Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
It is not possible to calculate the future cash flow value for
Aarvee Denims and Exports. This is due to cash flow or dividend data being
unavailable. The share price is
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
Aarvee Denims and Exports's
is considered below, and whether this is a fair price.
Price based on past earnings
Aarvee Denims and Exports's earnings available for a low price, and how does
this compare to other companies in the same industry?
Aarvee Denims and Exports's earnings are expected to grow significantly at over 20% yearly.
Unable to determine if Aarvee Denims and 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.
Aarvee Denims and 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.
Aarvee Denims and Exports
has a total score of
3/6, 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
Aarvee Denims and Exports's finances.
The net worth of a company is the difference between its assets and liabilities.
Aarvee Denims and Exports is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Aarvee Denims and Exports's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Aarvee Denims and Exports'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 1.4x 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.
Is Aarvee Denims and Exports Limited (NSE:AARVEEDEN) Creating Value For Shareholders?
In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … What is Return On Capital Employed (ROCE)? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.
What Kind Of Investor Owns Most Of Aarvee Denims and Exports Limited (NSE:AARVEEDEN)?
The big shareholder groups in Aarvee Denims and Exports Limited (NSE:AARVEEDEN) have power over the company. … Aarvee Denims and Exports is a smaller company with a market capitalization of ₹667m, so it may still be flying under the radar of many institutional investors. … Check out our latest analysis for Aarvee Denims and Exports
Are Aarvee Denims and Exports Limited's (NSE:AARVEEDEN) Interest Costs Too High?
Investors are always looking for growth in small-cap stocks like Aarvee Denims and Exports Limited (NSE:AARVEEDEN), with a market cap of ₹781.21m. … However, an important fact which most ignore is: how financially healthy is the business? … I believe these basic checks tell most of the story you need to know.
Why Aarvee Denims and Exports Limited (NSE:AARVEEDEN) Is An Attractive Investment
Aarvee Denims and Exports Limited (NSE:AARVEEDEN) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects. … report on Aarvee Denims and Exports here
Should You Worry About Aarvee Denims and Exports Limited's (NSE:AARVEEDEN) CEO Pay?
Performance can be measured based on factors such as earnings and total shareholder return (TSR). … I believe earnings is a cleaner proxy, since many factors can impact share price, and therefore, TSR. … Based on AARVEEDEN's size and performance, in terms of market cap and earnings, it seems that Arora is paid on a similar level to other comparable BSE and NSEI CEOs of profitable small-caps.
Aarvee Denims and Exports Limited (NSE:AARVEEDEN): Time For A Financial Health Check
Additionally, AARVEEDEN has produced cash from operations of ₹966.01M in the last twelve months, resulting in an operating cash to total debt ratio of 27.18%, meaning that AARVEEDEN’s current level of operating cash is high enough to cover debt. … Looking at AARVEEDEN’s most recent ₹4.74B liabilities, it appears that the company has not maintained a sufficient level of current assets to meet its obligations, with the current ratio last standing at 0.92x, which is below the prudent industry ratio of 3x. … In AARVEEDEN's case, the ratio of 1.3x suggests that interest is not strongly covered, which means that lenders may be more reluctant to lend out more funding as AARVEEDEN’s low interest coverage already puts the company at higher risk of default.Next Steps: Although AARVEEDEN’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet debt obligations which means its debt is being efficiently utilised.
Will Aarvee Denims and Exports Limited (NSE:AARVEEDEN) Continue To Underperform Its Industry?
Aarvee Denims and Exports Limited (NSEI:AARVEEDEN) generated a below-average return on equity of 1.14% in the past 12 months, while its industry returned 8.38%. … See our latest analysis for Aarvee Denims and Exports What you must know about ROE Return on Equity (ROE) is a measure of Aarvee Denims and Exports’s profit relative to its shareholders’ equity. … For now, let’s just look at the cost of equity number for Aarvee Denims and Exports, which is 23.00%.
Want To Invest In Aarvee Denims and Exports Limited (NSE:AARVEEDEN)? Here's How It Performed Lately
Assessing Aarvee Denims and Exports Limited's (NSEI:AARVEEDEN) performance as a company requires looking at more than just a years' earnings data. … Below, I will run you through a simple sense check to build perspective on how Aarvee Denims and Exports is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its luxury industry peers. … For Aarvee Denims and Exports, its latest earnings (trailing twelve month) is IN₨30.55M, which, in comparison to the previous year's level, has dropped by a non-trivial -47.70%.
Is Aarvee Denims and Exports Limited's (NSE:AARVEEDEN) PE Ratio A Signal To Sell For Investors?
Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for AARVEEDEN Price per share = ₹50.15 Earnings per share = ₹1.497 ∴ Price-Earnings Ratio = ₹50.15 ÷ ₹1.497 = 33.5x The P/E ratio itself doesn’t tell you a lot; however, it becomes very insightful when you compare it with other similar companies. … For example, if you accidentally compared lower growth firms with AARVEEDEN, then AARVEEDEN’s P/E would naturally be higher since investors would reward AARVEEDEN’s higher growth with a higher price. … Alternatively, if you inadvertently compared riskier firms with AARVEEDEN, AARVEEDEN’s P/E would again be higher since investors would reward AARVEEDEN’s lower risk with a higher price as well.
Aarvee Denims and Exports Limited manufactures and sells fabrics in India and internationally. It operates through Textile and Windmill segments. The company offers cotton fibers; cotton and texturized yarns; ring, shirting, printed, stretch, satin, flat finish special blend, and LYCRA denims; and non-denim fabrics. It is also involved in the wind power generation activities. The company was founded in 1988 and is headquartered in Ahmedabad, India.
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.