Discounted Cash Flow Calculation for NSEI:MANDHANA 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:MANDHANA DCF 1st Stage: Next 10 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.
Mandhana Industries's share price is below the future cash flow value, and at a moderate discount (> 20%).
Mandhana 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
Mandhana 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 Mandhana 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 Mandhana Industries's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Mandhana Industries's earnings growth to the India market average as no estimate data is available.
Unable to compare Mandhana Industries's revenue growth to the India market average as no estimate data is available.
Unable to determine if Mandhana Industries is high growth as no earnings estimate data is available.
Unable to determine if Mandhana 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.
Mandhana 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.
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
Mandhana Industries's finances.
The net worth of a company is the difference between its assets and liabilities.
Mandhana Industries's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Mandhana Industries's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Mandhana 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.
Mandhana Industries has negative shareholder equity (liabilities exceed assets) therefore debt is not 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. Piyush Doshi has been Managing Director and Director of Mandhana Industries Limited since February 14, 2019. Mr. Doshi was a Non-Executive & Independent Director of Mandhana Industries Limited since January 30, 2019. He is a serial entrepreneur and consultant for past 25 years. He has vast experience in multiple sectors of industry that includes FMCG, Electronics, Industrial machinery and Textile and has worked as a business development consultant and expanded business growth to eventual targets. He has a Bachelor's Degree in Commerce and kept himself fairly updated through reading, attending seminars, workshops and short term management development courses. He believes that innovation and research & development are the driving forces for the growth of an entity.
Insufficient data for Piyush to compare compensation growth.
Insufficient data for Piyush to establish whether their remuneration is reasonable compared to companies of similar size in India.
MD & Director
Senior Vice President of Finance
Associate Vice President of Accounts
Vice President of Sales
Vice President of Merchandising & Business Development
Vice President of Business Development & Marketing
Project Head of Technical
President of Operations - Garment
Vice President of Marketing - Fabric Division
Board of Directors Tenure
Average tenure of the
board of directors in years:
The average tenure for the Mandhana Industries board of directors is less than 3 years, this suggests a new board.
Who Are The Major Shareholders Of Mandhana Industries Limited (NSE:MANDHANA)?
I am going to take a deep dive into Mandhana Industries Limited’s (NSE:MANDHANA) most recent ownership structure, not a frequent subject of discussion among individual 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. … It also impacts the trading environment of company shares, which is more of a concern for short-term investors.
Breaking Down Mandhana Industries Limited's (NSE:MANDHANA) Ownership Structure
I am going to take a deep dive into Mandhana Industries Limited’s (NSEI:MANDHANA) most recent ownership structure, not a frequent subject of discussion among individual investors. … Private Company Ownership Potential investors in MANDHANA should also look at another important group of investors: private companies, with a stake of 4.52%, who are primarily invested because of strategic and capital gain interests. … Thus, investors not need worry too much about the consequences of these holdings.Next Steps: Institutional ownership level and composition in MANDHANA is not high nor active enough to significantly impact its investment thesis.
Where Mandhana Industries Limited's (NSE:MANDHANA) Earnings Growth Stands Against Its Industry
Assessing Mandhana Industries Limited's (NSEI:MANDHANA) past track record of performance is an insightful exercise for investors. … Check out our latest analysis for Mandhana Industries Was MANDHANA's recent earnings decline worse than the long-term trend and the industry? … For the most up-to-date info, I 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.
Should You Be Concerned About Mandhana Industries Limited's (NSE:MANDHANA) Shareholders?
In this article, I will take a quick look at Mandhana Industries Limited’s (NSEI:MANDHANA) recent ownership structure – an unconventional investing subject, but an important one. … See our latest analysis for Mandhana Industries NSEI:MANDHANA Ownership_summary Jan 3rd 18 Institutional Ownership Institutions account for 14.84% of MANDHANA's outstanding shares, a significant enough holding to move stock prices if they start buying and selling in large quantities, especially when there are relatively small amounts of shares available on the market to trade. … Thus, potential investors should look into these business relations and check how it can impact long-term shareholder returns.What this means for you: MANDHANA's considerably high level of institutional ownership calls for further analysis into its margin of safety.
What Can We Expect for Mandhana Industries Limited (NSE:MANDHANA) Moving Forward?
Mandhana Industries Limited (NSEI:MANDHANA), a INR₹254.39M small-cap, operates in the consumer discretionary industry, whose sales are driven primarily by consumer sentiment, which is closely linked to employment and wages. … View our latest analysis for Mandhana Industries What’s the catalyst for Mandhana Industries's sector growth? … If Mandhana Industries has been on your watchlist for a while, now may be the time to enter into the stock, if you like its ability to deliver growth and are not highly concentrated in the luxury goods industry.
Should You Be Content With Mandhana Industries Limited's (NSE:MANDHANA) 45.6% Earnings Growth?
Check out our latest analysis for Mandhana Industries Did MANDHANA beat its long-term earnings growth trend and its industry? … Mandhana Industries's latest twelve-month earnings -₹3,162.7M, which, relative to last year’s level, has become less negative. … Though Mandhana Industries's past data is helpful, it is only one aspect of my investment thesis.
Mandhana Industries Limited manufactures and sells textiles and garments in India. The company offers fabrics, including cotton and cotton blends. It also provides woven casual wear comprising men’s shirts; women’s blouses, dresses, and skirts; casual bottom wear; and kids wear for labels that include chain stores, hi-street, and luxury brands. The company also exports its products. Mandhana Industries Limited was founded in 1984 and is headquartered in Mumbai, India.
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