Discounted Cash Flow Calculation for NSEI:SIYSIL using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
Siyaram Silk Mills
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:SIYSIL DCF 1st Stage: Next 10 year cash flow forecast
The current share price of
Siyaram Silk Mills
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
Siyaram Silk Mills's
is considered below, and whether this is a fair price.
Price based on past earnings
Siyaram Silk Mills's earnings available for a low price, and how does
this compare to other companies in the same industry?
Siyaram Silk Mills's earnings are expected to grow by 12.4% yearly, however this is not considered high growth (20% yearly).
Siyaram Silk Mills's revenue is expected to grow by 9.9% 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.
Siyaram Silk Mills'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.
Siyaram Silk Mills
has a total score of
2/6, 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
Siyaram Silk Mills's finances.
The net worth of a company is the difference between its assets and liabilities.
Siyaram Silk Mills is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Siyaram Silk Mills's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Siyaram Silk Mills'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 1.7x 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. Rameshkumar Dharaprasad Poddar has been the Chairman of Siyaram Silk Mills Ltd. since May 2012 and serves as its Managing Director. Mr. Poddar is an Industrialist with vast experience in Textile and Rubber Industry. He served as Vice Chairman of Siyaram Silk Mills Ltd. until May 2012. He has been a Director of Siyaram Silk Mills Ltd. since January 24, 1989. He served as a Non Executive Non-Independent Director of Balkrishna Industries Ltd. since July 31, 2006 until September 9, 2016. Mr. Poddar has B.Sc.
Rameshkumar's compensation has increased by more than 20% in the past year.
Rameshkumar's remuneration is higher than average for companies of similar size in India.
Chairman & MD
Pawan Kumar Poddar
Joint MD & Director
Ashok Kumar Jalan
Senior President & Whole-Time Director
President & Executive Director
Chief Financial Officer
Compliance Officer & Company Secretary
Director of Works
Board of Directors Tenure
Average tenure and age of the
Siyaram Silk Mills
board of directors in years:
The tenure for the Siyaram Silk Mills board of directors is about average.
Do Directors Own Siyaram Silk Mills Limited (NSE:SIYSIL) Shares?
A look at the shareholders of Siyaram Silk Mills Limited (NSE:SIYSIL) can tell us which group is most powerful. … With a market capitalization of ₹20b, Siyaram Silk Mills is a small cap stock, so it might not be well known by many institutional investors. … Check out our latest analysis for Siyaram Silk Mills
Introducing Siyaram Silk Mills (NSE:SIYSIL), The Stock That Soared 635% In The Last Five Years
For example, the Siyaram Silk Mills Limited (NSE:SIYSIL) share price is up a whopping 635% in the last half decade, a handsome return for long term holders. … Over half a decade, Siyaram Silk Mills managed to grow its earnings per share at 15% a year. … This EPS growth is slower than the share price growth of 49% per year, over the same period.
What does Siyaram Silk Mills Limited's (NSE:SIYSIL) Balance Sheet Tell Us About Its Future?
While small-cap stocks, such as Siyaram Silk Mills Limited (NSE:SIYSIL) with its market cap of ₹16b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … I believe these basic checks tell most of the story you need to know.
Has Siyaram Silk Mills Limited (NSE:SIYSIL) Improved Earnings Growth In Recent Times?
For long-term investors, assessing earnings trend over time and against industry benchmarks is more beneficial than examining a single earnings announcement at a point in time. … Investors may find my commentary, albeit very high-level and brief, on Siyaram Silk Mills Limited (NSE:SIYSIL) useful as an attempt to give more color around how Siyaram Silk Mills is currently performing. … View our latest analysis for Siyaram Silk Mills.
How Siyaram Silk Mills Limited (NSE:SIYSIL) Could Add Value To Your Portfolio
Siyaram Silk Mills Limited (NSE:SIYSIL) 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 SIYSIL, it
Could The Siyaram Silk Mills Limited (NSE:SIYSIL) Ownership Structure Tell Us Something Useful?
A look at the shareholders of Siyaram Silk Mills Limited (NSE:SIYSIL) can tell us which group is most powerful. … Siyaram Silk Mills is a smaller company with a market capitalization of ₹17b, so it may still be flying under the radar of many institutional investors. … See our latest analysis for Siyaram Silk Mills
A Close Look At Siyaram Silk Mills Limited’s (NSE:SIYSIL) 22% ROCE
To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … What is Return On Capital Employed (ROCE)? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.
Should You Be Tempted To Sell Siyaram Silk Mills Limited (NSE:SIYSIL) Because Of Its P/E Ratio?
We'll show how you can use Siyaram Silk Mills Limited's (NSE:SIYSIL) P/E ratio to inform your assessment of the investment opportunity. … Siyaram Silk Mills has a price to earnings ratio of 13.39, based on the last twelve months. … How Do You Calculate Siyaram Silk Mills's P/E Ratio
Can Siyaram Silk Mills Limited's (NSE:SIYSIL) ROE Continue To Surpass The Industry Average?
To keep the lesson grounded in practicality, we'll use ROE to better understand Siyaram Silk Mills Limited (NSE:SIYSIL). … Over the last twelve months Siyaram Silk Mills has recorded a ROE of 16%. … View our latest analysis for Siyaram Silk Mills?
Is Siyaram Silk Mills Limited's (NSE:SIYSIL) Balance Sheet A Threat To Its Future?
However, an important fact which most ignore is: how financially healthy is the business? … Assessing first and foremost the financial health is. … Here are a few basic checks that are good enough to have a broad overview of the company’s financial strength.
Siyaram Silk Mills Limited manufactures and sells fabrics and readymade garments in India. The company offers fabrics, including polyester viscose, polyester viscose linen and lycra, polyester rayon and cotton, polyester wool, polyester wool lycra, wool lycra and linen, wool, cotton, linen, and cotton linen fabrics; and CVC and PC yarn-dyed shirtings. It also provides formal and casual ready to wear garments; home furnishing fabrics, such as curtains and upholstery fabrics; womenswear comprises salwar kameez and dupatta materials; dyed yarns; and basic, corporate, and school uniforms. In addition, the company operates and franchises a chain of retail stores, which offer men’s fashion fabrics, apparels, and accessories under the Siyaram’s Shop name; and exports its products to the United States, the United Kingdom, France, South East Asia, Australia, and Latin America. The company sells its products under the Siyaram’s Suitings and Shirtings, Mistair, Moretti, Royale Linen, Little Champ, Miniature, Unicode, J. Hampstead, Oxemberg, Siya, Cadini, and Casa Moda brand names. Siyaram Silk Mills Limited was founded in 1978 and is based in Mumbai, India.
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