Discounted Cash Flow Calculation for NSEI:LOVABLE 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:LOVABLE 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.
Lovable Lingerie's share price is below the future cash flow value, and at a moderate discount (> 20%).
Lovable Lingerie'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
Lovable Lingerie's earnings available for a low price, and how does
this compare to other companies in the same industry?
Lovable Lingerie's earnings are expected to grow significantly at over 20% yearly.
Unable to determine if Lovable Lingerie 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.
Lovable Lingerie'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
Lovable Lingerie's finances.
The net worth of a company is the difference between its assets and liabilities.
Lovable Lingerie is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Lovable Lingerie's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Lovable Lingerie'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.
Lovable Lingerie has no debt, it does not need to be covered by short term assets.
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. Lattupalli Vinay Reddy has been the Chairman and Managing Director of Lovable Lingerie Limited since February 1, 2010 and served as its Compliance Officer. Mr. Reddy serves as Director of Lovable Lingerie Limited since December 24, 1999 and has been with Lovable Lingerie Limited. Since its inception. He served as the Acting Compliance Officer at Lovable Lingerie Limited since October 1, 2017. Mr. Reddy served as Head Finance & Accounts Department at Lovable Lingerie Limited since October 03, 2011. Mr. Reddy has over 20 years of experience in the innerwear industry. He has vast experience in the areas of management, marketing strategies and overall administration control and supervision. Mr. Reddy serves as a Director of Aarthik No-middleman Online Welfare Foundation, Juvenca Online Private Limited, Lovable Lifestyles Pvt. Ltd., Federal Brands Limited, Microtex Clothing Private Limited, Bellini Fashions Private Limited, Blue Chips Fashions Private Limited, Holstein Ecofoods Private Limited, La Reine Fashions Private Limited, Reddy and Pathare Elastics Private Limited, Vinay Hosiery Private Limited and Hype Integracomm Private Limited. Mr. Reddy served as a Director of Maxwell Industries Ltd until June 30, 2008. Mr. Reddy has a bachelor's degree in commerce from the University of Bombay.
Lattupalli's compensation has been consistent with company performance over the past year.
Lattupalli's remuneration is about 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 Lovable Lingerie management team is over 5 years, this suggests they are a seasoned and experienced team.
Chairman & MD
Chief Financial Officer
Company Secretary & Compliance Officer
General Manager of Sales & Marketing
Head of Procurement & Planning
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Lovable Lingerie board of directors is about average.
What Kind Of Investor Owns Most Of Lovable Lingerie Limited (NSE:LOVABLE)?
Every investor in Lovable Lingerie Limited (NSE:LOVABLE) should be aware of the most powerful shareholder groups. … Lovable Lingerie is a smaller company with a market capitalization of ₹1.7b, so it may still be flying under the radar of many institutional investors. … Check out our latest analysis for Lovable Lingerie
How Does Lovable Lingerie Limited (NSE:LOVABLE) Fare As A Dividend Stock?
A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … Historically, Lovable Lingerie Limited (NSE:LOVABLE) has paid dividends to shareholders, and these days it yields 1.0%. … Let's take a look at Lovable Lingerie in more detail.
Is Lovable Lingerie Limited's (NSE:LOVABLE) CEO Pay Justified?
Lattupalli Reddy took the helm as Lovable Lingerie Limited's (NSE:LOVABLE) CEO and grew market cap to ₹1.82b recently. … Understanding how CEOs are incentivised to run and grow their company is an important aspect of investing in a stock. … See our latest analysis for Lovable Lingerie
Lovable Lingerie Limited manufactures and sells women’s innerwear in India. Its products include brassieres, panties, slips/camisoles, homewear, shapewear, foundation garments, and sleepwear products. The company also offers athleisure, bottoms, capris, long tops, printed tracks, shorts, and tops. The company offers its products primarily under the Lovable, Daisy Dee, and College Style brands. Lovable Lingerie Limited was incorporated in 1987 and is headquartered in Mumbai, India.
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