in FY14 to 37.7 Crores in FY17 signifying a CAGR of 18%
Year ended march 2017—total sales 33.53 and net profit 6.59 cr// December 2018 (9 months) sales 27.33 and net profit 5.86 cr—Therefore march 2018 expectation ( sales 27.33 +10=37.33 and net profit 5.86+2.72=8.58)

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