Discounted Cash Flow Calculation for BSE:532831 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:532831 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.
Abhishek's share price is below the future cash flow value, and at a moderate discount (> 20%).
Abhishek'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
Abhishek'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 Abhishek 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 Abhishek's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Abhishek's earnings growth to the India market average as no estimate data is available.
Unable to compare Abhishek's revenue growth to the India market average as no estimate data is available.
Unable to determine if Abhishek is high growth as no earnings estimate data is available.
Unable to determine if Abhishek 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.
Abhishek'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.
TENURE AS CEO
Mr. Anasaheb Ramchandra Mohite has been Managing Director of Abhishek Corporation Ltd.(Also known as Abhishek Mills Ltd.) since March 30, 2004. Mr. Mohite has been the Chairman and an Executive Director of Abhishek Corporation Ltd. since May 7, 2010. He is responsible for building yarn spinning plant with the latest machineries and technology at Kolhapur. He is in charge of over all Management of Abhishek Corporation Ltd. and is involved in setting up a plant for weaving and processing, which has huge potential in the export market. He provides strategic direction in selection of technology and machineries in setting up new manufacturing facilities, improvement of production processes and new ventures. Mr. Mohite served as Main Architect of group’s foray in the textile industry. He was one of the promoters of R. M. Mohite Textiles Limited. His continual marketing thrust for gaining niche in export market lead to the recognition of the unit as export oriented undertaking. Over the years, he has developed expertise in spinning technology. In the year 1993, he started working on a separate textile venture by incorporating Abhishek Corporation Ltd. He has over 27 years of experience in construction industry and around 15 years in textile industry. Mr. Mohite has operational experience of implementing various construction projects in the state of Maharastra mainly irrigation projects and medium sized earthen dams. He served on board of R. M. Mohite Textiles Limited since inception till his disassociation in January 1998. Mr. Mohite has done B.E. in civil engineering from K.L.E.College, Belgaum, Karnataka.
Insufficient data for Anasaheb to compare compensation growth.
Anasaheb's remuneration is lower 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 Abhishek management team is over 5 years, this suggests they are a seasoned and experienced team.
Chief Financial Officer
Head of Technical
Company Secretary & Compliance Officer
Head of Human Resource Department
Chief Engineer of Construction Division
Chief Engineer of Electrical & Engineering
Head of Utility Department
Head of Maintenance Department
Head of Production Department
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Abhishek board of directors is about average.
Abhishek Corporation Limited engages in spinning, weaving, and finishing textiles in India. It produces cotton yarn and dyed yarn shirting fabrics. The company was formerly known as Abhishek Mills Limited. Abhishek Corporation Limited was incorporated in 1993 and is based in Kolhapur, India.
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