Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Hisar Spinning Mills
to its discounted cash flow analysis.value.
The discounted cash flow value is simply looking at what the company is worth
today, based on estimates of how much money it is expected to make in the
future.
Discounted Cash Flow Calculation for BSE:521068 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
Hisar Spinning Mills
is arrived at by discounting future cash flows to their present value using the 2 stage method. We use
analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.
BSE:521068 DCF 1st Stage: Next 5 year cash flow forecast
= Present value of next 5 years cash flows +
Terminal Value
=
₹93.47 +
₹299.65
₹393.12
Equity Value per Share (INR)
= Total value / Shares Outstanding
= ₹393.12 /
3.74
₹105.25
BSE:521068 Discount to Share Price
Calculation
Result
Value per share (INR)
From above.
₹105.25
Current discount
Discount to share price of
₹20.40
= -1 x (₹20.40 - ₹105.25) / ₹105.25
80.6%
Learn more about our DCF calculations in Simply Wall St’s
analysis model
.
Current Discount
Amount off the current price
Hisar Spinning Mills
is available for.
>50%
Share price is
₹20.4
vs Future cash flow value of
₹105.25
Current Discount Checks
For
Hisar Spinning Mills
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Hisar Spinning Mills's share price is below the future cash flow value, and at a moderate discount (> 20%).
Hisar Spinning 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
Hisar Spinning Mills's
earnings,
growth
and
assets
is considered below, and whether this is a fair price.
Price based on past earnings
Are
Hisar Spinning Mills's earnings available for a low price, and how does
this compare to other companies in the same industry?
No analysts cover Hisar Spinning Mills, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
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
it right!
-8.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is
Hisar Spinning Mills
expected to grow at an
attractive
rate?
Hisar Spinning Mills's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 7.6%.
Growth vs Market Checks
Hisar Spinning Mills's earnings are expected to decrease over the next 1-3 years, this is below the India market average.
Unable to compare Hisar Spinning Mills's revenue growth to the India market average as no estimate data is available.
Hisar Spinning Mills's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
Unable to determine if Hisar Spinning 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.
All data from Hisar Spinning Mills Company Filings, last reported 1 month ago, and in
Trailing twelve months (TTM)
annual period rather than quarterly.
BSE:521068 Past Financials Data
Date (Data in INR Millions)
EPS *
2018-12-31
4.13
2018-06-30
3.85
2018-03-31
3.78
2017-12-31
2.86
2017-09-30
4.11
2017-06-30
2.19
2017-03-31
0.45
2016-12-31
1.28
2016-09-30
1.45
2016-06-30
2.76
2016-03-31
1.59
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
Unable to establish if Hisar Spinning Mills will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
We assess
Hisar Spinning Mills's future performance by looking at:
Is the annual earnings growth rate expected to beat the low risk savings rate, plus a
premium to keep pace with inflation?
Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
Is the annual earnings growth rate expected to be above 20%? (1 check)
Is the annual revenue growth rate expected to be above 20%? (1 check)
Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making
in the relevant year.
Hisar Spinning Mills
has a total score of
0/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Below we compare
Hisar Spinning Mills's growth in the last year to its industry (Luxury).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it
has maintained that growth in the year.
Hisar Spinning Mills's year on year earnings growth rate has been positive over the past 5 years.
Hisar Spinning Mills's 1-year earnings growth exceeds its 5-year average (44.2% vs 5.9%)
Hisar Spinning Mills's earnings growth has exceeded the IN Luxury industry average in the past year (44.2% vs 14.1%).
Earnings and Revenue History
Hisar Spinning Mills's
revenue
and
profit
over the past 5 years is shown below, any years where they have experienced a
loss will show up in red.
All data from Hisar Spinning Mills Company Filings, last reported 1 month ago, and in
Trailing twelve months (TTM)
annual period rather than quarterly.
BSE:521068 Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions)
Revenue
Net Income *
G+A Expenses
R&D Expenses
2018-12-31
291.64
15.39
15.40
2018-06-30
290.21
14.39
14.52
2018-03-31
287.36
14.11
14.14
2017-12-31
290.27
10.68
13.73
2017-09-30
283.13
15.10
12.57
2017-06-30
277.30
8.32
10.35
2017-03-31
268.53
1.66
8.06
2016-12-31
262.51
4.80
6.11
2016-09-30
248.77
5.44
4.86
2016-06-30
244.35
10.32
4.43
2016-03-31
239.27
5.95
4.09
2015-12-31
228.91
5.23
5.27
2015-09-30
234.80
3.85
6.02
2015-06-30
238.85
5.81
3.12
2015-03-31
239.22
7.89
3.08
2014-12-31
238.92
10.62
5.00
2014-09-30
226.95
13.51
4.88
2014-06-30
221.19
10.05
2.58
2014-03-31
210.87
11.97
4.41
2013-12-31
203.31
11.40
3.90
2013-09-30
200.57
12.85
3.84
2013-06-30
174.34
10.32
3.87
2013-03-31
175.19
11.34
3.94
2012-12-31
177.40
9.70
4.88
2012-09-30
170.45
10.21
4.70
2012-06-30
163.05
9.30
2.20
2012-03-31
150.30
4.31
4.85
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
Hisar Spinning Mills has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
Hisar Spinning Mills used its assets more efficiently than the IN Luxury industry average last year based on Return on Assets.
Hisar Spinning Mills has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
We assess
Hisar Spinning 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
Luxury
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.
Hisar Spinning Mills
has a total score of
6/6, 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
(assets)
and owe
(liabilities).
The boxes below represent the relative size of what makes up
Hisar Spinning Mills's finances.
The net worth of a company is the difference between its assets and liabilities.
Net Worth
Hisar Spinning Mills is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Hisar Spinning Mills's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of
Hisar Spinning 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
checks below.
Assets
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 3.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
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.
We assess
Hisar Spinning Mills's financial health by checking for:
Are short term assets greater than short term liabilities? (1 check)
Are short term assets greater than long term liabilities? (1 check)
Has the debt to equity ratio increased in the past 5 years? (1 check)
Is the debt to equity ratio over 40%? (1 check)
Is the debt covered by operating cash flow? (1 check)
Are earnings greater than 5x the interest on debt (if company pays interest
at all)? (1 check)
Hisar Spinning Mills
has a total score of
6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
0%
Current annual income from
Hisar Spinning Mills
dividends.
If you bought
₹2,000 of
Hisar Spinning Mills
shares you are expected to receive
₹0
in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you
can get in a
savings account?
It is up there with the
best dividend paying companies?
Unable to evaluate Hisar Spinning Mills's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
Unable to evaluate Hisar Spinning Mills's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.
We also check to see if the dividend has increased in the past 10 years.
We assess
Hisar Spinning Mills's dividend by checking for:
Firstly is the company paying a notable dividend (greater than 0.3%) - if
not then the rest of the checks are ignored.
Is current dividend yield above the bottom 25% of dividend payers? (1 check)
Is current dividend yield above the top 25% of dividend payers? (1 check)
Have they paid a dividend for 10 years, and during this period has the
dividend been volatile (drop of more than 25%)? (1 check)
If they have paid a dividend for 10 years has it increased in this time? (1
check)
How sustainable is the dividend, can
Hisar Spinning Mills
afford to pay it from its earnings today and in 3 years (Payout ratio less than
90%)? (2 checks)
Hisar Spinning Mills
has a total score of
0/6, see the detailed checks below.
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.
CEO
NavinKansal
COMPENSATION
₹1,500,000
TENURE AS CEO
2.2 years
CEO Bio
Mr. Navin Kansal has been the Chief Executive Officer at Hisar Spinning Mills Limited since December 29, 2016. Mr. Kansal has over 21 years experience of manufacture of yarn & financing activities. He has been actively associated as a director of a company manufacturing yarn. He is a Commerce Graduate.
CEO Compensation
Navin's compensation has increased by more than 20% in the past year.
Navin's remuneration is about average for companies of similar size in India.
Management Team Tenure
Average tenure of the
Hisar Spinning Mills
management team in years:
2.2
Average Tenure
The tenure for the Hisar Spinning Mills management team is about average.
Management Team
Navin Kansal
TITLE
Chief Executive Officer
COMPENSATION
₹2M
TENURE
2.2 yrs
Anurag Gupta
TITLE
MD & Executive Director
COMPENSATION
₹1M
AGE
48
TENURE
2.2 yrs
Sharad Goel
TITLE
Chief Financial Officer
COMPENSATION
₹1M
TENURE
3.8 yrs
Sapna Kansal
TITLE
Whole Time Director
COMPENSATION
₹448K
AGE
45
TENURE
1.2 yrs
Nikita Singla
TITLE
Company Secretary & Compliance Officer
Board of Directors Tenure
Average tenure and age of the
Hisar Spinning Mills
board of directors in years:
2.2
Average Tenure
48
Average Age
The average tenure for the Hisar Spinning Mills board of directors is less than 3 years, this suggests a new board.
Board of Directors
Anurag Gupta
TITLE
MD & Executive Director
COMPENSATION
₹1M
AGE
48
TENURE
12 yrs
Sapna Kansal
TITLE
Whole Time Director
COMPENSATION
₹448K
AGE
45
TENURE
4.7 yrs
Mithlesh Gupta
TITLE
Additional Independent & Non-Executive Director
COMPENSATION
₹70K
AGE
68
TENURE
2.2 yrs
Sudesh Garg
TITLE
Additional Independent & Non-Executive Director
COMPENSATION
₹70K
AGE
67
TENURE
2.2 yrs
Sandeep Suri
TITLE
Independent Non-Executive Director
COMPENSATION
₹53K
AGE
48
TENURE
2.2 yrs
Nikhil Goel
TITLE
Additional Non-Independent & Non-Executive Director
Hisar Spinning Mills Limited
9th KM Stone,
Hisar Bhiwani Road,
Hisar,
Haryana, 125005,
India
Listings
Exchange Symbol
Ticker Symbol
Security
Exchange
Country
Currency
Listed on
BSE
521068
Equity Shares
Mumbai Stock Exchange
IN
INR
18. Apr 2005
Number of employees
Current staff
61
Hisar Spinning Mills
employees.
Industry
Textiles
Consumer Durables
Company Analysis and Financial Data Status
Area
Date (UTC time)
Company Analysis updated:
2019/02/23 12:31
End of day share price update:
2019/02/22 00:00
Last earnings filing:
2019/02/14
Last earnings reported:
2018/12/31
Last annual earnings reported:
2018/03/31
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.