Fundamentally Strong + Technically Strong + Early Entry = MULTIBAGGER
Savita Oil Technologies Limited, established in 1961, is a specialty petroleum products company engaged in manufacturing Transformer Oils, Liquid Paraffins, White Oils, Automotive and Industrial Lubricants, Coolants and Greases. A wide range of lubricants, greases, and coolants of the Co are sold to retail customers under the brand SAVSOL
It exports to over 75 countries across the world.
The Co continues a sharp focus on increasing distribution penetration and retailer count with investment in human and technological resources both aligning to achieve these objectives. On the B2B business side, the Co is largely focused on enhancing services and support for OEM accounts and investing in testing and development programs with new OE partners to bring them more efficient solutions.
Intrinsic Value 847 vs Current Market Price 339
EPS 39.4 vs EPS last year 36.2
Market Cap 2,341 Cr.
Promoter holding 71.8 %
Pledged percentage 0%
Stock P/E 8.60
Industry P/E 8.69
Dividend Yield 1.49 %
ROCE 29.4 %
ROE 20.8 %
Debt to equity 0
Free Cash Flow 354 Cr.
Company has delivered good profit growth of 21.5% CAGR over last 5 years
Company has been maintaining a healthy dividend payout of 17.6%
Company's working capital requirements have reduced from 86.2 days to 63.1 days
Technically, a VCP is being formed on the higher timeframe and a breakout is just around the corner certainly.