Discounted Cash Flow Calculation for NSEI:MOHOTAIND 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:MOHOTAIND 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.
Mohota Industries's share price is below the future cash flow value, and at a moderate discount (> 20%).
Mohota 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
Mohota Industries's earnings available for a low price, and how does
this compare to other companies in the same industry?
Mohota Industries's earnings are expected to grow significantly at over 20% yearly.
Unable to determine if Mohota 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.
Mohota 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
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
Mohota Industries's finances.
The net worth of a company is the difference between its assets and liabilities.
Mohota Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Mohota Industries's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Mohota 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 1.8x 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.
Mr. VinodKumar Ranchhoddas Mohota has been Chairman of Mohota Industries Limited since November 14, 2018. Mr. Mohota serves as the Managing Director and Executive Director of Rai Saheb Rekhchand Mohota Spg & Wvg Mills Limited. Mr. Mohota has expertise in Administration, Finance, Purchases. He has Directorships at Priya Viniyog Pvt. Ltd and Kolmeshwar Horticulture 8 Agriculture Farms Pvt. Limited. He studied B.Com.
Vinod Kumar's compensation has been consistent with company performance over the past year.
Vinod Kumar's remuneration is about average for companies of similar size in India.
Vinod Kumar Mohota
CFO & GM of Finance
Compliance Officer & Company Secretary
Vice President of Export
Vice President of Corporate
Executive Director & Senior Manager of Secretarial
Senior Vice President of Works
Vice President of Commercial
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Mohota Industries board of directors is less than 3 years, this suggests a new board.
Board of Directors
Vinod Kumar Mohota
Executive Director & Senior Manager of Secretarial
Here’s why Mohota Industries Limited’s (NSE:MOHOTAIND) Returns On Capital Matters So Much
Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … What is Return On Capital Employed (ROCE)? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.
Before You Buy Mohota Industries Limited (NSE:MOHOTAIND), Consider Its Volatility
Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.
The Mohota Industries Share Price Is Down 87% So Some Shareholders Are Rather Upset
It must have been painful to be a Mohota Industries Limited (NSE:MOHOTAIND) shareholder over the last year, since the stock price plummeted 87% in that time. … That's because it's hard for shareholders to have confidence a company will grow profits significantly if it isn't growing revenue. … In just one year Mohota Industries saw its revenue fall by 18%.
Why Mohota Industries Limited's (NSE:MOHOTAIND) High P/E Ratio Isn't Necessarily A Bad Thing
The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … We'll look at Mohota Industries Limited's (NSE:MOHOTAIND) P/E ratio and reflect on what it tells us about the company's share price. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Do Insiders Own Lots Of Shares In Mohota Industries Limited (NSE:MOHOTAIND)?
The big shareholder groups in Mohota Industries Limited (NSE:MOHOTAIND) have power over the company. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … Mohota Industries is a smaller company with a market capitalization of ₹1.1b, so it may still be flying under the radar of many institutional investors.
Read This Before Selling Mohota Industries Limited (NSE:MOHOTAIND) Shares
So we'll take a look at whether insiders have been buying or selling shares in Mohota Industries Limited (NSE:MOHOTAIND). … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … The Last 12 Months Of Insider Transactions At Mohota Industries.
Is Mohota Industries Limited (NSE:MOHOTAIND) A Volatile Stock?
If you're interested in Mohota Industries Limited (NSE:MOHOTAIND), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.
Don't Sell Mohota Industries Limited (NSE:MOHOTAIND) Before You Read This
To keep it practical, we'll show how Mohota Industries Limited's (NSE:MOHOTAIND) P/E ratio could help you assess the value on offer. … Mohota Industries has a P/E ratio of 19.05, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Mohota Industries Limited (NSE:MOHOTAIND): Risks You Need To Consider Before Buying
Generally, an investor should consider two types of risk that impact the market value of MOHOTAIND. … The second risk is market-wide, which arises from investing in the stock market. … A widely-used metric to measure a stock's market risk is beta, and the broad market index represents a beta value of one.
Is Mohota Industries Limited's (NSE:MOHOTAIND) PE Ratio A Signal To Sell For Investors?
This analysis is intended to introduce important early concepts to people who are starting to invest. … Mohota Industries Limited (NSE:MOHOTAIND) is currently trading at a trailing P/E of 30.4x, which is higher than the industry average of 15.2x. … View our latest analysis for Mohota Industries
Mohota Industries Limited manufactures and sells yarn and fabrics primarily in India. The company offers various synthetic/cotton/polycotton ring spun yarns; and cotton, single and double dyed, cross dyed, and grey/RFD, as well as plain, twill, and satin bleached and dyed fabrics. It also exports its products. The company was formerly known as The Rai Saheb Rekhchand Mohota Spinning & Weaving Mills Ltd. and changed its name to Mohota Industries Limited in November 2017. Mohota Industries Limited was founded in 1898 and is headquartered in Hinganghat, India.
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