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
Samtex Fashions
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:521206 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
Samtex Fashions
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:521206 DCF 1st Stage: Next 5 year cash flow forecast
= Present value of next 5 years cash flows +
Terminal Value
=
₹3,842.61 +
₹2,609.99
₹6,452.60
Equity Value per Share (INR)
= Total value / Shares Outstanding
= ₹6,452.60 /
74.50
₹86.61
BSE:521206 Discount to Share Price
Calculation
Result
Value per share (INR)
From above.
₹86.61
Current discount
Discount to share price of
₹1.65
= -1 x (₹1.65 - ₹86.61) / ₹86.61
98.1%
Learn more about our DCF calculations in Simply Wall St’s
analysis model
.
Current Discount
Amount off the current price
Samtex Fashions
is available for.
>50%
Share price is
₹1.65
vs Future cash flow value of
₹86.61
Current Discount Checks
For
Samtex Fashions
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Samtex Fashions's share price is below the future cash flow value, and at a moderate discount (> 20%).
Samtex Fashions'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
Samtex Fashions's
earnings,
growth
and
assets
is considered below, and whether this is a fair price.
Price based on past earnings
Are
Samtex Fashions'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 Samtex Fashions 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
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!
18.3%
Expected Luxury industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is
Samtex Fashions
expected to grow at an
attractive
rate?
Unable to compare Samtex Fashions's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Samtex Fashions's earnings growth to the India market average as no estimate data is available.
Unable to compare Samtex Fashions's revenue growth to the India market average as no estimate data is available.
Unable to determine if Samtex Fashions is high growth as no earnings estimate data is available.
Unable to determine if Samtex Fashions 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 Samtex Fashions Company Filings, last reported 10 months ago, and in
Trailing twelve months (TTM)
annual period rather than quarterly.
BSE:521206 Past Financials Data
Date (Data in INR Millions)
EPS *
2018-03-31
-7.75
2017-03-31
-49.39
2016-03-31
1.11
2015-12-31
2015-09-30
2015-06-30
*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 Samtex Fashions will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
Next steps:
Take a look at our analysis of 521206’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
We assess
Samtex Fashions'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.
Samtex Fashions
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
Samtex Fashions'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.
Samtex Fashions does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
Unable to compare Samtex Fashions's 1-year earnings growth to the 5-year average as it is not currently profitable.
Unable to compare Samtex Fashions's 1-year growth to the IN Luxury industry average as it is not currently profitable.
Earnings and Revenue History
Samtex Fashions'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 Samtex Fashions Company Filings, last reported 10 months ago, and in
Trailing twelve months (TTM)
annual period rather than quarterly.
BSE:521206 Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions)
Revenue
Net Income *
G+A Expenses
R&D Expenses
2018-03-31
1,182.58
-577.17
79.42
2017-03-31
12,848.42
-3,679.37
237.43
2016-03-31
17,235.67
82.44
333.44
2015-12-31
17,028.85
181.91
991.76
2015-09-30
17,221.16
264.54
996.29
2015-06-30
17,483.90
287.04
993.93
2015-03-31
18,704.43
306.81
310.72
2014-12-31
19,572.76
239.11
973.04
2014-09-30
19,580.34
230.40
969.52
2014-06-30
20,408.56
251.31
202.90
2014-03-31
19,420.48
259.79
955.64
2013-12-31
17,092.91
288.94
688.77
2013-06-30
13,585.11
221.34
182.03
2013-03-31
12,246.76
193.53
626.96
2012-12-31
11,027.63
164.92
501.90
2012-06-30
9,262.14
129.37
499.32
2012-03-31
8,396.10
125.31
484.97
*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.
It is difficult to establish if Samtex Fashions has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
It is difficult to establish if Samtex Fashions has efficiently used its assets last year compared to the IN Luxury industry average (Return on Assets) as it is loss-making.
It is difficult to establish if Samtex Fashions improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to its liabilities exceeding its assets.
We assess
Samtex Fashions'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.
Samtex Fashions
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
(assets)
and owe
(liabilities).
The boxes below represent the relative size of what makes up
Samtex Fashions's finances.
The net worth of a company is the difference between its assets and liabilities.
Net Worth
Samtex Fashions's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Samtex Fashions's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of
Samtex Fashions'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.
Samtex Fashions has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
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.
All data from Samtex Fashions Company Filings, last reported 10 months ago.
BSE:521206 Past Debt and Equity Data
Date (Data in INR Millions)
Total Equity
Total Debt
Cash & Short Term Investments
2018-03-31
-1,912.42
5,899.34
15.09
2017-03-31
-1,335.16
5,935.55
456.51
2016-03-31
1,974.80
6,773.71
183.94
2015-12-31
2015-09-30
2015-06-30
1,907.14
7,125.29
116.41
2015-03-31
1,907.14
7,125.29
116.41
2014-12-31
2014-09-30
2014-06-30
2014-03-31
1,655.86
7,103.71
125.01
2013-12-31
2013-06-30
2013-03-31
1,396.24
5,278.18
72.18
2012-12-31
2012-06-30
2012-03-31
1,126.26
3,823.44
47.84
Samtex Fashions has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
Irrelevant to check if Samtex Fashions's debt level has increased considering it has negative shareholder equity.
CASH RUNWAY ANALYSIS
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Whilst loss making Samtex Fashions has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
Whilst loss making Samtex Fashions has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 6.6% per year.
We assess
Samtex Fashions'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)
Samtex Fashions
has a total score of
3/6, 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
Samtex Fashions
dividends.
If you bought
₹2,000 of
Samtex Fashions
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 Samtex Fashions's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
Unable to evaluate Samtex Fashions'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.
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
AtulMittal
COMPENSATION
₹2,216,000
AGE
41
CEO Bio
Mr. Atul Mittal has been Managing Director at Samtex Fashions Limited since September 1, 2016 and has been its Chief Financial Officer of Samtex Fashions Limited since February 14, 2015. Mr. Mittal has managerial experience of about 10 years in Samtex Fashions Limited. He served as a Joint Managing Director of Samtex Fashions Limited from September 1, 2010 to August 31, 2016 and served as its Director of Works since August 2008. He serves as Chairman at Samtex Fashions Limited and has been its Whole Time Director since July 29, 2002. He serves as a Director at ARLIN Foods Limited and ARLIN Exim Limited. Mr. Mittal is a Commerce Graduate.
CEO Compensation
Atul's compensation has been consistent with company performance over the past year.
Atul's remuneration is higher than average for companies of similar size in India.
Management Team
Atul Mittal
TITLE
Chairman
COMPENSATION
₹2M
AGE
41
Kamini Gupta
TITLE
Company Secretary
AGE
53
Vijender Rai
TITLE
Manager of Accounts
AGE
32
Sharad Verma
TITLE
Senior Manager of Human Resources
AGE
48
Naveen Mittal
TITLE
Managing Director of SSA International Ltd and Director of SSA International Ltd
Board of Directors Tenure
Average tenure and age of the
Samtex Fashions
board of directors in years:
10.1
Average Tenure
64
Average Age
The average tenure for the Samtex Fashions board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors
Atul Mittal
TITLE
Chairman
COMPENSATION
₹2M
AGE
41
Naveen Mittal
TITLE
Managing Director of SSA International Ltd and Director of SSA International Ltd
Surendra Gupta
TITLE
Independent Non Executive Director
AGE
69
TENURE
16.6 yrs
Raman Ohri
TITLE
Independent Non Executive Director
AGE
64
TENURE
10.1 yrs
Arti srivastava
TITLE
Additional Non Executive Independent women Director
Samtex Fashions Limited manufactures and sells readymade garments in India. Its products include jackets, ladies and men trousers, and shorts and skirts. The company also exports its products to stores in the United States and Europe. Samtex Fashions Limited was founded in 1993 and is based in New Delhi, India.
Samtex Fashions Limited
DLF Prime Tower,
F-Block,
New Delhi,
Delhi, 110020,
India
Listings
Exchange Symbol
Ticker Symbol
Security
Exchange
Country
Currency
Listed on
BSE
521206
Equity Shares
Mumbai Stock Exchange
IN
INR
11. Jun 2002
Number of employees
Current staff
0
Samtex Fashions
employees.
Industry
Apparel, Accessories and Luxury Goods
Consumer Durables
Company Analysis and Financial Data Status
Area
Date (UTC time)
Company Analysis updated:
2019/02/19 12:46
End of day share price update:
2019/02/19 00:00
Last earnings filing:
2018/08/28
Last earnings reported:
2018/03/31
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.