Discounted Cash Flow Calculation for BSE:534690 using Excess Returns Model Model
The calculations below outline how an intrinsic value for Lakshmi Vilas Bank is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.
In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.
The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.
The current share price of
Lakshmi Vilas Bank
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
Lakshmi Vilas Bank's
is considered below, and whether this is a fair price.
Price based on past earnings
Lakshmi Vilas Bank's earnings available for a low price, and how does
this compare to other companies in the same industry?
Lakshmi Vilas Bank's earnings are expected to grow significantly at over 20% yearly.
Unable to determine if Lakshmi Vilas Bank is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Lakshmi Vilas Bank's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
Lakshmi Vilas Bank
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Fundamentally a bank's business is based upon borrowing and lending money, for
this reason they typically have high levels of debt and we analyse them
This treemap shows a more detailed breakdown of
Lakshmi Vilas Bank's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Parthasarathi Mukherjee has been the Chief Executive Officer and Managing Director of The Lakshmi Vilas Bank Limited since December 21, 2015. Mr. Mukherjee is a Banking Professional having around 33 years of rich experience in the Banking Industry. He started his career as a probationary officer in State bank of India in the year 1982. He was involved in setting up the Treasury Operations of the UTI/Axis bank from its inception. He headed the Treasury and International Banking Business before taking charge as the Group Executive, Corporate Relationships and International Business in Axis Bank. He has been Director of The Lakshmi Vilas Bank Limited since December 21, 2015.
Parthasarathi's compensation has increased whilst company is loss making.
Parthasarathi's remuneration is higher than average for companies of similar size in India.
MD, CEO & Director
R. M. Sundaram
President & Head of Corporate Banking
Senior VP & Head of Stressed Assets Recovery
Senior VP & Head of Retail Liabilities and Products
Senior VP & Head of Treasury
Senior VP & Head of Transaction Banking
Senior VP and Head of ALM & Interest Rates
Senior VP & Head of Commercial Banking Operations
Company Secretary & Compliance Officer
President & CFO
Board of Directors Tenure
Average tenure and age of the
Lakshmi Vilas Bank
board of directors in years:
The average tenure for the Lakshmi Vilas Bank board of directors is less than 3 years, this suggests a new board.
Highly Undervalued Financial Stocks To Profit From
Financial ompanies that are recently trading at a market price lower than their real values include Lakshmi Vilas Bank and Vijaya Bank. … The Lakshmi Vilas Bank Limited (BSE:534690) The Lakshmi Vilas Bank Limited provides various banking products and services in India. … BSE:534690 PE PEG Gauge May 17th 18 Vijaya Bank (BSE:532401) Vijaya Bank provides various banking products and services primarily in India.
Lakshmi Vilas Bank and Power Finance are two financial stocks I have identified as undervalued. … BSE:534690 PE PEG Gauge Apr 12th 18 Power Finance Corporation Limited (NSEI:PFC) Power Finance Corporation Limited provides financial products and related advisory, and other services to the power sector in India. … NSEI:PFC PE PEG Gauge Apr 12th 18 Rural Electrification Corporation Limited (NSEI:RECLTD) Rural Electrification Corporation Limited, a public financial institution, provides financing and promotion services for power transmission, distribution, and generation projects in India.
BSE:534690 Historical Dividend Yield Apr 12th 18 The Karnataka Bank Limited (NSEI:KTKBANK) KTKBANK has a nice dividend yield of 3.23% and their payout ratio stands at 26.30%. … NSEI:KTKBANK Historical Dividend Yield Apr 12th 18 BSE Limited (NSEI:BSE) BSE has a good dividend yield of 3.44% and pays out 53.60% of its profit as dividends , with analysts expecting this ratio to be 76.34% in the next three years. … NSEI:BSE Historical Dividend Yield Apr 12th 18 For more solid dividend paying companies to add to your portfolio, explore this interactive list of top dividend payers.
The Lakshmi Vilas Bank Limited (BSE:534690) 534690 has a decent dividend yield of 2.80% and the company has a payout ratio of 57.64%. … BSE:534690 Historical Dividend Yield Mar 8th 18 The Karnataka Bank Limited (NSEI:KTKBANK) KTKBANK has a sizeable dividend yield of 3.40% and pays 26.30% of it’s earnings as dividends. … NSEI:KTKBANK Historical Dividend Yield Mar 8th 18 BSE Limited (NSEI:BSE) BSE has a good-sized dividend yield of 3.60% and has a payout ratio of 53.60% , with analysts expecting the payout in three years to be 75.92%.
The Lakshmi Vilas Bank Limited provides various banking products and services in India. It operates through Treasury, Corporate and Wholesale Banking, Retail Banking, and Other Banking Operations segments. The company offers various deposit products, such as savings accounts, current accounts, fixed deposits, and recurring deposits. It also provides a range of loans comprising home, business credit, initial public offer, rental, personal vehicle, gold, student, commercial vehicle, as well as loans against properties and securities; and Kisan credit cards. In addition, the company offers online services consisting of national electronic fund transfer services, real time gross settlement system services, mobile payment services, Internet banking, net and SMS banking, and ECS services. Further, it provides non-resident Indian (NRI) services, including NRI deposits, such as NRE rupee accounts, ordinary non-resident accounts, foreign currency non–resident accounts, and resident foreign currency accounts; NRI loans; money transfer; and forex services. Additionally, the company offers debit and ATM cards; and wealth management services comprising life and general insurance, export credit guarantee insurance, mutual funds, portfolio management, Demat, PAN, pension, and online trading services. As of March 31, 2018, it operated a network of 548 branches comprising 540 general banking branches, 7 commercial banking branches, 1 satellite branch, and 7 extension counters, as well as ATM network of 1020 in India. The company was founded in 1926 and is based in Chennai, India.
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