Discounted Cash Flow Calculation for NSEI:TARAJEWELS 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 use
analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.
NSEI:TARAJEWELS DCF 1st Stage: Next 5 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.
Tara Jewels's share price is below the future cash flow value, and at a moderate discount (> 20%).
Tara Jewels'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
Tara Jewels'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 Tara Jewels 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 Tara Jewels's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Tara Jewels's earnings growth to the India market average as no estimate data is available.
Unable to compare Tara Jewels's revenue growth to the India market average as no estimate data is available.
Unable to determine if Tara Jewels is high growth as no earnings estimate data is available.
Unable to determine if Tara Jewels 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.
Tara Jewels'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.
TENURE AS CEO
Mr. Rajeev Vasant Sheth has been the Chairman of the Board and Managing Director of Tara Jewels Limited since September 29, 2010. Mr. Sheth has been an Executive Director at Tara Jewels Limited since March 16, 2001. Mr. Sheth has approximately 35 years of experience in the jewellery business. He started his career by promoting Rose International and thereafter became the promoter and Managing Director of Intergold India Limited from 1989 to 1999. He holds a graduate degree in commerce from Mumbai University. He holds a diploma in gemology from Gemological Institute of America.
Insufficient data for Rajeev to compare compensation growth.
Rajeev'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 tenure for the Tara Jewels management team is about average.
Chairman & MD
Chief Operating Officer
Vice President of Business Development - Exports Division
CFO & Executive Director
General Manager of Accounts & Costing
General Manager of Human Resources & Administration
Company Secretary & Compliance Officer
Senior Vice President of Operations
President of Merchandising & Product Development
General Manager of Finance
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Tara Jewels board of directors is about average.
What Kind Of Shareholder Owns Most Tara Jewels Limited (NSE:TARAJEWELS) Stock?
If you want to know who really controls Tara Jewels Limited (NSE:TARAJEWELS), then you'll have to look at the makeup of its share registry. … Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … Tara Jewels is a smaller company with a market capitalization of US$86m, so it may still be flying under the radar of many institutional investors.
Is Tara Jewels Limited's (NSE:TARAJEWELS) CEO Overpaid Relative To Its Peers?
Rajeev Sheth took the reins as CEO of Tara Jewels Limited's (NSE:TARAJEWELS) and grew market cap to ₹146.01m recently. … Understanding how CEOs are incentivised to run and grow their company is an important aspect of investing in a stock. … See our latest analysis for Tara Jewels
Is Tara Jewels Limited's (NSE:TARAJEWELS) Balance Sheet A Threat To Its Future?
How does TARAJEWELS’s operating cash flow stack up against its debt? … On top of this, TARAJEWELS has generated ₹693.00M in operating cash flow in the last twelve months, resulting in an operating cash to total debt ratio of 9.30%, meaning that TARAJEWELS’s operating cash is not sufficient to cover its debt. … Maintaining a high level of debt, while revenues are still below costs, can be dangerous as liquidity tends to dry up in unexpected downturns.Next Steps: TARAJEWELS’s cash flow coverage indicates it could improve its operating efficiency in order to meet demand for debt repayments should unforeseen events arise.
Why You Need To Look At This Factor Before Buying Tara Jewels Limited (NSE:TARAJEWELS)
Generally, an investor should consider two types of risk that impact the market value of TARAJEWELS. … A popular measure of market risk for a stock is its beta, and the market as a whole represents a beta value of one. … This outcome contradicts TARAJEWELS’s current beta value which indicates a below-average volatility.
Who Are The Major Shareholders In Tara Jewels Limited (NSE:TARAJEWELS)?
Insider Ownership I find insiders are another important group of stakeholders, who are directly involved in making key decisions related to the use of capital. … This level of insider ownership has been found to have a negative impact on companies with consistently low PE ratios (underperformers), while it has been positive in the case of high PE ratio firms (outperformers). … This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and potential acquisitions.
Tara Jewels Limited (NSE:TARAJEWELS): Should The Recent Earnings Drop Worry You?
After reading Tara Jewels Limited's (NSEI:TARAJEWELS) most recent earnings announcement (31 March 2017), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. … I also compare against an industry benchmark to check whether Tara Jewels's performance has been impacted by industry movements. … Each year, for the past five years Tara Jewels's top-line has risen by a mere 4.94%, on average.
Is Tara Jewels Limited (NSE:TARAJEWELS) A Financially Sound Company?
At this stable level of debt, the current cash and short-term investment levels stands at ₹758.0M for investing into the business. … Moreover, TARAJEWELS has produced ₹693.0M in operating cash flow during the same period of time, resulting in an operating cash to total debt ratio of 9.30%, signalling that TARAJEWELS’s current level of operating cash is not high enough to cover debt. … Maintaining a high level of debt, while revenues are still below costs, can be dangerous as liquidity tends to dry up in unexpected downturns.Next Steps: At its current level of cash flow coverage, TARAJEWELS has room for improvement to better cushion for events which may require debt repayment.
Tara Jewels Limited, together with its subsidiaries, designs, manufactures, and retails jewelry primarily in India. The company offers studded gold, diamond, platinum, and silver jewelry, including rings, pendants sets, necklaces sets, tanmaniya, earrings, and pendants, as well as coins. It sells its products through jewelry chain stores, online retailers, and television networks, as well as company owned stores across Metros, Tier I, Tier II, and Tier III Indian cities. The company also exports its jewelry to Australia, Canada, China, New Zealand, Russia, South Africa, the United States, and the United Kingdom, as well as the rest of Europe. The company was incorporated in 2001 and is based in Mumbai, India.
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