Discounted Cash Flow Calculation for NSEI:GOKEX 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.
NSEI:GOKEX DCF 1st Stage: Next 10 year cash flow forecast
The current share price of
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
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
Gokaldas Exports's earnings available for a low price, and how does
this compare to other companies in the same industry?
Gokaldas Exports's earnings are expected to grow significantly at over 20% yearly.
Unable to determine if Gokaldas 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.
Gokaldas 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.
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
Gokaldas Exports's finances.
The net worth of a company is the difference between its assets and liabilities.
Gokaldas Exports's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Gokaldas Exports's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Gokaldas 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 1.1x 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.
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. Sivaramakrishnan Vilayur Ganapathi, also known as Siva, has been the Chief Executive Officer and Managing Director of Gokaldas Exports Limited since October 03, 2017. Mr. Ganapathi oversees the positioning and promotion of its suite of BPO solutions, as well as the revenue-generating and client-management activities of the sales team. Mr. Ganapathi served as the Chief Sales Officer Chief Sales & Marketing Officer, Head of Corporate Strategy and Development and Unit President at Aditya Birla Minacs Worldwide Ltd. Mr. Ganapathi served as Chief Sales & Marketing Officer at Aditya Birla Minacs. He served as Joint President and Head for Corporate Strategy and Development of TransWorks Information Services Ltd. Mr. Ganapathi heads business development and strategy for TransWorks. He has been with the Aditya Birla Group for over 8 years, looking at strategic growth initiatives for the Group as a whole across businesses as diverse as textiles, metals and cement, including international growth opportunities and M&As. He was instrumental in planning the Group's entry into BPO business and has been associated with TransWorks since then in a strategic capacity. He served as an investment banker of Merrill Lynch. He has been a Director of Gokaldas Exports Limited since October 03, 2017. He received a degree in mechanical engineering from the National Institute of Technology in India and an MBA from the Indian Institute of Management, Bangalore. He also holds PG Diploma in Management from IIM, Bangalore.
Insufficient data for Siva to compare compensation growth.
Siva's remuneration is lower than average for companies of similar size in India.
CEO, MD & Additional Director
Chief Financial Officer
Additional Executive Director
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Gokaldas Exports board of directors is less than 3 years, this suggests a new board.
Is Gokaldas Exports Limited (NSE:GOKEX) A Financially Sound Company?
While small-cap stocks, such as Gokaldas Exports Limited (NSE:GOKEX) with its market cap of ₹3.43b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn.
Did Gokaldas Exports Limited's (NSE:GOKEX) Earnings Growth Outperform The Industry?
Assessing Gokaldas Exports Limited's (NSEI:GOKEX) past track record of performance is an insightful exercise for investors. … View our latest analysis for Gokaldas Exports Were GOKEX's earnings stronger than its past performances and the industry? … NSEI:GOKEX Income Statement Jun 5th 18 We can further examine Gokaldas Exports's loss by looking at what the industry has been experiencing over the past few years.
Gokaldas Exports Limited (NSE:GOKEX): What Does It Mean For Your Portfolio?
With a market cap of ₹3.87B, GOKEX falls within the small-cap spectrum of stocks, which are found to experience higher relative risk compared to larger companies. … Thus, we can expect GOKEX to be more volatile in the face of market movements, relative to its peers of similar size but with a lower proportion of fixed assets on their books. … However, this is the opposite to what GOKEX’s actual beta value suggests, which is lower stock volatility relative to the market.
Are Gokaldas Exports Limited's (NSE:GOKEX) Interest Costs Too High?
How does GOKEX’s operating cash flow stack up against its debt? … GOKEX's debt level has been constant at around ₹3.41B over the previous year made up of current and long term debt. … Maintaining a high level of debt, while revenues are still below costs, can be dangerous as liquidity tends to dry up in unexpected downturns.Next Steps: At its current level of cash flow coverage, GOKEX has room for improvement to better cushion for events which may require debt repayment.
This size of ownership gives retail investors collective power in deciding on major policy decisions such as executive compensation, appointment of directors and acquisitions of businesses. … This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and potential acquisitions. … Thus, investors should dig deeper into GOKEX's business relations with these companies and how it can affect shareholder returns in the long-term.Next Steps: Institutional ownership level and composition in GOKEX is not high nor active enough to significantly impact its investment thesis.
How Does Gokaldas Exports Limited (NSE:GOKEX) Affect Your Portfolio Returns?
Based on this beta value, GOKEX appears to be a stock that an investor with a high-beta portfolio would look for to reduce risk exposure to the market. … With a market cap of IN₨3.59B, GOKEX falls within the small-cap spectrum of stocks, which are found to experience higher relative risk compared to larger companies. … However, this is the opposite to what GOKEX’s actual beta value suggests, which is lower stock volatility relative to the market.
Is Gokaldas Exports Limited's (NSE:GOKEX) Balance Sheet A Threat To Its Future?
How does GOKEX’s operating cash flow stack up against its debt? … Its cash flow coverage of less than a quarter of debt means that operating efficiency could be an issue. … GOKEX’s high debt levels is not met with high cash flow coverage.
Gokaldas Exports Limited designs, manufactures, and sells a range of garments and related products in India. Its products include jackets, shirts, suits, and lowers for men; and jackets, tops, and lowers for women, as well as garments for children. The company serves international fashion brands and retailers. Gokaldas Exports Limited also exports its products to the United States, Europe, Latin America, and the Middle East. The company was incorporated in 1979 and is based in Bengaluru, India.
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