Discounted Cash Flow Calculation for BSE:540252 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:540252 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.
Veeram Ornaments's share price is below the future cash flow value, and at a moderate discount (> 20%).
Veeram Ornaments'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
Veeram Ornaments's earnings available for a low price, and how does
this compare to other companies in the same industry?
Veeram Ornaments's earnings are expected to grow by 15.3% yearly, however this is not considered high growth (20% yearly).
Unable to determine if Veeram Ornaments 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.
Veeram Ornaments'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
2/6, 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
Veeram Ornaments's finances.
The net worth of a company is the difference between its assets and liabilities.
Veeram Ornaments is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Veeram Ornaments has no long term commitments.
This treemap shows a more detailed breakdown of
Veeram Ornaments'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.
Veeram Ornaments has no debt, it does not need to be covered by short term assets.
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. Mahendrabhai Ramniklal Shah serves as Executive Director of Darshan Orna Limited. He served as Managing Director at Darshan Orna Limited. He serves as Managing Director and Director of Veeram Ornaments Limited and has been its Compliance Officer since June 5, 2017. Mr. Shah served as Chairman at Darshan Orna Limited and served as its Managing Director since May 20, 2015 until September 1, 2017. Mr. Shah has more than 25 years of experience in the functioning and management of Jewellery Trade. He started his career in 1985 with Gold and Silver Jewellery business and after few years with his entrepreneurial skills established his own Proprietorship Firm named Darshan Ornaments at Manek Chowk area which is known as hub of bullion market in Ahmedabad. He gradually, as the business expanded, in 2011 he incorporated a company M/s. Darshan Orna Private Limited. He has been a Director of Darshan Orna Limited since January 20, 2011.
Insufficient data for Mahendrabhai to compare compensation growth.
Mahendrabhai's remuneration is lower than average for companies of similar size in India.
MD, Compliance Officer & Director
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Veeram Ornaments board of directors is less than 3 years, this suggests a new board.
Board of Directors
MD, Compliance Officer & Director
Who owns this company?
Recent Insider Trading
More shares have been bought than sold by Veeram Ornaments insiders in the past 3 months.
Veeram Ornaments Limited engages in the design, manufacture, and wholesale of jewellery and ornaments. It provides gold and silver jewellery products, including rings, bracelets, necklaces, ear chains, earrings, pendants, chains, mangalsutras, zudas, toe rings, anklets, bangles, etc. with or without studded precious and semi-precious stones. Veeram Ornaments Limited was incorporated in 2011 and is based in Ahmedabad, India.
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