Discounted Cash Flow Calculation for BSE:531323 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:531323 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.
Jayatma Industries's share price is below the future cash flow value, and at a moderate discount (> 20%).
Jayatma Industries's share price is below the future cash flow value, but not 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
Jayatma Industries's earnings available for a low price, and how does
this compare to other companies in the same industry?
Jayatma Industries's earnings are expected to grow significantly at over 20% yearly.
Unable to determine if Jayatma 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.
Jayatma 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
4/6, 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
Jayatma Industries's finances.
The net worth of a company is the difference between its assets and liabilities.
Jayatma Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Jayatma Industries's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Jayatma 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
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 1.6x 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. Nirav Kalyanbhai Shah has been the Chief Executive Officer of Santaram Spinners Limited since August 28, 2017. Mr. Shah served as the Joint Managing Director of Santaram Spinners Ltd. until August 28, 2017 and has been its Director since January 1, 2011. He has Management Experience of 20 years. He holds Bachelor Degree in commerce and has done his Post Graduate credit course in lnternational Business Strategy and Corporate Finance from London School of Economics.
Insufficient data for Nirav to compare compensation growth.
Nirav's remuneration is lower than average for companies of similar size in India.
Management Team Tenure
Average tenure of the
management team in years:
The average tenure for the Jayatma Industries management team is less than 2 years, this suggests a new team.
Chairman & MD
CEO & Non Independent Director
Company Secretary & Compliance Officer
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Jayatma Industries board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Jayatma Industries Limited engages in the cotton ginning business in India. It manufactures and trades in cotton–kapas, ginning cotton bales, and raw oil and its agro by-products. The company also engages in the wholesale of household linen, articles of clothing, floor coverings, tapestry, and sports clothes, as well as yarns. In addition, it exports its products. The company was formerly known as Santaram Spinners Limited and changed its name to Jayatma Industries Limited in November 2018. Jayatma Industries Limited was founded in 1983 and is based in Ahmedabad, India.
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