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
Mohota Industries
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:530047 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
Mohota Industries
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:530047 DCF 1st Stage: Next 5 year cash flow forecast
= Present value of next 5 years cash flows +
Terminal Value
=
₹337.85 +
₹789.06
₹1,126.91
Equity Value per Share (INR)
= Total value / Shares Outstanding
= ₹1,126.91 /
14.71
₹76.62
BSE:530047 Discount to Share Price
Calculation
Result
Value per share (INR)
From above.
₹76.62
Current discount
Discount to share price of
₹39.00
= -1 x (₹39.00 - ₹76.62) / ₹76.62
49.1%
Learn more about our DCF calculations in Simply Wall St’s
analysis model
.
Current Discount
Amount off the current price
Mohota Industries
is available for.
49%
Share price is
₹39
vs Future cash flow value of
₹76.62
Current Discount Checks
For
Mohota Industries
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Mohota Industries's share price is below the future cash flow value, and at a moderate discount (> 20%).
Mohota 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
Mohota Industries's
earnings,
growth
and
assets
is considered below, and whether this is a fair price.
Price based on past earnings
Are
Mohota Industries's earnings available for a low price, and how does
this compare to other companies in the same industry?
No analysts cover Mohota Industries, 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!
29.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is
Mohota Industries
expected to grow at an
attractive
rate?
Mohota Industries's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
Mohota Industries's earnings growth is expected to exceed the India market average.
Unable to compare Mohota Industries's revenue growth to the India market average as no estimate data is available.
Mohota Industries's earnings are expected to grow significantly at over 20% yearly.
Unable to determine if Mohota 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.
All data from Mohota Industries Company Filings, last reported 1 month ago, and in
Trailing twelve months (TTM)
annual period rather than quarterly.
BSE:530047 Past Financials Data
Date (Data in INR Millions)
EPS *
2018-12-31
2.09
2018-09-30
3.06
2018-06-30
3.80
2018-03-31
2.56
2017-12-31
4.76
2017-09-30
2017-06-30
2.16
2017-03-31
2.00
2016-12-31
1.45
2016-09-30
1.77
2016-06-30
1.91
2016-03-31
2.06
*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 Mohota Industries will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
We assess
Mohota Industries'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.
Mohota Industries
has a total score of
3/6, 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
Mohota Industries'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.
Mohota Industries has delivered over 20% year on year earnings growth in the past 5 years.
Mohota Industries's 1-year earnings growth is negative, it can't be compared to the 5-year average.
Mohota Industries's 1-year earnings growth is negative, it can't be compared to the IN Luxury industry average.
Earnings and Revenue History
Mohota Industries'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 Mohota Industries Company Filings, last reported 1 month ago, and in
Trailing twelve months (TTM)
annual period rather than quarterly.
BSE:530047 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
3,107.00
30.77
197.12
2018-09-30
3,419.17
44.78
198.05
2018-06-30
3,246.81
55.44
193.21
2018-03-31
3,571.75
37.35
194.47
2017-12-31
3,784.05
67.53
199.59
2017-09-30
3,405.80
50.67
206.34
2017-06-30
3,565.86
31.39
213.72
2017-03-31
3,318.19
29.19
215.69
2016-12-31
2,904.62
21.01
211.62
2016-09-30
3,092.42
25.81
210.92
2016-06-30
3,220.10
30.70
207.70
2016-03-31
3,291.54
30.03
209.72
2015-12-31
3,757.13
27.65
257.86
2015-09-30
3,750.03
29.95
257.96
2015-06-30
3,581.90
27.80
195.10
2015-03-31
3,186.23
18.65
197.57
2014-12-31
2,525.21
12.06
267.83
2014-09-30
2,481.91
9.46
267.13
2014-06-30
2,540.00
11.50
199.70
2014-03-31
2,827.41
11.56
269.05
2013-12-31
3,084.30
12.96
264.31
2013-09-30
3,067.90
12.66
262.31
2013-06-30
2,831.70
7.76
257.01
2013-03-31
2,516.20
1.26
252.71
2012-12-31
2,158.51
12.33
266.22
2012-09-30
1,979.21
-46.37
262.92
2012-06-30
2,120.60
-39.20
177.90
2012-03-31
2,270.61
-27.17
258.72
*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.
Mohota Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
Mohota Industries used its assets less efficiently than the IN Luxury industry average last year based on Return on Assets.
Mohota Industries's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
We assess
Mohota 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
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.
Mohota Industries
has a total score of
1/6, 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
Mohota Industries's finances.
The net worth of a company is the difference between its assets and liabilities.
Net Worth
Mohota Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Mohota Industries's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of
Mohota Industries'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 1.8x 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
Mohota Industries'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)
Mohota Industries
has a total score of
5/6, 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
0.26%
Current annual income from
Mohota Industries
dividends.
If you bought
₹2,000 of
Mohota Industries
shares you are expected to receive
₹5
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?
Mohota Industries's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.56%).
Mohota Industries's dividend is below the markets top 25% of dividend payers in India (2.08%).
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
Mohota Industries'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
Mohota Industries
afford to pay it from its earnings today and in 3 years (Payout ratio less than
90%)? (2 checks)
Mohota Industries
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
Vinod KumarMohota
COMPENSATION
₹1,402,000
AGE
57
CEO Bio
Mr. VinodKumar Ranchhoddas Mohota has been Chairman of Mohota Industries Limited since November 14, 2018. Mr. Mohota serves as the Managing Director and Executive Director of Rai Saheb Rekhchand Mohota Spg & Wvg Mills Limited. Mr. Mohota has expertise in Administration, Finance, Purchases. He has Directorships at Priya Viniyog Pvt. Ltd and Kolmeshwar Horticulture 8 Agriculture Farms Pvt. Limited. He studied B.Com.
CEO Compensation
Vinod Kumar's compensation has been consistent with company performance over the past year.
Vinod Kumar's remuneration is about average for companies of similar size in India.
Management Team
Vinod Kumar Mohota
TITLE
Chairman
COMPENSATION
₹1M
AGE
57
Mukesh Mahajan
TITLE
CFO & GM of Finance
COMPENSATION
₹907K
AGE
50
Sachin Kanojiya
TITLE
Compliance Officer & Company Secretary
COMPENSATION
₹415K
TENURE
3.3 yrs
Shantilal Singhvi
TITLE
Whole-Time Director
COMPENSATION
₹516K
AGE
81
Vinay Mohota
TITLE
Whole-Time Director
COMPENSATION
₹1M
AGE
51
Pankaj Tibrewal
TITLE
Vice President of Export
AGE
49
Mahendrakumar Mohota
TITLE
Vice President of Corporate
AGE
68
Ramanuj Yadav
TITLE
President
COMPENSATION
₹1M
AGE
69
Santosh Rajpuria
TITLE
Executive Director & Senior Manager of Secretarial
Sukesh Agarwal
TITLE
Senior Vice President of Works
AGE
56
Board of Directors Tenure
Average tenure and age of the
Mohota Industries
board of directors in years:
10.5
Average Tenure
57
Average Age
The average tenure for the Mohota Industries board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors
Vinod Kumar Mohota
TITLE
Chairman
COMPENSATION
₹1M
AGE
57
TENURE
0.3 yrs
Shantilal Singhvi
TITLE
Whole-Time Director
COMPENSATION
₹516K
AGE
81
TENURE
12.8 yrs
Vinay Mohota
TITLE
Whole-Time Director
COMPENSATION
₹1M
AGE
51
TENURE
12.8 yrs
Santosh Rajpuria
TITLE
Executive Director & Senior Manager of Secretarial
Mohota Industries Limited manufactures and sells yarn and fabrics primarily in India. The company offers various synthetic/cotton/polycotton ring spun yarns; and cotton, single and double dyed, cross dyed, and grey/RFD, as well as plain, twill, and satin bleached and dyed fabrics. It also exports its products. The company was formerly known as The Rai Saheb Rekhchand Mohota Spinning & Weaving Mills Ltd. and changed its name to Mohota Industries Limited in November 2017. Mohota Industries Limited was founded in 1898 and is headquartered in Hinganghat, India.
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.