Garden Silk Mills Limited designs, manufactures, and sells textile prints, fabrics, and textile intermediates for consumers and businesses in India.
The last earnings update was 45 days ago.
Discounted Cash Flow Calculation for BSE:500155 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
Garden Silk Mills
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.
BSE:500155 DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
Garden Silk Mills
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
Garden Silk Mills
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Garden Silk Mills's share price is below the future cash flow value, and at a moderate discount (> 20%).
Garden Silk Mills'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
Garden Silk Mills's
is considered below, and whether this is a fair price.
Price based on past earnings
Garden Silk Mills'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 Garden Silk Mills 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 Luxury industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Garden Silk Mills
expected to grow at an
Unable to compare Garden Silk Mills's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Garden Silk Mills's earnings growth to the India market average as no estimate data is available.
Unable to compare Garden Silk Mills's revenue growth to the India market average as no estimate data is available.
Unable to determine if Garden Silk Mills is high growth as no earnings estimate data is available.
Unable to determine if Garden Silk Mills 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.
Garden Silk Mills'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.
Garden Silk Mills
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
Garden Silk Mills's finances.
The net worth of a company is the difference between its assets and liabilities.
Garden Silk Mills's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Garden Silk Mills's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Garden Silk Mills'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.
Garden Silk Mills 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. Praful Amichand Shah serves as Executive Chairman, Chief Executive Officer and Managing Director of Garden Silks Mills Ltd. Mr. Shah serves as Chairman and Managing Director at Bijlee Textiles Ltd. He served as a Director of Jarigold Textiles Ltd., from December 18, 2009 to July 28,2014. Mr. Shah has been an Executive Director at Bijlee Textiles Ltd., since December 18, 2009. He served as a Director of Wheel & Axle Textiles Ltd and Rosekamal Textiles Ltd. He is a co-owner of Rayban Investments. He has been Director at Garden Silks Mills Ltd. since July 23, 1979. He holds Master of Science degree in Mechanical Engineering from Stanford University, USA in 1965 and graduated in Mechanical Engineering from Michigan State University.
Praful's compensation has increased whilst company is loss making.
Praful's remuneration is higher than average for companies of similar size in India.
CFO, COO & Executive Director
Company Secretary & Compliance Officer
Board of Directors Tenure
Average tenure and age of the
Garden Silk Mills
board of directors in years:
The tenure for the Garden Silk Mills board of directors is about average.
Garden Silk Mills Limited designs, manufactures, and sells textile prints, fabrics, and textile intermediates for consumers and businesses in India. The company offers dyed and printed sarees and dress materials; polyester chips for textile grade and film grade; and polyester yarns comprising partially oriented yarn, fully drawn yarn/highly oriented yarn, bi shrinkage yarn, draw twisted filament yarn, draw texturized yarn/ air covered yarn, air textured yarn, mono filament yarn, draw warping beam, and sized beams. It also offers nylon yarns; and woven and printed fabrics. Garden Silk Mills Limited markets its products through a network of 70 dealers and 90 retail shops that coordinate 480 points-of-sale. Further, the company exports its products to approximately 20 countries in Europe, the Middle East, Asia, and North and South America. Garden Silk Mills Limited was founded in 1979 and is based in Mumbai, India.
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