Discounted Cash Flow Calculation for NSEI:SPENTEX 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:SPENTEX 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.
CLC Industries's share price is below the future cash flow value, and at a moderate discount (> 20%).
CLC 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
CLC 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 CLC 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 CLC Industries's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare CLC Industries's earnings growth to the India market average as no estimate data is available.
Unable to compare CLC Industries's revenue growth to the India market average as no estimate data is available.
Unable to determine if CLC Industries is high growth as no earnings estimate data is available.
Unable to determine if CLC 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.
CLC 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.
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. Mukund Choudhary serves as the Managing Director of Spentex Industries Limited. Mr. Choudhary has been Director at CLC Industries Ltd since March 5, 2004 and its Chief Executive Officer since November 14, 2018 and serves as its Managing Director. He is overall in charge of entire affairs of the CLC Industries Ltd strategizing or future planning for the growth and profitability. Mr. Choudhary served with CLC Global Ltd. He served as Managing Director of Indo Rama Textiles Ltd., since May 24, 2006. He has been an Executive Director of Spentex Industries Limited since May 12, 2004. He served as a Non-Executive Independent Director of Vardhman Special Steels Limited from March 15, 2011 to October 07, 2014. Mr. Choudhary served as a Director of Indo Rama Textiles, Ltd., since May 24, 2006. He joined family business in 1992. He has acquired CLC Global Ltd. and Spentex Industries Ltd. under SEBI (SAST) Regulations, 1997 and expanded business to manifold and today commands the most reputed name amongst textile mills for marketing their products. Mr. Choudhary is Commerce graduate and is having rich experience in operations aspects.
Mukund's compensation has been consistent with company performance over the past year.
Mukund's remuneration is lower than 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 CLC Industries management team is less than 2 years, this suggests a new team.
MD, CEO & Executive Director
COO, Deputy MD & Executive Director
Assistant Vice President of Operations
Consultant and Technical Advisor
Chief Financial Officer
Company Secretary & Compliance Officer
Unit Head of Solapur
Unit Head of Baramati
Senior Manager of Secretarial
Board of Directors Tenure
Average tenure of the
board of directors in years:
The average tenure for the CLC Industries board of directors is less than 3 years, this suggests a new board.
Introducing CLC Industries (NSE:SPENTEX), The Stock That Slid 56% In The Last Year
Given that CLC Industries didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. … Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth. … CLC Industries's revenue didn't grow at all in the last year.
CLC Industries Limited (NSE:SPENTEX): What Does Its Beta Value Mean For Your Portfolio?
In finance, Beta is a measure of volatility. … Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. … Beta is a widely used metric to measure a stock's exposure to market risk (volatility).
What Kind Of Investor Owns Most Of CLC Industries Limited (NSE:SPENTEX)?
Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … CLC Industries is not a large company by global standards. … institutions don't own many shares in the company
Before You Buy CLC Industries Limited (NSE:SPENTEX), Consider Its Volatility
Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. … Beta can be a useful tool to understand how much a stock is influenced 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.
Why Spentex Industries Limited's (NSE:SPENTEX) Ownership Structure Is Important
I am going to take a deep dive into Spentex Industries Limited’s (NSE:SPENTEX) 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. … Therefore, it is beneficial for us to examine SPENTEX's ownership structure in more detail.
Does Spentex Industries Limited (NSE:SPENTEX) Go Up With The Market?
If you are looking to invest in Spentex Industries Limited’s (NSEI:SPENTEX), or currently own the stock, then you need to understand its beta in order to understand how it can affect the risk of your portfolio. … A popular measure of market risk for a stock is its beta, and the market as a whole represents a beta value of one. … SPENTEX’s beta indicates it is a stock that investors may find valuable if they want to reduce the overall market risk exposure of their stock portfolio.
Who Are The Largest Shareholders In Spentex Industries Limited (NSE:SPENTEX)?
In this article, I will take a quick look at Spentex Industries Limited’s (NSEI:SPENTEX) recent ownership structure – an unconventional investing subject, but an important one. … Insider Ownership Another important group of shareholders are company insiders. … As a result, potential investors should further explore the company's business relations with these companies and find out if they can affect shareholder returns in the long-term.Next Steps: Institutional ownership in SPENTEX is not at a level that would concern investors.
Can Spentex Industries Limited (NSE:SPENTEX) Improve Your Portfolio Returns?
SPENTEX's beta implies it may be a stock that investors with high-beta portfolios might find relevant if they wanted to reduce their exposure to market risk, especially during times of downturns. … SPENTEX, with its market capitalisation of ₹794.48M, is a small-cap stock, which generally have higher beta than similar companies of larger size. … How SPENTEX's assets could affect its beta An asset-heavy company tends to have a higher beta because the risk associated with running fixed assets during a downturn is highly expensive.
Spentex Industries Limited (NSE:SPENTEX) And The Consumer Sector Outlook 2017
Today, I will analyse the industry outlook, and also determine whether Spentex Industries is a laggard or leader relative to its consumer discretionary sector peers. … Spentex Industries has been a luxury goods industry laggard in the past year. … If your initial investment thesis is around the growth prospects of Spentex Industries, there are other luxury goods companies that have delivered higher growth, and perhaps trading at a discount to the industry average.
Who Are The Major Shareholders In Spentex Industries Limited (NSE:SPENTEX)?
This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and potential acquisitions. … Private Company Ownership Potential investors in SPENTEX should also look at another important group of investors: private companies, with a stake of 21.57%, who are primarily invested because of strategic and capital gain interests. … Thus, investors should dig deeper into SPENTEX's business relations with these companies and how it can affect shareholder returns in the long-term.What this means for you: Institutional ownership level and composition in SPENTEX is not high nor active enough to significantly impact its investment thesis.
CLC Industries Limited, a textile company, manufactures and trades in synthetic and cotton yarns in India and internationally. It offers hosiery, weaving, carpet, and industrial yarns; sewing threads; and flat knitting products for use in home textiles and garments industry applications. The company was formerly known as Spentex Industries Limited and changed its name to CLC Industries Limited in July 2018. CLC Industries Limited was incorporated in 1991 and is based in New Delhi, India.
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