Discounted Cash Flow Calculation for NSEI:ALOKTEXT 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.
NSEI:ALOKTEXT 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.
Alok Industries's share price is below the future cash flow value, and at a moderate discount (> 20%).
Alok 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
Alok Industries'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 Alok Industries 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 Alok Industries's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Alok Industries's earnings growth to the India market average as no estimate data is available.
Unable to compare Alok Industries's revenue growth to the India market average as no estimate data is available.
Unable to determine if Alok Industries is high growth as no earnings estimate data is available.
Unable to determine if Alok 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.
Alok 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.
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. Surendra Bhagirathmal Jiwrajka, B.Com., has been the Managing Director of Grabal Alok Impex Ltd since April 1, 2010. Mr. Jiwrajka has been the Joint Managing Director of Alok Industries Ltd since March 2008 and has been its Chief Executive Officer of Polyester since July 17, 2017. Mr. Jiwrajka served as Vice President of Alok Industries Limited. Mr. Jiwrajka is an Profession Industrialist and is Expertise in specific functional areas Production and Marketing of Yarn and Knitted Fabrics, Exports and Project Management. Mr. Jiwrajka has been an Executive Director of Alok Industries Ltd. since March 12, 1986. He has been an Executive Director of Grabal Alok Impex Ltd. since April 1, 2010. and Alok Infrastructure Pvt Ltd. He serves as Chairman and Member of the Committee, Member of Executive Committee and Share of Board of Directors of Alok Textile Industries Limited. He serves as director of Alok Knits Exports Limited, Aurangabad Textiles & Apparel Parks limited, Alspun infrastructure limited, Alok Apparels Private Limited, Alok Clothing Private Limited, Alok Retail (India) limited, Alok Realtors private Limited, Alok Land Holdings Private Limited, Alok Aurangabad infratex Private Limited, Alok New City Infratex Private Limited, Alok Industries International Limited and Grabal Alok International limited. He also serves as Director of Alok Denims (India) Private Limited, Alok Finance Private Limited, Jiwrajka Associates Private Limited, Jiwrajka Investment Private Limited, Niraj Realtors and Shares Private Limited, Nirvan Holdings Private Limited, Ashford Infotech Private Limited, Gogri Properties Private Limited, Alok HB Properties Private Limited and Alok HB Hotels Private Limited. Mr. Jiwrajka's schooling and college were completed in Mumbai. Immediately after his graduation he joined the family partnership firm for trading in yarn and thereafter co-founded Alok Industries Limited in 1986.
Surendra's compensation has been consistent with company performance over the past year.
Surendra'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 Alok Industries management team is over 5 years, this suggests they are a seasoned and experienced team.
MD, CEO of Apparel Fabrics & Executive Director
Chief Financial Officer
Compliance Officer & Company Secretary
CEO of Home Textiles & Executive Director
CEO of Processing & Executive Director
CEO of Weaving & Executive Director
Chief Operating Officer
Joint Chief Operating Officer
Joint Chief Operating Officer
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Alok Industries board of directors is less than 3 years, this suggests a new board.
Who Are The Top Investors In Alok Industries Limited (NSE:ALOKTEXT)?
In this article, I'm going to take a look at Alok Industries Limited’s (NSE:ALOKTEXT) latest ownership structure, a non-fundamental factor which is important, but remains a less discussed subject among investors. … When it comes to ownership structure of a company, the impact has been observed in both the long-and short-term performance of shares. … The implications of these institutions’ actions can either benefit or hinder individual investors, so it is important to understand the ownership composition of your stock investment.
Is Alok Industries Limited's (NSE:ALOKTEXT) Balance Sheet A Threat To Its Future?
While small-cap stocks, such as Alok Industries Limited (NSE:ALOKTEXT) with its market cap of ₹4.64b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn.
Breaking Down Alok Industries Limited's (NSE:ALOKTEXT) Ownership Structure
In this article, I'm going to take a look at Alok Industries Limited’s (NSEI:ALOKTEXT) latest ownership structure, a non-fundamental factor which is important, but remains a less discussed subject among investors. … Insider Ownership Insiders form another group of important ownership types as they manage the company's operations and decide the best use of capital. … With 8.45% ownership, ALOKTEXT insiders is an important ownership type.
Where Alok Industries Limited (NSE:ALOKTEXT) Stands In Earnings Growth Against Its Industry
Measuring Alok Industries Limited's (NSEI:ALOKTEXT) track record of past performance is a valuable exercise for investors. … Check out our latest analysis for Alok Industries How ALOKTEXT fared against its long-term earnings performance and its industry I prefer to use data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. … For Alok Industries, its latest earnings (trailing twelve month) is -₹30.83B, which, relative to the prior year's figure, has become less negative.
How Does Investing In Alok Industries Limited (NSE:ALOKTEXT) Impact Your Portfolio?
Generally, an investor should consider two types of risk that impact the market value of ALOKTEXT. … A popular measure of market risk for a stock is its beta, and the market as a whole represents a beta value of one. … Based on this beta value, ALOKTEXT may be a stock for investors with a portfolio mainly made up of low-beta stocks.
Is Alok Industries Limited (NSE:ALOKTEXT) A Financially Sound Company?
Moving onto cash from operations, its small level of operating cash flow means calculating cash-to-debt wouldn't be too useful, though these low levels of cash means that operational efficiency is worth a look. … Running high debt, while not yet making money, can be risky in unexpected downturns as liquidity may dry up, making it hard to operate.Next Steps: ALOKTEXT’s high debt level indicates room for improvement. … Furthermore, its cash flow coverage of less than a quarter of debt means that operating efficiency could also be an issue.
Does Alok Industries Limited (NSE:ALOKTEXT) Have Enough Money Left To Grow?
The measure of how fast Alok Industries goes through its cash reserves over time is called the cash burn rate. … NSEI:ALOKTEXT Income Statement Feb 28th 18 When will Alok Industries need to raise more cash? … Although this is a relatively simplistic calculation, and Alok Industries may continue to reduce its costs further or raise debt capital instead of coming to equity markets, the analysis still helps us understand how sustainable the Alok Industries’s operation is, and when things may have to change.
Future Outlook Of Consumer Industry And Alok Industries Limited (NSE:ALOKTEXT)
Alok Industries Limited (NSEI:ALOKTEXT), a ₹5.11B small-cap, operates in the consumer discretionary industry, whose sales are driven primarily by consumer sentiment, which is closely linked to employment and wages. … In this article, I’ll take you through the sector growth expectations, as well as evaluate whether Alok Industries is lagging or leading its competitors in the industry. … Check out our latest analysis for Alok Industries What’s the catalyst for Alok Industries's sector growth?
Did Alok Industries Limited's (NSE:ALOKTEXT) Recent Earnings Growth Beat The Trend?
Today I will assess ALOKTEXT's recent performance announced on 31 March 2017 and weigh these figures against its long-term trend and industry movements. … Check out our latest analysis for Alok Industries Did ALOKTEXT beat its long-term earnings growth trend and its industry? … This suggests that though Alok Industries is currently running a loss, any recent headwind the industry is facing, the impact on Alok Industries has been softer relative to its peers.What does this mean?
Is Alok Industries Limited (NSE:ALOKTEXT) A Financially Sound Company?
ALOKTEXT has built up its total debt levels in the last twelve months, from ₹220,386.5M to ₹255,058.0M – this includes both the current and long-term debt. … With a high level of debt on its balance sheet, ALOKTEXT could still be in a financially strong position if its cash flow also stacked up. … ALOKTEXT's high debt levels along with poor cash coverage as well as low liquidity coverage of near-term commitments may not build the strongest investment case.
Alok Industries Limited manufactures and sells textile products in India and internationally. The company provides accessories, inlcuding shopping bags and handkerchiefs; apparel fabrics, such as woven and knitted products; corrugated pallets; cotton and blended yarns; and Schiffli and multi-head computerized embroidery on woven, non-woven, and knitted garments, as well as laces. It also offers woven and knitted garments for men, women, and children comprising casual wear, sportswear, foundation wear, sleep wear, workwear and industrial garments, and uniforms. In addition, the company provides home textiles, such as bed linen and terry towel products; polyester texturized, partially oriented, and fully drawn yarns; and technical textiles/work wear fabric products. The company also exports its products to approximately 90 countries, including the United States, Europe, Latin America, Asia, and Africa. Alok Industries Limited was founded in 1986 and is based in Mumbai, India.
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