Discounted Cash Flow Calculation for BSE:532140 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 try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
BSE:532140 DCF 1st Stage: Next 10 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.
Mohite Industries's share price is below the future cash flow value, and at a moderate discount (> 20%).
Mohite 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
Mohite Industries's earnings available for a low price, and how does
this compare to other companies in the same industry?
Mohite Industries's earnings are expected to grow significantly at over 20% yearly.
Unable to determine if Mohite 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.
Mohite 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.
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
Mohite Industries's finances.
The net worth of a company is the difference between its assets and liabilities.
Mohite Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Mohite Industries's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Mohite 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 1.1x 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.
Mr. Abhay Shamrao Bhide, B. Tech serves as the Chief Executive Officer at Mohite Industries Limited and has been its Executive Director since September 29, 2012. Mr. Bhide has more than 18 years experience in Spinning Industry especially cotton. Besides this he is well versed with errection and implementation of Spinning Projects. He has got training at Ritter in Europe and at USA for cotton.
Abhay's compensation has increased in line with Mohite Industries recently becoming profitable.
Abhay'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 Mohite Industries management team is over 5 years, this suggests they are a seasoned and experienced team.
Chairman & MD
CEO & Executive Director
Joint MD & Director
Compliance Officer & Company Secretary
Chief Financial Offficer
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Mohite Industries board of directors is about average.
Mohite Industries Limited manufactures and sells cotton and slub yarn, and gray knitted fabrics in India. The company also operates a hydro power project with a capacity of 10 MW located in Fegivade village; and 3.5 MW hydro power project located in Ambai, Maharashtra. It also exports its products. The company was formerly known as R M Mohite Industries Limited and changed its name to Mohite Industries Limited in March 2015. Mohite Industries Limited was founded in 1966 and is based in Kolhapur, India.
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