CMP-232
Multibase India Ltd a 25 years old, 100% debt free company is a subsidiary of Dow Corning Corporation. The company is engaged in the business of manufacturing of high-technology thermoplastic elastomeric compounds and has diversified into the manufacture and sale of products, such as silicon-enhanced products. Their product range includes TPSiV, Siloxane Masterbatches, Multibatch, Multi-Flex, Nylex, Multi-Pro and Multi-Flam.
Parent Information-:
Dow Corning a 76 year old an American multinational corporation headquartered in Midland, Michigan, United States, was formally established in 1943 as a joint venture between the American conglomerates Dow Chemical and Corning Glass to explore the potential of silicone and was a manufacturer of products for use by the U.S. military in World War II.
Performance-:
Over the years company has a proven track record of solid performance. Compounded Profit Growth of the company over past 3 and 5 years is 39% & 34% where as Compounded Sales Growth has been 20% and 19% over the same period. Apart from that company has stron Return on Capital Employed and Return on Equity. With Total share capital which consist of about 1Cr Rs 10 FV shares , 75% is held by promoters as a result it has very less free flot in the market. Also over the years there has been Substantial increase in the Cash and Cash Equivalents of the company which has increased from 10cr in 2014 to 50cr as of 2019 (Approx) when comapred with free float is 156Rs/share which can be good candidate for buyback if managment chooses to. However the company has not been declaring dividend which is one of the biggest drawback.
Previously Multibase India was suggested in DARKHORSESTOCK in Nov-2017 around 522 rs which was later up 35% as suggested before falling to the current levels.
