Discounted Cash Flow Calculation for BSE:512527 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
Super Sales India
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:512527 DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
Super Sales India
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
Super Sales India
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Super Sales India's share price is below the future cash flow value, and at a moderate discount (> 20%).
Super Sales India'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
Super Sales India's
is considered below, and whether this is a fair price.
Price based on past earnings
Super Sales India's earnings available for a low price, and how does
this compare to other companies in the same industry?
Super Sales India's earnings are expected to grow by 12.2% yearly, however this is not considered high growth (20% yearly).
Unable to determine if Super Sales India 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.
Super Sales India'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.
Super Sales India
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
Super Sales India's finances.
The net worth of a company is the difference between its assets and liabilities.
Super Sales India is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Super Sales India's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Super Sales India'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.
Debt is covered by short term assets, assets are 1.5x debt.
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. G. Mani is the Managing Director at Super Sales India Limited since October 24, 2018 and is its Additional Director since October 23, 2018. Sri. Mani serves as Vice President of GS, HR & IT at Lakshmi Machine Works Limited and served as its Senior General Manager of Global Services. Sri Mani joined Lakshmi Machine Works Limited in July 1, 1975. He has 41 years of experience. He was the Team Leader in early 1990s in Design & Development of Blow Room machine, System Leader for Research & Development in early 2000s for Card Sliver System and in 2010 he became the Head of R & D. In 2014, he took over Global Service functions of TMD and was heading the Dr.DJ R & D Centre for validation of all new products, Reliability establishment and interaction with technical institutes. In 2017, he became the Vice President and streamlined the processes of Global service, Information Technology and Human resource functions (HR & IR), Safety, Health & Environment, Energy Engineering, Civil , Liaisoning, Public Relations, Corporate Social Responsibility and Administrative functions of the LMW. He has registered more than 15 patents for inventions in Textile machines. He won many TMMA R & D awards for the products designed by him. Mr. Mani is an Engineer from PSG College of Technology.
Insufficient data for G to compare compensation growth.
Insufficient data for G to establish whether their remuneration is reasonable compared to companies of similar size in India.
Chief Financial Officer
Company Secretary & Compliance Officer
MD & Additional Director
General Manager of Marketing
Deputy General Manager of HR
Business Head of Marketing & Services - Agency Division
General Manager of Jay II
Deputy General Manager of Marketing - Gears Unit
General Manager - Jay I
Board of Directors Tenure
Average tenure and age of the
Super Sales India
board of directors in years:
The tenure for the Super Sales India board of directors is about average.
With An ROE Of 5.09%, Can Super Sales India Limited (BOM:512527) Catch Up To The Industry?
and want a simplistic look at the return on Super Sales India Limited (BOM:512527) stock. … Super Sales India Limited (BOM:512527) delivered an ROE of 5.09% over the past 12 months, which is relatively in-line with its industry average of 7.55% during the same period. … Return on Equity (ROE) weighs Super Sales India’s profit against the level of its shareholders’ equity.
Super Sales India Limited manufactures and sells yarns in India and internationally. The company operates through three segments: Agency, Textiles, and Engineering. It sells machinery and equipment, such as blow rooms, cards, draw frames, combers, auto leveler draw frames, speed and ring frames with doffer, compact spinning machines, and autoconers; overhead travelling cleaners, yarn conditioning systems, bobbin transport systems, metal and fire diverters, and automatic cone packing machines; slub and core yarn attachments; motors for spinning machinery and humidification plants; bobbin holders and clearer roller cleaning machines; and specialty lubricants. The company also produces cotton yarns, including hosiery, weaving, and TFO doubled yarns; specialty weaving yarns, such as Lenzing micro modal, flame retardant yarns, microtencel, cotton, and slub yarns; and specialty polyester under the vaamaa brand. In addition, the company manufactures various spur gears, including inline shaft helical gear, parallel shaft helical gear, perpendicular shaft bevel helical gears, worm gear boxes, timing belt pulley, bevel gear, sprocket gear, coiler and comber gear box assembly, and cast nylon gear. The company was formerly known as Super Sales Agencies Limited and changed its name to Super Sales India Limited in 2005. Super Sales India Limited was founded in 1981 and is based in Coimbatore, India.
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