Discounted Cash Flow Calculation for BSE:540148 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:540148 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.
Bindal Exports's share price is below the future cash flow value, and at a moderate discount (> 20%).
Bindal Exports'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
Bindal Exports's earnings available for a low price, and how does
this compare to other companies in the same industry?
Bindal Exports's earnings are expected to grow significantly at over 20% yearly.
Unable to determine if Bindal Exports 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.
Bindal Exports'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. Ravindrakumar Kanhaiyalal Arya has been re-appointed as Managing Director of Bindal Exports Limited since September 1, 2016 and previously since August 30, 2012, also has been its Chairman since August 30, 2016 and Director since May 22, 2007. Mr. Arya serves as a Director of Bindal Exim Private Limited, Bindal Silk Mills Private Limited, Jaybharat Filaments Private Limited, Laurel Apparels Private Limited, Jaybharart Finstock Private Limited, J B Infomatics Private Limited, Kadodara Power Private Limited, Vichaar Television Network Limited and Surat Integrated Textile Part Private Limited.
Ravindrakumar's compensation has been consistent with company performance over the past year.
Ravindrakumar's remuneration is lower than average for companies of similar size in India.
Chairman & MD
Chief Financial Officer
Company Secretary & Compliance officer
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Bindal Exports board of directors is less than 3 years, this suggests a new board.
Bindal Exports Limited manufactures and supplies textiles, garments, and made ups in India. The company offers various blends of fabrics, including polyester, rayon, cotton, satin, chiffon, knitted, viscose, georgette, brasso, lycra, crepe, burnout, textured dyed, voiles, bottom weight, digital print, etc. that are used by garment houses for manufacturing of garments in the apparel industry, as well as bathing and furnishing industry, etc. It also trades in grey cloth and fabrics; and provides scarves and stoles. In addition, the company undertakes job work of fabrics comprising embroidery work, Tikli work, glitter work, etc. for sarees and nightwear. It sells its products to wholesalers and retailers, as well as through online marketplace. The company also exports its products in Germany, France, Spain, the United Kingdom, Egypt, Jordan, Syria, Mauritius, the United Arab Emirates, Saudi Arabia, Oman, Yemen, Kuwait, Singapore, Malaysia, and Indonesia. It sells its products under the Serein label primarily for women. Bindal Exports Limited was founded in 1997 and is based in Surat, India.
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