Discounted Cash Flow Calculation for NSEI:INDIANCARD using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
Indian Card Clothing
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:INDIANCARD DCF 1st Stage: Next 5 year cash flow forecast
Amount off the current price
Indian Card Clothing
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
Indian Card Clothing
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Indian Card Clothing's share price is below the future cash flow value, and at a moderate discount (> 20%).
Indian Card Clothing'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
Indian Card Clothing's
is considered below, and whether this is a fair price.
Price based on past earnings
Indian Card Clothing's earnings available for a low price, and how does
this compare to other companies in the same industry?
Indian Card Clothing's earnings are expected to grow significantly at over 20% yearly.
Unable to determine if Indian Card Clothing 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.
Indian Card Clothing'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.
Indian Card Clothing
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
Indian Card Clothing's finances.
The net worth of a company is the difference between its assets and liabilities.
Indian Card Clothing is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Indian Card Clothing's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Indian Card Clothing'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 7.4x 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.
What Kind Of Investor Owns Most Of The Indian Card Clothing Company Limited (NSE:INDIANCARD)?
A look at the shareholders of The Indian Card Clothing Company Limited (NSE:INDIANCARD) can tell us which group is most powerful. … Indian Card Clothing is not a large company by global standards. … See our latest analysis for Indian Card Clothing
Is The Indian Card Clothing Company Limited's (NSE:INDIANCARD) Balance Sheet A Threat To Its Future?
Investors are always looking for growth in small-cap stocks like The Indian Card Clothing Company Limited (NSE:INDIANCARD), with a market cap of ₹547m. … However, an important fact which most ignore is: how financially healthy is the business? … the current state of its operations and pathway to profitability.
Who Owns Most Of The Indian Card Clothing Company Limited (NSE:INDIANCARD)?
In this article, I will take a quick look at The Indian Card Clothing Company Limited’s (NSE:INDIANCARD) recent ownership structure – an unconventional investing subject, but an important one. … The effect of an active institutional investor with a similar ownership as a passive pension-fund can be vastly different on a company's corporate governance and accountability to shareholders. … Check out our latest analysis for Indian Card Clothing
What You Must Know About The Indian Card Clothing Company Limited's (NSE:INDIANCARD) Financial Strength
The Indian Card Clothing Company Limited (NSE:INDIANCARD) is a small-cap stock with a market capitalization of ₹653.38m. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health.
How The Indian Card Clothing Company Limited (NSE:INDIANCARD) Can Impact Your Portfolio Volatility
Based on this beta value, INDIANCARD appears to be a stock that an investor with a high-beta portfolio would look for to reduce risk exposure to the market. … A market capitalisation of ₹642.69M puts INDIANCARD in the category of small-cap stocks, which tends to possess higher beta than larger companies. … Depending on the composition of your portfolio, low-beta stocks such as INDIANCARD is valuable to lower your risk of market exposure, in particular, during times of economic decline.
Is The Indian Card Clothing Company Limited (NSE:INDIANCARD) A Smart Choice For Dividend Investors?
Check out our latest analysis for Indian Card Clothing 5 checks you should use to assess a dividend stock Whenever I am looking at a potential dividend stock investment, I always check these five metrics: Is it the top 25% annual dividend yield payer? … NSEI:INDIANCARD Historical Dividend Yield Apr 26th 18 How does Indian Card Clothing fare? … Relative to peers, Indian Card Clothing produces a yield of 7.82%, which is high for Luxury stocks.Next Steps: With these dividend metrics in mind, I definitely rank Indian Card Clothing as a strong income stock, and is worth further research for anyone who considers dividends an important part of their portfolio strategy.
Is The Indian Card Clothing Company Limited's (NSE:INDIANCARD) Balance Sheet Strong Enough To Weather A Storm?
How does INDIANCARD’s operating cash flow stack up against its debt? … We can check to see whether INDIANCARD is able to meet its debt obligations by looking at the net interest coverage ratio. … In INDIANCARD's, case, the ratio of 18x suggests that interest is comfortably covered, which means that lenders may be inclined to lend more money to the company, as it is seen as safe in terms of payback.Next Steps: Although INDIANCARD’s debt level is relatively low, its cash flow levels still could not copiously cover its borrowings.
Will The Indian Card Clothing Company Limited (NSE:INDIANCARD) Continue To Underperform Its Industry?
See our latest analysis for Indian Card Clothing Breaking down Return on Equity Firstly, Return on Equity, or ROE, is simply the percentage of last years’ earning against the book value of shareholders’ equity. … Indian Card Clothing’s cost of equity is 13.40%. … Although, its appropriate level of leverage means investors can be more confident in the sustainability of Indian Card Clothing’s return with a possible increase should the company decide to increase its debt levels.
Have Investors Already Priced In Consumer Sector Growth For The Indian Card Clothing Company Limited (NSE:INDIANCARD)?
Indian Card Clothing lags the pack with its negative growth rate of -62.20% over the past year, which indicates the company will be growing at a slower pace than its luxury goods peers. … In terms of returns, Indian Card Clothing generated 6.34% in the past year, which is 2% below the luxury goods sector. … Next Steps: Indian Card Clothing has been a luxury goods industry laggard in the past year.
Should You Be Holding The Indian Card Clothing Company Limited (NSE:INDIANCARD) Right Now?
Indian Card Clothing's beta of 0.08 indicates that the stock value will be less variable compared to the whole stock market. … Based on this beta value, INDIANCARD appears to be a stock that an investor with a high-beta portfolio would look for to reduce risk exposure to the market. … An asset-heavy company tends to have a higher beta because the risk associated with running fixed assets during a downturn is highly expensive.
The Indian Card Clothing Company Limited manufactures and sells flexible and metallic card clothing products in India and internationally. It operates through two segments, Card Clothing and Real Estate. The company’s products include cotton and synthetic products comprising cylinder wires, doffer wires, lickerin wires, and flat tops; metallic wires for non-woven cards; woollen, sundry, and fancy fillets; rasing fillets and brush sheets for various type of fibers; and general fillets, case specific sundries, and hand cleaning cards and brushing pads. It also provides various card accessories, including Web Catchers; Accura for ERM and RSK; Accura carding elements; and XTRAC systems. The company was incorporated in 1955 and is based in Pune, India. The Indian Card Clothing Company Limited is a subsidiary of Multi Act Industrial Enterprises Ltd.
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.