Discounted Cash Flow Calculation for BSE:521070 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 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:521070 DCF 1st Stage: Next 5 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.
Alok Industries's share price is below the future cash flow value, and at a moderate discount (> 20%).
Alok Industries'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
Alok Industries'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 Alok Industries 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
expected to grow at an
Unable to compare Alok Industries's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Alok Industries's earnings growth to the India market average as no estimate data is available.
Unable to compare Alok Industries's revenue growth to the India market average as no estimate data is available.
Unable to determine if Alok Industries is high growth as no earnings estimate data is available.
Unable to determine if Alok Industries 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.
Alok Industries'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.
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. Surendra Bhagirathmal Jiwrajka, B.Com., has been the Managing Director of Grabal Alok Impex Ltd since April 1, 2010. Mr. Jiwrajka has been the Joint Managing Director of Alok Industries Ltd since March 2008 and has been its Chief Executive Officer of Polyester since July 17, 2017. Mr. Jiwrajka served as Vice President of Alok Industries Limited. Mr. Jiwrajka is an Profession Industrialist and is Expertise in specific functional areas Production and Marketing of Yarn and Knitted Fabrics, Exports and Project Management. Mr. Jiwrajka has been an Executive Director of Alok Industries Ltd. since March 12, 1986. He has been an Executive Director of Grabal Alok Impex Ltd. since April 1, 2010. and Alok Infrastructure Pvt Ltd. He serves as Chairman and Member of the Committee, Member of Executive Committee and Share of Board of Directors of Alok Textile Industries Limited. He serves as director of Alok Knits Exports Limited, Aurangabad Textiles & Apparel Parks limited, Alspun infrastructure limited, Alok Apparels Private Limited, Alok Clothing Private Limited, Alok Retail (India) limited, Alok Realtors private Limited, Alok Land Holdings Private Limited, Alok Aurangabad infratex Private Limited, Alok New City Infratex Private Limited, Alok Industries International Limited and Grabal Alok International limited. He also serves as Director of Alok Denims (India) Private Limited, Alok Finance Private Limited, Jiwrajka Associates Private Limited, Jiwrajka Investment Private Limited, Niraj Realtors and Shares Private Limited, Nirvan Holdings Private Limited, Ashford Infotech Private Limited, Gogri Properties Private Limited, Alok HB Properties Private Limited and Alok HB Hotels Private Limited. Mr. Jiwrajka's schooling and college were completed in Mumbai. Immediately after his graduation he joined the family partnership firm for trading in yarn and thereafter co-founded Alok Industries Limited in 1986.
Surendra's compensation has been consistent with company performance over the past year.
Surendra's remuneration is higher 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 Alok Industries management team is over 5 years, this suggests they are a seasoned and experienced team.
MD, CEO of Apparel Fabrics & Executive Director
Chief Financial Officer
Compliance Officer & Company Secretary
CEO of Home Textiles & Executive Director
CEO of Processing & Executive Director
CEO of Weaving & Executive Director
Chief Operating Officer
Joint Chief Operating Officer
Joint Chief Operating Officer
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Alok Industries board of directors is less than 3 years, this suggests a new board.
Alok Industries Limited manufactures and sells textile products in India and internationally. The company provides accessories, inlcuding shopping bags and handkerchiefs; apparel fabrics, such as woven and knitted products; corrugated pallets; cotton and blended yarns; and Schiffli and multi-head computerized embroidery on woven, non-woven, and knitted garments, as well as laces. It also offers woven and knitted garments for men, women, and children comprising casual wear, sportswear, foundation wear, sleep wear, workwear and industrial garments, and uniforms. In addition, the company provides home textiles, such as bed linen and terry towel products; polyester texturized, partially oriented, and fully drawn yarns; and technical textiles/work wear fabric products. The company also exports its products to approximately 90 countries, including the United States, Europe, Latin America, Asia, and Africa. Alok Industries Limited was founded in 1986 and is based in Mumbai, India.
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