Discounted Cash Flow Calculation for NSEI:SPLIL 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:SPLIL 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.
SPL Industries's share price is below the future cash flow value, and at a moderate discount (> 20%).
SPL Industries's share price is below the future cash flow value, but not 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
SPL Industries's earnings available for a low price, and how does
this compare to other companies in the same industry?
SPL Industries's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
Unable to determine if SPL 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.
SPL 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
4/6, 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. Mukesh Kumar Aggarwal serves as the Chairman of the Board and Managing Director/Chief Executive Officer of SPL Industries Limited. Mr. Aggarwal has very vast experience in managing the affairs of garment manufacturing enterprises. He has been a Non-Independent Executive Director of SPL Industries Limited since April 01, 2010. Mr. Aggarwal is a Commerce Graduate.
Mukesh's compensation has been consistent with company performance over the past year.
Mukesh's remuneration is higher than average for companies of similar size in India.
Chairman of the Board & MD/CEO
Chief Financial Officer
Compliance Officer & Company Secretary
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the SPL Industries board of directors is about average.
Is SPL Industries Limited's (NSE:SPLIL) CEO Pay Fair?
This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Mukesh Aggarwal's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that SPL Industries Limited has a market cap of ₹1.4b, and is paying total annual CEO compensation of ₹6.0m.
Is SPL Industries Limited’s (NSE:SPLIL) 29% ROCE Any Good?
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. … Understanding Return On Capital Employed (ROCE). … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.
What Kind Of Shareholders Own SPL Industries Limited (NSE:SPLIL)?
Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … SPL Industries is a smaller company with a market capitalization of ₹1.6b, so it may still be flying under the radar of many institutional investors. … Our analysis of the ownership of the company, below, shows that.
Should You Be Excited About SPL Industries Limited's (NSE:SPLIL) 33% Return On Equity?
With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … One way to conceptualize this, is that for each ₹1 of shareholders' equity it has, the company made ₹0.33 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Understanding Your Return On Investment In SPL Industries Limited (NSE:SPLIL)
and want a simplistic look at the return on SPL Industries Limited (NSE:SPLIL) stock. … Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … To understand SPL Industries’s capital returns we will look at a useful metric called return on capital employed.
Where SPL Industries Limited's (NSE:SPLIL) Earnings Growth Stands Against Its Industry
When SPL Industries Limited (NSE:SPLIL) announced its most recent earnings (31 March 2018), I did two things: looked at its past earnings track record, then look at what is happening in the industry. … Did SPLIL's recent earnings growth beat the long-term trend and the industry. … SPLIL recently turned a profit of ₹53.87m (most recent trailing twelve-months) compared to its average loss of -₹33.74m over the past five years
Should You Expect SPL Industries Limited (NSE:SPLIL) To Continue Delivering An ROE Of 7.65%?
and want a simplistic look at the return on SPL Industries Limited (NSE:SPLIL) stock. … SPL Industries Limited (NSE:SPLIL) delivered an ROE of 7.65% over the past 12 months, which is relatively in-line with its industry average of 7.38% during the same period. … With more debt, SPLIL can invest even more and earn more money, thus pushing up its returns.
Should You Be Tempted To Buy SPL Industries Limited (NSE:SPLIL) At Its Current PE Ratio?
The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market. … and want to better understand how you can grow your money by investing in SPL Industries Limited (NSE:SPLIL). … SPL Industries Limited (NSE:SPLIL) is currently trading at a trailing P/E of 13.3x, which is lower than the industry average of 16.6x.
SPL Industries Limited designs, manufactures, and sells cotton knitted garments and fabrics in India. The company offers made ups; and outer wear, such as T shirts, sweat shirts, polo shirts, etc. It also trades in garments; and exports its products. The company was formerly known as Shivalik Prints Private Limited and changed its name to SPL Industries Limited in 1994. SPL Industries Limited was incorporated in 1991 and is based in Faridabad, India.
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