Madhucon Projects Limited, together with its subsidiaries, operates as an integrated construction, infrastructure development, and management company in India.
The last earnings update was 19 days ago.
Discounted Cash Flow Calculation for NSEI:MADHUCON using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
NSEI:MADHUCON DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Madhucon Projects's share price is below the future cash flow value, and at a moderate discount (> 20%).
Madhucon Projects's share price is below the future cash flow value, and at a substantial discount (> 40%).
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
is considered below, and whether this is a fair price.
Price based on past earnings
Madhucon Projects's earnings available for a low price, and how does
this compare to other companies in the same industry?
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Madhucon Projects has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.
Show me the analysis anyway
The future performance of a company is measured in the same way as past
performance, by looking at estimated
and how much profit it is expected to make.
Future estimates come from
professional analysts. Just like forecasting the weather, they don’t always get
Expected Construction industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare Madhucon Projects's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Madhucon Projects's earnings growth to the India market average as no estimate data is available.
Unable to compare Madhucon Projects's revenue growth to the India market average as no estimate data is available.
Unable to determine if Madhucon Projects is high growth as no earnings estimate data is available.
Unable to determine if Madhucon Projects 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.
Madhucon Projects'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.
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.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Madhucon Projects's finances.
The net worth of a company is the difference between its assets and liabilities.
Madhucon Projects's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Madhucon Projects's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Madhucon Projects'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.
High level of physical assets or inventory.
Madhucon Projects has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
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.
Mr. Nama Seethaiah has been Managing Director of Madhucon Projects Ltd. since May 1, 2007 and serves as its Chief Executive Officer. Mr. Seethaiah serves as Managing Director of Maohucon Agra-jaipur Expressways Limited. He served as Joint Managing Director at Madhucon Projects Ltd. until May 1, 2007. He has vast experience in project construction works and infrastructure development. He serves as Chairman of Madhucon Sugar and Power Industries Limited. He serves as a Director of Simhapuri Energy Private Limited. He serves as a Whole time Director of Madhucon Projects Ltd. He is a professional civil engineer.
Nama's compensation has been consistent with company performance over the past year, both up more than 20%.
Nama's remuneration is higher than average for companies of similar size in India.
CEO, MD & Whole Time Director
CFO, Company Secretary & Compliance Officer
General Manager of Finance & Accounts
General Manager of Legal
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Madhucon Projects board of directors is about average.
How Does Investing In Madhucon Projects Limited (NSE:MADHUCON) Impact The Volatility Of Your Portfolio?
Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. … Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.
What Percentage Of Madhucon Projects Limited (NSE:MADHUCON) Shares Do Insiders Own?
A look at the shareholders of Madhucon Projects Limited (NSE:MADHUCON) can tell us which group is most powerful. … Madhucon Projects is a smaller company with a market capitalization of ₹433m, so it may still be flying under the radar of many institutional investors. … See our latest analysis for Madhucon Projects
Those Who Purchased Madhucon Projects Shares Three Years Ago Have A 89% Loss To Show For It
Given that Madhucon Projects didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. … Over the last three years, Madhucon Projects's revenue dropped 21% per year. … Never forget that loss making companies with falling revenue can and do cause losses for everyday investors.
How Madhucon Projects Limited (NSE:MADHUCON) Can Impact Your Portfolio Volatility
The second type is the broader market volatility, which you cannot diversify away, since it arises from macroeconomic factors which directly affects all the stocks on the market. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … A stock with a beta greater than one is more sensitive to broader market movements than a stock with a beta of less than one.
Read This Before Buying Madhucon Projects Limited (NSE:MADHUCON) For Its Dividend
Historically, Madhucon Projects Limited (NSE:MADHUCON) has paid a dividend to shareholders. … Does Madhucon Projects tick all the boxes of a great dividend stock? … Check out our latest analysis for Madhucon Projects
What Kind Of Shareholder Appears On The Madhucon Projects Limited's (NSE:MADHUCON) Shareholder Register?
Every investor in Madhucon Projects Limited (NSE:MADHUCON) should be aware of the most powerful shareholder groups. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … Madhucon Projects is not a large company by global standards.
What Does Madhucon Projects Limited's (NSE:MADHUCON) Ownership Structure Look Like?
In this article, I will take a quick look at Madhucon Projects Limited’s (NSE:MADHUCON) recent ownership structure – an unconventional investing subject, but an important one. … When it comes to ownership structure of a company, the impact has been observed in both the long-and short-term performance of shares. … Differences in ownership structure of companies can have a profound effect on how management's incentives are aligned with shareholder returns, and whether they adhere to corporate governance best practices.
Should You Be Holding Madhucon Projects Limited (NSE:MADHUCON) Right Now?
Generally, an investor should consider two types of risk that impact the market value of MADHUCON. … Madhucon Projects has a beta of 1.61, which means that the percentage change in its stock value will be higher than the entire market in times of booms and busts. … A market capitalisation of ₹1.87B puts MADHUCON in the category of small-cap stocks, which tends to possess higher beta than larger companies.
Who Are The Largest Shareholders In Madhucon Projects Limited (NSE:MADHUCON)?
View our latest analysis for Madhucon Projects NSEI:MADHUCON Ownership_summary Feb 9th 18 Institutional Ownership Institutional investors transact in large blocks which can influence the momentum of stock prices, at least in the short-term, especially when there is a low level of public shares available on the market to trade. … This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and potential acquisitions. … Thus, potential investors should look into these business relations and check how it can impact long-term shareholder returns.Next Steps: With a low level of institutional ownership, investors in MADHUCON need not worry about non-fundamental factors such as ownership structure causing large impact on stock prices.
How Does Madhucon Projects Limited (NSE:MADHUCON) Affect Your Portfolio Returns?
A popular measure of market risk for a stock is its beta, and the market as a whole represents a beta value of one. … View our latest analysis for Madhucon Projects What is MADHUCON’s market risk? … With a market cap of ₹2.63B, MADHUCON falls within the small-cap spectrum of stocks, which are found to experience higher relative risk compared to larger companies.
Madhucon Projects Limited, together with its subsidiaries, operates as an integrated construction, infrastructure development, and management company in India. It operates through three segments: Construction, Power, and Toll Collection. The company develops and executes engineering, procurement, and construction, as well as turnkey projects. Its projects include expressway and highway, road, railway, port, irrigation and water resource infrastructure, building and property development, coal and other mineral mining, bridge and flyover, tunneling, industrial, and other infrastructure, as well as energy generation, transmission, and distribution projects. The company is also involved in the development of smart cities. Madhucon Projects Limited was founded in 1983 and is based in Hyderabad, India.
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