Discounted Cash Flow Calculation for BSE:511108 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.
BSE:511108 DCF 1st Stage: Next 10 year cash flow forecast
The current share price of
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
is considered below, and whether this is a fair price.
Price based on past earnings
Shiva Texyarn's earnings available for a low price, and how does
this compare to other companies in the same industry?
Shiva Texyarn's earnings are expected to grow by 8.1% yearly, however this is not considered high growth (20% yearly).
Unable to determine if Shiva Texyarn 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.
Shiva Texyarn'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
2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
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. Sangampalyam Kandasami Sundararaman, MBA has been Managing Director of Shiva Texyarn Ltd since August 31, 2017. Mr. Sundararaman serves as the Head of Weaving Division & New Initiatives for Bannari Amman Spinning Mills Limited. He has 18 years of Business Experience and has wide experience in the field of Information Technology and Technical Education, especially in the field of Textile Technology. He has been an Independent Director of Shanthi Gears Ltd since February 6, 2018. Mr. Sundararaman has been Additional Independent Director of Pricol Ltd since May 30, 2018. He has been an Executive Director of Shiva Texyarn Ltd since August 13, 2012 and served as its Non Executive Director from May 2006 to August 13, 2012. He is a Non Executive Non Independent Director at Shiva Mills Limited. He served as Executive Director of Bannari Amman Spinning Mills Limited from June 27, 2005 to May 31, 2012. Previously he served as Director of Bannari Amman Spinning Mills Limited since May 24, 2004. He serves as Director of S K S Agencies Limited, Vedanayagam Hospital Limited, Abirami Ecoplast Private Limited, Sundar Ram Enterprise Private Limited, L K Distributors Private Limited, Abirami Distributors Private Limited, Indian Technical Textile Association. He holds an MBA from the Judge Institute of Management Studies, Cambridge University, UK.
Sangampalyam's compensation has been consistent with company performance over the past year.
Sangampalyam's remuneration is lower than average for companies of similar size in India.
Management Team Tenure
Average tenure and age of the
management team in years:
The average tenure for the Shiva Texyarn management team is less than 2 years, this suggests a new team.
MD & Executive Director
Chief Financial Officer
Chief Operating Officer
Company Secretary & Compliance Officer
Senior Vice President
Deputy General Manager of Accounts
V Raghu Varma
National Sales Manager
General Manager of Prdouction & Marketing
Deputy General Manager of Human Resources
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Shiva Texyarn board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Shiva Texyarn Limited manufactures and markets cotton yarn, and technical and other value added textile products in India. The company offers combed, carded, and compact yarns; slub and fancy yarns; quick dry products; quick fit products, including mattresses protectors; and baby products It also provides door, window, and shower curtains, as well as cushion covers; knitwear, light weight shells, fleece and pile fabrics, and breathable film laminated garments; and extreme cold weather clothing, super high altitude mountaineering clothing, extreme cold weather combat glove systems, and internal and external frame rucksacks. In addition, the company offers bedding range, such as sheets, duvet covets, and fleece blankets; kitchen articles comprising aprons, pot holders, and table cloths; and acrylic coated, PU coating products, and art canvas and digital canvas products. Further, it provides bags, such as camera, utility, long lens, tripod, and messenger bags, as well as storage accessories and lens hoods. Additionally, the company is also involved in the generation of wind power. The company operates windmills with an installed capacity of 18.145 MW. It also exports its products. Shiva Texyarn Limited was founded in 1980 and is based in Coimbatore, India.
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