Discounted Cash Flow Calculation for NSEI:ICIL using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
Indo Count Industries
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:ICIL DCF 1st Stage: Next 10 year cash flow forecast
The current share price of
Indo Count Industries
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
Indo Count Industries's
is considered below, and whether this is a fair price.
Price based on past earnings
Indo Count Industries's earnings available for a low price, and how does
this compare to other companies in the same industry?
Indo Count Industries's earnings are expected to grow by 4.7% yearly, however this is not considered high growth (20% yearly).
Indo Count Industries's revenue is expected to grow by 8.6% yearly, however this is not considered high growth (20% yearly).
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.
Indo Count 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.
Indo Count Industries
has a total score of
1/6, 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
Indo Count Industries's finances.
The net worth of a company is the difference between its assets and liabilities.
Indo Count Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Indo Count Industries's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Indo Count Industries'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 2.9x 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. Kailash Ramniwas Lalpuria has been Whole-Time Director of Indo Count Industries Ltd., since May 4, 2018 and its Chief Executive Officer since February 8, 2019. Mr. Lalpuria was a Group President of Indo Count Industries Ltd., since November 13, 2017. He served as an Executive Director at Indo Count Industries Ltd. from November 11, 2010 to November 13, 2017. A qualified Chartered Accountant, Mr. Lalpuria is a Science graduate from st. Xavier's College in Mumbai and has more than 35 years of experience in the Textile Sector. His expertise includes Strategic Growth of Organization, Planning Joint Ventures, Developing Overseas Sales Team, Contribution in overall Value Chain, New Areas of Business Development, Commercial Aspects of Export Business, Sales & Marketing and Customer Relationship Management. He has the entrepreneur skills to conceptualize business and establish it as a successful enterprise. He is also Director of Confederation of Indian Industry (CII) and on committees of TEXPROCIL and FICCI.
Kailash's compensation has been consistent with company performance over the past year.
Kailash's remuneration is higher than average for companies of similar size in India.
CEO & Executive Director
Company Secretary & Compliance Officer
Director of Works & Executive Director
Chief Financial Officer
President of Home Textiles
Deputy Company Secretary
Board of Directors Tenure
Average tenure and age of the
Indo Count Industries
board of directors in years:
The tenure for the Indo Count Industries board of directors is about average.
Did You Miss Indo Count Industries's (NSE:ICIL) Whopping 442% Share Price Gain?
It hasn't been the best quarter for Indo Count Industries Limited (NSE:ICIL) shareholders, since the share price has fallen 11% in that time. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During five years of share price growth, Indo Count Industries achieved compound earnings per share (EPS) growth of 31% per year.
Indo Count Industries Limited (NSE:ICIL): Time For A Financial Health Check
While small-cap stocks, such as Indo Count Industries Limited (NSE:ICIL) with its market cap of ₹7.1b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … since poor capital management may bring about bankruptcies,
Is Indo Count Industries Limited (NSE:ICIL) A Smart Choice For Dividend Investors?
Indo Count Industries Limited (NSE:ICIL) has paid a dividend to shareholders in the last few years. … Does Indo Count Industries tick all the boxes of a great dividend stock? … View our latest analysis for Indo Count Industries
Why Indo Count Industries Limited’s (NSE:ICIL) Use Of Investor Capital Doesn’t Look Great
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. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.
Could The Indo Count Industries Limited (NSE:ICIL) Ownership Structure Tell Us Something Useful?
Every investor in Indo Count Industries Limited (NSE:ICIL) should be aware of the most powerful shareholder groups. … Indo Count Industries is not a large company by global standards. … See our latest analysis for Indo Count Industries
Should You Be Tempted To Buy Indo Count Industries Limited (NSE:ICIL) At Its Current PE Ratio?
Indo Count Industries Limited (NSE:ICIL) is currently trading at a trailing P/E of 12.7x, which is lower than the industry average of 16.3x. … Although some investors may jump to the conclusion that this is a great buying opportunity, understanding the assumptions behind the P/E ratio might change your mind. … See our latest analysis for Indo Count Industries
What Does Indo Count Industries Limited's (NSE:ICIL) Ownership Structure Look Like?
In this analysis, my focus will be on developing a perspective on Indo Count Industries Limited’s (NSE:ICIL) latest ownership structure, a less discussed, but important factor. … A company's ownership structure is often linked to its share performance in both the long- and short-term. … See our latest analysis for Indo Count Industries
Intrinsic Calculation For Indo Count Industries Limited (NSE:ICIL) Shows Investors Are Overpaying
How far off is Indo Count Industries Limited (NSE:ICIL) from its intrinsic value? … by taking the foreast future cash flows of the company and discounting them back to today's value. … If you are reading this and its not July 2018 then I highly recommend you check out the latest calculation for Indo Count Industries by following the link below.
What is Behind Indo Count Industries Limited's (NSE:ICIL) Superior ROE?
I am writing today to help inform people who are new to the stock market. … and want to begin learning the link between Indo Count Industries Limited (NSE:ICIL)’s return fundamentals and stock market performance. … Indo Count Industries Limited (NSE:ICIL) delivered an ROE of 13.00% over the past 12 months, which is an impressive feat relative to its industry average of 7.44% during the same period.
What Makes Indo Count Industries Limited (NSE:ICIL) An Attractive Investment?
Indo Count Industries Limited (NSE:ICIL) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … In the case of ICIL, it.
Indo Count Industries Limited manufactures and sells home textile products in India. It offers bed sheets, including flat sheets, fitted sheets, and pillow cases; fashion bedding products, such as comforters, bed sheets, shams, quilts, coverlets, and decorative pillows; utility bedding products comprising mattress pads and protectors, and pillow shells; and institutional bedding products, which include basic white sheets, shams and pillows, bed skirts, and duvet covers. The company also produces cotton yarns, as well as provides bed linens. In addition, it operates showrooms in the United Kingdom, the United States, and Australia. The company sells its products primarily under the Harlequin, Scion, Sanderson, Boutique Living, Revival, The Pure Collection, Heirlooms of India, Boutique Living Coastal, Atlas, Morris & Co., and Haven brands through multi brand outlets, large format stores, merchants, importers, and e-commerce platform. It exports its products to approximately 54 countries. The company was incorporated in 1988 and is headquartered in Mumbai, India.
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